Timberland Bancorp Inc. (TSBK, Financial) filed Quarterly Report for the period ended 2008-12-31.
Timberland Bancorp Inc. was organized for the purpose of becoming the holding company for Timberland Savings Bank. The Savings Bank is a community oriented savings bank which offeres a variety of savings products to its retail customers while concentrating its lending activities on real estate mortgage loans. Timberland Bancorp Inc. has a market cap of $40.97 million; its shares were traded at around $6.7999 with a P/E ratio of 7.7 and P/S ratio of 0.81. The dividend yield of Timberland Bancorp Inc. stocks is 7.5%. Timberland Bancorp Inc. had an annual average earning growth of 9% over the past 5 years.
44 loans and 27 credit relationships. These 44 loans consisted of 15 single
family speculative construction loans totaling $4.40 million (of which the
largest has a balance of $395,00), a $2.60 million land development loan in
Eastern Washington, a $1.36 million participation interest in a land development
loan located in Clark County, 16 individual lot (land ) loans totaling $1.93
million, three commercial real estate loans totaling $1.18 million, a $1.39
million multi-family loan, three single family home loans totaling $328,000,
three home equity consumer loans totaling $317,000 and a $31,000 consumer loan.
Net Income: Net income for the quarter ended December 31, 2008 decreased by
$1.25 million, or 77.6%, to $361,000 from $1.62 million for the quarter ended
December 31, 2007. Earnings per diluted common share for the quarter ended
December 31, 2008 decreased to $0.05 from $0.24 for the quarter ended December
31, 2007. The $0.19 decrease in diluted earnings per common share was primarily
a result of a $1.17 million ($772,000 net of income tax - $0.12 per diluted
common share) other than temporary impairment charge on mortgage-backed
securities, a $686,000 ($453,000 net of income tax - $0.07 per diluted common
share) increase in non-interest expense, a $455,000 ($300,000 net of income tax
- $0.05 per diluted common share) decrease in net interest income, and a
$115,000 ($76,000 net of income tax - $0.01 per diluted common share) increase
in the provision for loan losses. These decreases to earnings per common share
were partially offset by a $579,000 increase ($382,000 net of income tax - $0.06
per diluted common share) in non-interest income (excluding the impairment
charge).
Net Interest Income: Net interest income decreased by $455,000 or 6.6%, to
$6.46 million for the quarter ended December 31, 2008 from $6.92 million for the
quarter ended December 31, 2007. The decrease in net interest income was
primarily attributable to interest rate decreases, which compressed margins, and
the reversal of interest on loans placed on non-accrual status. These decreases
were, however, partially offset by a larger interest earning asset base. Total
interest and dividend income decreased by $1.45 million, or 12.7%, to $10.03
million for the quarter ended December 31, 2008 from $11.48 million for the
quarter ended December 31, 2007 as the yield on interest earning assets
decreased to 6.50% from 7.62%. Total average interest earning assets increased
by $14.65 million to $617.28 million for the quarter ended December 31, 2008
from $602.63 million for quarter ended December 31, 2007. Total interest
expense decreased by $997,000, or 21.9%, to $3.56 million for the quarter ended
December 31, 2008 from $4.56 million for the quarter ended December 31, 2007 as
the average rate paid on interest bearing liabilities decreased to 2.67% for the
quarter ended December 31, 2008 from 3.49% for the quarter ended December 31,
2007. Total average interest bearing liabilities increased by $11.99 million to
$530.69 million for the quarter ended December 31, 2008 from $518.70 million for
the quarter ended December 31, 2007. The net interest margin decreased to 4.19%
for the quarter ended December 31, 2008 from 4.59% for the quarter ended
December 31, 2007. The margin compression was primarily attributable to
significant interest rate decreases by the Federal Reserve which reduced the
yield on interest earning assets at a faster pace than the Bank was able to
reduce its funding costs. The reversal of interest income on loans placed on
non-accrual status also contributed to the margin compression and reduced the
net interest margin by approximately 11 basis points during the quarter ended
December 31, 2008. For additional information, see the section below entitled
"Rate Volume Analysis."
Rate Volume Analysis
The following table sets forth the effects of changing rates and volumes on the
net interest income on the Company. Information is provided with respect to the
(i) effects on interest income attributable to change in volume (changes in
volume multiplied by prior rate), and (ii) effects on interest income
attributable to changes in rate (changes in rate multiplied by prior volume),
and (iii) the net change (sum of the prior columns). Changes in rate/volume
have been allocated to rate and volume variances based on the absolute values of
each.
Three months ended December 31, 2008
compared to three months
ended December 31, 2007
increase (decrease)
due to
-
Rate Volume Net Change
- - -
(In thousands)
Interest-earning assets:
Loans receivable (1) ($1,704) $510 ($1,194)
Investments and
mortgage-backed securities 83 80 163
FHLB stock and equity securities (212) (201) (413)
Federal funds sold (42) 35 (7)
Interest-bearing deposits (13) 12 (1)
Total net increase in income - - -
on interest-earning assets ($1,888) 436 ($1,452)
Interest-bearing liabilities:
Savings accounts - - -
NOW accounts 18 22 40
Money market accounts (118) 84 (34)
Certificate accounts (787) (56) (843)
Short-term borrowings (241) (235) (476)
Long-term borrowings (17) 333 316
Total net increase in expense - - -
on interest bearing liabilities ($1,145) 148 ($997)
At At At
December 31, September 30, December 31,
2008 2008 2007
-
ASSET QUALITY RATIOS:
Non-performing loans $ 13,520 $ 11,990 $ 3,908
OREO & other repossessed assets 1,266 511 -
Total non-performing assets $ 14,786 $ 12,501 $ 3,908
Non-performing assets to total assets (c) 2.20% 1.83% 0.60%
Allowance for loan losses to
non-performing loans 60% 67% 153%
Restructured loans $ - $ 272 $ 2,462
Book Values:
Book value per share (d) $ 10.58 $ 10.74 $ 10.84
Book value per share (e) $ 11.16 $ 11.34 $ 11.50
Tangible book value per share (d) (f) $ 9.65 $ 9.79 $ 9.86
Tangible book value per share (e) (f) $ 10.17 $ 10.34 $ 10.46
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Timberland Bancorp Inc. was organized for the purpose of becoming the holding company for Timberland Savings Bank. The Savings Bank is a community oriented savings bank which offeres a variety of savings products to its retail customers while concentrating its lending activities on real estate mortgage loans. Timberland Bancorp Inc. has a market cap of $40.97 million; its shares were traded at around $6.7999 with a P/E ratio of 7.7 and P/S ratio of 0.81. The dividend yield of Timberland Bancorp Inc. stocks is 7.5%. Timberland Bancorp Inc. had an annual average earning growth of 9% over the past 5 years.
Highlight of Business Operations:
Total non-accrual loans of $13.52 million at December 31, 2008 were comprised of44 loans and 27 credit relationships. These 44 loans consisted of 15 single
family speculative construction loans totaling $4.40 million (of which the
largest has a balance of $395,00), a $2.60 million land development loan in
Eastern Washington, a $1.36 million participation interest in a land development
loan located in Clark County, 16 individual lot (land ) loans totaling $1.93
million, three commercial real estate loans totaling $1.18 million, a $1.39
million multi-family loan, three single family home loans totaling $328,000,
three home equity consumer loans totaling $317,000 and a $31,000 consumer loan.
Net Income: Net income for the quarter ended December 31, 2008 decreased by
$1.25 million, or 77.6%, to $361,000 from $1.62 million for the quarter ended
December 31, 2007. Earnings per diluted common share for the quarter ended
December 31, 2008 decreased to $0.05 from $0.24 for the quarter ended December
31, 2007. The $0.19 decrease in diluted earnings per common share was primarily
a result of a $1.17 million ($772,000 net of income tax - $0.12 per diluted
common share) other than temporary impairment charge on mortgage-backed
securities, a $686,000 ($453,000 net of income tax - $0.07 per diluted common
share) increase in non-interest expense, a $455,000 ($300,000 net of income tax
- $0.05 per diluted common share) decrease in net interest income, and a
$115,000 ($76,000 net of income tax - $0.01 per diluted common share) increase
in the provision for loan losses. These decreases to earnings per common share
were partially offset by a $579,000 increase ($382,000 net of income tax - $0.06
per diluted common share) in non-interest income (excluding the impairment
charge).
Net Interest Income: Net interest income decreased by $455,000 or 6.6%, to
$6.46 million for the quarter ended December 31, 2008 from $6.92 million for the
quarter ended December 31, 2007. The decrease in net interest income was
primarily attributable to interest rate decreases, which compressed margins, and
the reversal of interest on loans placed on non-accrual status. These decreases
were, however, partially offset by a larger interest earning asset base. Total
interest and dividend income decreased by $1.45 million, or 12.7%, to $10.03
million for the quarter ended December 31, 2008 from $11.48 million for the
quarter ended December 31, 2007 as the yield on interest earning assets
decreased to 6.50% from 7.62%. Total average interest earning assets increased
by $14.65 million to $617.28 million for the quarter ended December 31, 2008
from $602.63 million for quarter ended December 31, 2007. Total interest
expense decreased by $997,000, or 21.9%, to $3.56 million for the quarter ended
December 31, 2008 from $4.56 million for the quarter ended December 31, 2007 as
the average rate paid on interest bearing liabilities decreased to 2.67% for the
quarter ended December 31, 2008 from 3.49% for the quarter ended December 31,
2007. Total average interest bearing liabilities increased by $11.99 million to
$530.69 million for the quarter ended December 31, 2008 from $518.70 million for
the quarter ended December 31, 2007. The net interest margin decreased to 4.19%
for the quarter ended December 31, 2008 from 4.59% for the quarter ended
December 31, 2007. The margin compression was primarily attributable to
significant interest rate decreases by the Federal Reserve which reduced the
yield on interest earning assets at a faster pace than the Bank was able to
reduce its funding costs. The reversal of interest income on loans placed on
non-accrual status also contributed to the margin compression and reduced the
net interest margin by approximately 11 basis points during the quarter ended
December 31, 2008. For additional information, see the section below entitled
"Rate Volume Analysis."
Rate Volume Analysis
The following table sets forth the effects of changing rates and volumes on the
net interest income on the Company. Information is provided with respect to the
(i) effects on interest income attributable to change in volume (changes in
volume multiplied by prior rate), and (ii) effects on interest income
attributable to changes in rate (changes in rate multiplied by prior volume),
and (iii) the net change (sum of the prior columns). Changes in rate/volume
have been allocated to rate and volume variances based on the absolute values of
each.
Three months ended December 31, 2008
compared to three months
ended December 31, 2007
increase (decrease)
due to
-
Rate Volume Net Change
- - -
(In thousands)
Interest-earning assets:
Loans receivable (1) ($1,704) $510 ($1,194)
Investments and
mortgage-backed securities 83 80 163
FHLB stock and equity securities (212) (201) (413)
Federal funds sold (42) 35 (7)
Interest-bearing deposits (13) 12 (1)
Total net increase in income - - -
on interest-earning assets ($1,888) 436 ($1,452)
Interest-bearing liabilities:
Savings accounts - - -
NOW accounts 18 22 40
Money market accounts (118) 84 (34)
Certificate accounts (787) (56) (843)
Short-term borrowings (241) (235) (476)
Long-term borrowings (17) 333 316
Total net increase in expense - - -
on interest bearing liabilities ($1,145) 148 ($997)
At At At
December 31, September 30, December 31,
2008 2008 2007
-
ASSET QUALITY RATIOS:
Non-performing loans $ 13,520 $ 11,990 $ 3,908
OREO & other repossessed assets 1,266 511 -
Total non-performing assets $ 14,786 $ 12,501 $ 3,908
Non-performing assets to total assets (c) 2.20% 1.83% 0.60%
Allowance for loan losses to
non-performing loans 60% 67% 153%
Restructured loans $ - $ 272 $ 2,462
Book Values:
Book value per share (d) $ 10.58 $ 10.74 $ 10.84
Book value per share (e) $ 11.16 $ 11.34 $ 11.50
Tangible book value per share (d) (f) $ 9.65 $ 9.79 $ 9.86
Tangible book value per share (e) (f) $ 10.17 $ 10.34 $ 10.46
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