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Timberland Bancorp Inc. Reports Operating Results (10-Q)

May 06, 2010 | About:
10qk

10qk

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Timberland Bancorp Inc. (TSBK) filed Quarterly Report for the period ended 2010-03-31.

Timberland Bancorp Inc. has a market cap of $31.5 million; its shares were traded at around $4.47 with and P/S ratio of 0.7. The dividend yield of Timberland Bancorp Inc. stocks is 0.9%.TSBK is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Loans: Net loans receivable decreased by $8.56 million, or 1.6% to $538.65

million at March 31, 2010 from $547.21 million at September 30, 2009. The

decrease in the portfolio was primarily a result of a $26.32 million decrease

in construction loan balances (net of undisbursed portion of construction

loans in process), a $2.79 million decrease in consumer loan balances, a $1.79

million decrease in land loan balances and a $2.52 million increase in the

allowance for loan losses. These decreases to net loans receivable were

partially offset by a $9.97 million increase in commercial real estate loan

balances, a $7.60 million increase in multi-family loan balances, a $4.40

million increase in commercial business loan balances and a $2.74 million

increase in one-to-four family loan balances. The decrease in the

construction and land loan balances was primarily due to loan payoffs and

changes in the Bank's underwriting standards for these types of loans, which

has decreased the level of construction and land loan originations.



* 27 land loans totaling $7.78 million (of which the largest had a

balance of $844,000)

* Six land development loans totaling $6.64 million (of which the

largest had a balance of $2.34 million)

* Four commercial real estate loans totaling $3.47 million (of which the

largest had a balance of $2.84 million)

* 12 single family home loans totaling $2.69 million (of which the

largest had a balance of $756,000)

* Six single family speculative loans totaling $2.45 million (of which

the largest had a balance of $775,000)

* Two condominium construction loans totaling $2.13 million (of which

the largest had a balance of $1.80 million)

* Two one-to-four family owner/builder construction loans totaling

$991,000 (of which the largest had a balance of $800,000)

* One commercial business loan with a balance of $78,000

* Three home equity loans totaling $70,000

* Two consumer loans totaling $63,000





The Company had net charge-offs totaling $5.28 million for the six months

ended March 31, 2010 compared to $2.37 million for the six months ended March

31, 2009. The charge-offs during the six months ended March 31, 2010 were

primarily associated with construction loans and land loans. In recognition

of a real estate market that reflected lower valuations during the period net

charge-offs consisted of the following:

* $1.55 million on three condominium construction loans

* $1.22 million on three commercial real estate loans

* $1.12 million on 17 land loans

* $488,000 on four land development loans

* $414,000 on three single family construction loans

* $266,000 on six single family speculative construction loans

* $164,000 on six home equity loans

* $46,000 on four single family home loans

* $11,000 on three consumer loans



The $0.33 increase in diluted loss per common share for the six months ended

March 31, 2010 was primarily the result of a $1.30 million ($861,000 net of

income tax - $0.13 per diluted common share) increase in the provision for

loan losses, a $1.21 million ($801,000 net of income tax - $0.12 per diluted

common share) increase in non-interest expense, a $419,000 ($277,000 net of

income tax - $0.04 per diluted common share) decrease in non-interest income

and a $292,000 increase in preferred stock dividends and preferred stock

accretion which increased the net loss to common shareholders by approximately

$0.04 per diluted common share.



Total interest and dividend income decreased by $644,000 or 6.6%, to $9.16

million for the quarter ended March 31, 2010 from $9.80 million for the

quarter ended March 31, 2009 as the yield on interest earning assets decreased

to 5.59% from 6.20%. The decrease in the weighted average yield on interest

earning assets was primarily a result of an increase in the amount of lower

yielding cash equivalents and other liquid assets and an increase in the

amount of loans on non-accrual status. Total average interest earning assets

increased by $22.88 million to $655.36 million for the quarter ended March 31,

2010 from $632.48 million for quarter ended March 31, 2009. Total interest

expense decreased by $673,000, or 19.9%, to $2.71 million for the quarter

ended March 31, 2010 from $3.38 million for the quarter ended March 31, 2009

as the average rate paid on interest bearing liabilities decreased to 1.88%

for the quarter ended March 31, 2010 from 2.58% for the quarter ended March

31, 2009. The decrease in funding costs was primarily a result of a decrease

in overall market rates and a decrease in the level of average FHLB advances.

Total average interest bearing liabilities increased by $40.03 million to

$572.71 million for the quarter ended March 31, 2010 from $532.68 million for

the quarter ended March 31, 2009. The net interest margin decreased to 3.93%

for the quarter ended March 31, 2010 from 4.06% for the quarter ended March

31, 2009. The margin compression was primarily attributable to the reversal

of interest income on loans placed on non-accrual status during the quarter

ended March 31, 2010 and an increased level of liquid assets with lower

yields. The reversal of interest income on loans placed on non-accrual status

during the quarter ended March 31, 2010 reduced the net interest margin by

approximately 10 basis points.



Total interest and dividend income decreased by $1.33 million or 6.7%, to

$18.50 million for the six months ended March 31, 2010 from $19.83 million for

the six months ended March 31, 2009 as the yield on interest earning assets

decreased to 5.67% from 6.35%. The decrease in the weighted average yield on

interest earning assets was primarily a result of an increase in the amount of

lower yielding cash equivalents and other liquid assets and an increase in the

amount of loans on non-accrual status. Total average interest earning assets

increased by $27.12 million to $652.02 million for the six months ended March

31, 2010 from $624.90 million for the six months ended March 31, 2009. Total

interest expense decreased by $1.28 million, or 18.5%, to $5.66 million for

the six months ended March 31, 2010 from $6.95 million for the six months

ended March 31, 2009 as the average rate paid on interest bearing liabilities

decreased to 2.00% for the six months ended March 31, 2010 from 2.62% for the

six months ended March 31, 2009. The decrease in funding costs was primarily

a result of a decrease in overall market rates and a decrease in the level of

average FHLB advances. Total average interest bearing liabilities increased

by $34.72 million to $566.51 million for the six months ended March 31, 2010

from $531.78 million for the six months ended March 31, 2009. The net

interest margin decreased to 3.94% for the six months ended March 31, 2010

from 4.12% for the six months ended March 31, 2009. The margin compression

was primarily attributable to the reversal of interest income on loans placed

on non-accrual status during the six months ended March 31, 2010 and an

increased level of liquid assets with lower yields. The reversal of interest

income on loans placed on non-accrual status during the six months ended March

31, 2010 reduced the net interest margin by approximately 16 basis points.



Read the The complete Report

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10qk
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