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Timberland Bancorp, Inc. (NASDAQ:TSBK) (“Timberland” or “the Company”) today reported fiscal 2012 third quarter net income of $1.35 million. Net income available to common shareholders, after adjusting for the preferred stock dividend and the preferred stock discount accretion was $1.08 million, or $0.16 per diluted common share. This compares to net income to common shareholders of $541,000, or $ 0.08 per diluted common share, for the quarter ended March 31, 2012 and a net loss to common shareholders of $(1.55 million), or $(0.23) per diluted common share, for the quarter ended June 30, 2011.
Net income for the first nine months of fiscal 2012 of $3.44 million is a significant increase over the net income of $1.16 million recorded for the first nine months of fiscal 2011. Net income available to common shareholders for the first nine months of fiscal 2012 after the preferred stock dividends and the preferred stock discount accretion was $2.64 million, or $0.39 per diluted common share, compared to $370,000, or $0.05 per diluted common share, in the like period one year ago.
“The continuation of a low interest rate environment presents challenges to the banking industry, however we noted significant improvements in a number of operational metrics this quarter,” stated Michael R. Sand, President and CEO. “Net interest margin increased, credit costs declined, the efficiency ratio improved and net income significantly increased compared to the prior quarter and fiscal year to date. Our employees continue to compete effectively in an extremely competitive environment which shows little near term signs of abating. Demand for portfolio loans remains less than robust although the market for one- to four-family refinance mortgage loans continues to be strong.”
Fiscal Third Quarter 2012 Highlights (at or for the period ended June 30, 2012, compared to March 31, 2012, or June 30, 2011):
Net income increased to $1.35 million compared to $808,000 for the preceding quarter and a net loss of $(1.28 million) for the comparable quarter one year ago;
Earnings per diluted common share increased to $0.16 from $0.08 for the preceding quarter and from a loss of $(0.23) for the comparable quarter one year ago;
Net interest margin increased to 3.96% compared to 3.72% for the preceding quarter and 3.76% for the comparable quarter one year ago;
Total delinquent and non-accrual loans decreased 21% during the quarter and 23% year-over-year;
The non-performing asset ratio improved to 5.14%;
Efficiency ratio improved to 67.98% compared to 74.97% for the preceding quarter and 82.98% for the comparable quarter one year ago;
Capital levels remain very strong: Total Risk Based Capital of 16.85%; Tier 1 Leverage Capital Ratio of 11.59%; Tangible Capital to Tangible Assets Ratio of 11.52%; and
Book value per common share increased to $10.38, and tangible book value per common share increased to $9.53 at quarter end.
Capital Ratios and Asset Quality
Timberland Bancorp remains very well capitalized with a total risk-based capital ratio of 16.85%, a Tier 1 leverage capital ratio of 11.59% and a tangible capital to tangible assets ratio of 11.52% at June 30, 2012. On May 21, 2012 Timberland received approval and paid $1.0 million in dividends on the preferred shares issued to the U.S. Treasury in December 2008. On July 16, 2012 Timberland requested permission from the Federal Reserve to pay the remaining accrued dividends of $1.19 million to the U.S. Treasury and is currently awaiting a response. The payment of such dividends does not reduce Timberland’s reported capital ratios since appropriate accruals for the dividends were recorded in the current and prior quarters.