Timberland Bancorp Reports EPS Of $0.08 For Fiscal Second Quarter 2012

Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported fiscal 2012 second quarter net income of $808,000. Net income available to common shareholders, after adjusting for the preferred stock dividend and the preferred stock discount accretion was $540,000, or $0.08 per diluted common share. This compares to net income to common shareholders of $1.02 million, or $0.15 per diluted common share, for the quarter ended December 31, 2011 and net income to common shareholders of $819,000, or $0.12 per diluted common share, for the quarter ended March 31, 2011.

Net income of $2.09 million was recorded for first half of fiscal 2012 compared to net income of $2.44 million for the first six months of fiscal 2011. Net income available to common shareholders for the first half of fiscal 2012 after the preferred stock dividend and the preferred stock discount accretion was $1.56 million, or $0.23 per diluted common share, compared to $1.92 million, or $0.28 per diluted common share, in the like period one year ago.

“Our fiscal second quarter profits demonstrate the ongoing improvement in our core operations with both loans and deposits increasing, asset quality improving, capital levels remaining strong and net interest margin remaining stable,” said Michael R. Sand, President and Chief Executive Officer. “Our local economic recovery is gaining traction with accelerating shipments at the Port of Grays Harbor, where export vehicle volumes are expected to triple this year. In addition, the $367 million construction project to build the massive concrete pontoons for the floating bridge that connects Seattle and Bellevue is on schedule to complete the first six of the thirty-three sections this spring.”

Fiscal Second Quarter 2012 Highlights (at or for the period ended March 31, 2012, compared to March 31, 2011, or December 31, 2011):
  • Recorded net income of $808,000;
  • Earned $0.08 per diluted common share;
  • Capital levels remain very strong: Total Risk Based Capital of 16.54%; Tier 1 Leverage Capital Ratio of 11.42%; Tangible Capital to Tangible Assets Ratio of 11.13%;
  • Non-interest income increased 18% to $2.49 million from $2.11 million for the comparable quarter one year ago;
  • Net interest margin remained strong at 3.72%;
  • Total delinquent loans and non-accrual loans decreased 11% during the quarter and 17% year-over-year;
  • Non-performing assets ratio improved to 5.40%;
  • Total deposits increased $15 million during the quarter;
  • Net loans increased $6 million during the quarter; and
  • Book value per common share increased to $10.20, and tangible book value per common share was $9.35 at quarter end.

Capital Ratios and Asset Quality

Timberland Bancorp remains very well capitalized with a total risk-based capital ratio of 16.54%, a Tier 1 leverage capital ratio of 11.42% and a tangible capital to tangible assets ratio of 11.13% at March 31, 2012.

Timberland provisioned $1.05 million to its loan loss allowance during the quarter ended March 31, 2012 compared to $650,000 in the preceding quarter and $700,000 in the comparable quarter one year ago. Approximately $135,000 of the increased provision was attributable to the growth in the loan portfolio.

Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 11% to $44.0 million at March 31, 2012 from $49.1 million at December 31, 2011 and decreased 17% from $52.8 million one year ago. The non-performing assets to total assets ratio was 5.40% at March 31, 2012 compared to 5.55% three months earlier and 5.04% one year ago.

Non-accrual loans totaled $26.6 million at March 31, 2012 and were comprised of 64 loans and 56 credit relationships. By category: 41% of non-accrual loans are secured by land and land development properties; 36% are secured by commercial properties; 18% are secured by residential properties; 3% are secured by residential construction projects; and 2% are secured by commercial real estate construction projects.

Other real estate owned (“OREO”) and other repossessed assets increased by $310,000, or 4%, to $8.0 million at March 31, 2012 from $7.7 million at December 31, 2011 and decreased by 21% from $10.1 million at March 31, 2011. The OREO portfolio consisted of 51 individual properties and two other repossessed assets at March 31, 2012. The properties consisted of 35 land parcels totaling $4.2 million, 11 single family homes totaling $1.6 million, four commercial real estate properties totaling $1.4 million and a condominium project of $842,000. The two other repossessed assets totaled $44,000. During the quarter ended March 31, 2012, 11 OREO properties and other repossessed assets totaling $667,000 were sold for a net loss of $24,000.

Balance Sheet Management

Total assets increased by $6.9 million, or 1%, to $742.7 million at March 31, 2012 from $735.8 million at December 31, 2011. The increase in total assets was primarily the result of a $6.0 million increase in net loans receivable.

Liquidity as measured by cash and cash equivalents, CDs held for investment and available for sale investments was 20.9% of total liabilities at March 31, 2011 compared to 21.2% at December 31, 2011 and 22.0% one year ago.

Net loans receivable increased $6.0 million to $535.0 million at March 31, 2012 from $529.0 million at December 31, 2011. The increase was primarily due to a $9.5 million increase in commercial real estate loan balances and a $5.8 million decrease in the undisbursed portion of construction loans in process. These increases to net loans receivable were partially offset by a $4.9 million decrease in one-to four-family loan balances, a $1.6 million decrease in land loan balances, a $1.1 million decrease in consumer loan balances, a $734,000 decrease in construction and land development loan balances and a $545,000 decrease in commercial business loan balances.

Timberland continued reducing its exposure to land development and land loans. Land development loan balances decreased to $1.0 million at March 31, 2012, a 46% decrease from the preceding quarter and a 77% decrease year-over-year. The Bank’s land loan portfolio decreased to $44.6 million at March 31, 2012, a 4% decrease from the preceding quarter and a 23% decrease year-over-year. The well diversified land loan portfolio consists of 352 loans on a variety of land types including individual building lots, acreage, raw land and commercially zoned properties. The average loan balance for the entire land portfolio was approximately $127,000 at March 31, 2012.

LOAN PORTFOLIO
 
      March 31, 2012     December 31, 2011     March 31, 2011
($ in thousands) Amount     Percent Amount     Percent Amount     Percent
 
Mortgage Loans:
One-to four-family $105,570 19% $110,502 20% $115,193 21%
Multi-family 30,745 5 30,866 6 29,724 5
Commercial 255,327 46 245,874 44 224,489 40

Construction and land development
57,069 10 57,803 10 65,325 12
Land 44,553 8 46,198 8 57,643 10
Total mortgage loans 493,264 88 491,243 88 492,374 88
 
Consumer Loans:

Home equity and second mortgage
33,979 6 34,607 6 37,478 7
Other 6,234 1 6,695 1 8,512 1
Total consumer loans 40,213 7 41,302 7 45,990 8
 
Commercial business loans 26,881 5 27,426 5 19,605 4
Total loans 560,358 100% 559,971 100% 557,969 100%
Less:

Undisbursed portion of construction loans in process
(11,245) (17,073) (16,884)

Deferred loan origination fees
(1,856) (1,884) (2,060)
Allowance for loan losses (12,264) (11,972) (11,798)
Total loans receivable, net $534,993 $529,042 $527,227
 

CONSTRUCTION LOAN COMPOSITION
 
      March 31, 2012     December 31, 2011     March 31, 2011
    Percent         Percent
of Loan of Loan
($ in thousands) Amount Portfolio Amount     Percent     Amount Portfolio
 
Custom and owner / builder $28,109 5% $28,797 5% $29,375 5%

Speculative one- to four-family
2,271 1 2,186 1 3,013 1
Commercial real estate 17,079 3 16,693 3 24,863 4

Multi-family (including condominium)
8,632 1 8,320 1 3,905 1
Land development 978 -- 1,807 -- 4,169 1
Total construction loans $57,069 10% $57,803 10% $65,325 12%
 

Timberland’s loan originations decreased 2% to $50.4 million during the quarter ended March 31, 2012 compared to $51.6 million for the preceding quarter and increased 32% from the $38.3 million originated during the quarter one year ago. Timberland continues to sell fixed rate one-to-four family mortgage loans into the secondary market for asset–liability management purposes and to generate non-interest income. During the quarter ended March 31, 2012, $23.9 million fixed-rate one-to four-family mortgage loans were sold compared to $22.9 million for the preceding quarter and $11.4 million for the quarter ended one year ago.

Timberland’s mortgage-backed securities (“MBS”) and other investments decreased by $1.2 million during the quarter to $9.0 million at March 31, 2012 from $10.2 million at December 31, 2012, primarily due to the sale of a $722,000 agency MBS, prepayments and scheduled amortization. During the quarter ended March 31, 2012, other-than-temporary-impairment (“OTTI”) credit related write-downs and realized losses of $94,000 were recorded on the private label MBS that were acquired in the in-kind redemption from the AMF family of mutual funds in June 2008. At March 31, 2012 the Bank’s remaining private label MBS portfolio had been reduced to $3.0 million from an original acquired balance of $15.3 million.

DEPOSIT BREAKDOWN

($ in thousands)
      March 31, 2012     December 31, 2011     March 31, 2011

Amount
   

Percent

Amount
   

Percent

Amount
   

Percent
Non-interest bearing $ 69,633 12% $ 61,178 10% $ 58,957 10%
N.O.W. checking 158,635 26 156,799 27 159,410 27
Savings 89,676 15 85,335 15 75,004 12
Money market 69,345 11 66,266 11 59,306 10
Certificates of deposit under $100 135,538 22 136,859 23 148,978 25
Certificates of deposit $100 and over 81,769 14 82,738 14 95,508 16
Certificates of deposit – brokered

--
-- -- -- -- --
Total deposits $604,596 100% $589,175 100% $597,163 100%
 

Total deposits increased 3% to $604.6 million at March 31, 2012, from $589.2 million at December 31, 2011 primarily as a result of an $8.5 million increase in non-interest bearing account balances, a $4.3 million increase in savings account balances, a $3.1 million increase in money market account balances and a $1.8 million increase in N.O.W. checking account balances. These increases were partially offset by a $2.3 million decrease in certificates of deposit account balances.

Federal Home Loan Bank (“FHLB”) advances decreased by $10.0 million to $45.0 million at March 31, 2012 from $55.0 million at December 31, 2011 as two maturing advances were repaid.

Total shareholders’ equity increased $654,000 to $87.98 million at March 31, 2012, from $87.33 million at December 31, 2011. The increase in shareholders’ equity was primarily a result of net income for the quarter. Book value per common share was $10.20 and tangible book value per common share was $9.35 at March 31, 2012.

Operating Results

Fiscal second quarter operating revenue (net interest income before provision for loan losses, plus non-interest income excluding OTTI charges and valuation allowances or recoveries on mortgage servicing rights (“MSRs”)), totaled $8.72 million which was consistent with the $8.72 million total reported for the preceding quarter and an increase from the $8.29 million total reported for the comparable quarter one year ago.

Net interest income decreased to $6.27 million for the quarter ended March 31, 2012, from $6.30 million for the preceding quarter and from $6.35 million for the comparable quarter one year ago. The net interest margin for the current quarter of 3.72% decreased slightly from the 3.73% margin reported for the preceding quarter and the 3.78% margin reported for the comparable quarter one year ago. For the first six months of fiscal 2012, net interest income decreased 1% to $12.57 million from $12.68 million for the first six months of fiscal 2011. Timberland’s net interest margin for the first six months of fiscal 2012 was 3.73% compared to 3.80% for the first six months of 2011.

Timberland provisioned $1.05 million to its loan loss allowance for the quarter ended March 31, 2012, compared to $650,000 in the preceding quarter and $700,000 in the comparable quarter one year prior. For the first six months of fiscal 2012, the provision for loan losses totaled $1.7 million compared to $1.6 million in the first six months of fiscal 2011. Net charge-offs for the quarter ended March 31, 2012 totaled $758,000 compared to $624,000 for the quarter ended December 31, 2011 and $651,000 for the quarter one year ago. Fiscal year-to-date, net charge-offs were $1.4 million compared to $1.1 million for the first six months of fiscal 2011.

Non-interest income increased 2% to $2.49 million for the quarter ended March 31, 2012, from $2.44 million in the preceding quarter and increased 18% from $2.11 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $58,000 increase in the valuation recovery of the Bank’s MSRs and a $36,000 increase in gain on sale of loans. Year to date, non-interest income decreased $123,000, or 2%, to $4.9 million from $5.06 million for the first six months of fiscal 2011, primarily due to a reduction in the valuation recovery on MSRs.

Total operating (non-interest) expenses increased 6% to $6.57 million for the second fiscal quarter from $6.22 million for the preceding quarter and 6% from $6.18 million for the comparable quarter one year ago. The increased expenses for the current quarter compared to the preceding quarter were primarily the result of a $211,000 increase in loan administration and foreclosure expenses and a $126,000 increase in salaries and employee benefits expense. The salaries and benefits expense comparison was impacted by a one-time benefit from changing employee medical insurance providers in the preceding quarter, which decreased salaries and benefits expense by $99,000 for the quarter ended December 31, 2011. Year to date, operating expenses increased 2% to $12.79 million from $12.55 million for the first six months of fiscal 2012, primarily due to increased OREO related expenses, increased deposit operation expenses and increased loan administration and foreclosure related expenses.

About Timberland Bancorp, Inc.

Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank (“Bank”). The Bank opened for business in 1915 and serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 22 branches (including its main office in Hoquiam).

Disclaimer

Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated, including, but not limited to: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets and may lead to increased losses and non-performing assets in our loan portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our reserves; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and our bank subsidiary by the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; our compliance with regulatory enforcement actions, including regulatory memoranda of understandings (“MOUs”) to which we are subject; legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; further increases in premiums for deposit insurance; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risk associated with the loans on our balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; computer systems on which we depend could fail or experience a security breach; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, the interpretation of regulatory capital or other rules and any changes in the rules applicable to institutions participating in the TARP Capital Purchase Program; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of war or any terrorist activities; other economic, competitive, governmental, regulatory, and technological factors affecting our operations; pricing, products and services; and other risks detailed in our reports filed with the Securities and Exchange Commission.

Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this report or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. We caution readers not to place undue reliance on any forward-looking statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2012 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us, and could negatively affect the Company’s operations and stock price performance.

TIMBERLAND BANCORP INC. AND SUBSIDIARY      
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended
($ in thousands, except per share amounts) March 31,     Dec. 31,     March 31,
(unaudited) 2012 2011 2011
    Interest and dividend income
Loans receivable $7,607 $7,805 $8,240
MBS and other investments 109 125 162
Dividends from mutual funds 7 13 8
Interest bearing deposits in banks 81 89 83
Total interest and dividend income 7,804 8,032 8,493
 
Interest expense
Deposits 1,035 1,169 1,591
FHLB advances and other borrowings 496 562 550
Total interest expense 1,531 1,731 2,141
Net interest income 6,273 6,301 6,352
 
Provision for loan losses 1,050 650 700
Net interest income after provision for loan losses 5,223 5,651 5,652
 
Non-interest income

OTTI and realized losses on MBS and other investments, net
(94) (60) (37)
Gain on sale of MBS and other investments 20 -- --
Service charges on deposits 890 970 898
Gain on sale of loans, net 596 560 266
Bank owned life insurance (“BOLI”) net earnings 154 157 118
Valuation recovery on MSRs 142 84 206
ATM transaction fees 540 517 458
Other 245 216 199
Total non-interest income, net 2,493 2,444 2,108
 
Non-interest expense
Salaries and employee benefits 3,055 2,929 3,115
Premises and equipment 682 650 658
Advertising 172 208 201
OREO and other repossessed assets expense, net 434 502 6
ATM 197 194 206
Postage and courier 139 118 146
Amortization of core deposit intangible (“CDI”) 37 37 42
State and local taxes 152 149 160
Professional fees 232 178 196
FDIC insurance 241 225 332
Other insurance 53 56 89
Loan administration and foreclosure 372 161 267
Data processing and telecommunications 315 301 281
Deposit operations 193 223 140
Other 298 290 339
Total non-interest expense 6,572 6,221 6,178

 
Income before income taxes $1,144 $1,874 $1,582
Provision for income taxes 336 591 499
Net income 808 1,283 1,083
 
Preferred stock dividends (208) (208) (208)
Preferred stock discount accretion (60) (59) (56)
Net income to common shareholders $ 540 $1,016 $ 819
 
Net income per common share:
Basic $0.08 $0.15 $0.12
Diluted 0.08 0.15 0.12
 
Weighted average common shares outstanding:
Basic 6,780,516 6,780,516 6,745,250
Diluted 6,780,516 6,780,516 6,745,250
 
TIMBERLAND BANCORP INC. AND SUBSIDIARY      
CONSOLIDATED STATEMENTS OF OPERATIONS Six Months Ended
($ in thousands, except per share amounts) March 31,     March 31,
(unaudited) 2012 2011
    Interest and dividend income
Loans receivable $15,412 $16,774
MBS and other investments 234 344
Dividends from mutual funds 20 16
Interest bearing deposits in banks 170 170
Total interest and dividend income 15,836 17,304
 
Interest expense
Deposits 2,204 3,342
FHLB advances and other borrowings 1,058 1,279
Total interest expense 3,262 4,621
Net interest income 12,574 12,683
 
Provision for loan losses 1,700 1,600
Net interest income after provision for loan losses 10,874 11,083
 
Non-interest income

OTTI and realized losses on MBS and other investments, net
(153) (173)
Gain on sale of MBS and other investments 20 79
Service charges on deposits 1,860 1,882
Gain on sale of loans, net 1,155 967
BOLI net earnings 311 240
Valuation recovery on MSRs 226 840
ATM transaction fees 1,057 869
Other 461 356
Total non-interest income, net 4,937 5,060
 
Non-interest expense
Salaries and employee benefits 5,983 6,243
Premises and equipment 1,332 1,328
Advertising 380 368
OREO and other repossessed assets expense, net 936 434
ATM 392 380
Postage and courier 257 261
Amortization of CDI 74 83
State and local taxes 301 320
Professional fees 411 377
FDIC insurance 466 672
Other insurance 109 243
Loan administration and foreclosure 533 365
Data processing and telecommunications 615 561
Deposit operations 416 245
Other 589 674
Total non-interest expense 12,794 12,554
 

 
Income before income taxes $3,017 $3,589
Provision for income taxes 927 1,147
Net income 2,090 2,442
 
Preferred stock dividends (416) (416)
Preferred stock discount accretion (119) (111)
Net income to common shareholders $1,555 $ 1,915
 
Net income per common share:
Basic $0.23 $0.28
Diluted 0.23 0.28
 
Weighted average common shares outstanding:
Basic 6,780,516 6,745,250
Diluted 6,780,516 6,745,250
 
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts) (unaudited)       March 31,     Dec. 31,     March 31,
2012 2011 2011
Assets
Cash and due from financial institutions $ 11,154 $ 12,671 $ 11,126
Interest-bearing deposits in banks 100,467 98,876 107,871
  Total cash and cash equivalents 111,621 111,547 118,997
 
Certificates of deposit (“CDs”) held for investment, at cost 20,180 19,810 17,430
MBS and other investments:
Held to maturity, at amortized cost 3,706 3,941 4,497
Available for sale, at fair value 5,261 6,284 7,893
FHLB stock 5,705 5,705 5,705
 
Loans receivable 545,961 537,904 537,856
Loans held for sale 1,296 3,110 1,169
Less: Allowance for loan losses (12,264) (11,972) (11,798)
Net loans receivable 534,993 529,042 527,227
 
Premises and equipment, net 17,640 17,353 17,106
OREO and other repossessed assets, net 8,024 7,714 10,140
BOLI 16,228 16,074 13,640
Accrued interest receivable 2,369 2,388 2,674
Goodwill 5,650 5,650 5,650
Core deposit intangible 323 360 481
Mortgage servicing rights, net 2,284 2,169 2,702
Prepaid FDIC insurance assessment 1,643 1,873 2,653
Other assets 7,082 5,939 7,063
Total assets $742,709 $735,849 $743,858
 
Liabilities and shareholders’ equity
Deposits: Non-interest-bearing demand $ 69,633 $ 61,178 $ 58,957
Deposits: Interest-bearing 534,963 527,997 538,206
Total deposits 604,596 589,175 597,163
 
FHLB advances 45,000 55,000 55,000
Repurchase agreements 948 538 595
Other liabilities and accrued expenses 4,181 3,806 3,519
Total liabilities 654,725 648,519 656,277

Shareholders’ equity

Preferred stock, $.01 par value; 1,000,000 shares authorized; 16,641 shares, Series A, issued and outstanding $1,000 per share liquidation value

 

16,107

 

16,048

 

15,875

Common stock, $.01 par value; 50,000,000 shares authorized; 7,045,036 shares issued and outstanding

10,480

10,464

10,410
Unearned shares- Employee Stock Ownership Plan (1,851) (1,917) (2,115)
Retained earnings 63,826 63,286 64,153
Accumulated other comprehensive loss (578) (551) (742)
Total shareholders’ equity 87,984 87,330 87,581
Total liabilities and shareholders’ equity $742,709 $735,849 $743,858
 
KEY FINANCIAL RATIOS AND DATA       Three Months Ended
($ in thousands, except per share amounts) (unaudited) March 31,     Dec. 31,     March 31,
2012 2011 2011
PERFORMANCE RATIOS:
Return on average assets (a) 0.44% 0.70% 0.59%
Return on average equity (a) 3.69% 5.93% 5.00%
Net interest margin (a) 3.72% 3.73% 3.78%
Efficiency ratio 74.97% 71.14% 73.03%
 
Six Months Ended
March 31, March 31,
2012 2011
PERFORMANCE RATIOS:
Return on average assets (a) 0.57% 0.67%
Return on average equity (a) 4.80% 5.67%
Net interest margin (a) 3.73% 3.80%
Efficiency ratio 73.06% 70.75%
 
March 31, Dec. 31, March 31,
2012 2011 2011
ASSET QUALITY RATIOS AND DATA:
Non-accrual loans $26,623 $27,803 $23,675
Loans past due 90 days and still accruing 2,967 2,677 305
Non-performing investment securities 2,516 2,650 3,355
OREO and other repossessed assets 8,024 7,714 10,140
Total non-performing assets (b) $40,130 $40,844 $37,475
 
 
Non-performing assets to total assets (b) 5.40% 5.55% 5.04%
Net charge-offs during quarter $ 758 $ 624 $ 651
Allowance for loan losses to non-accrual loans 46% 43% 50%
Allowance for loan losses to loans receivable, net (c) 2.24% 2.21% 2.19%
Troubled debt restructured loans on accrual status (d) $15,890 $18,297 $ 22,447
 
 
CAPITAL RATIOS:
Tier 1 leverage capital 11.42% 11.26% 11.37%
Tier 1 risk based capital 15.27% 15.39% 15.44%
Total risk based capital 16.54% 16.65% 16.70%
Tangible capital to tangible assets (e) 11.13% 11.14% 11.04%
 
 
BOOK VALUES:
Book value per common share $ 10.20 $ 10.12 $ 10.18
Tangible book value per common share (e) 9.35 9.26 9.31
 
(a) Annualized

(b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets. Troubled debt restructured loans on accrual status are not included.
(c) Includes loans held for sale and is before the allowance for loan losses.

(d) Does not include troubled debt restructured loans totaling $7,097, $7,334 and $4,671 reported as non-accrual loans at March 31, 2012, December 31, 2011 and March 31, 2011, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets.
 
AVERAGE CONSOLIDATED BALANCE SHEETS:       Three Months Ended
($ in thousands) (unaudited) March 31,     Dec. 31,     March 31,
2012 2011 2011
 
Average total loans $540,858 $537,876 $536,453
Average total interest-bearing assets (a) 673,970 675,432 672,179
Average total assets 732,882 736,265 731,019
Average total interest-bearing deposits 529,707 526,100 530,192
Average FHLB advances and other borrowings 45,967 55,559 55,486
Average shareholders’ equity 87,587 86,534 86,678
 
 
Six Months Ended
March 31, March 31,
2012 2011
 
Average total loans $539,359 $537,745
Average total interest-bearing assets (a) 674,707 667,896
Average total assets 734,584 726,458
Average total interest-bearing deposits 527,894 526,668
Average FHLB advances and other borrowings 50,789 55,516
Average shareholders’ equity 87,058 86,131
 
(a) Includes loans and MBS on non-accrual status

Copyright Business Wire 2010

If you liked this article you might like

How Best to Value Bank Stocks?

How Best to Value Bank Stocks?

How Best to Value Bank Stocks?

How Best to Value Bank Stocks?

3 Market-Beating Bank Stocks, and How to Find More Winners

3 Market-Beating Bank Stocks, and How to Find More Winners

3 Stocks Pushing The Banking Industry Lower

3 Stocks Pushing The Banking Industry Lower

Reminder - Timberland Bancorp (TSBK) Goes Ex-Dividend Soon

Reminder - Timberland Bancorp (TSBK) Goes Ex-Dividend Soon