Timberland Bancorp EPS Increases 40% To $0.21 For First Fiscal Quarter

HOQUIAM, Wash., Jan. 21, 2013 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (Nasdaq:TSBK) ("Timberland" or "the Company") today reported net income of $1.71 million for the quarter ended December 31, 2012. Net income to common shareholders, after adjusting for the preferred stock dividend and the preferred stock discount accretion was $1.44 million, or $0.21 per diluted common share. This compares to net income to common shareholders of $883,000, or $0.13 per diluted common share, for the quarter ended September 30, 2012 and net income to common shareholders of $1.02 million, or $0.15 per diluted common share, for the quarter ended December 31, 2011.

"We are pleased to report a solid first fiscal quarter with continued loan growth, sustained mortgage banking activity and a stable net interest margin," stated Michael R. Sand, President and CEO. "I am also pleased to announce that Timberland's Board of Directors has declared a cash dividend of $0.03 per common share payable on February 20, 2013 to shareholders of record on February 6, 2013."

"We reported last month that the FDIC and the State of Washington Department of Financial Institution's Memorandum of Understanding ("MOU") with Timberland Bank had been rescinded. We can now report that the MOU between the Federal Reserve Bank of San Francisco and Timberland Bancorp, Inc. was rescinded on January 15, 2013," commented Sand.

Fiscal First Quarter 2013 Highlights (at or for the period ended December 31, 2012, compared to December 31, 2011, or September 30, 2012):
  • Earnings per diluted common share for the current quarter increased 62% to $0.21 from $0.13 for the preceding quarter and increased 40% from $0.15 for the comparable quarter one year ago;
  • Net income for the current quarter increased 48% to $1.71 million from $1.15 million for the preceding quarter and increased 33% from $1.28 million for the comparable quarter one year ago;
  • Net interest margin for the current quarter remained strong at 3.78%;
  • Non-interest income for the current quarter increased 8% to $2.72 million from $2.50 million for the preceding quarter and increased 11% from $2.44 million for the comparable quarter one year ago;
  • Total delinquent and non-accrual loans decreased 18% during the quarter and 49% year-over-year;
  • Net charge-offs for the current quarter decreased 62% to $256,000 compared to $679,000 for preceding quarter and decreased 59% from $624,000 for the comparable quarter one year ago;
  • Capital levels remain very strong: Total Risk Based Capital Ratio of 16.92%; Tier 1 Leverage Capital Ratio of 11.86%; Tangible Capital to Tangible Assets Ratio of 11.81%; and
  • Book value per common share increased to $10.73, and tangible book value per common share increased to $9.90 at quarter end.

Capital Ratios and Asset Quality

Timberland Bancorp remains very well capitalized with a total risk-based capital ratio of 16.92%, a Tier 1 leverage capital ratio of 11.86% and a tangible capital to tangible assets ratio of 11.81% at December 31, 2012. On November 1, 2012 the U.S. Treasury successfully auctioned the preferred shares it had purchased from Timberland in December 2008. The clearing price in the auction was $862.50 per preferred share and the sale closed on November 13, 2012. Timberland is no longer a participant in the Treasury's TARP program since the preferred shares are now owned by private investors. The sale of the preferred shares did not affect Timberland's capital ratios since the terms of the preferred shares did not change in connection with the sale.

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