Timberland Bancorp Fiscal Year Net Income Increases 22% To $10.15 Million

  • Fiscal Year Earnings per Share Increases 22% to $1.43
  • Fiscal Year Return on Equity Increases to 11.0%
  • Fiscal Year Return on Assets Increases to 1.19%
  • $15 Million FHLB Borrowing Prepaid to Reduce Future Interest Expense

HOQUIAM, Wash., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ:TSBK) ("Timberland" or "the Company") today reported that net income increased 22% to $10.15 million for the fiscal year ended September 30, 2016 from $8.29 million for the fiscal year ended September 30, 2015.  Earnings per diluted common share ("EPS") increased 22% to $1.43 for fiscal year 2016 from $1.17 for the prior fiscal year.

Timberland also reported net income of $2.70 million, or $0.38 per diluted common share, for its fourth fiscal quarter ended September 30, 2016.  This compares to net income of $2.55 million, or $0.36 per diluted common share, for the quarter ended June 30, 2016, and net income of $2.96 million, or $0.42 per diluted common share, for the quarter ended September 30, 2015, which quarter received the benefit of a $1.53 million (pre-tax) loan loss provision recapture.

Timberland's Board of Directors declared a $0.09 per common share quarterly cash dividend payable on November 30, 2016, to shareholders of record on November 16, 2016.

"Fiscal year 2016 marked the 6 th consecutive year the Company increased net income, earnings per share, return on equity and return on assets," stated Michael R. Sand, President and CEO.  "We have continued to prudently grow the balance sheet and, during the current quarter, for the first time exceeded $900 million in total assets.  We elected to prepay a $15 million FHLB borrowing on the last day of the fiscal year which reduced year end assets to $891 million, but more importantly reduced interest expense by $54,000 per month.  We have two additional high-cost $15 million FHLB borrowings maturing within the next 12 months.  The first borrowing matures on August 1 st and the second on September 1, 2017.  We look forward to their impending maturities since the interest on these two borrowings, and the borrowing that was prepaid at fiscal year end, accounted for slightly less than 50% of our 2016 fiscal year total interest expense."

2016 Fiscal Year Earnings and Balance Sheet Highlights (at or for the period ended September 30, 2016, compared to September 30, 2015, or June 30, 2016):

Earnings Highlights:
  • Net income increased 22% to $10.15 million from $8.29 million for fiscal year 2015;
  • EPS increased 22% to $1.43 from $1.17 for the prior fiscal year;
  • Return on equity and return on assets increased to 11.00% and 1.19%, respectively, for the 2016 fiscal year;
  • Return on equity and return on assets for the current quarter were 11.34% and 1.22%, respectively;
  • Fiscal year operating revenue increased 14% from fiscal year 2015; and
  • Non-interest income increased 14% and net interest income increased 13% year-over-year.

Balance Sheet Highlights:
  • Net loans receivable increased 10% year-over-year and 2% from the prior quarter;
  • Total deposits increased 12% year-over-year and 6% from the prior quarter;
  • Other real estate owned ("OREO") and other repossessed assets decreased 48% year-over-year and decreased 14% from the prior quarter;
  • Non-performing assets decreased 48% year-over-year and decreased 9% from the prior quarter to 0.88% of total assets;
  • Prepaid a $15.0 million FHLB borrowing on September 30, 2016 to immediately reduce future interest expense by approximately $54,000 per month; and
  • Book and tangible book values per common share increased to $13.95 and $13.13, respectively, at September 30, 2016.

Net Interest Margin
  • Net interest margin ("NIM") increased to 3.88% for the 2016 fiscal year from 3.80% for the prior fiscal year; and
  • NIM remained strong at 3.77% for the current quarter (NIM would have been 3.82% without the $138,000 pre-payment penalty on our $15.00 million FHLB borrowing, which was partially offset by the collection of $38,000 of non-accrual interest during the quarter.)

Operating Results

Operating revenue (net interest income before provision for loan losses, plus non-interest income excluding gains or losses on the sale of investment securities and other than temporary impairment ("OTTI") charges on investment securities) increased 14% for the 2016 fiscal year to $41.86 million from $36.77 million for Timberland's 2015 fiscal year.  For the current quarter operating revenue increased 14% to $11.06 million from $9.70 million for the comparable quarter one year ago and increased 7% from $10.37 million for the preceding quarter.

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