Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the
Company”), the holding company for Timberland Bank (the “Bank”),
today reported net income of $6.36 million, or $0.79 per diluted
common share for the quarter ended September 30, 2024. This
compares to net income of $5.92 million, or $0.74 per diluted
common share for the preceding quarter and $6.64 million, or $0.81
per diluted common share, for the comparable quarter one year ago.
Timberland also announced net income of $24.28 million, or $3.01
per diluted common share, for the fiscal year ended September 30,
2024. This compares to net income of $27.12 million, or $3.29 per
diluted common share, for the fiscal year ended September 30,
2023.
“Timberland generated strong fiscal fourth quarter financial
results,” stated Dean Brydon, Chief Executive Officer. “Compared to
the prior quarter, fourth quarter net income and EPS increased by
7%, primarily due to an improvement in our net interest margin and,
to a lesser extent, higher non-interest income. Additionally, key
financial metrics improved compared to the prior quarter and
tangible book value per share continued its upward trajectory. As a
result of Timberland’s solid earnings, our Board of Directors
announced a 4% increase to the quarterly cash dividend to
shareholders to $0.25 per share, payable on November 29, 2024, to
shareholders of record on November 15, 2024. Timberland’s continued
solid financial performance has allowed us to increase the
quarterly cash dividend to our shareholders while continuing to
maintain a strong capital position.” This represents the 48th
consecutive quarter Timberland will have paid a cash dividend.
“The loan portfolio continues to grow, although at a more
moderate pace than we’ve experienced over the last couple of
years,” Brydon continued. “Net loans receivable grew by $25
million, or 2%, during the quarter, with increases primarily in
construction loan funds on existing loans being disbursed and in
the 1-4 family loan portfolio. For the fiscal year, net loans
receivable increased $119 million, or 9%. We are encouraged by the
overall strength of our loan portfolio and the continued
opportunities for loan growth in our markets. Credit quality
metrics are still holding up relatively well, with only $12,000 in
net charge-offs for the quarter and non-performing assets at 20
basis points of total assets at the end of the fourth quarter.”
“Timberland’s net interest margin expanded five basis points to
3.58% for the fourth quarter, compared to the preceding quarter, as
the yield improvements on interest-earning assets continued to
outpace the increase in cost of funds,” said Jonathan Fischer,
President and Chief Operating Officer. “Total deposits increased
$19 million, or 1%, during the quarter and $87 million, or 6%
year-over-year, while total borrowings stayed unchanged at $20
million compared to the prior quarter end.”
“In September, Timberland was one of only 30 banks in the U.S.
to be named a “Sm-All Star” in Piper Sandler’s annual list of
top-performing small-cap banks and thrifts in its “Class of 2024.”
This elite annual list reflects the top banks and thrifts in the
industry across various metrics including growth, profitability,
credit quality and capital strength. We are honored to be
recognized by Piper Sandler as one of the top performing community
banks in the nation, a validation of Timberland’s solid
foundation,” added Brydon. “In addition, Timberland was named Best
Bank in Pierce County (by The News Tribune), Best Bank in Grays
Harbor County (by The Daily World), and Best Bank in the South
Sound (by The Olympian) during the year. These local recognitions
are a testament to the dedication of our employees, who continue to
work diligently to support our customers,” added Fischer.
Earnings and Balance Sheet Highlights (at or
for the periods ended September 30, 2024, compared to September 30,
2023, or June 30, 2024):
Earnings Highlights:
- Earnings per diluted common share (“EPS”) increased 7% to $0.79
for the current quarter from $0.74 for the preceding quarter and
decreased 2% from $0.81 for the comparable quarter one year ago;
EPS for the 2024 fiscal year decreased 9% to $3.01 from $3.29 for
the 2023 fiscal year;
- Net income increased 7% to $6.36 million for the current
quarter from $5.92 million for the preceding quarter and decreased
4% from $6.64 million for the comparable quarter one year ago; Net
income decreased 10% to $24.28 million for the 2024 fiscal year
compared to $27.12 million for the 2023 fiscal year;
- Return on average equity (“ROE”) and return on average assets
(“ROA”) for the current quarter were 10.43% and 1.32%,
respectively;
- Net interest margin (“NIM”) for the current quarter expanded to
3.58% from 3.53% for the preceding quarter and compressed from
3.85% for the comparable quarter one year ago; and
- The efficiency ratio for the current quarter was 56.79%
compared to 58.97% for the preceding quarter and 55.52% for the
comparable quarter one year ago.
Balance Sheet Highlights:
- Total assets increased 1% from the prior quarter and increased
5% year-over-year;
- Net loans receivable increased 2% from the prior quarter and
increased 9% year-over-year;
- Total deposits increased 1% from the prior quarter and
increased 6% year-over-year;
- Total shareholders’ equity increased 2% from the prior quarter
and increased 5% year-over-year; 36,859 shares of common stock were
repurchased during the current quarter for $1.09 million and
218,976 shares of common stock were repurchased during the 2024
fiscal year for $5.89 million;
- Non-performing assets to total assets ratio was 0.20% at
September 30, 2024 compared to 0.22% at June 30, 2024 and 0.09% at
September 30, 2023;
- Book and tangible book (non-GAAP) values per common share
increased to $30.83 and $28.87 respectively, at September 30, 2024;
and
- Liquidity (both on-balance sheet and off-balance sheet)
remained strong at September 30, 2024 with only $20 million in
borrowings and additional secured borrowing line capacity of $692
million available through the Federal Home Loan Bank (“FHLB”) and
the Federal Reserve.
Operating Results
Operating revenue (net interest income before the
provision for credit losses plus non-interest income) for the
current quarter increased 4% to $19.48 million from $18.77 million
for the preceding quarter and decreased 1% from $19.76 million for
the comparable quarter one year ago. The increase in operating
revenue compared to the preceding quarter was primarily due to an
increase in interest income from loans and an increase in
non-interest income, which was partially offset by an increase in
funding costs and a decrease in interest income on investment
securities and interest bearing deposits in
banks. Operating revenue decreased by
5%, to $75.30 million for the 2024 fiscal year from $79.50 million
for the 2023 fiscal year, primarily due to an increase in funding
costs, which outpaced the increase in interest income.
Net interest income increased $566,000, or 4%, to
$16.55 million for the current quarter from $15.98 million for the
preceding quarter and decreased $284,000, or 2%, from $16.83
million for the comparable quarter one year ago. The increase in
net interest income compared to the preceding quarter was primarily
due to an increase in the weighted average yield of
interest-earning assets to 5.41% from 5.33% for the preceding
quarter and a $17.47 million increase in average total
interest-earning assets. Partially offsetting the increase in the
weighted average yield of interest-earning assets, was in increase
in the weighted average cost of interest-bearing liabilities to
2.70% from 2.64% for the preceding quarter. Timberland’s NIM for
the current quarter expanded to 3.58% from 3.53% for the preceding
quarter and compressed from 3.85% for the comparable quarter one
year ago. The NIM for the current
quarter was increased by approximately one basis point due to the
collection of $20,000 in pre-payment penalties, non-accrual
interest, and late fees and the accretion of $7,000 of the fair
value discount on acquired loans. The
NIM for the preceding quarter was increased by approximately three
basis points due to the collection of $124,000 in pre-payment
penalties, non-accrual interest, and late fees, and the accretion
of $9,000 of the fair value discount on acquired
loans. The NIM for the comparable
quarter one year ago was increased by approximately two basis
points due to the collection of $92,000 in pre-payment penalties,
non-accrual interest, and late fees, and the accretion of $11,000
of the fair value discount on acquired loans.
Net interest income for the 2024 fiscal year
decreased $4.19 million, or 6%, to $64.17 million from $68.36
million for the 2023 fiscal year, primarily due to increased
funding costs, which outpaced the increase in interest income. The
weighted average cost of interest-bearing liabilities increased to
2.52% for the 2024 fiscal year from 1.06% for the 2023 fiscal year.
Partially offsetting the increased funding costs was an increase in
the weighted average yield of interest-earning assets to 5.24% for
the 2024 fiscal year from 4.63% for the 2023 fiscal year and an
$82.49 million increase in average total interest-earning assets
for the current year. As a result of these changes, Timberland’s
NIM compressed to 3.54% for the 2024 fiscal year from 3.95% for the
2023 fiscal year.
A $444,000 provision for credit losses on loans was
recorded for the quarter ended September 30, 2024. The provision
was primarily due to loan portfolio growth and changes in the
composition of the loan portfolio. This compares to a $264,000
provision for credit losses on loans for the preceding quarter and
a $522,000 provision for credit losses on loans for the comparable
quarter one year ago. In addition, a $59,000 provision for credit
losses on unfunded commitments and a $13,000 recapture of credit
losses on investment securities were recorded for the current
quarter. The provisions for credit losses on loans totaled $1.25
million for the 2024 fiscal year compared to provisions of $2.13
million for the 2023 fiscal year.
Non-interest income increased $141,000, or 5% to
$2.93 million for the current quarter from $2.79 million for the
preceding quarter and increased $8,000, less than 1%, from $2.92
million for the comparable quarter one year ago. The increase in
non-interest income compared to the preceding quarter was primarily
due to an increase in gain on sales of loans and smaller changes in
several other categories.
Non-interest income for the 2024 fiscal year
decreased slightly, less than 1%, to $11.136 million from $11.140
million for the 2023 fiscal year, primarily due to a decrease in
ATM and debit card interchange fees and smaller decreases in
several other categories, which were partially offset by an
increase in services charges on deposits and smaller increases in
several other categories.
Total operating (non-interest) expenses for the
current quarter decreased $7,000, or less than 1%, to $11.06
million from $11.07 million for the preceding quarter and increased
$95,000, or 1%, from $10.97 million for the comparable quarter one
year ago. The decrease in operating
expenses compared to the preceding quarter was primarily due to
decreases in premises and equipment, salaries and employee benefits
and smaller decreases in several other expense categories. These
decreases were partially offset by increases in technology and
communications, professional fees, and smaller increases in several
other expense categories. The efficiency ratio for the current
quarter was 56.79% compared to 58.97% for the preceding quarter and
55.52% for the comparable quarter one year ago.
For the 2024 fiscal year, operating expenses
increased 1% to $43.75 million from $43.37 million for the 2023
fiscal year. The increase in operating expenses was primarily due
to increases in technology and communications, ATM and debit card
processing, and smaller increases in several other expense
categories. These increases were partially offset by a decrease in
professional fees and smaller decreases in several other expense
categories. The efficiency ratio for the 2024 fiscal year was
58.09% compared to 54.56% for the 2023 fiscal
year.
The provision for income taxes for the current
quarter increased $37,000, or 2%, to $1.57 million from $1.54
million for the preceding quarter, primarily due to higher taxable
income. Timberland’s effective income tax rate was 19.8% for the
quarter ended September 30, 2024 compared to 20.6% for the quarter
ended June 30, 2024 and 19.6% for the quarter ended September 30,
2023. Timberland’s effective income tax rate was 20.1% for the 2024
fiscal year compared to 20.2% for the 2023 fiscal year.
Balance Sheet Management
Total assets increased $22.85 million, or 1%, during the quarter
to $1.92 billion at September 30, 2024 from $1.90 billion at June
30, 2024 and increased $83.57 million, or 5%, from $1.84 billion
one year ago. The increase during the current quarter
was primarily due to increases of $24.50 million in net loans
receivable and $5.82 million in cash and cash equivalents, and
smaller increases in several other categories. These increases to
total assets were partially offset by a $6.92 million decrease in
investment securities and smaller decreases in several other
categories. The net increase in total assets during the quarter was
primarily funded by increased deposits and retained net income.
Liquidity
Timberland has maintained a strong liquidity position (both
on-balance sheet and off-balance sheet) while continuing to grow
the loan portfolio. Liquidity, as measured by the sum of cash and
cash equivalents, CDs held for investment, and available for sale
investment securities, was 14.7% of total liabilities at September
30, 2024, compared to 14.7% at June 30, 2024, and 11.6% one year
ago. Timberland had secured borrowing line capacity of $692 million
available through the FHLB and the Federal Reserve at September 30,
2024. With a strong and diversified deposit base, only 18% of
Timberland’s deposits were uninsured or uncollateralized at
September 30, 2024. (Note: This calculation excludes public
deposits that are fully collateralized.)
Loans
Net loans receivable increased $24.50 million, or 2%, during the
quarter to $1.42 billion at September 30, 2024 from $1.40 billion
at June 30, 2024. This increase was primarily due to a $17.32
million decrease in the undisbursed portion of construction loans,
a $10.51 million increase in one- to four-family loans and smaller
increases in several other loan categories. These increases to net
loans receivable were partially offset by a $7.33 million decrease
in gross construction loans and smaller decreases in several other
loan categories.
Net loans receivable increased $119.22 million, or 9%, during
the fiscal year to $1.42 billion at September 30, 2024 from $1.30
billion at September 30, 2023. This increase was primarily due to a
$50.17 million increase in multi-family loans, a $45.90 million
increase in one- to four-family loans, a $33.32 million decrease in
the undisbursed portion of construction loans, a $30.95 million
increases in commercial real estate loans, a $9.63 million increase
in home equity loans and smaller increases in several other loan
categories. These increases to net loans receivable were partially
offset by a $54.64 million decrease in gross construction loans and
smaller decreases in several other loan categories.
Loan Portfolio($ in
thousands) |
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
One- to four-family (a) |
$299,123 |
|
|
20 |
% |
|
$288,611 |
|
|
19 |
% |
|
$253,227 |
|
|
18 |
% |
Multi-family |
|
177,350 |
|
|
11 |
|
|
|
177,950 |
|
|
12 |
|
|
|
127,176 |
|
|
9 |
|
Commercial |
|
599,219 |
|
|
40 |
|
|
|
597,865 |
|
|
40 |
|
|
|
568,265 |
|
|
40 |
|
Construction - custom and |
|
|
|
|
|
|
|
|
|
|
|
owner/builder |
|
132,101 |
|
|
9 |
|
|
|
128,222 |
|
|
9 |
|
|
129,699 |
|
|
9 |
Construction - speculative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
one-to four-family |
|
11,495 |
|
|
1 |
|
|
|
11,441 |
|
|
1 |
|
|
|
17,099 |
|
|
1 |
|
Construction - commercial |
|
29,463 |
|
|
2 |
|
|
|
32,130 |
|
|
2 |
|
|
|
51,064 |
|
|
4 |
|
Construction - multi-family |
|
28,401 |
|
|
2 |
|
|
|
35,631 |
|
|
2 |
|
|
|
57,140 |
|
|
4 |
|
Construction - land |
|
|
|
|
|
|
|
|
|
|
|
development |
|
17,741 |
|
|
1 |
|
|
|
19,104 |
|
|
1 |
|
|
|
18,841 |
|
|
1 |
|
Land |
|
29,366 |
|
|
2 |
|
|
|
32,384 |
|
|
2 |
|
|
|
26,726 |
|
|
2 |
|
Total mortgage loans |
|
1,324,259 |
|
|
88 |
|
|
|
1,323,338 |
|
|
88 |
|
|
|
1,249,237 |
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
Home equity and second |
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
|
47,913 |
|
|
3 |
|
|
|
43,679 |
|
|
3 |
|
|
|
38,281 |
|
|
3 |
|
Other |
|
3,129 |
|
|
-- |
|
|
|
3,121 |
|
|
-- |
|
|
|
2,772 |
|
|
-- |
|
Total consumer loans |
|
51,042 |
|
|
3 |
|
|
|
46,800 |
|
|
3 |
|
|
|
41,053 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial business loans |
|
138,743 |
|
|
9 |
|
|
|
136,213 |
|
|
9 |
|
|
|
135,802 |
|
|
9 |
|
SBA PPP loans |
|
260 |
|
|
-- |
|
|
|
314 |
|
|
-- |
|
|
|
466 |
|
|
-- |
|
Total commercial loans |
|
139,003 |
|
|
9 |
|
|
|
136,527 |
|
|
9 |
|
|
|
136,268 |
|
|
9 |
|
Total loans |
|
1,514,304 |
|
|
100 |
% |
|
|
1,506,665 |
|
|
100 |
% |
|
|
1,426,558 |
|
|
100 |
% |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Undisbursed portion of |
|
|
|
|
|
|
|
|
|
|
|
construction loans in |
|
|
|
|
|
|
|
|
|
|
|
process |
|
(69,878 |
) |
|
|
|
|
(87,196 |
) |
|
|
|
|
(103,194 |
) |
|
|
Deferred loan origination |
|
|
|
|
|
|
|
|
|
|
|
fees |
|
(5,425 |
) |
|
|
|
|
(5,404 |
) |
|
|
|
|
(5,242 |
) |
|
|
Allowance for credit losses |
|
(17,478 |
) |
|
|
|
|
(17,046 |
) |
|
|
|
|
(15,817 |
) |
|
|
Total loans receivable, net |
$1,421,523 |
|
|
|
|
$1,397,019 |
|
|
|
|
$1,302,305 |
|
|
|
_______________________ |
(a) Does not include one- to four-family loans
held for sale totaling $0, $1,795, and $400 at September 30, 2024,
June 30, 2024, and September 30, 2023,
respectively. |
|
The following table provides a breakdown of commercial real
estate (“CRE”) mortgage loans by collateral type as of September
30, 2024:
CRE Loan Portfolio Breakdown by Collateral($ in
thousands) |
|
Collateral Type |
|
Balance |
|
Percent of CRE Portfolio |
|
Percent of Total Loan Portfolio |
|
Average Balance Per Loan |
|
Non-Accrual |
Industrial warehouse |
|
$125,852 |
|
|
21 |
% |
|
8 |
% |
|
$1,246 |
|
|
$195 |
Medical/dental offices |
|
|
83,276 |
|
|
14 |
|
|
5 |
|
|
|
1,262 |
|
|
|
-- |
Office buildings |
|
|
68,526 |
|
|
11 |
|
|
5 |
|
|
|
779 |
|
|
|
-- |
Other retail buildings |
|
|
50,067 |
|
|
8 |
|
|
3 |
|
|
|
533 |
|
|
|
-- |
Mini-storage |
|
|
38,600 |
|
|
6 |
|
|
3 |
|
|
|
1,430 |
|
|
|
-- |
Hotel/motel |
|
|
31,182 |
|
|
5 |
|
|
2 |
|
|
|
2,835 |
|
|
|
-- |
Restaurants |
|
|
27,269 |
|
|
5 |
|
|
2 |
|
|
|
557 |
|
|
|
273 |
Gas stations/conv. stores |
|
|
25,145 |
|
|
4 |
|
|
2 |
|
|
|
1,048 |
|
|
|
-- |
Nursing homes |
|
|
18,434 |
|
|
3 |
|
|
1 |
|
|
|
2,304 |
|
|
|
-- |
Churches |
|
|
16,235 |
|
|
3 |
|
|
1 |
|
|
|
854 |
|
|
|
-- |
Mobile home parks |
|
|
10,798 |
|
|
2 |
|
|
1 |
|
|
|
491 |
|
|
|
-- |
Shopping centers |
|
|
10,718 |
|
|
2 |
|
|
1 |
|
|
|
1,786 |
|
|
|
-- |
Additional CRE |
|
|
93,117 |
|
|
16 |
|
|
6 |
|
|
|
705 |
|
|
|
690 |
Total CRE |
|
$599,219 |
|
|
100 |
% |
|
40 |
% |
|
$926 |
|
|
$1,158 |
|
Timberland originated $48.82 million in loans during the quarter
ended September 30, 2024, compared to $74.32 million for the
preceding quarter and $89.25 million for the comparable quarter one
year ago. Timberland continues to originate fixed-rate one- to
four-family mortgage loans, a portion of which are sold into the
secondary market for asset-liability management purposes and to
generate non-interest income. During the current
quarter, fixed-rate one- to four-family mortgage loans totaling
$5.62 million were sold compared to $3.05 million for the preceding
quarter and $4.58 million for the comparable quarter one year
ago.
Investment
Securities Timberland’s
investment securities and CDs held for investment decreased $7.17
million, or 3%, to $255.43 million at September 30, 2024, from
$262.60 million at June 30, 2024. The decrease was
primarily due to maturities of U.S. Treasury investment securities
(classified as held to maturity) and scheduled amortization.
Partially offsetting these decreases, was the purchase of
additional U.S. government agency mortgage-backed investment
securities and U.S. Treasury investment securities, all of which
were classified as available for sale.
Investment securities and CDs held for investment decreased
$72.56 million, or 22%, during the fiscal year to $255.43 million
at September 30, 2024, from $327.99 million at September 30, 2023.
The decrease was primarily due to maturities of U.S. Treasury
investment securities, and to a lesser extent, scheduled
amortization. Partially offsetting these decreases, was the
purchase of additional U.S. government agency mortgage-backed
investment securities and U.S. Treasury investment securities, all
of which were classified as available for sale.
Deposits
Total deposits increased $19.12 million, or 1%, during the
quarter to $1.65 billion at September 30, 2024, from $1.63 billion
at June 30, 2024. The quarter’s increase consisted of an $8.53
million increase in NOW account balances, a $6.77 million increase
in certificate of deposit account balances and a $5.99 million
increase in non-interest bearing deposit account balances. These
increases were partially offset by a $1.93 million decrease in
savings account balances and a $240,000 decrease in money market
account balances.
Total deposits increased $86.73 million, or 6%, during the
fiscal year to $1.65 billion at September 30, 2024 from $1.56
billion at September 30, 2023. The increase consisted of a $137.05
million increase in money market account balances and a $68.21
million increase in certificate of deposit account balances. These
increases were partially offset by a $53.40 million decrease in NOW
account balances, a $42.75 million decrease in non-interest bearing
deposit account balances and a $22.37 million decrease in savings
account balances.
Deposit Breakdown($ in thousands) |
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
|
Amount |
|
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
|
Percent |
Non-interest-bearing demand |
|
$413,116 |
|
|
25 |
% |
|
$407,125 |
|
|
25 |
% |
|
$455,864 |
|
|
29 |
% |
NOW checking |
|
333,329 |
|
|
20 |
|
|
324,795 |
|
|
20 |
|
|
386,730 |
|
|
25 |
|
Savings |
|
205,993 |
|
|
13 |
|
|
207,921 |
|
|
13 |
|
|
228,366 |
|
|
15 |
|
Money market |
|
326,922 |
|
|
20 |
|
|
327,162 |
|
|
20 |
|
|
189,875 |
|
|
12 |
|
Certificates of deposit under
$250 |
|
205,970 |
|
|
12 |
|
|
195,022 |
|
|
12 |
|
|
170,221 |
|
|
11 |
|
Certificates of deposit $250
and over |
|
113,579 |
|
|
7 |
|
|
117,788 |
|
|
7 |
|
|
91,714 |
|
|
6 |
|
Certificates of deposit –
brokered |
|
48,759 |
|
|
3 |
|
|
48,731 |
|
|
3 |
|
|
38,165 |
|
|
2 |
|
Total deposits |
|
$1,647,668 |
|
|
100 |
% |
|
$1,628,544 |
|
|
100 |
% |
|
$1,560,935 |
|
|
100 |
% |
|
Borrowings
Total borrowings were $20.00 million at both September 30, 2024
and June 30, 2024. At September 30, 2024, the weighted average rate
on the borrowings was 3.97%.
Shareholders’ Equity and Capital
Ratios
Total shareholders’ equity increased $4.19 million, or 2%, to
$245.41 million at September 30, 2024, from $241.22 million at June
30, 2024, and increased $12.34 million, or 5%, from $233.07 million
at September 30, 2023. The quarter’s increase in
shareholders’ equity was primarily due to net income of $6.36
million and a $565,000 change in the accumulated other
comprehensive income (loss) category for fair value adjustments on
available for sale investment securities. These increases to
shareholders’ equity during the current quarter were partially
offset by the payment of $1.91 million in dividends to shareholders
and the repurchase of 36,859 shares of common stock for $1.09
million (an average price of $29.61 per share). During the fiscal
year Timberland repurchased 218,976 shares of common stock for
$5.89 million (an average price of $26.91 per share) and had
155,166 shares available to be repurchased in accordance with the
terms of its existing stock repurchase plan at September 30,
2024.
Timberland remains well capitalized with a total
risk-based capital ratio of 19.39%, a Tier 1 leverage capital ratio
of 12.12%, a tangible common equity to tangible assets ratio
(non-GAAP) of 12.05%, and a shareholders’ equity to total assets
ratio of 12.76% at September 30, 2024. Timberland’s held to
maturity investment securities were $172.10 million at September
30, 2024, with a net unrealized loss of $6.07 million (pre-tax).
Although not permitted by U.S. Generally Accepted Accounting
Principles (“GAAP”), including these unrealized losses in
accumulated other comprehensive income (loss) (“AOCI”) would result
in a ratio of shareholders’ equity to total assets of 12.54%,
compared to 12.76%, as reported.
Asset Quality
Timberland’s non-performing assets to total assets
ratio was 0.20% at September 30, 2024 compared to 0.22% at June 30,
2024 and 0.09% at September 30, 2023.
Net charge-offs totaled $12,000 for the current quarter compared to
net charge-offs of $36,000 for the preceding quarter and net
charge-offs of $12,000 for the comparable quarter one year ago.
During the current quarter, provisions for credit losses of
$444,000 on loans and $59,000 on unfunded commitments were made,
which were partially offset by a $13,000 recapture of credit losses
on investment securities. The ACL for loans as a percentage of
loans receivable was 1.21% at September 30, 2024, compared to 1.21%
at June 30, 2024 and 1.20% one year ago.
Total delinquent loans (past due 30 days or more)
and non-accrual loans increased $244,000 or 6%, to $4.49 million at
September 30, 2024, from $4.23 million at June 30, 2024.
Non-accrual loans decreased $235,000, or 6%, to $3.88 million at
September 30, 2024 from $4.12 million at June 30, 2024. The
quarterly decrease in non-accrual loans was primarily due to
decreases in construction loans, commercial real estate loans and
one- to four-family loans on non-accrual status, which was
partially offset by an increase in commercial business loans on
non-accrual status.
Non-Accrual Loans($ in thousands) |
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
|
Amount |
|
Quantity |
Mortgage loans: |
|
|
|
|
|
|
|
|
|
|
|
One- to four-family |
$ |
49 |
|
1 |
|
$ |
135 |
|
2 |
|
$ |
368 |
|
2 |
Commercial |
|
1,158 |
|
6 |
|
|
1,310 |
|
4 |
|
|
683 |
|
2 |
Construction – custom and |
|
|
|
|
|
|
|
|
|
|
|
owner/builder |
|
-- |
|
-- |
|
|
152 |
|
1 |
|
|
-- |
|
-- |
Total mortgage loans |
|
1,207 |
|
7 |
|
|
1,597 |
|
7 |
|
|
1,051 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
Home equity and second |
|
|
|
|
|
|
|
|
|
|
|
mortgage |
|
618 |
|
3 |
|
|
615 |
|
3 |
|
|
177 |
|
1 |
Other |
|
-- |
|
-- |
|
|
-- |
|
-- |
|
|
-- |
|
1 |
Total consumer loans |
|
618 |
|
3 |
|
|
615 |
|
3 |
|
|
177 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business loans |
|
2,060 |
|
8 |
|
|
1,908 |
|
8 |
|
|
286 |
|
5 |
Total loans |
$ |
3,885 |
|
18 |
|
$ |
4,120 |
|
18 |
|
$ |
1,514 |
|
11 |
|
About Timberland Bancorp, Inc. Timberland
Bancorp, Inc., a Washington corporation, is the holding company for
Timberland Bank. The Bank opened for business in 1915 and primarily
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 23 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. These statements relate
to our financial condition, results of operations, plans,
objectives, future performance or business. Forward-looking
statements are not statements of historical fact, are based on
certain assumptions 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 economic 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 or implied by our
forward-looking statements, including, but not limited to:
potential adverse impacts to economic conditions in our local
market areas, other markets where the Company has lending
relationships, or other aspects of the Company's business
operations or financial markets, including, without limitation, as
a result of employment levels, labor shortages and the effects of
inflation, a potential recession or slowed economic growth;
continuing elevated levels of inflation and the impact of current
and future monetary policies of the Board of Governors of the
Federal Reserve System ("Federal Reserve") in response thereto; the
effects of any federal government shutdown; credit risks of lending
activities, including any deterioration in the housing and
commercial real estate markets which may lead to increased losses
and non-performing loans in our loan portfolio resulting in our ACL
not being adequate to cover actual losses and thus requiring us to
materially increase our ACL through the provision for credit
losses; 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 of our
bank subsidiary by the Federal Deposit Insurance Corporation
(“FDIC”), 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, institute a formal or informal enforcement
action against us or our bank subsidiary which could require us to
increase our ACL, write-down assets, change our regulatory capital
position or affect our ability to borrow funds or maintain or
increase deposits or impose additional requirements or restrictions
on us, any of which could adversely affect our liquidity and
earnings; the impact of bank failures or adverse developments at
other banks and related negative press about the banking industry
in general on investor and depositor sentiment; legislative or
regulatory changes that adversely affect our business including
changes in banking, securities and tax law, in regulatory policies
and principles, or the interpretation of regulatory capital or
other rules; our ability to attract and retain deposits; 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 risks associated
with the loans in our consolidated balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect our work force and potential
associated charges; disruptions, security breaches, or other
adverse events, failures or interruptions in, or attacks on, our
information technology systems or on the third-party vendors who
perform several of our critical processing functions; our ability
to retain key members of our senior management team; costs and
effects of litigation, including settlements and judgments; our
ability to implement our business strategies; our ability to manage
loan delinquency rates; increased competitive pressures among
financial services companies; changes in consumer spending,
borrowing and savings habits; the availability of resources to
address changes in laws, rules, or regulations or to respond to
regulatory actions; our ability to pay dividends on our common
stock; the quality and composition of our securities portfolio and
the impact if any adverse changes in the securities markets,
including on market liquidity; 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 ("FASB"), including additional guidance and
interpretation on accounting issues and details of the
implementation of new accounting methods; the economic impact of
climate change, severe weather events, natural disasters,
pandemics, epidemics and other public health crises, acts of war or
terrorism, civil unrest and other external events on our business;
other economic, competitive, governmental, regulatory, and
technological factors affecting our operations, pricing, products
and services; and other risks described elsewhere in this press
release and in the Company's other reports filed with or furnished
to 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
do not undertake and specifically disclaim any obligation to
publicly update or revise any forward-looking statements included
in this press release to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements 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. In light of these risks,
uncertainties and assumptions, the forward-looking statements
discussed in this document might not occur and we caution readers
not to place undue reliance on any forward-looking statements.
These risks could cause our actual results for fiscal 2025 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 consolidated financial condition
and results of operations as well as its stock price
performance.
Contact: |
|
Dean J. Brydon, CEO |
|
|
Jonathan A. Fischer,
President & COO |
|
|
Marci A. Basich,
CFO |
|
|
(360) 533-4747 |
|
|
www.timberlandbank.com |
|
|
|
TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS
OF INCOME |
|
Three Months Ended |
($ in thousands,
except per share amounts) (unaudited) |
|
Sept. 30 |
|
June 30, |
|
Sept. 30, |
|
|
2024 |
|
2024 |
|
2023 |
|
Interest and dividend
income |
|
|
|
|
|
|
|
Loans receivable |
|
$20,589 |
|
|
$19,537 |
|
|
$17,532 |
|
|
Investment securities |
|
|
2,237 |
|
|
|
2,335 |
|
|
|
2,326 |
|
|
Dividends from mutual funds,
FHLB stock and other investments |
|
|
95 |
|
|
|
94 |
|
|
|
85 |
|
|
Interest bearing deposits in
banks |
|
|
2,114 |
|
|
|
2,173 |
|
|
|
1,619 |
|
|
Total interest and dividend income |
|
|
25,035 |
|
|
|
24,139 |
|
|
|
21,562 |
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
Deposits |
|
|
8,277 |
|
|
|
7,938 |
|
|
|
4,574 |
|
|
Borrowings |
|
|
211 |
|
|
|
220 |
|
|
|
157 |
|
|
Total interest expense |
|
|
8,488 |
|
|
|
8,158 |
|
|
|
4,731 |
|
|
Net interest income |
|
|
16,547 |
|
|
|
15,981 |
|
|
|
16,831 |
|
|
Provision for credit
losses – loans |
|
|
444 |
|
|
|
264 |
|
|
|
522 |
|
|
Recapture of credit
losses – investment securities |
|
|
(13 |
) |
|
|
(12 |
) |
|
|
-- |
|
|
Prov. for (recapture
of ) credit losses - unfunded commitments |
|
|
59 |
|
|
|
(8 |
) |
|
|
-- |
|
|
Net int. income after provision for (recapture of) credit
losses |
|
|
16,057 |
|
|
|
15,737 |
|
|
|
16,309 |
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
Service charges on
deposits |
|
|
1,037 |
|
|
|
1,014 |
|
|
|
1,015 |
|
|
ATM and debit card interchange
transaction fees |
|
|
1,293 |
|
|
|
1,297 |
|
|
|
1,333 |
|
|
Gain on sales of loans,
net |
|
|
135 |
|
|
|
68 |
|
|
|
97 |
|
|
Bank owned life insurance
(“BOLI”) net earnings |
|
|
175 |
|
|
|
158 |
|
|
|
237 |
|
|
Recoveries on investment
securities, net |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
Other |
|
|
289 |
|
|
|
252 |
|
|
|
240 |
|
|
Total non-interest income, net |
|
|
2,932 |
|
|
|
2,791 |
|
|
|
2,924 |
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
5,867 |
|
|
|
5,928 |
|
|
|
5,756 |
|
|
Premises and equipment |
|
|
933 |
|
|
|
1,011 |
|
|
|
982 |
|
|
Loss (gain) on
sales/disposition of premises and equipment, net |
|
|
1 |
|
|
|
(3 |
) |
|
|
12 |
|
|
Advertising |
|
|
205 |
|
|
|
211 |
|
|
|
235 |
|
|
OREO and other repossessed
assets, net |
|
|
4 |
|
|
|
-- |
|
|
|
-- |
|
|
ATM and debit card
processing |
|
|
588 |
|
|
|
580 |
|
|
|
524 |
|
|
Postage and courier |
|
|
137 |
|
|
|
130 |
|
|
|
135 |
|
|
State and local taxes |
|
|
343 |
|
|
|
335 |
|
|
|
325 |
|
|
Professional fees |
|
|
410 |
|
|
|
335 |
|
|
|
599 |
|
|
FDIC insurance expense |
|
|
209 |
|
|
|
208 |
|
|
|
194 |
|
|
Loan administration and
foreclosure |
|
|
125 |
|
|
|
156 |
|
|
|
118 |
|
|
Technology and
communications |
|
|
1,163 |
|
|
|
1,086 |
|
|
|
933 |
|
|
Deposit operations |
|
|
446 |
|
|
|
450 |
|
|
|
346 |
|
|
Amortization of core deposit
intangible (“CDI”) |
|
|
57 |
|
|
|
56 |
|
|
|
68 |
|
|
Other, net |
|
|
574 |
|
|
|
586 |
|
|
|
740 |
|
|
Total non-interest expense, net |
|
|
11,062 |
|
|
|
11,069 |
|
|
|
10,967 |
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
7,927 |
|
|
|
7,459 |
|
|
|
8,266 |
|
|
Provision for income
taxes |
|
|
1,572 |
|
|
|
1,535 |
|
|
|
1,624 |
|
|
Net income |
|
$6,355 |
|
|
$5,924 |
|
|
$6,642 |
|
|
|
|
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
|
$0.80 |
|
|
$0.74 |
|
|
$0.82 |
|
|
Diluted |
|
|
0.79 |
|
|
|
0.74 |
|
|
|
0.81 |
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
7,954,112 |
|
|
|
8,004,552 |
|
|
|
8,094,719 |
|
|
Diluted |
|
|
7,995,024 |
|
|
|
8,039,345 |
|
|
|
8,156,497 |
|
|
|
|
|
TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS
OF INCOME |
|
Year Ended |
($ in thousands,
except per share amounts) (unaudited) |
|
Sept. 30, |
|
|
|
Sept. 30, |
|
|
2024 |
|
|
|
2023 |
|
Interest and dividend
income |
|
|
|
|
|
|
|
Loans receivable |
|
$77,430 |
|
|
|
|
$63,154 |
|
|
Investment securities |
|
|
9,129 |
|
|
|
|
|
9,384 |
|
|
Dividends from mutual funds,
FHLB stock and other investments |
|
|
361 |
|
|
|
|
|
270 |
|
|
Interest bearing deposits in
banks |
|
|
7,905 |
|
|
|
|
|
7,143 |
|
|
Total interest and dividend income |
|
|
94,825 |
|
|
|
|
|
79,951 |
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
Deposits |
|
|
29,659 |
|
|
|
|
|
11,302 |
|
|
Borrowings |
|
|
999 |
|
|
|
|
|
290 |
|
|
Total interest expense |
|
|
30,658 |
|
|
|
|
|
11,592 |
|
|
Net interest income |
|
|
64,167 |
|
|
|
|
|
68,359 |
|
|
Provision for credit
losses – loans |
|
|
1,254 |
|
|
|
|
|
2,132 |
|
|
Recapture of credit
losses – investment securities |
|
|
(32 |
) |
|
|
|
|
-- |
|
|
Recapture of credit
losses - unfunded commitments |
|
|
(71 |
) |
|
|
|
|
-- |
|
|
Net int. income after provision for (recapture of) credit
losses |
|
|
63,016 |
|
|
|
|
|
66,227 |
|
|
|
|
|
|
|
|
|
|
Non-interest
income |
|
|
|
|
|
|
|
Service charges on
deposits |
|
|
4,062 |
|
|
|
|
|
3,824 |
|
|
ATM and debit card interchange
transaction fees |
|
|
5,066 |
|
|
|
|
|
5,194 |
|
|
Gain on sales of loans,
net |
|
|
322 |
|
|
|
|
|
244 |
|
|
Bank owned life insurance
(“BOLI”) net earnings |
|
|
645 |
|
|
|
|
|
706 |
|
|
Gain on sale of securities,
net |
|
|
-- |
|
|
|
|
|
95 |
|
|
Recoveries on investment
securities, net |
|
|
12 |
|
|
|
|
|
9 |
|
|
Other |
|
|
1,029 |
|
|
|
|
|
1,068 |
|
|
Total non-interest income, net |
|
|
11,136 |
|
|
|
|
|
11,140 |
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
23,730 |
|
|
|
|
|
23,562 |
|
|
Premises and equipment |
|
|
3,998 |
|
|
|
|
|
3,915 |
|
|
Gain on sales/dispositions of
premises and equipment, net |
|
|
(2 |
) |
|
|
|
|
(19 |
) |
|
Advertising |
|
|
761 |
|
|
|
|
|
786 |
|
|
OREO and other repossessed
assets, net |
|
|
5 |
|
|
|
|
|
1 |
|
|
ATM and debit card
processing |
|
|
2,384 |
|
|
|
|
|
1,987 |
|
|
Postage and courier |
|
|
538 |
|
|
|
|
|
532 |
|
|
State and local taxes |
|
|
1,322 |
|
|
|
|
|
1,219 |
|
|
Professional fees |
|
|
1,317 |
|
|
|
|
|
2,078 |
|
|
FDIC insurance expense |
|
|
833 |
|
|
|
|
|
711 |
|
|
Loan administration and
foreclosure |
|
|
521 |
|
|
|
|
|
503 |
|
|
Technology and
telecommunications |
|
|
4,264 |
|
|
|
|
|
3,545 |
|
|
Deposit operations |
|
|
1,540 |
|
|
|
|
|
1,368 |
|
|
Amortization of CDI |
|
|
226 |
|
|
|
|
|
271 |
|
|
Other, net |
|
|
2,309 |
|
|
|
|
|
2,914 |
|
|
Total non-interest expense, net |
|
|
43,746 |
|
|
|
|
|
43,373 |
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
30,406 |
|
|
|
|
|
33,994 |
|
|
Provision for income
taxes |
|
|
6,123 |
|
|
|
|
|
6,876 |
|
|
Net income |
|
$24,283 |
|
|
|
|
$27,118 |
|
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
|
$3.02 |
|
|
|
|
$3.32 |
|
|
Diluted |
|
|
3.01 |
|
|
|
|
|
3.29 |
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
8,038,674 |
|
|
|
|
|
8,175,898 |
|
|
Diluted |
|
|
8,080,382 |
|
|
|
|
|
8,248,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TIMBERLAND
BANCORP INC. AND SUBSIDIARYCONSOLIDATED BALANCE
SHEETS |
|
($ in thousands,
except per share amounts) (unaudited) |
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
|
|
Cash and due from
financial institutions |
|
$29,071 |
|
|
$25,566 |
|
|
$25,390 |
|
Interest-bearing
deposits in banks |
|
|
135,657 |
|
|
|
133,347 |
|
|
|
103,331 |
|
|
Total cash and cash equivalents |
|
|
164,728 |
|
|
|
158,913 |
|
|
|
128,721 |
|
|
|
|
|
|
|
|
|
Certificates of
deposit (“CDs”) held for investment, at cost |
|
|
10,209 |
|
|
|
10,458 |
|
|
|
15,188 |
|
Investment
securities: |
|
|
|
|
|
|
|
Held to maturity, at amortized
cost (net of ACL – investment securities) |
|
|
172,097 |
|
|
|
176,787 |
|
|
|
270,218 |
|
|
Available for sale, at fair
value |
|
|
72,257 |
|
|
|
74,515 |
|
|
|
41,771 |
|
Investments in
equity securities, at fair value |
|
|
866 |
|
|
|
836 |
|
|
|
811 |
|
FHLB stock |
|
|
2,037 |
|
|
|
2,037 |
|
|
|
3,602 |
|
Other investments,
at cost |
|
|
3,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
Loans held for
sale |
|
|
-- |
|
|
|
1,795 |
|
|
|
400 |
|
|
|
|
|
|
|
|
Loans
receivable |
|
|
1,439,001 |
|
|
|
1,414,065 |
|
|
|
1,318,122 |
|
Less: ACL –
loans |
|
|
(17,478 |
) |
|
|
(17,046 |
) |
|
|
(15,817 |
) |
|
Net loans receivable |
|
|
1,421,523 |
|
|
|
1,397,019 |
|
|
|
1,302,305 |
|
|
|
|
|
|
|
|
|
Premises and
equipment, net |
|
|
21,486 |
|
|
|
21,558 |
|
|
|
21,642 |
|
BOLI |
|
|
23,611 |
|
|
|
23,436 |
|
|
|
22,966 |
|
Accrued interest
receivable |
|
|
6,990 |
|
|
|
7,045 |
|
|
|
6,004 |
|
Goodwill |
|
|
15,131 |
|
|
|
15,131 |
|
|
|
15,131 |
|
CDI |
|
|
451 |
|
|
|
508 |
|
|
|
677 |
|
Loan servicing
rights, net |
|
|
1,372 |
|
|
|
1,526 |
|
|
|
2,124 |
|
Operating lease
right-of-use assets |
|
|
1,475 |
|
|
|
1,550 |
|
|
|
1,772 |
|
Other assets |
|
|
6,242 |
|
|
|
4,515 |
|
|
|
3,573 |
|
|
Total
assets |
|
$1,923,475 |
|
|
$1,900,629 |
|
|
$1,839,905 |
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
Deposits:
Non-interest-bearing demand |
|
$413,116 |
|
|
$407,125 |
|
|
$455,864 |
|
Deposits:
Interest-bearing |
|
|
1,234,552 |
|
|
|
1,221,419 |
|
|
|
1,105,071 |
|
|
Total deposits |
|
|
1,647,668 |
|
|
|
1,628,544 |
|
|
|
1,560,935 |
|
|
|
|
|
|
|
|
|
Operating lease
liabilities |
|
|
1,575 |
|
|
|
1,649 |
|
|
|
1,867 |
|
FHLB
borrowings |
|
|
20,000 |
|
|
|
20,000 |
|
|
|
35,000 |
|
Other liabilities
and accrued expenses |
|
|
8,819 |
|
|
|
9,213 |
|
|
|
9,030 |
|
|
Total
liabilities |
|
|
1,678,062 |
|
|
|
1,659,406 |
|
|
|
1,606,832 |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
|
Common stock, $.01 par value; 50,000,000 shares
authorized;
7,960,127 shares issued and outstanding – September 30,
2024
7,953,421 shares issued and outstanding – June 30,
2024
8,105,338 shares issued and outstanding – September 30, 2023
|
|
|
29,862 |
|
|
|
30,681 |
|
|
|
34,771 |
|
Retained
earnings |
|
|
215,531 |
|
|
|
211,087 |
|
|
|
199,386 |
|
Accumulated other
comprehensive income (loss) |
|
|
20 |
|
|
|
(545 |
) |
|
|
(1,084 |
) |
|
Total shareholders’
equity |
|
|
245,413 |
|
|
|
241,223 |
|
|
|
233,073 |
|
|
Total liabilities and
shareholders’ equity |
|
$1,923,475 |
|
|
$1,900,629 |
|
|
$1,839,905 |
|
|
|
|
Three Months Ended |
PERFORMANCE
RATIOS: |
|
Sept. 30, 2024 |
|
June 30, 2024 |
|
Sept. 30, 2023 |
Return on average assets (a) |
|
|
1.32 |
% |
|
|
1.25 |
% |
|
|
1.45 |
% |
Return on average equity
(a) |
|
|
10.43 |
% |
|
|
9.95 |
% |
|
|
11.52 |
% |
Net interest margin (a) |
|
|
3.58 |
% |
|
|
3.53 |
% |
|
|
3.85 |
% |
Efficiency ratio |
|
|
56.79 |
% |
|
|
58.97 |
% |
|
|
55.52 |
% |
|
|
|
|
|
|
|
|
|
Year Ended |
PERFORMANCE
RATIOS: |
|
Sept. 30, 2024 |
|
|
|
Sept. 30, 2023 |
Return on average assets
(a) |
|
|
1.28 |
% |
|
|
|
|
1.50 |
% |
Return on average equity
(a) |
|
|
10.19 |
% |
|
|
|
|
12.01 |
% |
Net interest margin (a) |
|
|
3.54 |
% |
|
|
|
|
3.95 |
% |
Efficiency ratio |
|
|
58.09 |
% |
|
|
|
|
54.56 |
% |
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS
AND DATA: |
|
Sept. 30, 2024 |
|
June 30, 2024 |
|
Sept. 30, 2023 |
Non-accrual loans |
|
$3,885 |
|
|
$4,120 |
|
|
$1,514 |
|
Loans past due 90 days and
still accruing |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
Non-performing investment
securities |
|
|
51 |
|
|
|
72 |
|
|
|
82 |
|
OREO and other repossessed
assets |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
Total non-performing assets
(b) |
|
$3,936 |
|
|
$4,192 |
|
|
$1,596 |
|
|
|
|
|
|
|
|
Non-performing assets to total
assets (b) |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.09 |
% |
Net charge-offs (recoveries)
during quarter |
|
$12 |
|
|
$36 |
|
|
$12 |
|
Allowance for credit losses -
loans to non-accrual loans, |
|
|
450 |
% |
|
|
414 |
% |
|
|
1,045 |
% |
Allowance for credit losses -
loans to loans receivable (c) |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS: |
|
|
|
|
|
|
Tier 1 leverage capital |
|
|
12.12 |
% |
|
|
12.04 |
% |
|
|
12.10 |
% |
Tier 1 risk-based capital |
|
|
18.14 |
% |
|
|
17.97 |
% |
|
|
18.13 |
% |
Common equity Tier 1
risk-based capital |
|
|
18.14 |
% |
|
|
17.97 |
% |
|
|
18.13 |
% |
Total risk-based capital |
|
|
19.39 |
% |
|
|
19.22 |
% |
|
|
19.38 |
% |
Tangible common equity to
tangible assets (non-GAAP) |
|
|
12.05 |
% |
|
|
11.97 |
% |
|
|
11.91 |
% |
|
|
|
|
|
|
|
BOOK VALUES: |
|
|
|
|
|
|
Book value per common
share |
|
$30.83 |
|
|
$30.33 |
|
|
$28.76 |
|
Tangible book value per common
share (d) |
|
|
28.87 |
|
|
|
28.36 |
|
|
|
26.81 |
|
________________________________________________ |
(a)
Annualized |
(b)
Non-performing assets include non-accrual loans, loans past due 90
days and still accruing, non-performing investment securities and
OREO and other repossessed assets. |
(c) Does not
include loans held for sale and is before the allowance for loan
losses. |
(d) Tangible
common equity divided by common shares outstanding (non-GAAP). |
|
AVERAGE
BALANCES, YIELDS, AND RATES - QUARTERLY ($ in
thousands)(unaudited) |
|
For the Three Months Ended |
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
September 30, 2023 |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and loans held for sale |
$ |
1,428,125 |
|
|
5.74 |
% |
|
$ |
1,391,582 |
|
|
5.65 |
% |
|
$ |
1,300,743 |
|
|
5.39 |
% |
Investment securities and FHLB
stock (1) |
|
254,567 |
|
|
3.64 |
|
|
|
268,954 |
|
|
3.63 |
|
|
|
322,122 |
|
|
2.99 |
|
Interest-earning deposits in
banks and CDs |
|
156,732 |
|
|
5.37 |
|
|
|
161,421 |
|
|
5.41 |
|
|
|
123,894 |
|
|
5.23 |
|
Total interest-earning
assets |
|
1,839,424 |
|
|
5.41 |
|
|
|
1,821,957 |
|
|
5.33 |
|
|
|
1,746,759 |
|
|
4.94 |
|
Other assets |
|
80,940 |
|
|
|
|
|
82,008 |
|
|
|
|
|
84,191 |
|
|
|
Total assets |
$ |
1,920,364 |
|
|
|
|
$ |
1,903,965 |
|
|
|
|
$ |
1,830,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
NOW checking accounts |
$ |
337,955 |
|
|
1.40 |
% |
|
$ |
329,344 |
|
|
1.29 |
% |
|
$ |
390,787 |
|
|
1.27 |
% |
Money market accounts |
|
321,151 |
|
|
3.62 |
|
|
|
326,023 |
|
|
3.56 |
|
|
|
198,650 |
|
|
0.98 |
|
Savings accounts |
|
207,457 |
|
|
0.27 |
|
|
|
208,488 |
|
|
0.27 |
|
|
|
234,094 |
|
|
0.21 |
|
Certificates of deposit
accounts |
|
316,897 |
|
|
4.20 |
|
|
|
311,545 |
|
|
4.21 |
|
|
|
246,494 |
|
|
3.58 |
|
Brokered CDs |
|
48,719 |
|
|
5.54 |
|
|
|
45,442 |
|
|
5.32 |
|
|
|
37,909 |
|
|
5.27 |
|
Total interest-bearing
deposits |
|
1,232,179 |
|
|
2.67 |
|
|
|
1,220,842 |
|
|
2.62 |
|
|
|
1,107,934 |
|
|
1.66 |
|
Borrowings |
|
20,000 |
|
|
4.20 |
|
|
|
20,001 |
|
|
4.42 |
|
|
|
15,435 |
|
|
4.04 |
|
Total interest-bearing
liabilities |
|
1,252,179 |
|
|
2.70 |
|
|
|
1,240,843 |
|
|
2.64 |
|
|
|
1,123,369 |
|
|
1.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand
deposits |
|
414,603 |
|
|
|
|
|
413,494 |
|
|
|
|
|
465,183 |
|
|
|
Other liabilities |
|
11,151 |
|
|
|
|
|
10,245 |
|
|
|
|
|
11,873 |
|
|
|
Shareholders’ equity |
|
242,431 |
|
|
|
|
|
239,383 |
|
|
|
|
|
230,525 |
|
|
|
Total liabilities and
shareholders’ equity |
$ |
1,920,364 |
|
|
|
|
$ |
1,903,965 |
|
|
|
|
$ |
1,830,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
2.71 |
% |
|
|
|
2.69 |
% |
|
|
|
3.25 |
% |
Net interest margin (2) |
|
|
3.58 |
% |
|
|
|
3.53 |
% |
|
|
|
3.85 |
% |
Average interest-earning
assets to |
|
|
|
|
|
|
|
|
|
|
|
average interest-bearing
liabilities |
|
146.90 |
% |
|
|
|
|
146.83 |
% |
|
|
|
|
155.49 |
% |
|
|
_____________________________________ |
(1) Includes other investments |
(2) Net interest margin = annualized net interest income
/ average interest-earning assets
|
|
For the Year Ended |
|
September 30, 2024 |
|
September 30, 2023 |
|
Amount |
|
Rate |
|
Amount |
|
Rate |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Loans receivable and loans held for sale |
$ |
1,379,529 |
|
|
5.61 |
% |
|
$ |
1,230,101 |
|
|
5.13 |
% |
Investment securities and FHLB
stock (1) |
|
284,678 |
|
|
3.33 |
|
|
|
330,751 |
|
|
2.92 |
|
Interest-earning deposits in
banks and CDs |
|
146,855 |
|
|
5.38 |
|
|
|
167,718 |
|
|
4.26 |
|
Total interest-earning assets |
|
1,811,062 |
|
|
5.24 |
|
|
|
1,728,570 |
|
|
4.63 |
|
Other assets |
|
81,470 |
|
|
|
|
|
84,205 |
|
|
|
Total assets |
$ |
1,892,532 |
|
|
|
|
$ |
1,812,775 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
NOW checking accounts |
$ |
353,000 |
|
|
1.46 |
% |
|
$ |
407,679 |
|
|
0.87 |
% |
Money market accounts |
|
285,615 |
|
|
3.24 |
|
|
|
215,465 |
|
|
0.74 |
|
Savings accounts |
|
212,562 |
|
|
0.25 |
|
|
|
261,006 |
|
|
0.16 |
|
Certificates of deposit
accounts |
|
298,039 |
|
|
4.14 |
|
|
|
188,534 |
|
|
2.70 |
|
Brokered CDs |
|
44,330 |
|
|
5.41 |
|
|
|
11,942 |
|
|
5.27 |
|
Total interest-bearing deposits |
|
1,193,546 |
|
|
2.48 |
|
|
|
1,084,626 |
|
|
1.04 |
|
Borrowings |
|
22,214 |
|
|
4.50 |
|
|
|
6,948 |
|
|
4.17 |
|
Total interest-bearing liabilities |
|
1,215,760 |
|
|
2.52 |
|
|
|
1,091,574 |
|
|
1.06 |
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand
deposits |
|
427,514 |
|
|
|
|
|
484,795 |
|
|
|
Other liabilities |
|
10,865 |
|
|
|
|
|
10,557 |
|
|
|
Shareholders’ equity |
|
238,393 |
|
|
|
|
|
225,849 |
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,892,532 |
|
|
|
|
$ |
1,812,775 |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
2.72 |
% |
|
|
|
3.57 |
% |
Net interest margin (2) |
|
|
3.54 |
% |
|
|
|
3.95 |
% |
Average interest-earning assets to |
|
|
|
|
|
|
|
average interest-bearing liabilities |
|
148.97 |
% |
|
|
|
|
158.36 |
% |
|
|
______________________________________________ |
(1) Includes other investments |
(2) Net interest margin = annualized
net interest income / average interest-earning
assets |
|
Non-GAAP Financial MeasuresIn addition to
results presented in accordance with GAAP, this press release
contains certain non-GAAP financial measures. Timberland believes
that certain non-GAAP financial measures provide investors with
information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible assets are non-GAAP
measures. To provide investors with a broader understanding of
capital adequacy, Timberland provides non-GAAP financial measures
for tangible common equity, along with the GAAP measure. Tangible
common equity is calculated as shareholders’ equity less goodwill
and CDI. In addition, tangible assets equal total assets less
goodwill and CDI.
The following table provides a reconciliation of ending
shareholders’ equity (GAAP) to ending tangible shareholders’ equity
(non-GAAP) and ending total assets (GAAP) to ending tangible assets
(non-GAAP).
($ in thousands) |
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
245,413 |
|
|
$ |
241,223 |
|
|
$ |
233,073 |
|
Less goodwill and CDI |
|
|
(15,582 |
) |
|
|
(15,639 |
) |
|
|
(15,808 |
) |
Tangible common equity |
|
$ |
229,831 |
|
|
$ |
225,584 |
|
|
$ |
217,265 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,923,475 |
|
|
$ |
1,900,629 |
|
|
$ |
1,839,905 |
|
Less goodwill and CDI |
|
|
(15,582 |
) |
|
|
(15,639 |
) |
|
|
(15,808 |
) |
Tangible assets |
|
$ |
1,907,893 |
|
|
$ |
1,884,990 |
|
|
$ |
1,824,097 |
|
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