- Fiscal Year EPS Increased 17% to
$3.29 - Quarterly EPS Increased 5% to
$0.81 from$0.77 forPreceding Quarter - Quarterly Return on Average Assets of 1.45%
- Quarterly Return on Average Equity of 11.52%
- Quarterly Net Interest Margin of 3.85%
- Announces
$0.23 Quarterly Cash Dividend
Timberland also announced quarterly net income of
“For fiscal 2023, Timberland generated increases in both net income and earnings per share, which were up 15% and 17%, respectively, compared to fiscal 2022,” stated
“Credit quality metrics continue to perform well, with non-performing assets at just 9 basis points at fiscal year-end,” Brydon continued. “Loan origination volumes remained steady and net loans receivable grew by nearly
“Net interest margin remained strong at 3.85% for the quarter, just 9 basis points lower than the prior quarter’s margin and 21 basis points higher compared to the year ago quarter,” said
Earnings and Balance Sheet Highlights (at or for the periods ended
Earnings Highlights:
- EPS increased 5% to
$0.81 for the current quarter from$0.77 for the preceding quarter and decreased 5% from$0.85 for the comparable quarter one year ago; EPS for fiscal year 2023 increased 17% to$3.29 from$2.82 for fiscal year 2022; - Net income increased 5% to
$6.64 million for the current quarter from$6.31 million for the preceding quarter and decreased 6% from$7.05 million for the comparable quarter one year ago; Net income increased 15% to$27.12 million for fiscal year 2023 from$23.60 million for fiscal year 2022; - Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.52% and 1.45%, respectively;
- Net interest margin (“NIM”) for the current quarter compressed to 3.85% from 3.94% for the preceding quarter and expanded from 3.64% for the comparable quarter one year ago; and
- The efficiency ratio for the current quarter was 55.52% compared to 56.01% for the preceding quarter and 52.72% for the comparable quarter one year ago.
Balance Sheet Highlights:
- Total assets increased 2% from the prior quarter and decreased 1% year-over-year;
- Net loans receivable increased 3% from the prior quarter and increased 15% year-over-year;
- Total deposits increased 1% from the prior quarter and decreased 4% year-over-year;
- Total shareholders’ equity increased 2% from the prior quarter and increased 7% year-over-year;
- Non-performing assets to total assets ratio improved to 0.09% from 0.12% one year ago;
- Book and tangible book (non-GAAP) values per common share increased to
$28.76 and$26.81 , respectively, atSeptember 30, 2023 ; and - Liquidity (both on-balance sheet and off-balance sheet) remained strong at
September 30, 2023 with only$35 million in borrowings and additional secured borrowing line capacity of$680 million available through the FHLB and theFederal Reserve .
Operating Results
Operating revenue (net interest income before the provision for loan losses plus non-interest income) for the current quarter increased 1% to
Net interest income increased
SBA PPP Loan Income ($ in thousands) | ||||||||
Three Months Ended | ||||||||
Interest income | $ | 1 | $ | 1 | $ | 3 | ||
Loan origination fee accretion | 3 | 2 | 10 | |||||
Total SBA PPP loan income | $ | 4 | $ | 3 | $ | 13 |
Year Ended | |||||
Interest income | $ | 6 | $ | 114 | |
Loan origination fee accretion | 26 | 1,792 | |||
Total SBA PPP loan income | $ | 32 | $ | 1,906 |
A
Non-interest income increased
Total operating (non-interest) expenses for the current quarter increased slightly (less than 1%) to
For the 2023 fiscal year, total operating expenses increased 12% to
The provision for income taxes for the current quarter decreased
Balance Sheet Management
Total assets increased
Liquidity
Timberland has continued to maintain a strong liquidity position (both on-balance sheet and off-balance sheet) while deploying overnight funds into loans during the past year. Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 11.6% of total liabilities at
Loans
Net loans receivable increased
Net loan receivable increased
Loan Portfolio | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||
Mortgage loans: | |||||||||||||||||
One- to four-family (a) | $ | 253,227 | 18% | $ | 229,274 | 17% | $ | 176,116 | 14% | ||||||||
Multi-family | 127,176 | 9 | 111,777 | 8 | 95,025 | 8 | |||||||||||
Commercial | 568,265 | 40 | 557,015 | 40 | 536,650 | 43 | |||||||||||
Construction - custom and | |||||||||||||||||
owner/builder | 129,699 | 9 | 136,595 | 10 | 119,240 | 9 | |||||||||||
Construction - speculative one-to four-family | 17,099 | 1 | 12,522 | 1 | 12,254 | 1 | |||||||||||
Construction - commercial | 51,064 | 4 | 42,657 | 3 | 40,364 | 3 | |||||||||||
Construction - multi-family | 57,140 | 4 | 73,859 | 5 | 64,480 | 5 | |||||||||||
Construction - land | |||||||||||||||||
development | 18,841 | 1 | 15,968 | 1 | 19,280 | 2 | |||||||||||
Land | 26,726 | 2 | 25,908 | 2 | 26,854 | 2 | |||||||||||
Total mortgage loans | 1,249,237 | 88 | 1,205,575 | 87 | 1,090,263 | 87 | |||||||||||
Consumer loans: | |||||||||||||||||
Home equity and second | |||||||||||||||||
mortgage | 38,281 | 3 | 40,008 | 3 | 35,187 | 3 | |||||||||||
Other | 2,772 | -- | 2,469 | -- | 2,128 | -- | |||||||||||
Total consumer loans | 41,053 | 3 | 42,477 | 3 | 37,315 | 3 | |||||||||||
Commercial loans: | |||||||||||||||||
Commercial business loans | 135,802 | 9 | 137,114 | 10 | 125,039 | 10 | |||||||||||
SBA PPP loans | 466 | -- | 519 | -- | 1,001 | -- | |||||||||||
Total commercial loans | 136,268 | 9 | 137,633 | 10 | 126,040 | 10 | |||||||||||
Total loans | 1,426,558 | 100% | 1,385,685 | 100% | 1,253,618 | 100% | |||||||||||
Less: | |||||||||||||||||
Undisbursed portion of | |||||||||||||||||
construction loans in | |||||||||||||||||
process | (103,194 | ) | (104,774 | ) | (103,168 | ) | |||||||||||
Deferred loan origination | |||||||||||||||||
fees | (5,242 | ) | (4,957 | ) | (4,321 | ) | |||||||||||
Allowance for loan losses | (15,817 | ) | (15,307 | ) | (13,703 | ) | |||||||||||
Total loans receivable, net | $ | 1,302,305 | $ | 1,260,647 | $ | 1,132,426 |
_______________________
(a) Does not include one- to four-family loans held for sale totaling
The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of
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 | $ | 115,804 | 20% | 8% | $ | 1,135 | $ | 195 | |||||
Medical/dental offices | 76,498 | 14 | 5 | 1,319 | -- | ||||||||
Office buildings | 66,108 | 12 | 5 | 760 | -- | ||||||||
Other retail buildings | 51,730 | 9 | 4 | 545 | -- | ||||||||
Hotel/motels | 30,718 | 5 | 2 | 3,072 | -- | ||||||||
Mini-storage | 27,750 | 5 | 2 | 1,156 | -- | ||||||||
Restaurants | 27,640 | 5 | 2 | 564 | -- | ||||||||
Gas stations/Conv. Stores | 21,588 | 4 | 1 | 939 | -- | ||||||||
Nursing homes | 18,051 | 3 | 1 | 3,008 | -- | ||||||||
Shopping centers | 10,790 | 2 | 1 | 2,158 | -- | ||||||||
Mobile home parks | 9,696 | 2 | 1 | 510 | -- | ||||||||
Churches | 7,253 | 1 | 1 | 484 | -- | ||||||||
Additional CRE | 104,639 | 18 | 7 | 731 | 488 | ||||||||
Total CRE | $ | 568,265 | 100% | 40% | $ | 893 | $ | 683 |
Timberland originated
Timberland’s investment securities and CDs held for investment decreased
Investment securities and CDs held for investment decreased
Deposits
Total deposits increased
Total deposits decreased
Deposit Breakdown ($ in thousands) | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||
Non-interest-bearing demand | $ | 455,864 | 29% | $ | 452,729 | 29% | $ | 530,058 | 33% | |||||||||
NOW checking | 386,730 | 25 | 397,761 | 26 | 447,779 | 28 | ||||||||||||
Savings | 228,366 | 15 | 241,651 | 16 | 283,219 | 17 | ||||||||||||
Money market | 189,875 | 12 | 209,276 | 13 | 248,536 | 15 | ||||||||||||
Certificates of deposit under | 170,221 | 11 | 148,142 | 10 | 100,754 | 6 | ||||||||||||
Certificates of deposit | 91,714 | 6 | 64,849 | 4 | 21,830 | 1 | ||||||||||||
Certificates of deposit – brokered | 38,165 | 2 | 38,322 | 2 | -- | -- | ||||||||||||
Total deposits | $ | 1,560,935 | 100% | $ | 1,552,730 | 100% | $ | 1,632,176 | 100% |
Borrowings
Total borrowings increased to
Shareholders’ Equity and Capital Ratios
Total shareholders’ equity increased
Timberland remains well capitalized with a total risk-based capital ratio of 19.38%, a Tier 1 leverage capital ratio of 12.10%, a tangible common equity to tangible assets ratio (non-GAAP) of 11.91%, and a shareholders’ equity to total assets ratio of 12.67% at
Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.09% at
The allowance for loan losses (“ALL”) as a percentage of loans receivable was 1.20% at
The ALL as a percentage of loans receivable is also impacted by the loans acquired in the South Sound Acquisition. Included in the recorded value of loans acquired in acquisitions are net discounts which may reduce the need for an allowance for loan losses on such loans because they are carried at an amount below their outstanding principal balance. The initial recorded value of loans acquired in the South Sound Acquisition was
Total delinquent loans (past due 30 days or more) and non-accrual loans decreased
Non-Accrual Loans | ||||||||||||||
($ in thousands) | ||||||||||||||
Amount | Quantity | Amount | Quantity | Amount | Quantity | |||||||||
Mortgage loans: | ||||||||||||||
One- to four-family | $ | 368 | 2 | $ | 373 | 2 | $ | 388 | 2 | |||||
Commercial | 683 | 2 | 686 | 2 | 657 | 2 | ||||||||
Land | -- | -- | 54 | 1 | 450 | 2 | ||||||||
Total mortgage loans | 1,051 | 4 | 1,113 | 5 | 1,495 | 6 | ||||||||
Consumer loans: | ||||||||||||||
Home equity and second | ||||||||||||||
Mortgage | 177 | 1 | 184 | 1 | 252 | 2 | ||||||||
Other | -- | 1 | -- | 1 | 3 | 1 | ||||||||
Total consumer loans | 177 | 2 | 184 | 2 | 255 | 3 | ||||||||
Commercial business loans | 286 | 5 | 289 | 4 | 309 | 6 | ||||||||
Total loans | $ | 1,514 | 11 | $ | 1,586 | 11 | $ | 2,059 | 15 |
Acquisition of
On
About
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 caused by increasing geopolitical instability (including wars, conflicts, terrorist attacks, natural disasters, and other unexpected events outside of our control), as well as increasing oil prices and supply chain disruptions, and any governmental or societal responses to novel coronavirus disease 2019 ("COVID-19") pandemic, including the possibility of new COVID-19 variants; 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 which may lead to increased losses and non-performing loans in our loan portfolio may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our loan loss 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; uncertainty regarding the future of the London Interbank Offered Rate ("LIBOR"), and the transition away from LIBOR toward new interest rate benchmarks; 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
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 2024 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.
CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||||
($ in thousands, except per share amounts) (unaudited) | |||||||||
2023 | 2023 | 2022 | |||||||
Interest and dividend income | |||||||||
Loans receivable | $ | 17,532 | $ | 16,215 | $ | 13,454 | |||
Investment securities | 2,326 | 2,384 | 1,476 | ||||||
Dividends from mutual funds, FHLB stock and other investments | 85 | 70 | 40 | ||||||
Interest bearing deposits in banks | 1,619 | 1,220 | 2,048 | ||||||
Total interest and dividend income | 21,562 | 19,889 | 17,018 | ||||||
Interest expense | |||||||||
Deposits | 4,574 | 3,123 | 755 | ||||||
Borrowings | 157 | 132 | -- | ||||||
Total interest expense | 4,731 | 3,255 | 755 | ||||||
Net interest income | 16,831 | 16,634 | 16,263 | ||||||
Provision for loan losses | 522 | 610 | 270 | ||||||
Net interest income after provision for loan losses | 16,309 | 16,024 | 15,993 | ||||||
Non-interest income | |||||||||
Service charges on deposits | 1,015 | 970 | 985 | ||||||
ATM and debit card interchange transaction fees | 1,333 | 1,335 | 1,341 | ||||||
Gain on sales of loans, net | 97 | 80 | 173 | ||||||
Bank owned life insurance (“BOLI”) net earnings | 237 | 157 | 157 | ||||||
Gain on sale of investment securities, net | -- | 95 | -- | ||||||
Recoveries on investment securities, net | 2 | 2 | 6 | ||||||
Other | 240 | 236 | 334 | ||||||
Total non-interest income, net | 2,924 | 2,875 | 2,996 | ||||||
Non-interest expense | |||||||||
Salaries and employee benefits | 5,756 | 5,860 | 5,210 | ||||||
Premises and equipment | 982 | 1,010 | 921 | ||||||
Loss (gain) on sale of premises and equipment, net | 12 | (32 | ) | 13 | |||||
Advertising | 235 | 179 | 182 | ||||||
OREO and other repossessed assets, net | -- | -- | 1 | ||||||
ATM and debit card processing | 524 | 491 | 514 | ||||||
Postage and courier | 135 | 128 | 137 | ||||||
State and local taxes | 325 | 297 | 308 | ||||||
Professional fees | 599 | 577 | 574 | ||||||
194 | 191 | 129 | |||||||
Loan administration and foreclosure | 118 | 126 | 128 | ||||||
Data processing and telecommunications | 933 | 944 | 739 | ||||||
Deposit operations | 346 | 430 | 358 | ||||||
Amortization of core deposit intangible (“CDI”) | 68 | 68 | 79 | ||||||
Other, net | 740 | 658 | 861 | ||||||
Total non-interest expense, net | 10,967 | 10,927 | 10,154 | ||||||
Income before income taxes | 8,266 | 7,972 | 8,835 | ||||||
Provision for income taxes | 1,624 | 1,666 | 1,786 | ||||||
Net income | $ | 6,642 | $ | 6,306 | $ | 7,049 | |||
Net income per common share: | |||||||||
Basic | $ | 0.82 | $ | 0.77 | $ | 0.86 | |||
Diluted | 0.81 | 0.77 | 0.85 | ||||||
Weighted average common shares outstanding: | |||||||||
Basic | 8,094,719 | 8,156,831 | 8,243,557 | ||||||
Diluted | 8,156,497 | 8,213,975 | 8,313,178 |
CONSOLIDATED STATEMENTS OF INCOME | Year Ended | ||||||
($ in thousands, except per share amounts) (unaudited) | |||||||
2023 | 2022 | ||||||
Interest and dividend income | |||||||
Loans receivable | $ | 63,154 | $ | 51,324 | |||
Investment securities | 9,384 | 3,488 | |||||
Dividends from mutual funds, FHLB stock and other investments | 270 | 120 | |||||
Interest bearing deposits in banks | 7,143 | 3,576 | |||||
Total interest and dividend income | 79,951 | 58,508 | |||||
Interest expense | |||||||
Deposits | 11,302 | 2,657 | |||||
Borrowings | 290 | 17 | |||||
Total interest expense | 11,592 | 2,674 | |||||
Net interest income | 68,359 | 55,834 | |||||
Provision for loan losses | 2,132 | 270 | |||||
Net interest income after provision for loan losses | 66,227 | 55,564 | |||||
Non-interest income | |||||||
Service charges on deposits | 3,824 | 3,964 | |||||
ATM and debit card interchange transaction fees | 5,194 | 5,210 | |||||
Gain on sales of loans, net | 244 | 1,510 | |||||
BOLI net earnings | 706 | 613 | |||||
Valuation recovery on loan servicing rights, net | -- | 119 | |||||
Gain on sale of investment securities, net | 95 | -- | |||||
Recoveries on investment securities, net | 9 | 22 | |||||
Other | 1,068 | 1,186 | |||||
Total non-interest income, net | 11,140 | 12,624 | |||||
Non-interest expense | |||||||
Salaries and employee benefits | 23,562 | 20,816 | |||||
Premises and equipment | 3,915 | 3,736 | |||||
(Gain) loss on sales of premises and equipment, net | (19 | ) | 13 | ||||
Advertising | 786 | 695 | |||||
OREO and other repossessed assets, net | 1 | (17 | ) | ||||
ATM and debit card processing | 1,987 | 1,943 | |||||
Postage and courier | 532 | 577 | |||||
State and local taxes | 1,219 | 1,062 | |||||
Professional fees | 2,078 | 1,747 | |||||
711 | 506 | ||||||
Loan administration and foreclosure | 503 | 508 | |||||
Data processing and telecommunications | 3,545 | 2,719 | |||||
Deposit operations | 1,368 | 1,235 | |||||
Amortization of CDI | 271 | 316 | |||||
Other, net | 2,914 | 2,770 | |||||
Total non-interest expense, net | 43,373 | 38,626 | |||||
Income before income taxes | 33,994 | 29,562 | |||||
Provision for income taxes | 6,876 | 5,962 | |||||
Net income | $ | 27,118 | $ | 23,600 | |||
Net income per common share: | |||||||
Basic | $ | 3.32 | $ | 2.84 | |||
Diluted | 3.29 | 2.82 | |||||
Weighted average common shares outstanding: | |||||||
Basic | 8,175,898 | 8,304,002 | |||||
Diluted | 8,248,181 | 8,383,335 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||
($ in thousands, except per share amounts) (unaudited) | ||||||||||||
2023 | 2023 | 2022 | ||||||||||
Assets | ||||||||||||
Cash and due from financial institutions | $ | 25,390 | $ | 28,308 | $ | 24,808 | ||||||
Interest-bearing deposits in banks | 103,331 | 101,645 | 291,947 | |||||||||
Total cash and cash equivalents | 128,721 | 129,953 | 316,755 | |||||||||
Certificates of deposit (“CDs”) held for investment, at cost | 15,188 | 16,931 | 22,894 | |||||||||
Investment securities: | ||||||||||||
Held to maturity, at amortized cost | 270,218 | 275,053 | 266,608 | |||||||||
Available for sale, at fair value | 41,771 | 43,842 | 41,415 | |||||||||
Investments in equity securities, at fair value | 811 | 837 | 835 | |||||||||
FHLB stock | 3,602 | 2,802 | 2,194 | |||||||||
Other investments, at cost | 3,000 | 3,000 | 3,000 | |||||||||
Loans held for sale | 400 | -- | 748 | |||||||||
Loans receivable | 1,318,122 | 1,275,954 | 1,146,129 | |||||||||
Less: Allowance for loan losses | (15,817 | ) | (15,307 | ) | (13,703 | ) | ||||||
Net loans receivable | 1,302,305 | 1,260,647 | 1,132,426 | |||||||||
Premises and equipment, net | 21,642 | 21,574 | 21,898 | |||||||||
BOLI | 22,966 | 23,276 | 22,806 | |||||||||
Accrued interest receivable | 6,004 | 5,451 | 4,483 | |||||||||
15,131 | 15,131 | 15,131 | ||||||||||
CDI | 677 | 745 | 948 | |||||||||
Loan servicing rights, net | 2,124 | 2,321 | 3,023 | |||||||||
Operating lease right-of-use assets | 1,772 | 1,845 | 1,980 | |||||||||
Other assets | 3,573 | 4,305 | 3,364 | |||||||||
Total assets | $ | 1,839,905 | $ | 1,807,713 | $ | 1,860,508 | ||||||
Liabilities and shareholders’ equity | ||||||||||||
Deposits: Non-interest-bearing demand | $ | 455,864 | $ | 452,729 | $ | 530,058 | ||||||
Deposits: Interest-bearing | 1,105,071 | 1,100,001 | 1,102,118 | |||||||||
Total deposits | 1,560,935 | 1,552,730 | 1,632,176 | |||||||||
Operating lease liabilities | 1,867 | 1,939 | 2,066 | |||||||||
FHLB borrowings | 35,000 | 15,000 | -- | |||||||||
Other liabilities and accrued expenses | 9,030 | 8,781 | 7,697 | |||||||||
Total liabilities | 1,606,832 | 1,578,450 | 1,641,939 | |||||||||
Shareholders’ equity | ||||||||||||
Common stock, | ||||||||||||
8,105,338 shares issued and outstanding – | ||||||||||||
8,094,174 shares issued and outstanding – | ||||||||||||
8,221,952 shares issued and outstanding – | 34,771 | 35,401 | 38,751 | |||||||||
Retained earnings | 199,386 | 194,606 | 180,535 | |||||||||
Accumulated other comprehensive loss | (1,084 | ) | (744 | ) | (717 | ) | ||||||
Total shareholders’ equity | 233,073 | 229,263 | 218,569 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,839,905 | $ | 1,807,713 | $ | 1,860,508 |
KEY FINANCIAL RATIOS AND DATA ($ in thousands, except per share amounts) (unaudited) | ||||||||
Three Months Ended | ||||||||
PERFORMANCE RATIOS: | ||||||||
Return on average assets (a) | 1.45% | 1.42% | 1.51% | |||||
Return on average equity (a) | 11.52% | 11.07% | 13.06% | |||||
Net interest margin (a) | 3.85% | 3.94% | 3.64% | |||||
Efficiency ratio | 55.52% | 56.01% | 52.72% | |||||
Year Ended | ||||||||
PERFORMANCE RATIOS: | ||||||||
Return on average assets (a) | 1.50% | 1.27% | ||||||
Return on average equity (a) | 12.01% | 11.14% | ||||||
Net interest margin (a) | 3.95% | 3.16% | ||||||
Efficiency ratio | 54.56% | 56.42% | ||||||
At or for the Period Indicated | ||||||||
ASSET QUALITY RATIOS AND DATA: | ||||||||
Non-accrual loans | $ | 1,514 | $ | 1,586 | $ | 2,059 | ||
Loans past due 90 days and still accruing | -- | -- | -- | |||||
Non-performing investment securities | 82 | 87 | 106 | |||||
OREO and other repossessed assets | -- | -- | -- | |||||
Total non-performing assets (b) | $ | 1,596 | $ | 1,673 | $ | 2,165 | ||
Non-performing assets to total assets (b) | 0.09% | 0.09% | 0.12% | |||||
Net charge-offs (recoveries) during quarter | $ | 12 | $ | 1 | $ | -- | ||
ALL to non-accrual loans, | 1,045% | 965% | 666% | |||||
ALL to loans receivable (c) | 1.20% | 1.20% | 1.20% | |||||
ALL to loans receivable (excluding SBA PPP loans) (d) (non-GAAP) | 1.21% | 1.20% | 1.20% | |||||
ALL to loans receivable (excluding SBA PPP loans and South Sound Acquisition loans) (d) (e) (non-GAAP) | 1.21% | 1.21% | 1.22% | |||||
Troubled debt restructured loans on accrual status (f) | $ | 2,495 | $ | 2,604 | $ | 2,472 | ||
CAPITAL RATIOS: | ||||||||
Tier 1 leverage capital | 12.10% | 12.27% | 11.03% | |||||
Tier 1 risk-based capital | 18.13% | 18.11% | 18.02% | |||||
Common equity Tier 1 risk-based capital | 18.13% | 18.11% | 18.02% | |||||
Total risk-based capital | 19.38% | 19.36% | 19.45% | |||||
Tangible common equity to tangible assets (non-GAAP) | 11.91% | 11.91% | 10.98% | |||||
BOOK VALUES: | ||||||||
Book value per common share | $ | 28.76 | $ | 28.32 | $ | 26.58 | ||
Tangible book value per common share (g) | 26.81 | 26.36 | 24.63 |
________________________________________________
(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) Does not include loans held for sale and is before the allowance for loan losses.
(d) Does not include PPP loans totaling
(e) Does not include loans acquired in the South Sound Acquisition totaling
(f) Does not include troubled debt restructured loans totaling
(g) Tangible common equity divided by common shares outstanding (non-GAAP).
AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
($ in thousands)
(unaudited)
For the Three Months Ended | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||
Loans receivable and loans held for sale | $ | 1,300,743 | 5.39% | $ | 1,254,044 | 5.17% | $ | 1,122,290 | 4.80% | |||||||||||||
Investment securities and FHLB stock (1) | 322,122 | 2.99 | 331,385 | 2.96 | 287,841 | 2.11 | ||||||||||||||||
Interest-earning deposits in banks and CDs | 123,894 | 5.23 | 101,798 | 4.79 | 376,220 | 2.18 | ||||||||||||||||
Total interest-earning assets | 1,746,759 | 4.94 | 1,687,227 | 4.72 | 1,786,351 | 3.81 | ||||||||||||||||
Other assets | 84,191 | 84,255 | 83,922 | |||||||||||||||||||
Total assets | $ | 1,830,950 | $ | 1,771,482 | $ | 1,870,273 | ||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||
NOW checking accounts | $ | 390,787 | 1.27% | $ | 387,426 | 1.02% | $ | 454,161 | 0.18% | |||||||||||||
Money market accounts | 198,650 | 0.98 | 205,023 | 0.84 | 252,699 | 0.37 | ||||||||||||||||
Savings accounts | 234,094 | 0.21 | 255,463 | 0.19 | 284,974 | 0.08 | ||||||||||||||||
Certificates of deposit accounts | 284,403 | 3.85 | 210,950 | 3.03 | 122,803 | 0.80 | ||||||||||||||||
Total interest-bearing deposits | 1,107,934 | 1.66 | 1,058,862 | 1.18 | 1,114,637 | 0.27 | ||||||||||||||||
Borrowings | 15,435 | 4.04 | 12,255 | 4.32 | -- | -- | ||||||||||||||||
Total interest-bearing liabilities | 1,123,369 | 1.69 | 1,071,117 | 1.22 | 1,114,637 | 0.27 | ||||||||||||||||
Non-interest-bearing demand deposits | 465,183 | 462,315 | 528,706 | |||||||||||||||||||
Other liabilities | 11,873 | 10,199 | 11,078 | |||||||||||||||||||
Shareholders’ equity | 230,525 | 227,851 | 215,852 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,830,950 | $ | 1,771,482 | $ | 1,820,273 | ||||||||||||||||
Interest rate spread | 3.25% | 3.50% | 3.54% | |||||||||||||||||||
Net interest margin (2) | 3.85% | 3.94% | 3.64% | |||||||||||||||||||
Average interest-earning assets to | ||||||||||||||||||||||
average interest-bearing liabilities | 155.49 | % | 157.52 | % | 160.26 | % |
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income / average interest-earning assets
For the Year Ended | |||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
Assets | |||||||||||||
Loans receivable and loans held for sale | $ | 1,230,101 | 5.13% | $ | 1,055,635 | 4.86% | |||||||
Investment securities and FHLB stock (1) | 330,751 | 2.92 | 230,871 | 1.56 | |||||||||
Interest-earning deposits in banks and CDs | 167,718 | 4.26 | 482,162 | 0.74 | |||||||||
Total interest-earning assets | 1,728,570 | 4.63 | 1,768,668 | 3.31 | |||||||||
Other assets | 84,205 | 83,895 | |||||||||||
Total assets | $ | 1,812,775 | $ | 1,852,563 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
NOW checking accounts | $ | 407,679 | 0.87% | $ | 449,574 | 0.14% | |||||||
Money market accounts | 215,465 | 0.74 | 244,498 | 0.31 | |||||||||
Savings accounts | 261,006 | 0.16 | 278,025 | 0.08 | |||||||||
Certificates of deposit accounts | 200,476 | 2.86 | 127,277 | 0.79 | |||||||||
Total interest-bearing deposits | 1,084,626 | 1.04 | 1,099,374 | 0.24 | |||||||||
Borrowings | 6,948 | 4.17 | 1,430 | 1.19 | |||||||||
Total interest-bearing liabilities | 1,091,574 | 1.06 | 1,100,804 | 0.24 | |||||||||
Non-interest-bearing demand deposits | 484,795 | 529,702 | |||||||||||
Other liabilities | 10,557 | 10,224 | |||||||||||
Shareholders’ equity | 225,849 | 211,833 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,812,775 | $ | 1,852,563 | |||||||||
Interest rate spread | 3.57% | 3.07% | |||||||||||
Net interest margin (2) | 3.95% | 3.16% | |||||||||||
Average interest-earning assets to | |||||||||||||
average interest-bearing liabilities | 158.36 | % | 160.67 | % |
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income / average interest-earning assets
Non-GAAP Financial Measures
In 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) | |||||||||||
Shareholders’ equity | $ | 233,073 | $ | 229,263 | $ | 218,569 | |||||
Less goodwill and CDI | (15,808 | ) | (15,876 | ) | (16,079 | ) | |||||
Tangible common equity | $ | 217,265 | $ | 213,387 | $ | 202,490 | |||||
Total assets | $ | 1,839,905 | $ | 1,807,713 | $ | 1,860,508 | |||||
Less goodwill and CDI | (15,808 | ) | (15,876 | ) | (16,079 | ) | |||||
Tangible assets | $ | 1,824,097 | $ | 1,791,837 | $ | 1,844,429 |
Contact: | |
(360) 533-4747 | |
www.timberlandbank.com |
Source:
2023 GlobeNewswire, Inc., source