- Quarterly EPS Increased 12% to
$0.77 from$0.69 One Year Ago - Quarterly Return on Average Assets of 1.42%
- Quarterly Return on Average Equity of 11.07%
- Quarterly Net Interest Margin of 3.94%
- Announces
$0.23 Quarterly Cash Dividend - Announces New Stock Repurchase Program
For the first nine months of fiscal 2023, Timberland’s net income increased 24% to
“Timberland’s third fiscal quarter produced strong financial results, with net income and EPS increasing 10% and 12%, respectively, compared to the year ago quarter,” stated
“Asset quality metrics remain excellent, with quarter end non-performing assets at 9 basis points of total assets,” Brydon continued. “Loan origination volumes remained steady and net loans receivable grew by
“Net interest margin remained strong at 3.94% for the quarter, just 5 basis points lower than the prior quarter’s margin and 83 basis points higher compared to the year ago quarter,” said
Earnings and Balance Sheet Highlights (at or for the periods ended
Earnings Highlights:
- Earnings per diluted common share (“EPS”) increased 12% to
$0.77 for the current quarter from$0.69 for the comparable quarter one year ago and decreased 4% from$0.80 for the preceding quarter; EPS for the first nine months of fiscal 2023 increased 25% to$2.47 from$1.97 for the first nine months of fiscal 2022; - Net income increased 10% to
$6.31 million for the current quarter from$5.74 million for the comparable quarter one year ago and decreased 5% from$6.66 million for the preceding quarter; Net income increased 24% to$20.48 million for the first nine months of fiscal 2023 from$16.55 million for the first nine months of fiscal 2022; - Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.07% and 1.42%, respectively;
- Net interest margin (“NIM”) for the current quarter expanded to 3.94% from 3.11% for the comparable quarter one year ago and compressed from 3.99% for the preceding quarter; and
- The efficiency ratio for the current quarter was 56.01% compared to 57.80% for the comparable quarter one year ago and 55.31% for the preceding quarter.
Balance Sheet Highlights:
- Total assets decreased 4% year-over-year and increased 1% from the prior quarter;
- Net loans receivable increased 16% year-over-year and 4% from the prior quarter;
- Total deposits decreased 7% year-over-year and increased slightly (less than 1%) from the prior quarter;
- Total shareholders’ equity increased 7% year-over-year and 1% from the prior quarter;
- Non-performing assets to total assets ratio improved to 0.09% from 0.13% one year ago;
- Book and tangible book (non-GAAP) values per common share increased to
$28.32 and$26.36 , respectively, atJune 30, 2023 ; and - Liquidity (both on-balance sheet and off-balance sheet) remained strong at
June 30, 2023 with only$15 million in borrowings and additional secured borrowing line capacity of$691 million available through the FHLB and theFederal Reserve .
Operating Results
Operating revenue (net interest income before the provision for loan losses plus non-interest income) for the current quarter increased 14% to
Net interest income increased
SBA PPP Loan Income ($ in thousands) | ||||||||
Three Months Ended | ||||||||
Interest income | $ | 1 | $ | 1 | $ | 9 | ||
Loan origination fee accretion | 2 | 4 | 146 | |||||
Total SBA PPP loan income | $ | 3 | $ | 5 | $ | 155 | ||
Nine Months Ended | |||||||
Interest income | $ | 4 | $ | 111 | |||
Loan origination fee accretion | 23 | 1,782 | |||||
Total SBA PPP loan income | $ | 27 | $ | 1,893 | |||
A
Non-interest income increased
Total operating (non-interest) expenses for the current quarter decreased slightly (less than 1%) 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 and investment securities 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 12.1% of total liabilities at
Loans
Net loans receivable increased
Loan Portfolio
($ in thousands)
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||
Mortgage loans: | |||||||||||||||||
One- to four-family (a) | 17 | % | 16 | % | 12 | % | |||||||||||
Multi-family | 111,777 | 8 | 103,870 | 8 | 98,718 | 8 | |||||||||||
Commercial | 557,015 | 40 | 547,876 | 41 | 532,167 | 44 | |||||||||||
Construction - custom and | |||||||||||||||||
owner/builder | 136,595 | 10 | 124,071 | 9 | 117,724 | 10 | |||||||||||
Construction - speculative | |||||||||||||||||
one-to four-family | 12,522 | 1 | 11,343 | 1 | 13,954 | 1 | |||||||||||
Construction - commercial | 42,657 | 3 | 31,458 | 3 | 40,108 | 3 | |||||||||||
Construction - multi-family | 73,859 | 5 | 83,051 | 6 | 54,804 | 5 | |||||||||||
Construction - land | |||||||||||||||||
development | 15,968 | 1 | 17,018 | 1 | 21,240 | 2 | |||||||||||
Land | 25,908 | 2 | 24,520 | 2 | 24,490 | 2 | |||||||||||
Total mortgage loans | 1,205,575 | 87 | 1,159,846 | 87 | 1,047,887 | 87 | |||||||||||
Consumer loans: | |||||||||||||||||
Home equity and second | |||||||||||||||||
mortgage | 40,008 | 3 | 36,896 | 3 | 32,821 | 3 | |||||||||||
Other | 2,469 | -- | 2,283 | -- | 2,545 | -- | |||||||||||
Total consumer loans | 42,477 | 3 | 39,179 | 3 | 35,366 | 3 | |||||||||||
Commercial loans: | |||||||||||||||||
Commercial business loans | 137,114 | 10 | 129,306 | 10 | 122,822 | 10 | |||||||||||
SBA PPP loans | 519 | -- | 572 | -- | 1,320 | -- | |||||||||||
Total commercial loans | 137,633 | 10 | 129,878 | 10 | 124,142 | 10 | |||||||||||
Total loans | 1,385,685 | 100 | % | 1,328,903 | 100 | % | 1,207,395 | 100 | % | ||||||||
Less: | |||||||||||||||||
Undisbursed portion of | |||||||||||||||||
construction loans in | |||||||||||||||||
process | (104,774 | ) | (99,253 | ) | (102,044 | ) | |||||||||||
Deferred loan origination | |||||||||||||||||
fees | (4,957 | ) | (4,759 | ) | (3,951 | ) | |||||||||||
Allowance for loan losses | (15,307 | ) | (14,698 | ) | (13,433 | ) | |||||||||||
Total loans receivable, net |
_______________________
(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 | Amount | Percent of CRE Portfolio | Percent of Total Loan Portfolio | ||||||
Industrial warehouse | $ | 111,548 | 20 | % | 8 | % | |||
Medical/dental offices | 77,710 | 14 | 5 | ||||||
Office buildings | 68,583 | 12 | 5 | ||||||
Other retail buildings | 48,643 | 9 | 4 | ||||||
Hotel/motel | 30,972 | 6 | 2 | ||||||
Restaurants | 29,802 | 5 | 2 | ||||||
Mini-storage | 27,964 | 5 | 2 | ||||||
Gas station/convenience stores | 20,478 | 4 | 1 | ||||||
Nursing homes | 18,137 | 3 | 1 | ||||||
Mobile home parks | 10,492 | 2 | 1 | ||||||
Shopping centers | 10,353 | 2 | 1 | ||||||
Churches | 7,507 | 1 | 1 | ||||||
Additional CRE | 94,826 | 17 | 7 | ||||||
Total CRE | $ | 557,015 | 100 | % | 40 | % |
Timberland originated
Timberland’s investment securities and CDs held for investment decreased
Deposits
Total deposits increased
Deposit Breakdown ($ in thousands) | ||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||
Non-interest-bearing demand | 29 | % | 31 | % | 32 | % | ||||||||||||
NOW checking | 397,761 | 26 | 403,463 | 26 | 474,217 | 29 | ||||||||||||
Savings | 241,651 | 16 | 269,522 | 17 | 279,592 | 17 | ||||||||||||
Money market | 209,276 | 13 | 210,390 | 14 | 256,984 | 15 | ||||||||||||
Certificates of deposit under | 148,142 | 10 | 129,331 | 8 | 102,752 | 6 | ||||||||||||
Certificates of deposit | 64,849 | 4 | 56,778 | 4 | 22,693 | 1 | ||||||||||||
Certificates of deposit – brokered | 38,322 | 2 | -- | -- | -- | -- | ||||||||||||
Total deposits | 100 | % | 100 | % | 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 19.36%, a Tier 1 leverage capital ratio of 12.27%, a tangible common equity to tangible assets ratio (non-GAAP) of 11.91%, and a shareholders’ equity to total assets ratio of 12.68% at
New Stock Repurchase Program
The Company announced a new stock repurchase program today. Under the repurchase program, the Company may repurchase up to 5% of the Company’s outstanding shares, or 404,708 shares. The new stock repurchase program replaces the existing stock repurchase program which had 74,212 shares available to be repurchased.
The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the
Asset Quality
Timberland’s non-performing assets to total assets ratio improved to 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
The following table details the ALL as a percentage of loans receivable:
2023 | 2023 | 2022 | ||||||
ALL to loans receivable | 1.20 | % | 1.20 | % | 1.22 | % | ||
ALL to loans receivable (excluding SBA PPP loans) (non-GAAP) | 1.20 | % | 1.20 | % | 1.22 | % | ||
ALL to loans receivable (excluding SBA PPP loans and South Sound Acquisition loans) (non-GAAP) | 1.21 | % | 1.21 | % | 1.25 | % |
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 | 2 | 2 | 2 | |||||||||||
Commercial | 686 | 2 | 694 | 2 | 671 | 2 | ||||||||
Land | 54 | 1 | 362 | 1 | 651 | 3 | ||||||||
Total mortgage loans | 1,113 | 5 | 1,434 | 5 | 1,715 | 7 | ||||||||
Consumer loans: | ||||||||||||||
Home equity and second | ||||||||||||||
Mortgage | 184 | 1 | 241 | 2 | 260 | 2 | ||||||||
Other | -- | 1 | 1 | 1 | 4 | 1 | ||||||||
Total consumer loans | 184 | 2 | 242 | 3 | 264 | 3 | ||||||||
Commercial business loans | 289 | 4 | 293 | 4 | 312 | 6 | ||||||||
Total loans | 11 | 12 | 16 |
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 political instability from acts of war including
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 2023 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 | $ | 16,215 | $ | 14,950 | $ | 12,628 | |||||
Investment securities | 2,384 | 2,460 | 1,016 | ||||||||
Dividends from mutual funds, FHLB stock and other investments | 70 | 64 | 25 | ||||||||
Interest bearing deposits in banks | 1,220 | 1,913 | 958 | ||||||||
Total interest and dividend income | 19,889 | 19,387 | 14,627 | ||||||||
Interest expense | |||||||||||
Deposits | 3,123 | 2,236 | 645 | ||||||||
Borrowings | 132 | -- | -- | ||||||||
Total interest expense | 3,255 | 2,236 | 645 | ||||||||
Net interest income | 16,634 | 17,151 | 13,982 | ||||||||
Provision for loan losses | 610 | 475 | -- | ||||||||
Net interest income after provision for loan losses | 16,024 | 16,676 | 13,982 | ||||||||
Non-interest income | |||||||||||
Service charges on deposits | 970 | 893 | 1,052 | ||||||||
ATM and debit card interchange transaction fees | 1,335 | 1,275 | 1,345 | ||||||||
Gain on sales of loans, net | 80 | 46 | 258 | ||||||||
Bank owned life insurance (“BOLI”) net earnings | 157 | 157 | 151 | ||||||||
Gain on sale of investment securities, net | 95 | -- | -- | ||||||||
Recoveries on investment securities, net | 2 | 2 | 5 | ||||||||
Other | 236 | 263 | 291 | ||||||||
Total non-interest income, net | 2,875 | 2,636 | 3,102 | ||||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 5,860 | 6,046 | 5,243 | ||||||||
Premises and equipment | 1,010 | 1,001 | 904 | ||||||||
Gain on sale of premises and equipment, net | (32 | ) | -- | (6 | ) | ||||||
Advertising | 179 | 178 | 187 | ||||||||
OREO and other repossessed assets, net | -- | -- | (2 | ) | |||||||
ATM and debit card processing | 491 | 489 | 515 | ||||||||
Postage and courier | 128 | 147 | 140 | ||||||||
State and local taxes | 297 | 298 | 265 | ||||||||
Professional fees | 577 | 473 | 580 | ||||||||
191 | 202 | 123 | |||||||||
Loan administration and foreclosure | 126 | 138 | 180 | ||||||||
Data processing and telecommunications | 944 | 880 | 698 | ||||||||
Deposit operations | 430 | 246 | 316 | ||||||||
Amortization of core deposit intangible (“CDI”) | 68 | 67 | 79 | ||||||||
Other, net | 658 | 779 | 652 | ||||||||
Total non-interest expense, net | 10,927 | 10,944 | 9,874 | ||||||||
Income before income taxes | 7,972 | 8,368 | 7,210 | ||||||||
Provision for income taxes | 1,666 | 1,705 | 1,472 | ||||||||
Net income | $ | 6,306 | $ | 6,663 | $ | 5,738 | |||||
Net income per common share: | |||||||||||
Basic | $ | 0.77 | $ | 0.81 | $ | 0.69 | |||||
Diluted | 0.77 | 0.80 | 0.69 | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 8,156,831 | 8,220,532 | 8,279,436 | ||||||||
Diluted | 8,213,975 | 8,304,370 | 8,349,859 |
CONSOLIDATED STATEMENTS OF INCOME | Nine Months Ended | |||||||
($ in thousands, except per share amounts) (unaudited) | ||||||||
2023 | 2022 | |||||||
Interest and dividend income | ||||||||
Loans receivable | $ | 45,622 | $ | 37,870 | ||||
Investment securities | 7,058 | 2,012 | ||||||
Dividends from mutual funds, FHLB stock and other investments | 185 | 80 | ||||||
Interest bearing deposits in banks | 5,524 | 1,528 | ||||||
Total interest and dividend income | 58,389 | 41,490 | ||||||
Interest expense | ||||||||
Deposits | 6,729 | 1,902 | ||||||
Borrowings | 132 | 17 | ||||||
Total interest expense | 6,861 | 1,919 | ||||||
Net interest income | 51,528 | 39,571 | ||||||
Provision for loan losses | 1,610 | -- | ||||||
Net interest income after provision for loan losses | 49,918 | 39,571 | ||||||
Non-interest income | ||||||||
Service charges on deposits | 2,810 | 2,979 | ||||||
ATM and debit card interchange transaction fees | 3,861 | 3,868 | ||||||
Gain on sales of loans, net | 147 | 1,337 | ||||||
Bank owned life insurance (“BOLI”) net earnings | 470 | 457 | ||||||
Valuation recovery on loan servicing rights, net | -- | 119 | ||||||
Gain on sale of investment securities, net | 95 | -- | ||||||
Recoveries on investment securities, net | 7 | 16 | ||||||
Other | 826 | 851 | ||||||
Total non-interest income, net | 8,216 | 9,627 | ||||||
Salaries and employee benefits | 17,806 | 15,606 | ||||||
Premises and equipment | 2,935 | 2,814 | ||||||
Gain on sales of premises and equipment, net | (32 | ) | -- | |||||
Advertising | 551 | 513 | ||||||
OREO and other repossessed assets, net | 1 | (18 | ) | |||||
ATM and debit card processing | 1,463 | 1,429 | ||||||
Postage and courier | 397 | 440 | ||||||
State and local taxes | 894 | 754 | ||||||
Professional fees | 1,479 | 1,173 | ||||||
517 | 377 | |||||||
Loan administration and foreclosure | 385 | 380 | ||||||
Data processing and telecommunications | 2,612 | 1,980 | ||||||
Deposit operations | 1,022 | 878 | ||||||
Amortization of CDI | 203 | 237 | ||||||
Other, net | 2,173 | 1,909 | ||||||
Total non-interest expense, net | 32,406 | 28,472 | ||||||
Income before income taxes | 25,728 | 20,726 | ||||||
Provision for income taxes | 5,252 | 4,176 | ||||||
Net income | $ | 20,476 | $ | 16,550 | ||||
Net income per common share: | ||||||||
Basic | $ | 2.50 | $ | 1.99 | ||||
Diluted | 2.47 | 1.97 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 8,203,255 | 8,324,371 | ||||||
Diluted | 8,279,079 | 8,406,977 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||
($ in thousands, except per share amounts) (unaudited) | ||||||||||||
2023 | 2023 | 2022 | ||||||||||
Assets | ||||||||||||
Cash and due from financial institutions | $ | 28,308 | $ | 26,015 | $ | 23,610 | ||||||
Interest-bearing deposits in banks | 101,645 | 116,468 | 398,541 | |||||||||
Total cash and cash equivalents | 129,953 | 142,483 | 422,151 | |||||||||
Certificates of deposit (“CDs”) held for investment, at cost | 16,931 | 20,168 | 23,888 | |||||||||
Investment securities: | ||||||||||||
Held to maturity, at amortized cost | 275,053 | 277,911 | 228,196 | |||||||||
Available for sale, at fair value | 43,842 | 54,838 | 45,141 | |||||||||
Investments in equity securities, at fair value | 837 | 850 | 872 | |||||||||
FHLB stock | 2,802 | 2,202 | 2,194 | |||||||||
Other investments, at cost | 3,000 | 3,000 | 3,000 | |||||||||
Loans held for sale | -- | 200 | 700 | |||||||||
Loans receivable | 1,275,954 | 1,224,891 | 1,101,400 | |||||||||
Less: Allowance for loan losses | (15,307 | ) | (14,698 | ) | (13,433 | ) | ||||||
Net loans receivable | 1,260,647 | 1,210,193 | 1,087,967 | |||||||||
Premises and equipment, net | 21,574 | 21,744 | 22,154 | |||||||||
BOLI | 23,276 | 23,119 | 22,649 | |||||||||
Accrued interest receivable | 5,451 | 5,295 | 4,319 | |||||||||
15,131 | 15,131 | 15,131 | ||||||||||
CDI | 745 | 813 | 1,027 | |||||||||
Loan servicing rights, net | 2,321 | 2,535 | 3,220 | |||||||||
Operating lease right-of-use assets | 1,845 | 1,844 | 2,051 | |||||||||
Other assets | 4,305 | 4,292 | 3,135 | |||||||||
Total assets | $ | 1,807,713 | $ | 1,786,618 | $ | 1,887,795 | ||||||
Liabilities and shareholders’ equity | ||||||||||||
Deposits: Non-interest-bearing demand | $ | 452,729 | $ | 479,283 | $ | 527,876 | ||||||
Deposits: Interest-bearing | 1,100,001 | 1,069,484 | 1,136,238 | |||||||||
Total deposits | 1,552,730 | 1,548,767 | 1,664,114 | |||||||||
Operating lease liabilities | 1,939 | 1,935 | 2,135 | |||||||||
FHLB borrowings | 15,000 | -- | -- | |||||||||
Other liabilities and accrued expenses | 8,781 | 8,255 | 7,227 | |||||||||
Total liabilities | 1,578,450 | 1,558,957 | 1,673,476 | |||||||||
Shareholders’ equity | ||||||||||||
Common stock, 8,094,174 shares issued and outstanding – 8,203,174 shares issued and outstanding – 8,249,448 shares issued and outstanding – | 35,401 | 37,979 | 39,585 | |||||||||
Retained earnings | 194,606 | 190,177 | 175,299 | |||||||||
Accumulated other comprehensive loss | (744 | ) | (495 | ) | (565 | ) | ||||||
Total shareholders’ equity | 229,263 | 227,661 | 214,319 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,807,713 | $ | 1,786,618 | $ | 1,887,795 |
KEY FINANCIAL RATIOS AND DATA | Three Months Ended | ||||||||||
($ in thousands, except per share amounts) (unaudited) | |||||||||||
2023 | 2023 | 2022 | |||||||||
PERFORMANCE RATIOS: | |||||||||||
Return on average assets (a) | 1.42 | % | 1.48 | % | 1.22 | % | |||||
Return on average equity (a) | 11.07 | % | 11.86 | % | 10.80 | % | |||||
Net interest margin (a) | 3.94 | % | 3.99 | % | 3.11 | % | |||||
Efficiency ratio | 56.01 | % | 55.31 | % | 57.80 | % | |||||
Nine Months Ended | |||||||||||
2023 | 2022 | ||||||||||
PERFORMANCE RATIOS: | |||||||||||
Return on average assets (a) | 1.51 | % | 1.19 | % | |||||||
Return on average equity (a) | 12.17 | % | 10.48 | % | |||||||
Net interest margin (a) | 3.99 | % | 2.99 | % | |||||||
Efficiency ratio | 54.24 | % | 57.87 | % | |||||||
ASSET QUALITY RATIOS AND DATA: | |||||||||||
Non-accrual loans | $ | 1,586 | $ | 1,969 | $ | 2,291 | |||||
Loans past due 90 days and still accruing | -- | -- | -- | ||||||||
Non-performing investment securities | 87 | 93 | 114 | ||||||||
OREO and other repossessed assets | -- | -- | -- | ||||||||
Total non-performing assets (b) | $ | 1,673 | $ | 2,062 | $ | 2,405 | |||||
Non-performing assets to total assets (b) | 0.09 | % | 0.12 | % | 0.13 | % | |||||
Net charge-offs (recoveries) during quarter | $ | 1 | $ | 6 | $ | -- | |||||
ALL to non-accrual loans, | 965.13 | % | 746.47 | % | 586.33 | % | |||||
ALL to loans receivable (c) | 1.20 | % | 1.20 | % | 1.22 | % | |||||
ALL to loans receivable (excluding SBA PPP loans) (d) (non-GAAP) | 1.20 | % | 1.20 | % | 1.22 | % | |||||
ALL to loans receivable (excluding SBA PPP loans and South Sound Acquisition loans) (d) (e) (non-GAAP) | 1.21 | % | 1.21 | % | 1.25 | % | |||||
Troubled debt restructured loans on accrual status (f) | $ | 2,604 | $ | 2,550 | $ | 2,484 | |||||
CAPITAL RATIOS: | |||||||||||
Tier 1 leverage capital | 12.27 | % | 11.95 | % | 10.72 | % | |||||
Tier 1 risk-based capital | 18.11 | % | 18.16 | % | 18.57 | % | |||||
Common equity Tier 1 risk-based capital | 18.11 | % | 18.16 | % | 18.57 | % | |||||
Total risk-based capital | 19.36 | % | 19.41 | % | 19.82 | % | |||||
Tangible common equity to tangible assets (non-GAAP) | 11.91 | % | 11.96 | % | 10.59 | % | |||||
BOOK VALUES: | |||||||||||
Book value per common share | $ | 28.32 | $ | 27.75 | $ | 25.98 | |||||
Tangible book value per common share (g) | 26.36 | 25.81 | 24.02 |
________________________________________________
(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 | $ | 1,254,044 | 5.17 | % | $ | 1,200,872 | 4.98 | % | $ | 1,072,933 | 4.71 | % | ||||||||
Investment securities and FHLB stock (1) | 331,385 | 2.96 | 340,317 | 2.97 | 263,595 | 1.58 | ||||||||||||||
Interest-earning deposits in banks and CDs | 101,798 | 4.79 | 177,748 | 4.30 | 460,657 | 0.83 | ||||||||||||||
Total interest-earning assets | 1,687,227 | 4.72 | 1,718,937 | 4.51 | 1,797,185 | 3.26 | ||||||||||||||
Other assets | 84,255 | 84,072 | 85,470 | |||||||||||||||||
Total assets | $ | 1,771,482 | $ | 1,803,009 | $ | 1,882,655 | ||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
NOW checking accounts | $ | 387,426 | 1.02 | % | $ | 412,642 | 0.83 | % | $ | 462,085 | 0.14 | % | ||||||||
Money market accounts | 205,023 | 0.84 | 218,718 | 0.68 | 258,240 | 0.30 | ||||||||||||||
Savings accounts | 255,463 | 0.19 | 274,877 | 0.14 | 284,659 | 0.08 | ||||||||||||||
Certificates of deposit accounts | 210,950 | 3.03 | 170,547 | 2.22 | 125,132 | 0.75 | ||||||||||||||
Total interest-bearing deposits | 1,058,862 | 1.18 | 1,076,784 | 0.84 | 1,130,116 | 0.23 | ||||||||||||||
Borrowings | 12,255 | 4.32 | 6 | 5.43 | -- | -- | ||||||||||||||
Total interest-bearing liabilities | 1,071,117 | 1.22 | 1,076,790 | 0.84 | 1,130,116 | 0.23 | ||||||||||||||
Non-interest-bearing demand deposits | 462,315 | 492,294 | 529,770 | |||||||||||||||||
Other liabilities | 10,199 | 9,136 | 10,170 | |||||||||||||||||
Shareholders’ equity | 227,851 | 224,789 | 212,599 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,771,482 | $ | 1,803,009 | $ | 1,882,655 | ||||||||||||||
Interest rate spread | 3.50 | % | 3.67 | % | 3.03 | % | ||||||||||||||
Net interest margin (2) | 3.94 | % | 3.99 | % | 3.11 | % | ||||||||||||||
Average interest-earning assets to | ||||||||||||||||||||
average interest-bearing liabilities | 157.52 | % | 159.64 | % | 159.03 | % |
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
For the Nine Months Ended | |||||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
Assets | |||||||||||||
Loans receivable and loans held for sale | $ | 1,206,294 | 5.04 | % | $ | 1,033,173 | 4.89 | % | |||||
Investment securities and FHLB stock (1) | 333,659 | 2.89 | 211,671 | 1.32 | |||||||||
Interest-earning deposits in banks and CDs | 182,312 | 4.04 | 517,323 | 0.39 | |||||||||
Total interest-earning assets | 1,722,265 | 4.52 | 1,762,167 | 3.14 | |||||||||
Other assets | 84,167 | 84,426 | |||||||||||
Total assets | $ | 1,806,432 | $ | 1,846,593 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
NOW checking accounts | $ | 413,372 | 0.75 | % | $ | 448,028 | 0.13 | % | |||||
Money market accounts | 221,131 | 0.67 | 241,734 | 0.29 | |||||||||
Savings accounts | 270,076 | 0.15 | 275,684 | 0.08 | |||||||||
Certificates of deposit accounts | 172,193 | 2.33 | 128,784 | 0.79 | |||||||||
Total interest-bearing deposits | 1,076,772 | 0.84 | 1,094,230 | 0.23 | |||||||||
Borrowings | 4,087 | 4.32 | 1,909 | 1.19 | |||||||||
Total interest-bearing liabilities | 1,080,859 | 0.85 | 1,096,139 | 0.23 | |||||||||
Non-interest-bearing demand deposits | 491,404 | 530,038 | |||||||||||
Other liabilities | 9,896 | 9,938 | |||||||||||
Shareholders’ equity | 224,273 | 210,478 | |||||||||||
Total liabilities and shareholders’ equity | $ | 1,806,432 | $ | 1,846,593 | |||||||||
Interest rate spread | 3.67 | % | 2.91 | % | |||||||||
Net interest margin (2) | 3.99 | % | 2.99 | % | |||||||||
Average interest-earning assets to | |||||||||||||
average interest-bearing liabilities | 159.34 | % | 160.76 | % |
_____________________________________
(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 | $ | 229,263 | $ | 227,661 | $ | 214,319 | |||||
Less goodwill and CDI | (15,876 | ) | (15,944 | ) | (16,158 | ) | |||||
Tangible common equity | $ | 213,387 | $ | 211,717 | $ | 198,161 | |||||
Total assets | $ | 1,807,713 | $ | 1,786,618 | $ | 1,887,795 | |||||
Less goodwill and CDI | (15,876 | ) | (15,944 | ) | (16,158 | ) | |||||
Tangible assets | $ | 1,791,837 | $ | 1,770,674 | $ | 1,871,637 |
Contact:
(360) 533-4747
www.timberlandbank.com
Source:
2023 GlobeNewswire, Inc., source