SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 22, 2008
Timberland Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Washington 0-23333 91-1863696
--------------------------- --------- ----------------
State or other jurisdiction Commission (I.R.S. Employer
Of incorporation File Number Identification No.)
624 Simpson Avenue, Hoquiam, Washington 98550
-------------------------------------------- --------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code) (360) 533-4747
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
--------------------------------------------------------
On April 22, 2008, Timberland Bancorp, Inc. issued its earnings release
for the quarter ended March 31, 2008. A copy of the earnings release is
attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
--------------------------------------------
(c) Exhibits
99.1 Press Release of Timberland Bancorp, Inc. dated April 22, 2008
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
TIMBERLAND BANCORP,INC.
DATE: April 22, 2008 By: /s/Dean J. Brydon
------------------------
Dean J. Brydon
Chief Financial Officer
Exhibit 99.1
Contact: Michael R. Sand
President & CEO
Dean J. Brydon CFO
(360) 533-4747
http://www.timberlandbank.com
-----------------------------
Timberland Bancorp Earns $1.6 Million or $0.24 per Share in Fiscal Second
Quarter 2008
HOQUIAM, WA--Apr 22, 2008 -- Timberland Bancorp, Inc. (NASDAQ:TSBK)
("Timberland"), the holding company for Timberland Bank ("Bank"), today
reported solid fiscal second quarter profits of $1.6 million after a $700,000
addition to its loan loss reserves as a result of continued loan growth and
the reclassification of certain loans. In the second quarter of fiscal 2008,
Timberland earned $1.6 million, or $0.24 per diluted share, compared to $1.9
million, or $0.27 per diluted share, in the second quarter one year ago. All
per share data has been adjusted to reflect the two-for-one stock split in the
form of a 100% stock dividend paid on June 5, 2007.
Fiscal Second Quarter 2008 Highlights: (quarter ended March 31, 2008 compared
to the quarter ended March 31, 2007)
* The loan portfolio increased 14% to $548 million from $480 million.
* Total deposits increased by $9 million with an increase of $7 million
in savings and N.O.W. checking account balances.
* Total assets increased 6% to $655 million from $618 million.
* Revenue increased 4% due to solid loan growth.
* Loan loss reserves increased to 1.21% of loans.
* Capital levels remain strong with a 10.4% tangible equity to assets
ratio.
* Completed 15th share repurchase program and announced another 5%
repurchase program.
"While the Northwest economy has slowed we are seeing encouraging signs in our
core markets," said Michael R. Sand, President and Chief Executive Officer.
"The recent announcement by the State of Washington that a site in Grays
Harbor County was chosen to facilitate the construction of pontoons for
Seattle's Evergreen Point floating bridge is good news for our local economy.
The project should bring 250 construction and 75 to 100 manufacturing jobs to
the Grays Harbor market."
"We are also pleased with the increase in good quality commercial and
industrial ("C&I") loans being produced by our lenders in the Pierce County
market. Our C&I portfolio has increased by 32% during the past year and we
anticipate the continued growth of this loan segment. The quality of these
loans validates our ability to compete in a competitive C&I market. We have
also recently observed an increase in the sale of spec homes in eastern Pierce
County. During the past several weeks one of our spec builders sold five of
his inventory of seven homes with closings scheduled for late April and mid to
late May. We are encouraged to see the increased sales activity in this
market."
"We have continued to build our reserve for loan losses during this time of
economic uncertainty," Sand also stated. "While our history of recovering
principal on defaulted loans is excellent we believe it is prudent to build a
strong reserve position consistent with results of our quarterly loan loss
reserve analysis in addition to maintaining a strong capital position." The
increase in non-performing loans ("NPLs") of approximately $2.5 million for
the quarter was due primarily to placing Timberland's one-eighth participation
interest of $1.9 million in a Clark County residential land development loan
on non-accrual as noted below. The plat which is east of Vancouver Washington
is finished and lots are currently being marketed. Total NPLs of $6.4 million
represent 0.98% of total assets.
Operating Results
Fiscal second quarter revenue (net interest income before provision for loan
losses plus non-interest income) increased 4% to $8.2 million from $7.9
million in the like quarter one year ago. Net interest income before the
provision for loan losses increased 3% to $6.7 million compared to the like
quarter one year ago with interest and dividend income increasing 7% and
interest expense increasing 16%. Strong loan growth contributed to the
increase in net interest income and offset increased funding costs.
Timberland Q1 Earnings
April 22, 2008
Page 2
Timberland's net interest margin remained strong at 4.44%, a reduction of 15
basis points from the 4.59% reported for the quarter ended December 31, 2007.
"The substantial Fed rate cuts during the quarter affected margins but
stimulated residential loan activity," said Dean Brydon, Chief Financial
Officer. The other factor influencing margin compression was the reversal of
interest on loans placed on non-accrual during the quarter which reduced the
margin by approximately eight basis points. The Bank's net interest margin was
4.75% for the same quarter one year ago.
In the second fiscal quarter Timberland increased its loan loss provision by
$544,000 when compared to the like quarter in the prior fiscal year. "With
continuing loan portfolio growth, the reclassification of certain loans and a
generally slower Northwest economy we made prudent additions to loan loss
reserves this quarter," Brydon noted. While there were no charge offs during
the quarter ended March 31, 2008, the reserve for principal impairments on
non-accrual loans was increased by $329,000 to $623,000. Impairments may
result in actual charge offs against the impairment reserves in the future.
The Bank's largest non-accrual loan is a $1.9 million participation interest
in a land development loan secured by property located in Clark County, east
of Vancouver, Washington. Lot sales have been occurring, however at a rate
indicating a longer than anticipated absorption period.
Non-interest income increased 9% to $1.55 million for the second quarter from
$1.42 million for the second quarter of fiscal 2007, primarily due to
increased income from loan sales (gain on sale of loans and servicing income
on loans sold). The sale of fixed rate one-to-four family mortgage loans
totaled $11.6 million for the second quarter of fiscal 2008 compared to $6.6
million for the same period one year prior. Moderate interest rates for
30-year fixed rate loans has increased the demand for financing one-to-four
family properties which increases revenues associated with the sale of such
loans.
Timberland's total operating (non-interest) expenses increased to $5.21
million for the second quarter from $4.94 million for the second quarter of
fiscal 2007 primarily due to a $220,000 increase in salaries and employee
benefits expense and a $67,000 increase in advertising expenses. The increased
salary and benefit expense was primarily the result of annual salary
adjustments (effective October 1, 2007) and the addition of several employees.
The increased advertising expenses were primarily attributable to marketing
costs designed to gather new deposits. As a result of the increased expenses,
the efficiency ratio increased to 63.29% for the current quarter compared to
62.42% for the same quarter one year ago.
Asset Quality
The non-performing assets ("NPAs") to total assets ratio was 0.98% at March
31, 2008, with no charge-offs during the quarter. The allowance for loan
losses totaled $6.7 million at March 31, 2008, or 1.21% of loans receivable
and 105% of non-performing loans. The allowance for loan losses was $6.0
million, or 1.11% of loans receivable and $4.3 million, or 0.89% at December
31, 2007 and March 31, 2007, respectively.
NPLs totaled $6.4 million at March 31, 2008, and were comprised of 17 loans
including 11 single family speculative home loans located in Pierce County
totaling $4.0 million (which included one $1.0 million loan, one $522,000
loan, eight loans with loan balances ranging from $245,000 to $344,000, and
one loan with an outstanding balance of $63,000), a $1.9 million participation
interest in a land development loan located in Clark County, two home equity
consumer loans totaling $183,000 on which losses, if any, incurred on the
disposition of the underlying collateral are recoverable from title insurance
proceeds, one commercial real estate loan for $152,000 that is well secured,
one commercial business loan for $119,000 that is well secured, and one land
loan for $22,000 the security for which has a tax assessed value of $134,000.
These non-performing loans represent eight credit relationships.
Balance Sheet Management
Total assets increased 6% year over year, to $654.5 million at March 31, 2008,
from $646.6 million at December 31, 2007 and $617.8 million one year ago
primarily due to strong loan portfolio growth.
LOAN PORTFOLIO
($ in thousands) March 31, 2008 Dec. 31, 2007 March 31, 2007
Amount Percent Amount Percent Amount Percent
--------- ----- --------- ----- --------- -----
Mortgage Loans:
One-to-four family
(1) $ 108,117 18% $ 101,971 17% $ 104,697 19%
Multi family 37,932 6 38,828 6 17,156 3
Commercial 136,112 22 126,003 21 137,474 25
Timberland Q1 Earnings
April 22, 2008
Page 3
Construction and land
development 197,384 32 206,105 34 179,350 32
Land 55,158 9 57,033 9 48,331 9
--------- ----- --------- ----- --------- -----
Total mortgage
loans 534,703 87 529,940 87 487,008 88
Consumer Loans:
Home equity and second
mortgage 47,003 8 47,071 8 41,357 7
Other 10,888 2 10,627 2 11,543 2
--------- ----- --------- ----- --------- -----
57,891 10 57,698 10 52,900 9
Commercial business
loans 20,177 3 18,642 3 15,289 3
--------- ----- --------- ----- --------- -----
Total loans $ 612,771 100% $ 606,280 100% $ 555,197 100%
Less:
Undisbursed portion
of construction
loans in process (55,447) (60,708) (68,034)
Unearned income (2,782) (2,928) (3,003)
Allowance for loan
losses (6,697) (5,997) (4,272)
--------- --------- ---------
Total loans
receivable, net $ 547,845 $ 536,647 $ 479,888
========= ========= =========
_____________________
(1) Includes loans held for sale
CONSTRUCTION LOAN COMPOSITION
($ in thousands) March 31, 2008 Dec. 31, 2007 March 31, 2007
Amount Percent Amount Percent Amount Percent
--------- ----- --------- ----- --------- -----
Custom and owner /
builder $ 46,311 23% $ 50,748 25% $ 46,723 26%
Speculative 42,582 22 41,251 20 36,753 20
Commercial real
estate 56,964 29 66,949 32 57,191 32
Multi-family 21,941 11 22,060 11 17,756 10
Land development 29,586 15 25,097 12 20,927 12
--------- ----- --------- ----- --------- -----
Total construction
loans $ 197,384 100% $ 206,105 100% $ 179,350 100%
Net loans receivable increased 8% on an annualized basis during the quarter to
$547.8 million at March 31, 2008, and increased 14% from $479.9 million one
year ago. During the quarter the portfolio increased by $11.2 million as
commercial real estate loans increased by $10.1 million, one-to-four family
mortgage loans increased by $6.2 million (including $4.9 million that are held
for sale), and commercial business loans increased by $1.5 million. These
increases were partially offset by a $3.5 million decrease in construction and
land development loans (net of the undisbursed portion) and a $1.9 million
decrease in land loans. Loan originations decreased to $59.0 million for the
quarter ended March 31, 2008 from $65.5 million for the quarter ended December
31, 2007 and from $86.2 million for the quarter ended March 31, 2007. The Bank
continues to sell fixed rate one-to-four family mortgage loans into the
secondary market for asset-liability management purposes.
Timberland's investment securities decreased by $2.2 million during the
quarter to $42.9 million at March 31, 2008 from $45.1 million at December 31,
2007 primarily due to the maturity or call of U.S. agency securities, regular
amortization and prepayments on mortgaged backed securities, and a decrease in
market value on mutual funds. At March 31, 2008, the mutual funds had gross
unrealized losses of $1.5 million as the market value ($31.4 million) was
below the amortized cost ($32.9 million). These mutual funds invest primarily
in highly rated mortgage-backed securities and U.S. agency securities and
their net asset values have been negatively impacted by the unusually large
spreads in the market for mortgage-related products. The credit ratings and
quality of underlying securities in the funds remain solid and Timberland
believes that the risk of principal loss is low. The two largest mutual funds
(ASARX and AULTX) in the portfolio comprise over 83% of the total mutual fund
balance and currently have three star ratings from Morningstar. We continue to
believe that the market value of the underlying securities will recover as
spreads narrow on mortgage-related securities. However, if the wide pricing
spreads on mortgage-related products continues to persist or we find that the
narrowing spreads do not positively affect the market value of these funds in
the manner we anticipate, we may deem the funds to be other than temporarily
impaired and a non-cash charge to income may occur. In accordance with
accounting rules, the reduction in market value of these mutual funds
continues to be reflected as a reduction in Timberland's capital which, as
noted previously, remains strong with a tangible equity to assets ratio of
10.40%.
Timberland Q1 Earnings
April 22, 2008
Page 4
DEPOSIT BREAKDOWN
($ in thousands)
March 31, 2008 Dec. 31, 2007 March 31, 2007
Amount Percent Amount Percent Amount Percent
--------- ----- --------- ----- --------- -----
Non-interest bearing $ 50,068 11% $ 50,590 11% $ 53,321 12%
N.O.W. checking 88,350 19 83,594 18 83,945 19
Savings 57,212 12 54,738 12 62,169 14
Money market 47,244 10 47,102 10 45,950 10
Certificates of deposit
under $100 137,529 29 133,676 29 129,986 29
Certificates of deposit
$100 and over 74,376 16 68,527 15 68,751 16
Certificates of deposit
- brokered 15,058 3 23,020 5 -- --
--------- ----- --------- ----- --------- -----
Total deposits $ 469,837 100% $ 461,247 100% $ 444,122 100%
========= ===== ========= ===== ========= =====
Total deposits increased $8.6 million to $469.8 million at March 31, 2008 from
$461.2 million at December 31, 2007 primarily due to a $9.7 million increase
in certificate of deposit accounts, a $4.8 million increase in N.O.W. checking
accounts, and a $2.5 million increase in savings accounts. These increases
were partially offset by an $8.0 million decrease in brokered deposits.
Total shareholders' equity decreased $147,000 to $74.8 million at March 31,
2008 from $75.0 million at December 31, 2007. Timberland continued to manage
its capital ratio through asset growth, stock repurchases and dividends.
During the quarter Timberland repurchased 94,950 shares for $1.22 million (an
average price of $12.83 per share) and completed it 15th share repurchase
program. Shortly after completing this repurchase program, Timberland
announced that it had authorized an additional 5% (or 343,468 shares)
repurchase program. No shares have been repurchased under the current share
repurchase program. Cumulatively, Timberland has repurchased 7.8 million
shares at an average price of $8.98 per share. The share repurchases equal
approximately 59% of the 13.2 million shares that were issued in Timberland's
January 1998 initial public offering. A cash dividend of $0.11 per share was
paid during the quarter, which represented the 40th consecutive quarter a cash
dividend was paid to shareholders.
About Timberland Bancorp, Inc.
Timberland Bancorp operates 21 branches in the state of Washington in Hoquiam,
Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Tumwater, Yelm,
Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station), Gig Harbor, Poulsbo,
Silverdale, Auburn, Winlock, and Toledo.
Timberland Q1 Earnings
April 22, 2008
Page 5
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Three Months Ended
($ in thousands, except per share) March 31, Dec. 31, March 31,
(unaudited) 2008 2007 2007
---------- ---------- ----------
Interest and dividend income
Loans receivable $ 10,358 $ 10,764 $ 9,283
Investments and mortgage-backed
securities 142 249 381
Dividends from mutual funds and
Federal Home Loan Bank ("FHLB") stock 395 423 413
Federal funds sold 27 31 77
Interest bearing deposits in banks 4 10 14
---------- ---------- ----------
Total interest and dividend income 10,926 11,477 10,168
Interest expense
Deposits 3,117 3,334 2,657
FHLB advances 1,132 1,216 1,013
Other borrowings 6 8 10
---------- ---------- ----------
Total interest expense 4,255 4,558 3,680
---------- ---------- ----------
Net interest income 6,671 6,919 6,488
Provision for loan losses 700 1,200 156
---------- ---------- ----------
Net interest income after
provision for loan losses 5,971 5,719 6,332
Non-interest income
Service charges on deposits 648 696 663
Gain on sale of loans, net 144 92 64
Bank owned life insurance ("BOLI")
net earnings 119 120 114
Servicing income on loans sold 179 118 115
ATM transaction fees 302 299 272
Other 162 172 196
---------- ---------- ----------
Total non-interest income 1,554 1,497 1,424
Non-interest expense
Salaries and employee benefits 2,986 2,920 2,766
Premises and equipment 650 464 660
Advertising 268 182 201
Loss (gain) from other real estate
operations -- -- (11)
ATM expenses 142 148 107
Postage and courier 130 118 130
Amortization of core deposit intangible 62 62 71
State and local taxes 147 151 133
Professional fees 145 147 172
Other 676 659 710
---------- ---------- ----------
Total non-interest expense 5,206 4,851 4,939
Income before federal income taxes 2,319 2,365 2,817
Federal income taxes 734 750 901
---------- ---------- ----------
Net income $ 1,585 $ 1,615 $ 1,916
========== ========== ==========
Earnings per common share:
Basic $ 0.25 $ 0.25 $ 0.28
Diluted $ 0.24 $ 0.24 $ 0.27
Weighted average shares outstanding:
Basic 6,441,367 6,515,428 6,866,664
Diluted 6,560,806 6,674,773 7,083,420
Timberland Q1 Earnings
April 22, 2008
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Six Months Ended
($ in thousands, except per share) March 31, March 31,
(unaudited) 2008 2007
------------ ------------
Interest and dividend income
Loans receivable $ 21,121 $ 18,070
Investments and mortgage-backed securities 391 835
Dividends from mutual funds and FHLB stock 818 833
Federal funds sold 58 142
Interest bearing deposits in banks 14 53
------------ ------------
Total interest and dividend income 22,402 19,933
Interest expense
Deposits 6,450 5,247
FHLB advances 2,348 1,895
Other borrowings 14 27
------------ ------------
Total interest expense 8,812 7,169
------------ ------------
Net interest income 13,590 12,764
Provision for loan losses 1,900 156
------------ ------------
Net interest income after provision for
loan losses 11,690 12,608
Non-interest income
Service charges on deposits 1,344 1,369
Gain on sale of loans, net 237 171
BOLI net earnings 239 227
Servicing income on loans sold 297 246
ATM transaction fees 601 535
Other 334 356
------------ ------------
Total non-interest income 3,052 2,904
Non-interest expense
Salaries and employee benefits 5,906 5,551
Premises and equipment 1,114 1,283
Advertising 450 379
Loss (gain) from real estate operations -- (29)
ATM expenses 291 226
Postage and courier 247 235
Amortization of core deposit intangible 124 143
State and local taxes 298 272
Professional fees 292 349
Other 1,335 1,426
------------ ------------
Total non-interest expense 10,057 9,835
Income before federal income taxes 4,685 5,677
Federal income taxes 1,484 1,807
------------ ------------
Net income $ 3,201 $ 3,870
============ ============
Earnings per common share:
Basic $ 0.49 $ 0.56
Diluted $ 0.48 $ 0.54
Weighted average shares outstanding:
Basic 6,478,600 6,937,990
Diluted 6,618,101 7,165,698
Timberland Q1 Earnings
April 22, 2008
Page 7
TIMBERLAND BANCORP, INC.
CONSOLIDATED BALANCE SHEET
($ in thousands) (unaudited) March 31, Dec. 31, March 31,
2008 2007 2007
Assets --------- --------- ---------
Cash and due from financial
institutions:
Non-interest bearing $ 12,165 $ 15,301 $ 14,604
Interest-bearing deposits in banks 883 502 659
Federal funds sold 1,220 1,015 6,655
--------- --------- ---------
14,268 16,818 21,918
Investments and mortgage-backed
securities:
Held to maturity 60 67 72
Available for sale 42,868 45,037 67,221
FHLB stock 5,705 5,705 5,705
--------- --------- ---------
48,633 50,809 72,998
Loans receivable 549,593 542,644 482,226
Loans held for sale 4,949 -- 1,934
Less: Allowance for loan losses (6,697) (5,997) (4,272)
--------- --------- ---------
Net loans receivable 547,845 536,647 479,888
Accrued interest receivable 3,055 3,407 3,177
Premises and equipment 16,470 16,512 16,736
Other real estate owned ("OREO") and
other repossessed items -- -- 71
BOLI 12,654 12,535 12,178
Goodwill 5,650 5,650 5,650
Core deposit intangible 1,096 1,158 1,363
Mortgage servicing rights 1,145 1,071 986
Other assets 3,697 1,987 2,836
--------- --------- ---------
Total Assets $ 654,513 $ 646,594 $ 617,801
========= ========= =========
Liabilities and Shareholders' Equity
Non-interest-bearing deposits $ 50,068 $ 50,590 $ 53,321
Interest-bearing deposits 419,769 410,657 390,801
--------- --------- ---------
Total deposits 469,837 461,247 444,122
FHLB advances 105,663 106,380 92,230
Other borrowings: repurchase
agreements 815 611 588
Other liabilities and accrued expenses 3,356 3,367 3,048
--------- --------- ---------
Total Liabilities 579,671 571,605 539,988
--------- --------- ---------
Shareholders' Equity
Common stock- $.01 par value;
50,000,000 shares authorized;
March 31, 2008 6,876,653 shares
issued and outstanding
December 31, 2007 6,917,675 shares
issued and outstanding
March 31, 2007 3,649,190 shares
issued and outstanding on a
pre-split basis 69 69 36
Additional paid-in capital 8,527 9,314 16,439
Unearned shares- Employee Stock
Ownership Plan (2,908) (2,974) (3,392)
Retained earnings 70,125 69,300 65,465
Accumulated other comprehensive loss (971) (720) (735)
--------- --------- ---------
Total Shareholders' Equity 74,842 74,989 77,813
--------- --------- ---------
Total Liabilities and Shareholders'
Equity $ 654,513 $ 646,594 $ 617,801
========= ========= =========
Timberland Q1 Earnings
April 22, 2008
Page 8
KEY FINANCIAL RATIOS AND DATA Three Months Ended
($ in thousands, except per share) March 31, Dec. 31, March 31,
(unaudited) 2008 2007 2007
--------- --------- ---------
PERFORMANCE RATIOS:
Return on average assets (a) 0.98% 0.99% 1.28%
Return on average equity (a) 8.48% 8.61% 9.91%
Net interest margin (a) 4.44% 4.59% 4.75%
Efficiency ratio 63.29% 57.64% 62.42%
Six Months Ended
March 31, March 31,
2008 2007
--------- ---------
Return on average assets 0.99% 1.32%
Return on average equity 8.55% 9.92%
Net interest margin 4.52% 4.74%
Efficiency ratio 60.43% 62.78%
March 31, Dec. 31, March 31,
2008 2007 2007
--------- --------- ---------
ASSET QUALITY RATIOS:
Non-performing loans $ 6,388 $ 3,908 $ 322
OREO and other repossessed assets -- -- 71
--------- --------- ---------
Total non-performing assets $ 6,388 $ 3,908 $ 393
Non-performing assets to total assets 0.98% 0.60% 0.06%
Allowance for loan losses to
non-performing loans 105% 153% 1,327%
Restructured loans $ 2,491 $ 2,462 $ --
Book value per share (b) $ 10.88 $ 10.84 $ 10.66
Book value per share (c) $ 11.53 $ 11.50 $ 11.32
Tangible book value per share (b) (d) $ 9.90 $ 9.86 $ 9.70
Tangible book value per share (c) (d) $ 10.49 $ 10.46 $ 10.30
(a) Annualized
(b) Calculation includes ESOP shares not committed to be released
(c) Calculation excludes ESOP shares not committed to be released
(d) Calculation subtracts goodwill and core deposit intangible from the
equity component
AVERAGE BALANCE SHEET: Three Months Ended
March 31, Dec. 31, March 31,
2008 2007 2007
--------- --------- ---------
Average total loans $ 546,349 $ 538,284 $ 465,460
Average total interest earning assets 600,872 602,628 546,870
Average total assets 647,851 650,893 597,015
Average total interest bearing
deposits 411,465 411,766 380,916
Average FHLB advances and other
borrowings 107,572 106,937 81,578
Average shareholders' equity 74,741 75,002 77,340
Six Months Ended
March 31, March 31,
2008 2007
--------- ---------
Average total loans $ 542,295 $ 452,232
Average total interest earning assets 601,754 538,115
Average total assets 649,225 588,470
Average total interest bearing
deposits 410,542 378,614
Average FHLB advances and other
borrowings 107,253 73,688
Average shareholders' equity 74,873 78,002
Timberland Q1 Earnings
April 22, 2008
Page 8
Disclaimer
This report contains certain "forward-looking statements." The Company desires
to take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and is including this statement for the express
purpose of availing itself of the protection of such safe harbor with forward
looking statements. These forward-looking statements may describe future plans
or strategies and include the Company's expectations of future financial
results. Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results to differ materially from stated
objectives. These risk factors include but are not limited to the effect of
interest rate changes, competition in the financial services market for both
deposits and loans as well as regional and general economic conditions. The
words "believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements. The Company's ability to
predict results or the effect of future plans or strategies is inherently
uncertain and undue reliance should not be placed on such statements.