HOQUIAM, Wash., April 22, 2014 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (Nasdaq:TSBK) ("Timberland" or "the Company") today reported net income to common shareholders of $1.16 million, or $0.16 per diluted common share for the quarter ended March 31, 2014. This compares to net income to common shareholders of $1.41 million, or $0.20 per diluted common share, for the quarter ended December 31, 2013, and net income to common shareholders of $1.20 million, or $0.17 per diluted common share, for the quarter ended March 31, 2013. In the first six months of fiscal 2014, Timberland earned $2.56 million, or $0.37 per diluted common share, compared to $2.64 million, or $0.39 per diluted common share, in the first six months of fiscal 2013.
Timberland's Board of Directors also declared a quarterly cash dividend to common shareholders of $0.04 per common share payable on May 28, 2014 to shareholders of record on May 14, 2014.
"During the quarter ended March 31, 2014, we devoted considerable resources to improve the technology footing of the Company," said Michael R. Sand, President and CEO. "During the quarter we transitioned to a new internet banking provider, outsourced our core data processing function, outsourced our item processing function, completed the replacement of all PCs operating on the Windows XP operating system, implemented a new account opening platform, installed new customer relationship management software, installed new imaging software and planned for the transition of our debit card relationship to MasterCard from VISA. We also trained staff to effectively use the new systems and engaged the Ritz-Carlton Leadership Center to provide enhanced customer training to Timberland employees. While these investments in enhanced technology and training increased our operating expenses for the recent quarter, we anticipate that, long term, we will realize significant operational efficiencies and cost savings.
"Refinance activity has diminished significantly both nationally and in the Pacific Northwest. As a result, gain on sale income has diminished to more normal levels. During the quarter, we continued our emphasis on the generation of shorter duration assets including custom and owner/builder construction loans and C&I credits, which we anticipate will continue to grow in subsequent quarters," stated Sand.
Fiscal Second Quarter 2014 Highlights (at or for the period ended March 31, 2014):
- Earnings per diluted common share for the current quarter were $0.16;
- Declared a quarterly cash dividend of $0.04 per common share;
- Net interest margin for the current quarter increased to 3.85% from 3.78% for the preceding quarter;
- Total delinquent and non-accrual loans decreased 17% during the quarter and 39% year-over-year;
- Non-performing assets decreased 6% during the quarter and 29% year-over-year;
- Charge-offs improved with a net recovery of $4,000 for the current quarter compared to net charge-offs of $391,000 for the preceding quarter and $1.6 million for the comparable quarter one year ago; and
- Book value per common share increased to $11.36, and tangible book value per common share increased to $10.55 at quarter end.
Capital Ratios and Asset Quality
Timberland Bancorp remains well capitalized with a total risk-based capital ratio of 14.65% and a Tier 1 leverage capital ratio of 10.40% at March 31, 2014.
Reflecting continued improvement in asset quality, no provision for loan losses was required for the quarter ended March 31, 2014, compared to $1.18 million in the comparable quarter one year ago. The Bank had a net recovery of $4,000 during the current quarter, compared to net charge-offs of $391,000 for the preceding quarter and $1.63 million for the comparable quarter one year ago.
Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 17% to $14.7 million at March 31, 2014, from $17.8 million at December 31, 2013, and decreased 39% from $24.2 million one year ago. The non-performing assets to total assets ratio improved to 3.69% at March 31, 2014, from 3.97% three months earlier and 5.14% one year ago.
Non-accrual loans decreased by 11% to $12.6 million at March 31, 2014, from $14.1 million at December 31, 2013, and decreased 38% from $20.5 million at March 31, 2013. The non-accrual loans at March 31, 2014, were comprised of 51 loans and 41 credit relationships. By dollar amount per category: 44% are secured by residential properties; 42% are secured by land; 13% are secured by commercial properties; and 1% are secured by commercial business assets.
Other real estate owned ("OREO") and other repossessed assets increased to $13.2 million at March 31, 2014, from $12.5 million at December 31, 2013, and decreased from $15.0 million at March 31, 2013. At March 31, 2014, the OREO portfolio consisted of 55 individual properties. The properties consisted of 29 land parcels totaling $5.4 million, 19 single family homes totaling $4.1 million, six commercial real estate properties totaling $3.5 million, and one multi-family property of $170,000. During the quarter ended March 31, 2014, six OREO properties totaling $1.2 million were sold for a net gain of $48,000.
Balance Sheet Management
Total assets increased by $4.5 million to $732.4 million at March 31, 2014, from $727.9 million at December 31, 2013. The increase in total assets was primarily due to a $4.0 million increase in total cash and cash equivalents.
Liquidity measured by cash and cash equivalents, CDs held for investment and available for sale investments as a percentage of total liabilities was 16.0% at March 31, 2014, compared to 15.8% at December 31, 2013, and 17.9% one year ago.
Net loans receivable decreased $1.2 million to $554.7 million at March 31, 2014, from $555.9 million at December 31, 2013. The decrease was primarily due to a $1.9 million decrease in land loan balances, a $1.8 million decrease in construction and land development loan balances, a $1.0 million decrease in multi-family loan balances and a $430,000 decrease in consumer loan balances. These decreases to net loans receivable were partially offset by a $2.7 million increase in commercial business loan balances and an $890,000 decrease in the undisbursed portion of construction loans in process.
| LOAN PORTFOLIO | ||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||
| ($ in thousands) | Amount | Percent | Amount | Percent | Amount | Percent |
| Mortgage Loans: | ||||||
| One-to four-family | $100,985 | 17% | $100,870 | 17% | $108,304 | 19% |
| Multi-family | 47,206 | 8 | 48,212 | 8 | 47,330 | 8 |
| Commercial | 299,791 | 51 | 299,644 | 51 | 283,307 | 50 |
| Construction and land development | 51,852 | 9 | 53,693 | 9 | 39,658 | 7 |
| Land | 29,593 | 5 | 31,464 | 5 | 35,323 | 6 |
| Total mortgage loans | 529,427 | 90 | 533,883 | 90 | 513,922 | 90 |
| Consumer Loans: | ||||||
| Home equity and second mortgage | 32,120 | 5 | 32,201 | 6 | 32,080 | 6 |
| Other | 5,613 | 1 | 5,962 | 1 | 5,570 | 1 |
| Total consumer loans | 37,733 | 6 | 38,163 | 7 | 37,650 | 7 |
| Commercial business loans | 20,460 | 4 | 17,733 | 3 | 20,388 | 3 |
| Total loans | 587,620 | 100% | 589,779 | 100% | 571,960 | 100% |
| Less: | ||||||
| Undisbursed portion of construction loans in process | (20,472) | (21,362) | (12,161) | |||
| Deferred loan origination fees | (1,707) | (1,768) | (1,699) | |||
| Allowance for loan losses | (10,749) | (10,745) | (11,313) | |||
| Total loans receivable, net | $554,692 | $555,904 | $546,787 | |||
| CONSTRUCTION LOAN COMPOSITION | ||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||
| ($ in thousands) | Percent | Percent | Percent | |||
| of Loan | of Loan | of Loan | ||||
| Amount | Portfolio | Amount | Portfolio | Amount | Portfolio | |
| Custom and owner / builder | $47,365 | 8% | $46,789 | 8% | $32,515 | 6% |
| Speculative one- to four-family | 2,054 | 1 | 2,104 | -- | 1,718 | -- |
| Commercial real estate | 1,993 | -- | 4,467 | 1 | 4,521 | 1 |
| Multi-family (including condominium) | 440 | -- | 143 | -- | 345 | -- |
| Land development | -- | -- | 190 | -- | 559 | -- |
| Total construction loans | $51,852 | 9% | $53,693 | 9% | $39,658 | 7% |
Timberland originated $31.9 million in loans during the quarter ended March 31, 2014, compared to $52.9 million for the preceding quarter and $58.1 million for the comparable quarter one year ago. Timberland continues to sell fixed rate one-to-four family mortgage loans into the secondary market for asset–liability management purposes and to generate non-interest income. During the quarter ended March 31, 2014, $5.2 million fixed-rate one-to four-family mortgage loans were sold compared to $10.3 million for the preceding quarter and $29.0 million for the comparable quarter ended one year ago.
Timberland's mortgage-backed securities ("MBS") and other investments increased by $2.0 million during the quarter to $8.5 million at March 31, 2014, from $6.5 million at December 31, 2013, primarily due to the purchase of additional U.S. government agency securities. Private label MBS totaling $747,000 were sold during the quarter resulting in a net increase to non-interest income of $57,000 [$89,000 recovery to previously recorded other than temporary impairment ("OTTI") and a $32,000 loss on the sale of MBS].
| DEPOSIT BREAKDOWN | ||||||
| ($ in thousands) | ||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||
| Amount | Percent | Amount | Percent | Amount | Percent | |
| Non-interest bearing | $95,607 | 16% | $98,585 | 17% | $80,938 | 14% |
| N.O.W. checking | 160,049 | 26 | 155,472 | 26 | 152,068 | 25 |
| Savings | 92,537 | 15 | 91,468 | 15 | 91,790 | 15 |
| Money market | 94,543 | 16 | 90,181 | 15 | 89,489 | 15 |
| Certificates of deposit under $100 | 101,413 | 17 | 104,400 | 17 | 118,752 | 20 |
| Certificates of deposit $100 and over | 59,034 | 10 | 60,186 | 10 | 68,548 | 11 |
| Certificates of deposit – brokered | 1,191 | -- | 1,191 | -- | -- | -- |
| Total deposits | $604,374 | 100% | $601,483 | 100% | $601,585 | 100% |
Total deposits increased $2.9 million to $604.4 million at March 31, 2014, from $601.5 million at December 31, 2013, primarily as a result of a $4.6 million increase in N.O.W. checking account balances, a $4.4 million increase in money market account balances and a $1.1 million increase in savings account balances. These increases were partially offset by a $4.1 million decrease in certificates of deposit account balances and a $3.0 million decrease in non-interest bearing account balances.
Total shareholders' equity increased $936,000 to $80.0 million at March 31, 2014, from $79.1 million at December 31, 2013. The increase in shareholders' equity was primarily due to net income of $1.16 million for the quarter, which was partially offset by dividend payments of $282,000 to common shareholders. Book value per common share increased to $11.36 and tangible book value per common share increased to $10.55 at March 31, 2014.
Operating Results
Fiscal second quarter operating revenue [net interest income before provision for loan losses, plus non-interest income excluding OTTI charges / recoveries, gains or losses on sale of investments, valuation allowances or recoveries on mortgage servicing rights ("MSRs")], decreased 3% to $8.39 million from $8.66 million for the preceding quarter and decreased 7% from the $9.02 million for the comparable quarter one year ago. The decrease in revenue was primarily a result of a decrease in gain on sale of loans as refinance activity on one-to four family home loans slowed. Operating revenue decreased 5% to $17.05 million for the first six months of fiscal 2014 from $17.88 million for the comparable period one year ago.
Net interest income decreased slightly to $6.44 million for the quarter ended March 31, 2014, from $6.46 million for the preceding quarter and was level with the comparable quarter one year ago. The net interest margin for the current quarter increased to 3.85% from 3.78% for the preceding quarter and 3.83% for the comparable quarter one year ago. For the first six months of fiscal 2014, net interest income increased 1% to $12.90 million from $12.83 million for the first six months of fiscal 2013. Timberland's net interest margin for the first six months of fiscal 2014 increased to 3.81% from 3.80% for the first six months of 2013.
Non-interest income decreased 8% to $2.01 million for the quarter ended March 31, 2014, from $2.20 million in the preceding quarter and 28% from $2.78 million for the comparable quarter one year ago. The decrease in non-interest income compared to the preceding quarter was primarily due to a $130,000 decrease in gain on sale of loans and a $109,000 decrease in service charges on deposits. The decrease in gains on sale of loans was primarily due to a decrease in the dollar volume of fixed-rate one-to four-family loans sold during the current quarter as refinance activity decreased. The decrease in service charges on deposits was primarily due to a decrease in overdraft related fees. Fiscal year-to-date non-interest income decreased 23% to $4.21 million from $5.49 million for the first six months of fiscal 2013. The decrease was primarily due to a decrease in gain on sale of loans and a decrease in the valuation recovery on MSRs.
Total operating (non-interest) expenses increased 8% to $6.75 million for the second fiscal quarter from $6.24 million for the preceding quarter and 9% from $6.18 million for the comparable quarter one year ago. The increased expense for the current quarter compared to the preceding quarter were primarily the result of a $238,000 increase in OREO and other repossessed assets expense and a $132,000 increase in ATM and debit card processing expense. The increase in OREO related expense was primarily due to fair value write-downs on several properties. The increase in ATM and debit card processing expense was primarily due to conversion related expenses from the Company's technology investment to upgrade its electronic funds transfer ("EFT") platform. Fiscal year-to-date operating expenses increased 3% to $13.00 million from $12.56 million for the first six months of fiscal 2013.
The provision for income taxes decreased $265,000 to $537,000 for the quarter ended March 31, 2014, from $802,000 for the preceding quarter, primarily due to lower income before income taxes.
About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank ("Bank"). The Bank opened for business in 1915 and 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 22 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. Forward-looking statements are not statements of historical fact 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 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, including, but not limited to: the 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 and may lead to increased losses and non-performing assets in our loan portfolio, and 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; 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 Board of Governors of the Federal Reserve System and our bank subsidiary by the Federal Deposit Insurance Corporation, 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 or require us to increase our allowance for loan losses, 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, which could adversely affect our liquidity and earnings; legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules including as a result of Basel III; the impact of the Dodd Frank Wall Street Reform and Consumer Protection Act and the implementation of related rules and regulations; our ability to attract and retain deposits; increases in premiums for deposit insurance; 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 risk associated with the loans on our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; computer systems on which we depend could fail or experience a security breach; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; 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; adverse changes in the securities markets; 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, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of war or any terrorist activities; other economic, competitive, governmental, regulatory, and technological factors affecting our operations; pricing, products and services; and other risks detailed in our reports filed with 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 undertake no obligation to publicly update or revise any forward-looking statements included in this report 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. We caution readers not to place undue reliance on any forward-looking statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2014 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 operations and stock price performance.
| TIMBERLAND BANCORP INC. AND SUBSIDIARY | |||
| CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||
| ($ in thousands, except per share amounts) | March 31, | Dec. 31, | March 31, |
| (unaudited) | 2014 | 2013 | 2013 |
| Interest and dividend income | |||
| Loans receivable | $7,255 | $7,318 | $7,395 |
| MBS and other investments | 64 | 61 | 70 |
| Dividends from mutual funds and Federal Home Loan Bank ("FHLB") stock | 6 | 8 | 5 |
| Interest bearing deposits in banks | 87 | 94 | 82 |
| Total interest and dividend income | 7,412 | 7,481 | 7,552 |
| Interest expense | |||
| Deposits | 514 | 551 | 650 |
| FHLB advances | 461 | 471 | 461 |
| Total interest expense | 975 | 1,022 | 1,111 |
| Net interest income | 6,437 | 6,459 | 6,441 |
| Provision for loan losses | -- | -- | 1,175 |
| Net interest income after provision for loan losses | 6,437 | 6,459 | 5,266 |
| Non-interest income | |||
| (OTTI) recovery on MBS and other investments, net | 89 | (2) | (25) |
| Loss on sale of MBS and other investments, net | (32) | -- | -- |
| Service charges on deposits | 883 | 992 | 827 |
| Gain on sale of loans, net | 172 | 302 | 833 |
| Bank owned life insurance ("BOLI") net earnings | 143 | 115 | 144 |
| Valuation recovery on MSRs | -- | -- | 221 |
| ATM and debit card interchange transaction fees | 573 | 585 | 521 |
| Other | 185 | 203 | 257 |
| Total non-interest income, net | 2,013 | 2,195 | 2,778 |
| Non-interest expense | |||
| Salaries and employee benefits | 3,434 | 3,380 | 3,086 |
| Premises and equipment | 647 | 693 | 725 |
| Advertising | 172 | 178 | 172 |
| OREO and other repossessed assets expense, net | 397 | 159 | 506 |
| ATM and debit card processing | 358 | 226 | 196 |
| Postage and courier | 110 | 96 | 109 |
| Amortization of core deposit intangible ("CDI") | 29 | 29 | 32 |
| State and local taxes | 121 | 117 | 157 |
| Professional fees | 211 | 183 | 192 |
| FDIC insurance | 160 | 162 | 128 |
| Other insurance | 40 | 39 | 43 |
| Loan administration and foreclosure | 138 | 109 | 49 |
| Data processing and telecommunications | 329 | 330 | 305 |
| Deposit operations | 225 | 198 | 161 |
| Other | 383 | 342 | 323 |
| Total non-interest expense | 6,754 | 6,241 | 6,184 |
| Income before income taxes | $1,696 | $2,413 | $1,860 |
| Provision for income taxes | 537 | 802 | 582 |
| Net income | 1,159 | 1,611 | 1,278 |
| Preferred stock dividends | -- | (136) | (207) |
| Preferred stock discount accretion | -- | (70) | (126) |
| Discount on redemption of preferred stock | -- | -- | 255 |
| Net income to common shareholders | $1,159 | $1,405 | $1,200 |
| Net income per common share: | |||
| Basic | $0.17 | $0.20 | $0.18 |
| Diluted | 0.16 | 0.20 | 0.17 |
| Weighted average common shares outstanding: | |||
| Basic | 6,856,633 | 6,853,683 | 6,815,782 |
| Diluted | 7,033,979 | 6,978,385 | 6,889,504 |
| TIMBERLAND BANCORP INC. AND SUBSIDIARY | ||
| CONSOLIDATED STATEMENTS OF INCOME | Six Months Ended | |
| ($ in thousands, except per share amounts) | March 31, | March 31, |
| (unaudited) | 2014 | 2013 |
| Interest and dividend income | ||
| Loans receivable | $14,573 | $14,809 |
| MBS and other investments | 124 | 147 |
| Dividends from mutual funds and FHLB stock | 15 | 17 |
| Interest bearing deposits in banks | 181 | 168 |
| Total interest and dividend income | 14,893 | 15,141 |
| Interest expense | ||
| Deposits | 1,064 | 1,378 |
| FHLB advances and other borrowings | 933 | 933 |
| Total interest expense | 1,997 | 2,311 |
| Net interest income | 12,896 | 12,830 |
| Provision for loan losses | -- | 1,375 |
| Net interest income after provision for loan losses | 12,896 | 11,455 |
| Non-interest income | ||
| (OTTI) recovery on MBS and other investments, net | 87 | (35) |
| Loss on sale of MBS and other investments, net | (32) | -- |
| Service charges on deposits | 1,874 | 1,774 |
| Gain on sale of loans, net | 474 | 1,475 |
| BOLI net earnings | 258 | 287 |
| Valuation recovery on MSRs | -- | 475 |
| ATM and debit card interchange transaction fees | 1,158 | 1,036 |
| Other | 389 | 481 |
| Total non-interest income, net | 4,208 | 5,493 |
| Non-interest expense | ||
| Salaries and employee benefits | 6,813 | 6,200 |
| Premises and equipment | 1,340 | 1,415 |
| Advertising | 349 | 349 |
| OREO and other repossessed assets expense, net | 555 | 794 |
| ATM and debit card processing | 585 | 417 |
| Postage and courier | 207 | 209 |
| Amortization of CDI | 58 | 65 |
| State and local taxes | 238 | 296 |
| Professional fees | 394 | 434 |
| FDIC insurance | 321 | 369 |
| Other insurance | 79 | 95 |
| Loan administration and foreclosure | 248 | 187 |
| Data processing and telecommunications | 659 | 592 |
| Deposit operations | 423 | 338 |
| Other | 726 | 801 |
| Total non-interest expense | 12,995 | 12,561 |
| Income before income taxes | $4,109 | $4,387 |
| Provision for income taxes | 1,339 | 1,401 |
| Net income | 2,770 | 2,986 |
| Preferred stock dividends | (136) | (408) |
| Preferred stock discount accretion | (70) | (189) |
| Discount on redemption of preferred stock | -- | 255 |
| Net income to common shareholders | $2,564 | $2,644 |
| Net income per common share: | ||
| Basic | $0.37 | $0.39 |
| Diluted | 0.37 | 0.39 |
| Weighted average common shares outstanding: | ||
| Basic | 6,855,142 | 6,815,782 |
| Diluted | 7,005,877 | 6,854,879 |
| TIMBERLAND BANCORP INC. AND SUBSIDIARY | |||
| CONSOLIDATED BALANCE SHEETS | |||
| ($ in thousands, except per share amounts) (unaudited) | March 31, | Dec. 31, | March 31, |
| 2014 | 2013 | 2013 | |
| Assets | |||
| Cash and due from financial institutions | $11,437 | $11,508 | $11,250 |
| Interest-bearing deposits in banks | 58,804 | 54,730 | 74,550 |
| Total cash and cash equivalents | 70,241 | 66,238 | 85,800 |
| Certificates of deposit ("CDs") held for investment, at cost | 31,385 | 32,428 | 26,057 |
| MBS and other investments: | |||
| Held to maturity, at amortized cost | 5,511 | 2,617 | 3,060 |
| Available for sale, at fair value | 2,991 | 3,930 | 4,463 |
| FHLB stock | 5,351 | 5,401 | 5,553 |
| Loans receivable | 564,109 | 565,655 | 554,313 |
| Loans held for sale | 1,332 | 994 | 3,787 |
| Less: Allowance for loan losses | (10,749) | (10,745) | (11,313) |
| Net loans receivable | 554,692 | 555,904 | 546,787 |
| Premises and equipment, net | 17,785 | 17,914 | 18,126 |
| OREO and other repossessed assets, net | 13,208 | 12,483 | 15,031 |
| BOLI | 17,361 | 17,217 | 16,812 |
| Accrued interest receivable | 2,003 | 2,092 | 2,081 |
| Goodwill | 5,650 | 5,650 | 5,650 |
| Core deposit intangible | 61 | 90 | 184 |
| Mortgage servicing rights, net | 1,958 | 2,144 | 2,412 |
| Prepaid FDIC insurance assessment | -- | -- | 758 |
| Other assets | 4,220 | 3,825 | 5,347 |
| Total assets | $732,417 | $727,933 | $738,121 |
| Liabilities and shareholders' equity | |||
| Deposits: Non-interest-bearing demand | $95,607 | $98,585 | $80,938 |
| Deposits: Interest-bearing | 508,767 | 502,898 | 520,647 |
| Total deposits | 604,374 | 601,483 | 601,585 |
| FHLB advances | 45,000 | 45,000 | 45,000 |
| Repurchase agreements | -- | -- | 549 |
| Other liabilities and accrued expenses | 3,019 | 2,362 | 2,456 |
| Total liabilities | 652,393 | 648,845 | 649,590 |
| Shareholders' equity | |||
| Preferred stock, Series A, $.01 par value; 1,000,000 shares authorized; redeemable at $1,000 per share; | |||
| 12,065 shares issued and outstanding – March 31,2013 | -- | -- | 11,842 |
| Common stock, $.01 par value; 50,000,000 shares authorized; | |||
| 7,045,036 shares issued and outstanding – March 31, 2013 | |||
| 7,047,636 shares issued and outstanding – December 31, 2013 | |||
| 7,045,936 shares issued and outstanding – March 31, 2014 | 10,663 | 10,614 | 10,524 |
| Unearned shares- Employee Stock Ownership Plan | (1,322) | (1,388) | (1,587) |
| Retained earnings | 71,088 | 70,211 | 68,198 |
| Accumulated other comprehensive loss | (405) | (349) | (446) |
| Total shareholders' equity | 80,024 | 79,088 | 88,531 |
| Total liabilities and shareholders' equity | $732,417 | $727,933 | $738,121 |
| KEY FINANCIAL RATIOS AND DATA | Three Months Ended | ||
| ($ in thousands, except per share amounts) (unaudited) | March 31, | Dec. 31, | March 31, |
| 2014 | 2013 | 2013 | |
| PERFORMANCE RATIOS: | |||
| Return on average assets (a) | 0.63% | 0.87% | 0.69% |
| Return on average equity (a) | 5.83% | 7.28% | 5.56% |
| Net interest margin (a) | 3.85% | 3.78% | 3.83% |
| Efficiency ratio | 79.93% | 72.12% | 67.08% |
| Six Months Ended | |||
| March 31, | March 31, | ||
| 2014 | 2013 | ||
| PERFORMANCE RATIOS: | |||
| Return on average assets (a) | 0.75% | 0.81% | |
| Return on average equity (a) | 6.59% | 6.54% | |
| Net interest margin (a) | 3.81% | 3.80% | |
| Efficiency ratio | 75.98% | 68.55% | |
| As of or for Three Months Ended | |||
| March 31, | Dec. 31, | March 31, | |
| 2014 | 2013 | 2013 | |
| ASSET QUALITY RATIOS AND DATA: | |||
| Non-accrual loans | $12,649 | $14,141 | $20,450 |
| Loans past due 90 days and still accruing | -- | 153 | 158 |
| Non-performing investment securities | 1,204 | 2,092 | 2,264 |
| OREO and other repossessed assets | 13,208 | 12,483 | 15,031 |
| Total non-performing assets (b) | $27,061 | $28,869 | $37,903 |
| Non-performing assets to total assets (b) | 3.69% | 3.97% | 5.14% |
| Net charge-offs (recoveries) during quarter | $ (4) | $391 | $1,631 |
| Allowance for loan losses to non-accrual loans | 85% | 76% | 55% |
| Allowance for loan losses to loans receivable (c) | 1.90% | 1.90% | 2.03% |
| Troubled debt restructured loans on accrual status (d) | $17,284 | $18,260 | $13,012 |
| CAPITAL RATIOS: | |||
| Tier 1 leverage capital | 10.40% | 10.10% | 11.43% |
| Tier 1 risk based capital | 13.38% | 13.13% | 14.95% |
| Total risk based capital | 14.65% | 14.39% | 16.21% |
| Tangible capital to tangible assets (e) | 10.23% | 10.16% | 11.29% |
| BOOK VALUES: | |||
| Book value per common share | $11.36 | $11.22 | $10.89 |
| Tangible book value per common share (e) | 10.55 | 10.41 | 10.06 |
| (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) Includes loans held for sale and is before the allowance for loan losses. | |||
| (d) Does not include troubled debt restructured loans totaling $2,812, $3,176 and $10,832 reported as non-accrual loans at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. | |||
| (e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets. | |||
| AVERAGE CONSOLIDATED BALANCE SHEETS: | Three Months Ended | ||
| ($ in thousands) (unaudited) | March 31, | Dec. 31, | March 31, |
| 2014 | 2013 | 2013 | |
| Average total loans | $568,448 | $562,697 | $557,426 |
| Average total interest-bearing assets (a) | 668,628 | 684,055 | 673,109 |
| Average total assets | 732,513 | 743,549 | 738,818 |
| Average total interest-bearing deposits | 505,756 | 513,997 | 518,834 |
| Average FHLB advances and other borrowings | 45,000 | 45,000 | 45,599 |
| Average shareholders' equity | 79,497 | 88,528 | 92,055 |
| Six Months Ended | |||
| March 31, | March 31, | ||
| 2014 | 2013 | ||
| Average total loans | $565,541 | $555,405 | |
| Average total interest-bearing assets (a) | 676,422 | 674,612 | |
| Average total assets | 738,091 | 739,332 | |
| Average total interest-bearing deposits | 509,922 | 519,073 | |
| Average FHLB advances and other borrowings | 45,000 | 45,625 | |
| Average shareholders' equity | 84,125 | 91,381 | |
| (a) Includes loans and MBS on non-accrual status | |||