These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System ("Federal Reserve") in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board ("FASB"), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company's other reports filed with or furnished to the Securities and Exchange Commission. Assets Cash and due from financial institutions $ 26,010 $ 24,538 $ 22,310 Interest-bearing deposits in banks 165,201 139,533 158,039 Total cash and cash equivalents 191,211 164,071 180,349 Certificates of deposit (“CDs”) held for investment, at cost 8,711 7,470 11,204 Investment securities: Held to maturity, at amortized cost (net of ACL – investment securities) 140,954 156,105 211,818 Available for sale, at fair value 84,807 77,080 61,746 Investments in equity securities, at fair value 853 840 839 FHLB stock 2,045 2,037 2,037 Other investments, at cost 3,000 3,000 3,000 Loans held for sale 1,151 411 1,311 Loans receivable 1,437,599 1,429,107 1,375,934 Less: ACL – loans (17,525 ) (17,288 ) (16,818 ) Net loans receivable 1,420,074 1,411,819 1,359,116 Premises and equipment, net 21,436 21,617 21,718 OREO and other repossessed assets, net 221 221 -- BOLI 23,942 23,777 23,278 Accrued interest receivable 7,127 7,095 7,108 Goodwill 15,131 15,131 15,131 CDI 361 406 564 Loan servicing rights, net 1,051 1,195 1,717 Operating lease right-of-use assets 1,324 1,400 1,624 Other assets 9,331 15,805 4,674 Total assets $ 1,932,730 1,909,480 $ 1,907,234 Liabilities and shareholders’ equity Deposits: Non-interest-bearing demand $ 407,811 402,911 $ 424,906 Deposits: Interest-bearing 1,243,019 1,227,505 1,213,648 Total deposits 1,650,830 1,630,416 1,638,554 Operating lease liabilities 1,426 1,501 1,723 FHLB borrowings 20,000 20,000 20,000 Other liabilities and accrued expenses 7,950 8,364 8,278 Total liabilities 1,680,206 1,660,281 1,668,555 Shareholders’ equity Common stock, $.01 par value; 50,000,000 shares authorized; 7,903,489 shares issued and outstanding – March 31, 2025 7,954,673 shares issued and outstanding – December 31, 2024 8,023,121shares issued and outstanding – March 31, 2024 28,028 29,593 32,338 Retained earnings 225,166 220,398 207,086 Accumulated other comprehensive loss (670 ) (792 ) (745 ) Total shareholders’ equity 252,524 249,199 238,679 Total liabilities and shareholders’ equity $ 1,932,730 1,909,480 $ 1,907,234 Three Months Ended PERFORMANCE RATIOS: March 31, 2025 Dec. 31, 2024 March 31, 2024 Return on average assets (a) 1.43 % 1.41 % 1.22 % Return on average equity (a) 10.95 % 11.03 % 9.67 % Net interest margin (a) 3.79 % 3.64 % 3.48 % Efficiency ratio 56.25 % 56.27 % 60.22 % Six Months Ended March 31, 2025 March 31, 2024 Return on average assets (a) 1.42 % 1.28 % Return on average equity (a) 10.99 % 10.18 % Net interest margin (a) 3.71 % 3.53 % Efficiency ratio 56.26 % 58.34 % Three Months Ended ASSET QUALITY RATIOS AND DATA: ($ in thousands) March 31, 2025 Dec. 31, 2024 March 31, 2024 Non-accrual loans $ 2,327 $ 2,733 $ 3,605 Loans past due 90 days and still accruing -- -- -- Non-performing investment securities 41 45 79 OREO and other repossessed assets 221 221 -- Total non-performing assets (b) $ 2,589 $ 2,999 $ 3,684 Non-performing assets to total assets (b) 0.13 % 0.16 % 0.19 % Net charge-offs during quarter $ -- $ 242 $ 3 Allowance for credit losses - loans to non-accrual loans 753 % 633 % 467 % Allowance for credit losses - loans to loans receivable (c) 1.22 % 1.21 % 1.22 % CAPITAL RATIOS: Tier 1 leverage capital 12.55 % 12.32 % 12.01 % Tier 1 risk-based capital 19.04 % 18.69 % 18.08 % Common equity Tier 1 risk-based capital 19.04 % 18.69 % 18.08 % Total risk-based capital 20.29 % 19.95 % 19.33 % Tangible common equity to tangible assets (non-GAAP) 12.36 % 12.34 % 11.79 % BOOK VALUES: Book value per common share $ 31.95 $ 31.33 $ 29.75 Tangible book value per common share (d) 29.99 29.37 27.79
Author: Timberland Bancorp, Inc.
Published at: 2025-04-22 22:04:00
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