WDFW Commission sets waterfowl seasons, discusses elk with hoof disease

With a record number of ducks counted on the northern breeding grounds this year, the Washington Fish and Wildlife Commission approved migratory waterfowl hunting seasons for this fall and winter during a public meeting in Olympia Aug. 8-9.

The commission, a citizen panel appointed by the governor to set policy for the Washington Department of Fish and Wildlife (WDFW), also approved a new regulation that requires hunters to leave on site the hooves of any elk taken in southwest Washington to help minimize the spread of a disease that affects the region’s herds.

Under the waterfowl hunting package, most hunting opportunities in Washington will be similar to last year. That includes a statewide duck season that will be open for 107 days, starting Oct. 11-15 and continuing Oct. 18-Jan. 25. A special youth hunting weekend also is scheduled Sept. 20-21.

Limits for mallard, pintail, scaup, redhead, goldeneye, harlequin, scoter and long-tailed duck will remain the same as last season. But the commission reduced the daily bag limit for canvasback to one per day because of decreasing numbers throughout North America.

Goose hunting seasons will vary among management areas across the state, but most open mid-October and run through late January. Limits for most geese did not change, except the commission did increase the daily bag limit for cackling geese in southwest Washington from three to four.

The commission also increased the overall harvest quota for dusky Canada geese in southwest Washington from 45 to 85 birds. As in previous years, hunters are limited to one dusky Canada goose a season in southwest Washington.

The goose and duck hunting seasons approved by the commission are based on state and federal waterfowl population estimates and guidelines. According to those estimates, a record number of ducks – approximately 49 million – were on the breeding grounds this spring in Canada and the United States.

Details on the waterfowl hunting seasons will be available later this week on WDFW’s website at http://wdfw.wa.gov/hunting/regulations/.

In other action, the commission approved several land transactions, including the purchase of two parcels totaling nearly 2,900 acres of shrub-steppe in Yakima County. The land, located about five miles west of Naches, serves as critical habitat for a variety of wildlife, and is an important connection between summer and winter range for the Yakima elk herd.

The two parcels will be acquired through a partnership with the Rocky Mountain Elk Foundation, Cowiche Canyon Conservancy and the state Department of Ecology (DOE). The 2,588-acre property will be purchased for $1.38 million, while a 305-acre property will cost $170,000.

DOE and the Kennewick Irrigation District are providing the funding to acquire the two parcels to mitigate for the loss of shrub-steppe habitat that was converted to agricultural land. The properties will be managed as part of WDFW’s Oak Creek Wildlife Area.

The commission also received a briefing on a scientific panel’s determination that the disease that leaves elk in the St. Helens and Willapa Hills areas of southwest Washington with misshapen hooves likely involves a type of bacterial infection.

Members of the panel, composed of veterinarians and researchers throughout the state, agreed that the disease closely resembles contagious ovine digital dermatitis in sheep. The panel’s diagnosis is consistent with the findings of the USDA National Animal Disease Center and four other independent diagnostic laboratories that have tested samples of elk hooves submitted by WDFW since last year.

For more information on elk hoof disease, see WDFW’s recent news release at http://wdfw.wa.gov/news/jun2314a/ and the department’s wildlife health webpage at http://wdfw.wa.gov/conservation/health/hoof_disease/.

In other business, the commission conducted public hearings on the 2015-2021 Game Management Plan and proposed updates to the state Hydraulic Code.

The commission also received briefings on the department’s legislative proposals for 2015, proposed 2015-2017 operating and capital budget requests, and new potential revenue sources.

In addition, the commission was briefed on the impacts of a possible reduction in state General Funds. The potential cuts are in response to Gov. Jay Inslee’s directive to state agencies to prioritize their activities and identify reductions totaling 15 percent.

BPA offering $20,000 in science and energy education grants

Portland, Ore. – The Bonneville Power Administration is offering $20,000 in science and energy education grants to nonprofit organizations, schools and others in support of work to educate students in grades K through 12 about the energy systems of the Pacific Northwest.

The goal of the program is to advance students’ understanding, awareness and interest in the issues and science involved in energy generation and transmission in the region.

Funded projects could focus on hydroelectricity, wind and other sources of electric power, methods of conserving electricity, studies of energy and environment, programs on engineering and technology skills relating to energy, and others. The intent of the grants is to support science, technology, engineering and math education with specific emphasis on electric-utility issues.

“Science, technology, engineering and math education is absolutely vital to the energy industry in the Northwest, and this program represents an investment in future innovators, leaders and workforce in that industry,” said Greg Delwiche, BPA deputy administrator.

A total of $20,000 will be awarded. BPA anticipates making five to 10 grants ranging from $500 to $5,000.

The educational grant program is in its third year. Projects funded in 2013-2014 were:

Martin Sortun Elementary School, Kent, Wash. – $1,400 for energy robotics kits and teacher training that engaged 360 students in third through sixth grade in energy concepts such as energy transfer, generation, operation of the electric grid, and renewable energy.

Central Klickitat Conservation District, Goldendale, Wash. – $2,314 for a comprehensive program of classroom instruction and field trips on electric energy and conservation in the Northwest for 540 students in seventh through 12th grade.

Yakima Basin Environmental Education Program, Yakima Basin, Wash. – $2,500 for classroom visits and field trips for 700 students in fourth through 10th grade in Yakima and Kittitas counties. Students learned about the life cycle of the salmon and operations of the river to meet multiple demands, capped off with a field trip to see the historic return of salmon to Cle Elum Lake for the first time in 100 years.

Polson Middle School, Polson, Mont. – $2,134 for a school-wide sixth-grade science education project focusing on energy stewardship, including experiments, building models, collecting data, and developing reports and conclusions about alternative sources of energy. Students presented their findings in a “Creativity Showcase” event for families and the community.

Benton Conservation District, Kennewick, Wash. – $3,700 for “Salmon Power!” where students raised tanks of salmon in their classroom, studied hydroelectric generation and dam operations, and learned how their actions can conserve electricity and aid salmon.

Springfield School District, Springfield, Ore. – $3,120 for materials and teacher training for a project that allowed 1,000 sixth graders and 140 high school physics and engineering students to build, test and modify a small-scale hydropower generator.

Clackamas County Friends of Extension, Clackamas County, Ore. – $5,000 to develop and administer the state’s first curriculum on renewable energy and energy conservation topics designed to meet state science and engineering education standards. The project reached 1,000 sixth-, seventh- and eighth-grade students in Clackamas County.

The Science and Energy Education grants program, which is one facet of a much larger education outreach program by BPA, was designed to extend the reach of BPA’s education efforts by supporting the teachers and nonprofits working locally to advance energy education.

Funding can be awarded to school districts, government agencies and nonprofit 501(c)(3) organizations. The recipients must be from, and funding used in, BPA service territory in Washington, Idaho, Oregon and parts of Montana, Nevada and Wyoming.

Applications for project funding are due May 9, and funding will be awarded in June for projects taking place over the 2014-2015 school year. For complete terms and instructions on completing a science and energy education grant proposal, please visit: www.bpa.gov/goto/EducationGrants.

BPA’s education program provides free presentations and information to K-12 schools in our region to help students achieve energy literacy, and to support science, technology, engineering and math education. For information on BPA education programs, go to www.bpa.gov/goto/Education.

BPA is a nonprofit federal agency that markets renewable hydropower from federal Columbia River dams, operates three-quarters of high-voltage transmission lines in the Northwest and funds one of the largest wildlife protection and restoration programs in the world. BPA and its partners have also saved enough electricity through energy efficiency projects to power four large American cities.

Pacific County E911 Operator Recognized

SOUTH BEND, Wash. – The Pacific County Sheriff’s Office tells KBKW Judy Indermark has been chosen as the 2011 Washington State Telecommunicator of the Year for a Critical Incident. The event for which she was nominated was a surf rescue call off the Cranberry Beach Approach that took place on August 5, 2011. The event was well documented nationally and the victim related to the call survived.

This award recognizes a Telecommunicator in Washington state who handled a critical incident in an exemplary manner that positively affected its outcome.
Chief Criminal Deputy Pat Matlock tells us Judy’s performance during the event was exemplary and worthy of the selection. Judy has been with the Sheriff’s Office for over 16 years. Judy was also chosen for the award in 2006.

Judy will be recognized for her efforts at the Washington State Public Safety Communications Conference in Kennewick the evening of June 28th, 2012.

BPA and Homeowners’ Association replace trees removed from Grandridge Meadows neighborhood

In July, BPA identified the trees for removal and proceeded to remove them this winter. BPA and Lonnie Marcum of the Grandridge Meadows homeowners’ association worked together to identify the replacement trees that will be planted Tuesday. The new trees, red osier dogwoods, will not interfere with lines when mature.

Replanting trees is not always possible. In some cases, the distance between power lines and any kind of tall shrub or tree is not sufficient to maintain safe and reliable operation. Property owners adjacent to BPA rights-of-way should contact BPA before removing and replacing trees or high brush on a BPA right-of-way. 

Who: BPA, Grandridge Meadows Homeowners’ Association representatives
 
What: Tree planting to replace taller trees BPA had to remove earlier this year

When: Tuesday, Feb. 9, 12:00 p.m.

Where: Grandridge Meadows 213 N.  Montana St, Kennewick, Wash. 99336

High school students have an opportunity to “try on” careers in construction

Construction Career Day introduces high school students to education and skills training that are not in keeping with the traditional four-year college degree, and that can lead to very successful and rewarding careers. Students are provided with information about construction careers where they can earn quality wages over their lifetime. They also learn the importance of doing well in school, and that courses such as math can be just as important in non-traditional career choices as they are in the traditional advanced education paths. Students who are interested in attending should contact their school administration office for registration details.
 
The dates and locations for the 2009 Construction Career Day events are:

 

September 29 and 30
Spokane County Fair & Expo Center
404 N. Havana Street
Spokane
 
September 30 and October 1
Seattle Magnuson Park
7400 Sand Point Way
Seattle
 
October 6
Benton County Fairground
1500 South Oak
Kennewick

Timberland Bank Corp Reports Profit, Remains Cautiously Optimistic

For the first nine months of fiscal 2009, the Company reported net income of $27,000. However, income available to common shareholders after adjusting for the preferred stock dividend and the preferred stock discount accretion was a loss of $489,000, or ($0.07) per diluted common share. This compares to net income of $2.66 million or $0.40 per diluted common share for the first nine months of fiscal 2008 when no preferred dividends were due.

Fiscal Third Quarter 2009 Highlights: (quarter ended June 30, 2009 compared to the quarter ended June 30, 2008)

 

--  Capital levels remain exceptionally strong: Tier 1 Capital Ratio at     12.30%; Total Risk Based Capital at 16.19% --  Revenues (excluding OTTI charges and the June 2008 loss on securities)     increased 7% to $9.0 million from $8.4 million --  Non-interest income (excluding OTTI charges and the June 2008 loss on     securities) increased 45% to $2.8 million --  Construction and land development loans decreased 30% year over year     and 12% from the prior fiscal quarter --  Tangible book value per common share was $9.36 at quarter end --  Full service branch in Chehalis opened in May 2009     

 

"The economic recession has significantly impacted the Pacific Northwest," said Michael R. Sand, President and CEO. "There are numerous opinions regarding the duration of this recession however, according to the July 13th Current Economic Indicators Letter produced by the Puget Sound Economic Forecaster, the Northwest may be seeing early signs of recovery." The newsletter states: '…we may be witnessing the first signs of the regional economic recovery. Over the three-month period ending in May, closed home sales increased at a 28.9 percent annual rate, while residential building permits rose at a 48.9 percent rate. Home prices fell at a 19.9 percent rate between February and May but increased at a 15.3 percent rate between March and May. More specifically, the average house price, after dropping from $368,600 in February to $341,500 in March, rose to $350,200 in May. It is too early to conclude that the housing market has found its way back, especially considering the extremely low volume of home sales and housing permits at the present time, but these are the kind of numbers that one would expect to see around the turning point.'

"Possibly the authors of the above quote, the economists Conway and Pedersen, are correct in their analysis. We remain cautiously optimistic that our region will begin to climb out of one of the worst economic recessions this country has experienced," Sand continued. "The upturn in home sales is reducing the housing supply and low mortgage rates are contributing to better affordability. With that said, we continue to see stress in our loan portfolio, primarily in the construction and land related segments. We are well positioned from a capital and a potential earnings perspective to succeed during this downturn. Timberland retains excellent liquidity, substantial capital and a diversified deposit base not dependent on brokered deposits."

Capital Ratios and Asset Quality

Timberland Bancorp remains very well capitalized with a total risk-based capital ratio of 16.19% and a Tier 1 capital ratio of 12.30% at June 30, 2009.

The non-performing assets ("NPAs") to total assets ratio was 4.94% at June 30, 2009 compared to 3.32% at March 31, 2009. During the quarter ended March 31, 2009 net charge-offs were $609,000 compared to $1.17 million during the quarter ended March 31, 2009. The allowance for loan losses totaled $12.4 million at June 30, 2009, or 2.23% of total loans compared to $12.0 million, or 2.13% of loans receivable at March 31, 2009 and $7.1 million, or 1.26% of loans receivable one year ago.

Non-performing loans ("NPLs") increased to $25.1 million at June 30, 2009 and were comprised of 46 loans and 38 credit relationships. Included in the NPLs are:

 

--  5 - Land development loans totaling $5.88 million of which the largest     has a balance of $2.12 million --  2 - Condominium construction loans totaling $5.68 million of which the     largest has a balance of $4.29 million --  8 - Commercial real estate loans totaling $5.50 million of which the     largest has a balance of $1.65 million --  13 - Land loans totaling $3.38 million of which the largest has a     balance of $986,000 --  7 - One-to-four family home loans totaling $2.32 million of which the     largest loan has a balance of $995,000 --  7 - One-to-four family spec construction loans totaling $2.17 million     of which the largest loan has a balance of $546,000 --  2 - Second mortgage loans secured by liens on one-to-four family homes     totaling $92,000 of which the largest loan has a balance of $62,000 --  1 - Commercial business loan with a balance of $78,000 secured by a     lien on three condominium units --  1 - Equipment loan with a balance of $15,000     

 

Since June 30, 2009 one land loan with a balance of $81,000 was brought current and one condominium construction loan with a balance of $1.39 million became other real estate owned ("OREO"). The OREO total at June 30, 2009 was $7.70 million. The balance was comprised of 27 individual properties representing 11 relationships. Eight of the properties have accepted earnest money agreements on them which, if closed, will result in a $1.73 million reduction in the OREO balance. The largest OREO property has a balance of $2.26 million and consists of a 78 lot plat located in Richland, Washington. The Richland/Kennewick/Pasco market is currently one of Washington State's better performing economic areas. Timberland continues to actively manage the disposition of OREO properties and has seen increased buyer interest in OREO properties.

Net charge-offs totaled $609,000 for the quarter ended June 30, 2009 and included the following:

 

--  $340,000 on one land development loan --  $215,000 on eight speculative construction loans --  $39,000 on two single family home loans --  $11,000 on a consumer auto loan --  $4,000 on six land loans     

 

Balance Sheet Management

Total assets decreased 2% during the quarter to $675.7 million at June 30, 2009 from $693.0 million at March 31, 2009. The $17.3 million decrease in total assets is primarily a result of a $12.9 million decrease in cash equivalents and an $8.6 million decrease in net loans receivable. During the quarter the Company used a portion of its excess liquidity to repay $26.0 million in brokered certificates of deposit. The Company continues to maintain a high level of liquidity, both on balance sheet and through off-balance sheet access to funds. Liquidity as measured by cash equivalents and available for sale investments securities to liabilities increased to 9.9% at June 30, 2009, from 7.2% one year ago. "We continue to work to improve the mix of loans in our portfolio, specifically by reducing our exposure to construction and land development loans, which have decreased more than $60 million year over year," said Dean Brydon, Chief Financial Officer. Although loan originations totaled $94.8 million during the current quarter, net loans receivable decreased 2% to $545.8 million at June 30, 2009, from $554.4 million at March 31, 2009. During the current quarter the one-to-four family speculative construction portfolio decreased by 21% and the land development portfolio decreased by 14%. "Combined, we have reduced our exposure to construction and land development loans by 30% from a year ago," Brydon added.

 

LOAN PORTFOLIO ($ in thousands)     June 30, 2009      March 31, 2009     June 30, 2008                     Amount   Percent   Amount   Percent   Amount   Percent                    --------  -------  --------  -------  --------  ------- Mortgage Loans:   One-to-four    family          $110,338       19% $120,519       20% $105,791       17%   Multi-family       25,702        4    22,472        4    37,465        6   Commercial        178,941       30   164,778       27   140,785       23   Construction and    land    development      142,006       24   160,980       26   202,029       32   Land               65,736       11    67,388       11    56,489        9                    --------  -------  --------  -------  --------  -------     Total mortgage      loans          522,723       88   536,137       88   542,559       87 Consumer Loans:   Home equity and    second mortgage   41,950        7    43,948        7    46,771        7   Other              10,107        2    10,767        2    11,292        2                    --------  -------  --------  -------  --------  -------     Total consumer      loans           52,057        9    54,715        9    58,063        9 Commercial business  loans               15,199        3    15,624        3    23,307        4                    --------  -------  --------  -------  --------  ------- Total loans        $589,979      100% $606,476      100% $623,929      100% Less:   Undisbursed    portion of    construction    loans in    process          (29,447)           (37,543)           (57,335)   Unearned income    (2,326)            (2,511)            (2,865)   Allowance for    loan losses      (12,440)           (12,049)            (7,076)                    --------           --------           -------- Total loans  receivable, net   $545,766           $554,373           $556,653                    ========           ========           ========  (1) Includes loans held for sale    CONSTRUCTION LOAN COMPOSITION ($ in thousands)     June 30, 2009      March 31, 2009     June 30, 2008                              Percent            Percent            Percent                              of Loan            of Loan            of Loan                     Amount  Portfolio  Amount  Portfolio  Amount  Portfolio                    --------  -------  --------  -------  --------  ------- Custom and owner /  builder           $ 34,373        6% $ 35,061        6% $ 48,384        8% Speculative          19,332        3    24,393        4    36,979        6 Commercial real  estate              42,056        7    47,642        8    66,846       10 Multi-family  (including  condominium)        25,631        4    29,979        5    19,044        3 Land development     20,614        4    23,905        4    30,776        5                    --------           --------           --------   Total    construction    loans           $142,006           $160,980           $202,029 

 

Loan demand remained strong as loan originations totaled $94.8 million for the quarter ended June 30, 2009 compared to $98.3 million for the preceding quarter and $80.1 million for the quarter ended one year ago. Increased loan originations in the past two quarters were primarily a result of increased demand to refinance one-to-four family mortgage loans at historically low interest rates. Timberland Bank 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 June 30, 2009, fixed-rate one-to-four family mortgage loan sales totaled $69.6 million compared to $60.7 million for the preceding quarter and $16.0 million for the quarter ended one year ago.

Timberland's investment securities decreased by $837,000 during the quarter to $24.5 million at June 30, 2009 from $25.3 million at March 31, 2009, primarily as a result of regular amortization and prepayments and a $125,000 credit related other-than-temporary impairment ("OTTI") charge on 17 private label mortgage-backed securities that were acquired in the in-kind redemption from the AMF family of mutual funds in June 2008.

 

DEPOSIT BREAKDOWN ($ in thousands)                      June 30, 2009      March 31, 2009     June 30, 2008                     Amount   Percent   Amount   Percent   Amount   Percent                    --------  -------  --------  -------  --------  ------- Non-interest  bearing           $ 50,153       10% $ 53,783       11% $ 50,701       11% N.O.W. checking     102,186       21    95,093       19    90,476       19 Savings              56,303       11    54,525       11    58,604       12 Money market         61,992       13    62,940       12    48,082       10 Certificates of  deposit under  $100               140,924       29   139,863       28   128,791       27 Certificates of  deposit $100 and  over                75,861       16    73,703       14    77,343       16 Certificates of  deposit -  brokered                --       --    25,991        5    25,937        5                    --------  -------  --------  -------  --------  -------   Total deposits   $487,419      100% $505,898      100% $479,934      100%                    ========  =======  ========  =======  ========  ======= 

 

Total deposits decreased 4% to $487.4 million at June 30, 2009, from $505.9 million at March 31, 2009 primarily as a result of a $26.0 million decrease in brokered certificate of deposit ("CDs") accounts. Excluding brokered CDs, deposits increased 2% to $487.4 million at June 30, 2009, from $479.9 million at March 31, 2009. This increase was primarily due to an increase in N.O.W. checking account balances.

Total shareholders' equity increased $644,000 to $89.0 million at June 30, 2009, from $88.3 million at March 31, 2009 primarily due to net income of $1.06 million and a $474,000 reduction in accumulated other comprehensive loss. These increases to shareholders' equity were partially offset by dividends to common and preferred shareholders.

Operating Results

Fiscal third quarter operating revenue (net interest income before provision for loan losses, plus non-interest income excluding OTTI charges and the June 2008 loss on the redemption of mutual funds) increased 7% to $9.0 million compared to $8.4 million in the like quarter a year ago. The increase was primarily a result of increased non-interest income from loan sales (gain on sale of loans and servicing income recorded) and increased non-interest income from service charges on deposits. For the first nine months of fiscal 2009, operating revenues (excluding OTTI charges and loss on redemption of mutual funds) increased 7% to $26.9 million from $25.1 million in the first nine months of fiscal 2008. The increase was primarily a result of increased non-interest income from loan sales, increased fee income on deposit accounts and a $134,000 non-recurring gain from a change in the Bank's investment in bank owned life insurance ("BOLI").

Net interest income before the provision for loan losses decreased 5% to $6.2 million for the quarter ended June 30, 2009, from $6.5 million for the like quarter one year ago with interest and dividend income decreasing 7% and interest expense decreasing 12%. The decrease in net interest income was primarily due to an increase in non-accrual interest and margin compression due to the lower interest rate environment. In spite of the challenging interest rate environment, Timberland's net interest margin remained strong at 3.86% for the current quarter, a decrease of 20 basis points from 4.06% for the quarter ended March 31, 2009 and a decrease of 37 basis points from 4.23% for the quarter a year ago. The reversal of interest income on loans placed on non-accrual status during the quarter ended June 30, 2009 reduced the net interest margin by approximately 22 basis points.

For the first nine months of fiscal 2009, net interest income before the provision for loan losses decreased 5% to $19.1 million from $20.1 million in the like period a year ago. Net interest margin year to date was 4.03%, down 39 basis points from a year ago.

In the third fiscal quarter Timberland recorded a provision of $1.0 million to its allowance for loan losses, compared to $5.2 million in the preceding quarter and $500,000 in the like quarter in the prior fiscal year. For the first nine months of fiscal 2009, the provision for loan losses totaled $7.5 million, compared to $2.4 million in the first nine months of fiscal 2008. Net charge-offs for the quarter ended June 30, 2009 totaled $609,000 compared to $1.17 million for the quarter ended March 31, 2009 and $121,000 for the quarter ended June 30, 2008. Year to date, net charge-offs were $3.0 million compared to $121,000 in the first nine months one year ago.

Timberland's total operating (non-interest) expenses increased 30% to $6.4 million for the third fiscal quarter from $4.9 million from the like quarter one year ago and increased 17% from $5.4 million from the immediately prior quarter. The increased expenses during the current quarter were primarily due to increased FDIC insurance expenses (including a special FDIC assessment of $300,000), increased OREO related expenses and increased loan monitoring and collection related expenses. Year to date, total operating expenses increased 16% to $17.4 million from $15.0 million in the first nine months of fiscal 2008.

About Timberland Bancorp, Inc.

Timberland Bancorp operates 22 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, Chehalis, Winlock, and Toledo. Timberland Bank received a four-star rating from Bauer Financial, a widely recognized independent bank rating agency.

 

TIMBERLAND BANCORP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT                   Three Months Ended ($ in thousands, except per share amounts)  June 30,   March 31,  June 30, (unaudited)                                  2009       2009       2008                                            ---------  ---------  ---------         Interest and dividend income         Loans receivable                   $   9,240  $   9,419  $   9,825         Investments and mortgage-backed          securities                              322        347        235         Dividends from mutual funds and          FHLB stock                                9          9        272         Federal funds sold                         8          5         28         Interest bearing deposits in banks        32         21          8                                            ---------  ---------  ---------             Total interest and dividend              income                            9,611      9,801     10,368          Interest expense         Deposits                               2,440      2,385      2,703         FHLB advances                            979        999      1,161         Other borrowings                          --         --          4                                            ---------  ---------  ---------             Total interest expense             3,419      3,384      3,868                                            ---------  ---------  ---------             Net interest income                6,192      6,417      6,500          Provision for loan losses              1,000      5,176        500                                            ---------  ---------  ---------             Net interest income after              provision for loan losses         5,192      1,241      6,000          Non-interest income         Total OTTI on securities                (522)    (1,742)        --         Less: portion recorded as other          comprehensive loss                      397        749         --                                            ---------  ---------  ---------         Net OTTI loss recognized                (125)      (993)        --          Service charges on deposits            1,066      1,009        948         Gain on sale of loans, net               414        340        127         Loss on redemption of mutual funds        --         --     (2,822)         Bank owned life insurance ("BOLI")          net earnings                            123        256        121         Servicing income on loans sold           607        703        234         ATM transaction fees                     326        306        329         Other                                    263        291        170                                            ---------  ---------  ---------             Total non-interest income          2,674      1,912       (893)          Non-interest expense         Salaries and employee benefits         2,919      2,826      2,812         Premises and equipment                   719        696        519         Advertising                              252        229        228         OREO and other repossessed items          expense                                 391         99         --         ATM expenses                             162        161        136         FDIC insurance expense                   400         99         25         Postage and courier                      203        126        129         Amortization of core deposit          intangible                               54         54         62         State and local taxes                    152        154        149         Professional fees                        199        213        175         Other                                    922        785        684                                            ---------  ---------  ---------             Total non-interest expense         6,373      5,442      4,919          Income (loss) before federal and          state income taxes                    1,493     (2,289)       188         Provision (benefit) for federal and          state income taxes                      435       (896)       734                                            ---------  ---------  ---------             Net income (loss)              $   1,058  $  (1,393) $    (546)                                            =========  =========  =========          Preferred stock dividends          $     210  $     208  $      --         Preferred stock discount accretion        79         --         --                                            ---------  ---------  ---------         Net income (loss) avail. to common          shareholders:                     $     769  $  (1,601) $    (546)                                            =========  =========  =========          Earnings (loss) per common share:             Basic                          $    0.12  $   (0.24) $   (0.08)             Diluted                        $    0.12  $   (0.24) $   (0.08)         Weighted average common shares          outstanding:             Basic                          6,645,229  6,614,216  6,446,303             Diluted                        6,645,229  6,614,216  6,524,818               TIMBERLAND BANCORP INC. AND SUBSIDIARIES         CONSOLIDATED INCOME STATEMENT             Nine Months Ended         ($ in thousands, except per share) June 30,              June 30,         (unaudited)                          2009                  2008                                            ---------             ---------         Interest and dividend income         Loans receivable                   $  28,229             $  30,947         Investments and mortgage-backed          securities                            1,081                   625         Dividends from mutual funds and          FHLB stock                               29                 1,090         Federal funds sold                        36                    87         Interest bearing deposits in banks        62                    22                                            ---------             ---------              Total interest and dividend               income                          29,437                32,771          Interest expense         Deposits                               7,321                 9,153         FHLB advances                          3,042                 3,510         Other borrowings                           1                    18                                            ---------             ---------             Total interest expense            10,364                12,681                                            ---------             ---------             Net interest income               19,073                20,090          Provision for loan losses              7,491                 2,400                                            ---------             ---------             Net interest income after              provision for loan losses        11,582                17,690          Non-interest income         Total OTTI on securities              (2,685)                   --         Less: portion recorded as other          comprehensive loss                      397                    --                                            ---------             ---------         Net OTTI loss recognized              (2,288)                   --          Service charges on deposits            3,224                 2,292         Gain on sale of loans, net               918                   364         Loss on redemption of mutual funds        --                (2,822)         BOLI net earnings                        501                   360         Servicing income on loans sold         1,460                   531         ATM transaction fees                     920                   930         Other                                    756                   504                                            ---------             ---------             Total non-interest income          5,491                 2,159          Non-interest expense         Salaries and employee benefits         8,818                 8,718         Premises and equipment                 2,079                 1,634         Advertising                              672                   678         OREO and other repossessed items          expense                                 552                    --         ATM expenses                             448                   426         FDIC insurance expense                   586                    51         Postage and courier                      448                   376         Amortization of core deposit          intangible                              163                   186         State and local taxes                    449                   447         Professional fees                        547                   467         Other                                  2,589                 1,993                                            ---------             ---------             Total non-interest expense        17,351                14,976          Income (loss) before federal and          state income taxes                     (278)                4,873         Provision (benefit) for federal          and state income taxes                 (305)                2,218                                            ---------             ---------             Net income                     $      27             $   2,655                                            =========             =========          Preferred stock dividends          $     437             $      --         Preferred stock discount accretion        79                    --                                            ---------             ---------         Net income (loss) avail. to common          shareholders                      $    (489)            $   2,655         Earnings (loss) per common share:             Basic                          $   (0.07)            $    0.41             Diluted                        $   (0.07)            $    0.40         Weighted average common shares          outstanding:             Basic                          6,609,915             6,467,874             Diluted                        6,609,915             6,587,120   TIMBERLAND BANCORP, INC. CONSOLIDATED BALANCE SHEET ($ in thousands, except per share amounts) (unaudited)                                             June 30,   March 31,   June 30,                                              2009       2009        2008 Assets                                     ---------  ---------  --------- Cash equivalents:   Cash and due from financial institutions $  12,118  $  10,001  $  14,776   Interest-bearing deposits in other banks    31,853     46,892      3,196   Federal funds sold                              --         --      5,565                                            ---------  ---------  ---------                                               43,971     56,893     23,537  Investments and mortgage-backed securities:   Held to maturity                            10,554     10,726     14,684   Available for sale                          13,898     14,563     18,828 FHLB stock                                     5,705      5,705      5,705                                            ---------  ---------  ---------                                               30,157     30,994     39,217  Loans receivable                             555,961    558,644    562,664 Loans held for sale                            2,245      7,778      1,065 Less: Allowance for loan losses              (12,440)   (12,049)    (7,076)                                            ---------  ---------  --------- Net loans receivable                         545,766    554,373    556,653   Accrued interest receivable                    2,918      2,913      2,932 Premises and equipment                        18,174     17,698     16,286 OREO and other repossessed items               7,698      2,827        879 BOLI                                          13,403     13,280     12,775 Goodwill                                       5,650      5,650      5,650 Core deposit intangible                          809        863      1,034 Mortgage servicing rights                      2,366      1,912      1,277 Other assets                                   4,812      5,601      3,514                                            ---------  ---------  --------- Total Assets                               $ 675,724  $ 693,004  $ 663,754                                            =========  =========  =========  Liabilities and Shareholders' Equity Non-interest-bearing deposits              $  50,153  $  53,783  $  50,697 Interest-bearing deposits                    437,266    452,115    429,237                                            ---------  ---------  ---------   Total deposits                             487,419    505,898    479,934  FHLB advances                                 95,000     95,000    104,645 Other borrowings: repurchase agreements          666        689      1,007 Other liabilities and accrued expenses         3,652      3,074      3,393                                            ---------  ---------  --------- Total Liabilities                            586,737    604,661    588,979                                            ---------  ---------  ---------  Shareholders' Equity Preferred stock - $.01 par value;  1,000,000 shares authorized;                 15,487     15,437         --  June 30, 2009 - 16,641 shares issued  and outstanding  March 31, 2009 - 16,641 shares issued  and outstanding Common stock - $.01 par value; 50,000,000  shares authorized;                           10,328     10,301      8,775  June 30, 2009 - 7,045,036 shares issued  and outstanding  March 31, 2009 - 7,045,036 shares issued  and outstanding  June 30, 2008 - 6,901,453 shares issued  and outstanding Unearned shares - Employee Stock Ownership  Plan                                         (2,578)    (2,644)    (2,842) Retained earnings                             66,802     66,775     68,822 Accumulated other comprehensive income  (loss)                                       (1,052)    (1,526)        20                                            ---------  ---------  --------- Total Shareholders' Equity                    88,987     88,343     74,775                                            ---------  ---------  --------- Total Liabilities and Shareholders' Equity $ 675,724  $ 693,004  $ 663,754                                            =========  =========  =========    KEY FINANCIAL RATIOS AND DATA ($ in thousands, except per share amounts) (unaudited)                                                  Three Months Ended                                           -------------------------------                                            June 30,  March 31,  June 30,                                              2009      2009       2008                                           ---------  ---------  --------- PERFORMANCE RATIOS: Return (loss) on average assets (a)            0.61%     (0.82%)    (0.33%) Return (loss) on average equity (a)            4.79%     (6.10%)    (2.91%) Net interest margin (a)                        3.86%      4.06%      4.23% Efficiency ratio (b)                          71.88%     65.34%     87.73%                                                   Nine Months Ended                                           -------------------------------                                            June 30,              June 30,                                              2009                  2008                                           ---------             --------- Return on average assets (a)                   0.01%                 0.54% Return on average equity (a)                   0.04%                 4.73% Net interest margin (a)                        4.03%                 4.42% Efficiency ratio (b)                          70.64%                67.31%                                              June 30,  March 31,   June 30,                                              2009      2009       2008                                           ---------  ---------  --------- ASSET QUALITY RATIOS: Non-performing loans                      $  25,113  $  19,867  $   9,391 Non-performing investment securities            572        310         -- OREO and other repossessed assets             7,698      2,827        879                                           ---------  ---------  --------- Total non-performing assets               $  33,383  $  23,004  $  10,270  Non-performing assets to total assets (c)      4.94%      3.32%      1.55% Allowance for loan losses to non-performing  loans                                           50%        61%        75% Troubled debt restructured loans          $      --   $     --  $      -- Past due 90 days and still accruing       $     830   $     --  $      --  CAPITAL RATIOS: Tier 1 leverage capital                       12.30%     12.47%     10.41% Tier 1 risk based capital                     14.93%     15.01%     12.08% Total risk based capital                      16.19%     16.27%     13.33%  BOOK VALUES: Book value per common share (d)            $  10.42   $  10.18  $   10.83 Book value per common share (e)            $  10.80   $  10.72  $   11.46 Tangible book value per common share  (d) (f)                                   $   9.36   $   9.26  $    9.87 Tangible book value per common share  (e) (f)                                   $   9.84   $   9.75  $   10.44  (a) Annualized (b) Calculation includes the OTTI charge incurred during the periods     ended March 31, 2009 and June 30, 2009. Excluding OTTI charges the     efficiency ratio was 70.88% for three months ended June 30, 2009;     58.38% for the three months ended March 31, 2009; and 64.62% for     the nine months ended June 30, 2009. (c) Non-performing assets include non-accrual loans, non-accrual     investment securities, and other real estate owned and other     repossessed assets (d) Calculation includes ESOP shares not committed to be released (e) Calculation excludes ESOP shares not committed to be released (f) Calculation subtracts goodwill and core deposit intangible from the     equity component                                                  Three Months Ended AVERAGE BALANCE SHEET:                    -------------------------------                                            June 30,  March 31,   June 30,                                              2009      2009       2008                                           ---------  ---------  --------- Average total loans                       $ 562,105  $ 568,981  $ 560,515 Average total interest earning assets (a)   641,468    632,479    614,383 Average total assets                        688,411    678,750    659,998 Average total interest bearing deposits     450,974    434,896    415,495 Average FHLB advances and other borrowings   95,612     97,786    110,903 Average shareholders' equity                 88,433     91,368     74,956                                                  Nine Months Ended                                           -------------------------------                                            June 30,              June 30,                                              2009                  2008                                           ---------             --------- Average total loans                       $ 565,274             $ 548,346 Average total interest earning assets (a)   630,421               605,949 Average total assets                        676,809               652,804 Average total interest bearing deposits     438,762               412,904 Average FHLB advances and other borrowings   97,954               109,794 Average shareholders' equity                 85,445                74,901  (a) Includes loans on non-accrual status 

 

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.

New ways for you to access financial education

To reach more Washington residents while using fewer resources and funds, we’ve joined the world of Web 2.0 and are adding new ways to provide access to much-needed resources, including:

With these new points of access, Washington consumers may now receive immediate updates and get the latest information on how protect and improve their financial well-being, including:

  • Financial resources for the unemployed;
  • How to talk with your children about the family budget in today’s economy;
  • How to verify the license of a business;
  • Staying up-to-date on fraud alerts;
  • Getting help and avoiding foreclosure;
  • How to avoid mortgage fraud and foreclosure rescue fraud;
  • How to avoid becoming a victim of predatory lending; and
  • Access to financial education events and resources for the whole family.

Adhering to our mission of “Regulating financial services to protect and educate the public and promote economic vitality” DFI will continue to add additional resources and increase the number of methods to make this information available to Washington residents as they arise.

Understanding that Washington residents face many challenges in today’s economy, DFI is partnering with KCTS 9 PBS in Seattle for their “Tough Times” series on how to survive in a down economy http://www.kcts9.org/toughtimes. DFI’s Steven C. Sherman, Esq., a Financial Legal Examiner in our Consumer Services Division will participate in the second in the series on housing and Martin Cordell, Supervisor, Securities Division Criminal Unit of the Enforcement Section will be on hand for the third in the series on personal finance and protecting your investments.


DFI is assisting the City of Tacoma Safe and Clean Team, Federal Reserve Board, United Way of Tacoma-Pierce County and numerous non-profit organizations to offer help to homeowners facing foreclosure with a free all-day workshop.

  • 10 a.m. to 6 p.m. March 14
    Foreclosure Intervention Workshop
    Evergreen College Tacoma Campus
    1210 6th Ave.
    Tacoma, WA
    Call 1.800.368.1455 to register.
    Visit www.homeownership.wa.gov for more information.

We’re also partnering with AARP (and other partners including FINRA, Microsoft and the Washington Attorney General’s Office) on four “Taking Charge In Tough Times” education outreach events throughout the state.

  • Wednesday, April 8
    Three Rivers Convention Center
    7016 Grandridge Blvd.
    Kennewick, WA 99336
  • Wednesday, April 22
    Red Lion Hotel Bellevue
    11211 Main St.
    Bellevue, WA 98004
  • Wednesday, May 6
    Vancouver Red Lion Hotel at the Quay
    100 Columbia St.
    Vancouver, WA 98660
  • Wednesday, June 3
    Red Lion Hotel at the Park
    303 W. North River Dr.
    Spokane, WA 99201

All events will take place from 9:30 a.m. to 2 p.m. Space is limited. Register by calling toll-free 1-877-926-8300.