Timberland Bancorp has reported net income of $1.61 million for the quarter ended Dec. 31. Net income to common shareholders, after adjustments was $1.41 million, or 20 cents per diluted common share. That compares to net income to common shareholders of $696,000, or 10 cents per diluted common share, for the previous quarter and net income to common shareholders of $1.44 million, or 21 cents per share, for the same period a year ago.
Timberland’s Board also announced an increase in the quarterly cash dividend to common shareholders to four cents per common share payable on Feb. 28 to shareholders of record on Feb. 14.
“During the quarter ended December 31, 2013, Timberland purchased and retired all of the 12,065 preferred shares that remained outstanding from the 16,641 shares issued to the U.S. Treasury in December 2008,” said Michael R. Sand, President and CEO. “The purchase, which was accomplished using existing balance sheet resources, eliminated the obligation to pay $1.09 million in preferred stock dividends during each of the next five years. In future quarters the net income to common shareholders will not be reduced by preferred stock dividends and preferred stock discount accretion which, this quarter, reduced (earnings by share) by 3 cents per diluted common share.”
Total delinquent and non-accrual loans decreased 2 percent during the quarter and 29 percent year-over-year;
Net loans receivable increased by $7.8 million during the quarter
Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 2 percent to $17.8 million at December 31, 2013, from $18.1 million at September 30, 2013, and decreased 29 percent from $25 million one year ago. The non-performing assets to total assets ratio was 3.97 percent at December 31, 2013, compared to 3.75 percent three months earlier and 5.13 percent one year ago.
Non-accrual loans increased to $14.1 million at December 31, 2013, from $13.6 million at September 30, 2013, and decreased from $21.7 million at December 31, 2012. The non-accrual loans at December 31, 2013, were comprised of 57 loans and 50 credit relationships. By dollar amount per category: 45 percent are secured by residential properties; 40 percent are secured by land and land development properties; 14 percent are secured by commercial properties; and 1 percent are secured by residential construction.
Other real estate owned (“OREO”) and other repossessed assets increased to $12.5 million at December 31, 2013, from
$11.7 million at September 30, 2013 and decreased from $13.2 million at December 31, 2012. At December 31, 2013 the
OREO portfolio consisted of 47 individual properties. The properties consisted of 25 land parcels totaling $5.1 million, seven commercial real estate properties totaling $4.1 million, 14 single family homes totaling $3.0 million and one multi-family property with a book value of $268,000. During the quarter ended December 31, 2013, six OREO properties totaling $2.1 million were sold for a net gain of $81,000.