Timberland Bancorp(TSBK) - 2020 Q1 - Quarterly Report

Financial Position - Total assets increased by $23.41 million, or 1.9%, to $1.271 billion at December 31, 2019, from $1.247 billion at September 30, 2019[140] - Total deposits increased by $16.25 million, or 1.5%, to $1.084 billion at December 31, 2019, primarily due to increases in savings account balances and NOW checking account balances[141] - Shareholders' equity increased by $4.59 million, or 2.7%, to $175.65 million at December 31, 2019, primarily due to net income[142] - Investment securities increased by $23.31 million, or 42.7%, to $77.91 million at December 31, 2019, due to the purchase of additional agency mortgage-backed investment securities[144] - Cash and cash equivalents decreased by $26.26 million, or 11.9%, to $195.10 million at December 31, 2019, as excess liquidity was allocated to higher-earning investment securities and loans[142] - OREO and other repossessed assets decreased by $24,000, or 1.4%, to $1.66 million at December 31, 2019, primarily due to the sale of a commercial real estate property[149] Loan Performance - Net loans receivable increased by $26.49 million, or 3.0%, to $913.15 million at December 31, 2019, primarily due to increases in commercial real estate loans and commercial business loans[141] - Loan originations increased by $26.16 million, or 24.6%, to $132.55 million for the three months ended December 31, 2019, compared to $106.39 million for the same period in 2018[147] - Non-accrual loans increased by $37,000, or 1.2%, to $3.07 million, while total delinquent loans decreased by $53,000, or 1.3%[170] - Provision for loan losses was $200,000 for the quarter, with net loans receivable increasing by $26.49 million[170] - The allowance for loan losses was $9.88 million, representing 1.07% of loans receivable and 321.9% of non-performing loans[174] Income and Expenses - Net income increased by $1.04 million, or 18.5%, to $6.65 million for the quarter ended December 31, 2019 from $5.62 million for the quarter ended December 31, 2018[160] - Net interest income increased by $658,000, or 5.3%, to $13.00 million for the quarter ended December 31, 2019 from $12.34 million for the quarter ended December 31, 2018[163] - Total interest and dividend income increased by $876,000, or 6.6%, to $14.19 million for the quarter ended December 31, 2019 from $13.32 million for the quarter ended December 31, 2018[164] - Non-interest income rose by $672,000, or 20.6%, to $3.94 million, driven by a $567,000 increase in loan sales gains[175] - Total non-interest expense decreased by $189,000, or 2.2%, to $8.37 million, primarily due to a reduction in FDIC insurance expense[176] Efficiency and Ratios - The efficiency ratio improved to 49.43% from 54.85% year-over-year, reflecting increased net interest and non-interest income alongside decreased expenses[176] - The net interest margin decreased to 4.43% for the quarter ended December 31, 2019 from 4.47% for the quarter ended December 31, 2018[166] - The interest rate spread was 4.22%, with a net interest margin of 4.43% for the quarter[168] - The regulatory liquidity ratio was 19.97% as of December 31, 2019, indicating sufficient liquidity to meet short-term needs[180] Capital and Regulatory Compliance - The Bank exceeded all regulatory capital requirements as of December 31, 2019, maintaining a "well-capitalized" status[184] - The Bank's Tier 1 capital was $157.28 million, with a leverage capital ratio of 12.69% as of December 31, 2019[185] - The Bank's common equity tier 1 capital ratio was 17.97% as of December 31, 2019, exceeding the minimum requirement[185] - The Bank maintained a capital conservation buffer above the required levels as of December 31, 2019[186] - The Bank's total capital was $167.39 million, with a total capital ratio of 19.13% as of December 31, 2019[185] Other Financial Metrics - The Company's total cash and cash equivalents decreased by $26.26 million, or 11.9%, to $195.10 million as of December 31, 2019[181] - The Bank had loan commitments totaling $103.63 million and undisbursed construction loans in process totaling $82.17 million as of December 31, 2019[182] - The Bank's return on average assets was 2.12% and return on average equity was 15.40% for the three months ended December 31, 2019[189] - Average total interest-earning assets increased by $68.36 million, or 6.2%, to $1.17 billion for the quarter ended December 31, 2019 from $1.11 billion for the quarter ended December 31, 2018[164] - The efficiency ratio improved to 49.43% for the three months ended December 31, 2019, compared to 54.85% in the same period of 2018[189] - The Bank had $367.28 million available for additional FHLB borrowings as of December 31, 2019[181]