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Timberland Bancorp EPS Increases 40% to $0.21 for First Fiscal Quarter

HOQUIAM, Wash., Jan. 21, 2013 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (Nasdaq:TSBK) ("Timberland" or "the Company") today reported net income of $1.71 million for the quarter ended December 31, 2012. Net income to common shareholders, after adjusting for the preferred stock dividend and the preferred stock discount accretion was $1.44 million, or $0.21 per diluted common share. This compares to net income to common shareholders of $883,000, or $0.13 per diluted common share, for the quarter ended September 30, 2012 and net income to common shareholders of $1.02 million, or $0.15 per diluted common share, for the quarter ended December 31, 2011.

"We are pleased to report a solid first fiscal quarter with continued loan growth, sustained mortgage banking activity and a stable net interest margin," stated Michael R. Sand, President and CEO. "I am also pleased to announce that Timberland's Board of Directors has declared a cash dividend of $0.03 per common share payable on February 20, 2013 to shareholders of record on February 6, 2013."

"We reported last month that the FDIC and the State of Washington Department of Financial Institution's Memorandum of Understanding ("MOU") with Timberland Bank had been rescinded. We can now report that the MOU between the Federal Reserve Bank of San Francisco and Timberland Bancorp, Inc. was rescinded on January 15, 2013," commented Sand.

Fiscal First Quarter 2013 Highlights (at or for the period ended December 31, 2012, compared to December 31, 2011, or September 30, 2012):

  • Earnings per diluted common share for the current quarter increased 62% to $0.21 from $0.13 for the preceding quarter and increased 40% from $0.15 for the comparable quarter one year ago;
  • Net income for the current quarter increased 48% to $1.71 million from $1.15 million for the preceding quarter and increased 33% from $1.28 million for the comparable quarter one year ago;
  • Net interest margin for the current quarter remained strong at 3.78%;
  • Non-interest income for the current quarter increased 8% to $2.72 million from $2.50 million for the preceding quarter and increased 11% from $2.44 million for the comparable quarter one year ago;
  • Total delinquent and non-accrual loans decreased 18% during the quarter and 49% year-over-year;
  • Net charge-offs for the current quarter decreased 62% to $256,000 compared to $679,000 for preceding quarter and decreased 59% from $624,000 for the comparable quarter one year ago;
  • Capital levels remain very strong: Total Risk Based Capital Ratio of 16.92%; Tier 1 Leverage Capital Ratio of 11.86%; Tangible Capital to Tangible Assets Ratio of 11.81%; and
  • Book value per common share increased to $10.73, and tangible book value per common share increased to $9.90 at quarter end.

Capital Ratios and Asset Quality

Timberland Bancorp remains very well capitalized with a total risk-based capital ratio of 16.92%, a Tier 1 leverage capital ratio of 11.86% and a tangible capital to tangible assets ratio of 11.81% at December 31, 2012. On November 1, 2012 the U.S. Treasury successfully auctioned the preferred shares it had purchased from Timberland in December 2008. The clearing price in the auction was $862.50 per preferred share and the sale closed on November 13, 2012. Timberland is no longer a participant in the Treasury's TARP program since the preferred shares are now owned by private investors. The sale of the preferred shares did not affect Timberland's capital ratios since the terms of the preferred shares did not change in connection with the sale.

Timberland provisioned $200,000 to its loan loss allowance during the quarter ended December 31, 2012 compared to $900,000 in the preceding quarter and $650,000 in the comparable quarter one year ago. Net charge-offs for the first fiscal quarter decreased to $256,000 compared to $679,000 for the preceding quarter and $624,000 for the comparable quarter one year ago. Net charge-offs during the current quarter were reduced by recoveries of $240,000 on loans previously charged off.

Total delinquent loans (past due 30 days or more) and non-accrual loans decreased 18% to $25.0 million at December 31, 2012 from $30.4 million at September 30, 2012 and decreased 49% from $49.1 million one year ago. The non-performing assets to total assets ratio decreased to 5.13% at December 31, 2012 compared to 5.19% three months earlier and 5.55% one year ago.

Non-accrual loans increased slightly to $21.7 million at December 31, 2012 from $21.3 million at September 30, 2012 and decreased from $27.8 million at December 31, 2011. The non-accrual loans at December 31, 2012 were comprised of 58 loans and 46 credit relationships. By dollar amount per category: 39% of non-accrual loans are secured by land and land development properties; 31% are secured by residential properties; 27% are secured by commercial properties; and 3% are secured by residential construction projects.

Other real estate owned ("OREO") and other repossessed assets decreased to $13.2 million at December 31, 2012 from $13.3 million at September 30, 2012 and increased from $7.7 million at December 31, 2011. At December 31, 2012 the OREO portfolio consisted of 55 individual properties. The properties consisted of eight commercial real estate properties totaling $6.4 million, 34 land parcels totaling $4.3 million, 12 single family homes totaling $1.6 million and a condominium project of $842,000. During the quarter ended December 31, 2012, 12 OREO properties totaling $1.2 million were sold for a net gain of $211,000.

Balance Sheet Management

Total assets decreased by $2.3 million to $734.6 million at December 31, 2012 from $737.0 million at September 30, 2012. The decrease in total assets was primarily due to a $3.5 million decrease in total deposits which reduced the amount of assets held in overnight funds.

Liquidity as measured by cash and cash equivalents, CDs held for investment and available for sale investments was 18.2% of total liabilities at December 31, 2012 compared to 19.3% at September 30, 2012 and 21.2% one year ago.

Net loans receivable increased $6.4 million to $544.9 million at December 31, 2012 from $538.5 million at September 30, 2012. The increase was primarily due to a $14.3 million increase in commercial real estate loan balances, a $1.9 million increase in one-to four-family loan balances, a $943,000 increase in multi-family loan balances and a $2.2 million decrease in the undisbursed portion of construction loans in process. These increases to net loans receivable were partially offset by decreases of $9.4 million in construction and land development loan balances, $1.8 million in consumer loan balances and $1.7 million in land loan balances. The increase in commercial real estate loan balances and the decrease in construction loan balances were primarily due to several large commercial construction loan projects converting to permanent financing during the quarter.

Timberland continued to reduce its exposure to land development and land loans. Land development loan balances decreased to $581,000 at December 31, 2012, a 68% decrease year-over-year. The Bank's land loan portfolio decreased to $37.9 million at December 31, 2012, a 4% decrease from the preceding quarter and an 18% decrease year-over-year. The well diversified land loan portfolio consists of 301 loans on a variety of land types including individual building lots, acreage, raw land and commercially zoned properties. The average loan balance for the entire land portfolio was approximately $126,000 at December 31, 2012.

LOAN PORTFOLIO
December 31, 2012 September 30, 2012 December 31, 2011
($ in thousands) Amount Percent Amount Percent Amount Percent
Mortgage Loans:
One-to four-family $108,835 19% $106,979 19% $110,502 20%
Multi-family 48,464 8 47,521 8 30,866 6
Commercial 270,537 47 256,254 45 245,874 44
Construction and land development 46,985 8 56,406 10 57,803 10
Land 37,920 7 39,655 7 46,198 8
Total mortgage loans 512,741 89 506,815 89 491,243 88
Consumer Loans:
Home equity and second mortgage 31,196 6 32,814 6 34,607 6
Other 6,029 1 6,183 1 6,695 1
Total consumer loans 37,225 7 38,997 7 41,302 7
Commercial business loans 22,596 4 22,588 4 27,426 5
Total loans 572,562 100% 568,400 100% 559,971 100%
Less:
Undisbursed portion of construction loans in process (14,100) (16,325) (17,073)
Deferred loan origination fees (1,767) (1,770) (1,884)
Allowance for loan losses (11,769) (11,825) (11,972)
Total loans receivable, net $544,926 $538,480 $529,042
CONSTRUCTION LOAN COMPOSITION
December 31, 2012 September 30, 2012 December 31, 2011
Percent Percent Percent
of Loan of Loan of Loan
($ in thousands) Amount Portfolio Amount Portfolio Amount Portfolio
Custom and owner / builder $33,530 6% $33,345 6% $28,797 5%
Speculative one- to four-family 1,912 -- 1,880 -- 2,186 1
Commercial real estate 10,617 2 20,247 4 16,693 3
Multi-family (including condominium) 345 -- 345 -- 8,320 1
Land development 581 -- 589 -- 1,807 --
Total construction loans $46,985 8% $56,406 10% $57,803 10%

Timberland's loan originations were $51.9 million during the quarter ended December 31, 2012 compared to $69.0 million for the preceding quarter and $51.6 million for the 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 December 31, 2012, $24.1 million fixed-rate one-to four-family mortgage loans were sold compared to $28.5 million for the preceding quarter and $22.9 million for the comparable quarter ended one year ago.

Timberland's mortgage-backed securities ("MBS") and other investments decreased by $405,000 during the quarter to $7.9 million at December 31, 2012 from $8.3 million at September 30, 2012, primarily due to prepayments and scheduled amortization. During the quarter ended December 31, 2012, other-than-temporary-impairment ("OTTI") credit related write-downs and realized losses of $10,000 were recorded on private label MBS. At December 31, 2012 the Bank's remaining private label MBS portfolio had been reduced to $2.7 million from an original acquired balance of $15.3 million.

DEPOSIT BREAKDOWN
($ in thousands)
December 31, 2012 September 30, 2012 December 31, 2011
Amount Percent Amount Percent Amount Percent
Non-interest bearing $78,425 13% $75,296 13% $61,178 10%
N.O.W. checking 152,431 26 150,139 25 156,799 27
Savings 87,628 15 87,493 15 85,335 15
Money market 79,142 13 79,549 13 66,266 11
Certificates of deposit under $100 123,510 21 127,909 21 136,859 23
Certificates of deposit $100 and over 73,263 12 77,540 13 82,738 14
Certificates of deposit – brokered -- -- -- -- -- --
Total deposits $594,399 100% $597,926 100% $589,175 100%

Total deposits decreased $3.5 million, or 1% to $594.4 million at December 31, 2012, from $597.9 million at September 30, 2012 primarily as a result of an $8.7 million decrease in certificates of deposit account balances and a $407,000 decrease in money market account balances. These decreases were partially offset by increases of $3.1 million in non-interest bearing account balances and $2.3 million in N.O.W. checking account balances.

Total shareholders' equity increased $1.58 million to $91.90 million at December 31, 2012, from $90.32 million at September 30, 2012. The increase in shareholders' equity was primarily a result of net income for the quarter. Book value per common share increased to $10.73 and tangible book value per common share increased to $9.90 at December 31, 2012.

Operating Results

Fiscal first quarter operating revenue (net interest income before provision for loan losses, plus non-interest income excluding OTTI charges and valuation allowances or recoveries on mortgage servicing rights ("MSRs")), decreased 3% to $8.86 million from $9.12 million for the preceding quarter and increased 2% from the $8.72 million for the comparable quarter one year ago.

Net interest income decreased 1% to $6.39 million for the quarter ended December 31, 2012 from $6.46 million for the preceding quarter and increased 1% from $6.30 million for the comparable quarter one year ago. The net interest margin for the current quarter decreased to 3.78% from 3.83% for the preceding quarter and increased from 3.73% for the comparable quarter one year ago.

Non-interest income increased 8% to $2.72 million for the quarter ended December 31, 2012, from $2.50 million in the preceding quarter and increased 11% from $2.44 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $388,000 net increase in the valuation adjustment on the Bank's MSRs, which was partially offset by $107,000 decrease in gain on sale of loans. The $388,000 net increase in the valuation adjustment was comprised of a $254,000 recovery in the current quarter and a $134,000 allowance in the preceding quarter. 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.

Total operating (non-interest) expenses decreased 4% to $6.38 million for the first fiscal quarter from $6.68 million for the preceding quarter and increased 3% from $6.22 million for the comparable quarter one year ago. The decreased expenses for the current quarter compared to the preceding quarter were primarily the result of a $396,000 decrease in OREO and other repossessed assets expense. OREO related expenses during the current quarter were reduced by $211,000 in net gains on sale of OREO properties.

The provision for income taxes increased $589,000 to $819,000 for the quarter ended December 31, 2012, from $230,000 for the preceding quarter primarily due to higher income before income taxes. Also affecting the comparison was a $205,000 recovery to the deferred tax valuation allowance (recorded during the quarter ended September 30, 2012) based on the expected implementation of certain tax planning strategies. The deferred tax valuation allowance relates to a capital loss carry forward on the sale of securities in fiscal 2008.

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; our ability to pay dividends on our common and preferred stock; 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 2013 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) Dec. 31, Sept. 30, Dec. 31,
(unaudited) 2012 2012 2011
Interest and dividend income
Loans receivable $7,414 $7,577 $7,805
MBS and other investments 77 81 125
Dividends from mutual funds 12 6 13
Interest bearing deposits in banks 86 86 89
Total interest and dividend income 7,589 7,750 8,032
Interest expense
Deposits 728 822 1,169
FHLB advances 472 472 562
Total interest expense 1,200 1,294 1,731
Net interest income 6,389 6,456 6,301
Provision for loan losses 200 900 650
Net interest income after provision for loan losses 6,189 5,556 5,651
Non-interest income
OTTI and realized losses on MBS and other investments, net (10) (25) (60)
Service charges on deposits 947 980 970
Gain on sale of loans, net 642 749 560
Bank owned life insurance ("BOLI") net earnings 143 150 157
Valuation recovery (allowance) on MSRs 254 (134) 84
ATM and debit card interchange transaction fees 515 551 517
Other 224 232 216
Total non-interest income, net 2,715 2,503 2,444
Non-interest expense
Salaries and employee benefits 3,114 3,061 2,929
Premises and equipment 690 696 650
Advertising 177 173 208
OREO and other repossessed assets expense, net 288 684 502
ATM 221 196 194
Postage and courier 113 120 118
Amortization of core deposit intangible ("CDI") 33 37 37
State and local taxes 139 148 149
Professional fees 242 195 178
FDIC insurance 241 239 225
Other insurance 52 51 56
Loan administration and foreclosure 138 201 161
Data processing and telecommunications 287 346 300
Deposit operations 164 183 223
Other 478 347 291
Total non-interest expense 6,377 6,677 6,221
Income before income taxes $2,527 $1,382 $1,874
Provision for income taxes 819 230 591
Net income 1,708 1,152 1,283
Preferred stock dividends (201) (208) (208)
Preferred stock discount accretion (63) (61) (59)
Net income to common shareholders $1,444 $883 $1,016
Net income per common share:
Basic $0.21 $0.13 $0.15
Diluted 0.21 0.13 0.15
Weighted average common shares outstanding:
Basic 6,815,782 6,780,899 6,780,516
Diluted 6,815,782 6,780,899 6,780,516
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts) (unaudited) Dec. 31, Sept. 30, Dec. 31,
2012 2012 2011
Assets
Cash and due from financial institutions $12,082 $11,008 $12,671
Interest-bearing deposits in banks 73,766 85,660 98,876
Total cash and cash equivalents 85,848 96,668 111,547
Certificates of deposit ("CDs") held for investment, at cost 26,752 23,490 19,810
MBS and other investments:
Held to maturity, at amortized cost 3,197 3,339 3,941
Available for sale, at fair value 4,682 4,945 6,284
FHLB stock 5,604 5,655 5,705
Loans receivable 554,659 548,878 537,904
Loans held for sale 2,036 1,427 3,110
Less: Allowance for loan losses (11,769) (11,825) (11,972)
Net loans receivable 544,926 538,480 529,042
Premises and equipment, net 18,027 17,886 17,353
OREO and other repossessed assets, net 13,230 13,302 7,714
BOLI 16,668 16,524 16,074
Accrued interest receivable 2,080 2,183 2,388
Goodwill 5,650 5,650 5,650
Core deposit intangible 217 249 360
Mortgage servicing rights, net 2,213 2,011 2,169
Prepaid FDIC insurance assessment 957 1,186 1,873
Other assets 4,570 5,386 5,939
Total assets $734,621 $736,954 $735,849
Liabilities and shareholders' equity
Deposits: Non-interest-bearing demand $78,425 $75,296 $61,178
Deposits: Interest-bearing 515,974 522,630 527,997
Total deposits 594,399 597,926 589,175
FHLB advances 45,000 45,000 55,000
Repurchase agreements 625 855 538
Other liabilities and accrued expenses 2,694 2,854 3,806
Total liabilities 642,718 646,635 648,519
Shareholders' equity
Preferred stock, $.01 par value; 1,000,000 shares authorized; 16,641 shares, Series A, issued and outstanding $1,000 per share liquidation value 16,292 16,229 16,048
Common stock, $.01 par value; 50,000,000 shares authorized; 7,045,036 shares issued and outstanding 10,500 10,484 10,464
Unearned shares- Employee Stock Ownership Plan (1,653) (1,719) (1,917)
Retained earnings 67,232 65,788 63,286
Accumulated other comprehensive loss (468) (463) (551)
Total shareholders' equity 91,903 90,319 87,330
Total liabilities and shareholders' equity $734,621 $736,954 $735,849
KEY FINANCIAL RATIOS AND DATA Three Months Ended
($ in thousands, except per share amounts) (unaudited) Dec. 31, Sept. 30, Dec. 31,
2012 2012 2011
PERFORMANCE RATIOS:
Return on average assets (a) 0.92% 0.62% 0.70%
Return on average equity (a) 7.53% 5.14% 5.93%
Net interest margin (a) 3.78% 3.83% 3.73%
Efficiency ratio 70.05% 74.53% 71.14%
Dec. 31, Sept. 30, Dec. 31,
2012 2012 2011
ASSET QUALITY RATIOS AND DATA:
Non-accrual loans $21,737 $21,331 $27,803
Loans past due 90 days and still accruing 357 1,198 2,677
Non-performing investment securities 2,334 2,442 2,650
OREO and other repossessed assets 13,230 13,302 7,714
Total non-performing assets (b) $37,658 $38,273 $40,844
Non-performing assets to total assets (b) 5.13% 5.19% 5.55%
Net charge-offs during quarter $256 $679 $624
Allowance for loan losses to non-accrual loans 54% 55% 43%
Allowance for loan losses to loans receivable, net (c) 2.11% 2.15% 2.21%
Troubled debt restructured loans on accrual status (d) $13,008 $13,410 $18,297
CAPITAL RATIOS:
Tier 1 leverage capital 11.86% 11.66% 11.26%
Tier 1 risk based capital 15.66% 15.51% 15.39%
Total risk based capital 16.92% 16.77% 16.65%
Tangible capital to tangible assets (e) 11.81% 11.55% 11.14%
BOOK VALUES:
Book value per common share $10.73 $10.52 $10.12
Tangible book value per common share (e) 9.90 9.68 9.26
(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 $10,733, $10,093 and $7,334 reported as non-accrual loans at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(e) Calculation subtracts goodwill and core deposit intangible from the equity component and from assets.
AVERAGE CONSOLIDATED BALANCE SHEETS: Three Months Ended
($ in thousands) (unaudited) Dec. 31, Sept. 30, Dec. 31,
2012 2012 2011
Average total loans $553,404 $547,028 $537,876
Average total interest-bearing assets (a) 676,061 673,827 675,432
Average total assets 739,858 738,161 736,265
Average total interest-bearing deposits 519,308 523,461 526,100
Average FHLB advances and other borrowings 45,649 45,784 55,559
Average shareholders' equity 90,721 89,695 86,534
(a) Includes loans and MBS on non-accrual status

CONTACT: Michael R. Sand, President & CEO Dean J. Brydon, CFO (360) 533-4747 www.timberlandbank.comSource:Timberland Bancorp, Inc