SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 8, 2005
Timberland Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Washington 0-23333 91-1863696
---------- ------- -----------
State or other jurisdiction Commission (I.R.S. Employer
Of incorporation File Number Identification No.)
624 Simpson Avenue, Hoquiam, Washington 98550
--------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code) (360) 533-4747
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
--------------------------------------------------------
On November 8, 2005, Timberland Bancorp, Inc. issued its earnings release
for the quarter ended September 30, 2005. A copy of the earnings release is
attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
--------------------------------------------
(c) Exhibits
99.1 Press Release of Timberland Bancorp, Inc. dated November 8,
2005
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
TIMBERLAND BANCORP,INC.
DATE: November 8, 2005 By: /s/Dean J. Brydon
--------------------------
Dean J. Brydon
Chief Financial Officer
Exhibit 99.1
PRESS RELEASE: FOR IMMEDIATE PUBLICATION
For further information contact: Michael R. Sand, President & CEO
Dean J. Brydon, CFO
At (360) 533-4747
Timberland Bancorp, Inc. Announces Increased Earnings
* Quarterly Diluted Earnings Per Share Increases by 42%
* Annual Diluted Earnings Per Share Increases by 25%
* Quarterly Return on Equity Increases by 36%
* Annual Return on Equity Increases by 21%
* Total Assets Increase by 20% During Year
* Total Loans Increase by 13% During Year
* Total Deposits Increase by 29% During Year
HOQUIAM, Wash. - November 8, 2005 - Timberland Bancorp, Inc.(Nasdaq: TSBK),
("Company") the holding company for Timberland Bank, ("Bank"), today reported
net income of $1.84 million, or $0.51 per diluted share, for the quarter ended
September 30, 2005. This compares to net income of $1.33 million, or $0.36
per diluted share that the Company earned for the quarter ended September 30,
2004. The increased earnings per share was primarily a result of increased
net interest income and increased non-interest income.
"We are pleased with the growth and financial operating results that were
achieved during the recently concluded fiscal year," stated Timberland's
President and CEO Michael Sand. "The diligent efforts of our staff resulted
in a 25% increase in diluted earnings per share and a 21% increase in return
on equity compared to the prior fiscal year in spite of a challenging interest
rate environment. Increased loan demand contributed to the successful
deployment of core deposits obtained in the branch acquisition this past year.
Both net interest income and noninterest income were significantly increased
over the prior fiscal year," Sand also stated.
Net interest income, non-interest income, and net income increased by 16%,
33%, and 18% respectively from the prior fiscal year. Loans and deposits grew
by 13% and 29% respectively during the same period. Deposit growth was due
primarily to the acquisition of core deposits in October 2004.
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.
1
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
For the three months and years ended September 30, 2005 and 2004
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
September 30, September 30,
2005 2004 2005 2004
----------------- -------------------
Interest and Dividend Income
Loans receivable $7,243 $6,177 $27,514 $24,501
Securities available for sale
and held to maturity 503 217 1,962 934
Dividends from investments 305 259 1,093 1,021
Deposits in banks and federal
funds sold 115 18 367 115
----------------- -------------------
Total interest and dividend
income 8,166 6,671 30,936 26,571
Interest Expense
Deposits 1,603 969 5,422 4,168
FHLB advances and other
borrowings 840 774 3,187 3,157
----------------- -------------------
Total interest expense 2,443 1,743 8,609 7,325
----------------- -------------------
Net interest income 5,723 4,928 22,327 19,246
Provision for Loan Losses 25 73 141 167
----------------- -------------------
Net interest income after
provision for loan losses 5,698 4,855 22,186 19,079
Non-Interest Income
Service charges on deposits 760 518 2,822 1,927
Gain on sale of loans, net 115 57 728 642
Loss on sale of securities -- -- -- (6)
BOLI net earnings 110 124 430 462
Escrow Fees 44 35 141 140
Servicing income on loans sold 180 45 379 310
ATM transaction fees 239 174 871 636
Other 199 125 702 465
----------------- -------------------
Total non-interest income 1,647 1,078 6,073 4,576
Non-Interest Expense
Salaries and employee benefits 2,470 2,233 10,196 8,794
Premises and equipment 554 526 2,229 1,879
Advertising 232 170 797 729
Loss (gain) from real estate
operations 15 24 4 (3)
ATM expenses 115 93 465 396
Postage and courier 148 71 529 343
Amortization of core deposit
intangible 94 -- 367 --
Other 1,012 895 3,949 3,437
----------------- -------------------
Total non-interest expense 4,640 4,012 18,536 15,575
Income before federal income taxes 2,705 1,921 9,723 8,080
Federal Income Taxes 867 588 3,105 2,492
----------------- -------------------
Net Income $1,838 $1,333 $ 6,618 $ 5,588
================= ===================
Earnings Per Common Share:
Basic $ 0.53 $ 0.38 $ 1.90 $ 1.54
Diluted $ 0.51 $ 0.36 $ 1.82 $ 1.46
Weighted average shares
outstanding:
Basic 3,442,198 3,507,811 3,475,400 3,637,510
Diluted 3,575,560 3,668,134 3,627,989 3,827,997
2
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
For three months and years ended September 30, 2005 and 2004
(Dollars in thousands)
(unaudited)
September 30, September 30,
2005 2004
-----------------------------
ASSETS
Cash and due from financial institutions $ 20,015 $ 15,268
Interest bearing deposits in banks 3,068 3,385
Federal funds sold 5,635 1,180
Investment securities - held to maturity 104 174
Investment securities - available for sale 89,595 59,889
Federal Home Loan Bank stock 5,705 5,682
Loans receivable 389,853 347,975
Loans held for sale 2,355 610
Less: Allowance for loan losses (4,099) (3,991)
----------------------------
Total loans 388,109 344,594
Accrued interest receivable 2,294 1,828
Premises and equipment 15,862 13,913
Real estate owned and other repossessed items 509 421
Bank owned life insurance ("BOLI") 11,458 11,028
Goodwill 5,650 --
Core deposit intangible 1,834 --
Mortgage servicing rights 928 930
Other assets 1,999 2,127
-----------------------------
TOTAL ASSETS $ 552,765 $ 460,419
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $ 411,665 $ 319,570
Federal Home Loan Bank advances 62,353 65,421
Other borrowings: repurchase agreements 781 --
----------------------------
Other liabilities and accrued expenses 3,324 2,611
TOTAL LIABILITIES 478,123 387,602
----------------------------
SHAREHOLDERS' EQUITY
Common stock - $.01 par value; 50,000,000
shares authorized; September 30, 2005
3,759,937 shares issued and outstanding
September 30, 2004 3,882,070 shares
issued and outstanding 38 39
Additional paid in capital 22,040 24,867
Unearned shares - Employee Stock Ownership
Plan (3,833) (4,362)
Unearned shares - Management Recognition &
Development Plan -- (537)
Retained earnings 57,268 52,967
Accumulated other comprehensive loss (871) (157)
---------------------------
TOTAL SHAREHOLDERS' EQUITY 74,642 72,817
---------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 552,765 $ 460,419
===========================
3
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
KEY FINANCIAL RATIOS AND DATA
(Dollars in thousands, except per share data)
Three Months Ended Year Ended
September 30, September 30,
2005 2004 2005 2004
----------------- ----------------
PERFORMANCE RATIOS:
Return on average assets (1) 1.33% 1.19% 1.23% 1.24%
Return on average equity (1) 10.03% 7.40% 9.08% 7.52%
Net interest margin (1) (2) 4.56% 4.81% 4.60% 4.67%
Efficiency ratio 62.96% 66.80% 65.27% 65.38%
September 30, September 30,
2005 2004
--------------------------------
ASSET QUALITY RATIOS:
Non-performing loans $ 2,926 $ 1,442
REO & other repossessed assets 509 421
Total non-performing assets 3,435 1,863
Non-performing assets to total assets 0.62% 0.40%
Allowance for loan losses to
non-performing loans 140.09% 276.77%
Book value per share (3) $ 19.85 $ 18.76
Book value per share (4) $ 21.30 $ 20.28
Tangible book value per share (3) (5) $ 17.86 $ 18.76
Tangible book value per share (4) (5) $ 19.16 $ 20.28
______________________
(1) Annualized
(2) Prior period figures have been modified due to an income statement
reclassification between interest income and servicing income on loans
sold
(3) Calculation includes ESOP shares not committed to be released
(4) Calculation excludes ESOP shares not committed to be released
(5) Calculation subtracts goodwill and core deposit intangible from the
equity component
Three Months Ended Year Ended
September 30, September 30,
2005 2004 2005 2004
----------------- -----------------
AVERAGE BALANCE SHEET:
Average total loans $392,596 $342,150 $378,113 $338,752
Average total interest
earning assets 502,453 409,504 485,616 411,858
Average total assets 554,750 447,160 538,402 449,703
Average total interest
bearing deposits 363,150 281,701 356,089 283,517
Average FHLB advances &
other borrowings 63,745 57,770 60,537 57,778
Average shareholders' equity 73,310 72,070 72,860 74,293
4
Comparison of Financial Condition at September 30, 2005 and September 30, 2004
Total Assets: Total assets increased $92.35 million to $552.77 million at
September 30, 2005 from $460.42 million at September 30, 2004 primarily due to
a $43.52 million increase in net loans receivable, a $29.64 million increase
in investment securities, a $9.20 million increase in cash and due from
financial institutions and federal funds sold, and a $7.48 million increase in
goodwill and core deposit intangible. This growth was primarily funded by
the net cash received in connection with the acquisition of seven branch
offices and related deposits in October 2004.
Investments: Investment securities increased by $29.64 million to $89.70
million at September 30, 2005 from $60.06 million at September 30, 2004, as a
portion of the deposits received in connection with the branch acquisition was
placed into investment securities.
Loans: Net loans receivable increased by $43.52 million to $388.11 million at
September 30, 2005 from $344.59 million at September 30, 2004. The increase
in the portfolio was primarily a result of a $16.57 million increase in
commercial real estate loans, an $8.81 million increase in consumer loans, a
$7.02 million increase in construction loans (net of undisbursed portion), a
$5.09 million increase in land loans, a $3.01 million increase in multi-family
loans, a $1.93 million increase in one-to-four family mortgage loans, and a
$915,000 increase in commercial business loans.
Loan originations totaled $61.58 million and $230.21 million for the three
months and year ended September 30, 2005 compared to $67.51 million and
$201.14 million for the same periods a year earlier. The Bank sold loans
totaling $9.11 million and $26.89 million ($25.37 million in fixed rate
one-to-four family mortgage loans and $1.52 million in credit card loans)
during the three months and year ended September 30, 2005, compared to $2.46
million and $35.74 million in fixed rate one-to-four family mortgage loans
sold for the same periods one year earlier.
Deposits: Deposits increased by $92.10 million to $411.67 million at September
30, 2005 from $319.57 million at September 30, 2004, primarily due to the
acquisition of $86.30 million in deposits in October 2004. The $92.10 million
deposit increase is comprised of a $37.50 million increase in certificate of
deposit accounts, a $16.24 million increase in N.O.W. checking accounts, a
$16.07 million increase in savings accounts, a $14.64 million increase in
non-interest bearing accounts, and a $7.64 million increase in money market
accounts.
Shareholders' Equity: Total shareholders' equity increased by $1.82 million to
$74.64 million at September 30, 2005 from $72.82 million at September 30,
2004, primarily due to net income of $6.62 million and a $1.24 million
increase to additional paid in capital from the exercise of stock options and
the vesting associated with the Bank's benefit plans. Also increasing
shareholders' equity were decreases of $537,000 and $529,000 in the equity
components related to unearned shares issued to the Management Recognition and
Development Plan and the Employee Stock Ownership Plan, respectively.
Partially offsetting these increases to shareholders' equity were the
repurchase of 174,434 shares of the Company's stock for $4.06 million, the
payment of $2.32 million in dividends to shareholders, and a $714,000 increase
in accumulated other comprehensive loss.
On April 7, 2005, the Company announced a plan to repurchase up to 5% of the
Company's outstanding shares, or 187,955 shares. This represents the
Company's 13th stock repurchase plan. As of September 30, 2005, the Company
had repurchased 27,850 of these shares at an average price of $23.16. No
shares were repurchased during the quarter ended September 30, 2005.
Cumulatively the Company has repurchased 3,367,121 (50.9%) of the 6,612,500
shares that were issued when the Company went public in January 1998. These
3,367,121 shares have been repurchased at an average price of $15.39 per
share.
5
Comparison of Operating Results for the Three Months and Years Ended
September 30, 2005 and 2004
Net Income: Net income for the quarter ended September 30, 2005 increased to
$1.84 million, or $0.51 per diluted share ($0.53 per basic share) from $1.33
million, or $0.36 per diluted share ($0.38 per basic share) for the quarter
ended September 30, 2004. The $0.15 increase in diluted earnings per share
for the quarter ended September 30, 2005 was primarily a result of an $843,000
($556,000 net of income tax - $0.15 per diluted share) increase in net
interest income after provision for loan losses, and a $569,000 ($376,000 net
of income tax - $0.11 per diluted share) increase in non-interest income.
These items were partially offset by a $628,000 ($414,000 net of income tax -
$0.11 per diluted share) increase in non-interest expense.
Net income for the year ended September 30, 2005 increased $1.03 million to
$6.62 million, or $1.82 per diluted share ($1.90 per basic share) from $5.59
million, or $1.46 per diluted share ($1.54 per basic share) for the year ended
September 30, 2004. The $0.36 increase in diluted earnings per share for the
year ended September 30, 2005 was primarily the result of a $3.11 million
($2.05 million net of income tax - $0.53 per diluted share) increase in net
interest income after provision for loan losses, a $1.50 million ($988,000 net
of income tax - $0.26 per diluted share) increase in non-interest income, and
a lower number of weighted average shares outstanding which increased diluted
earnings per share by approximately $0.08. These items were partially offset
by a $2.96 million ($1.95 million net of income tax - $0.51 per diluted share)
increase in non-interest expense.
Net Interest Income: Net interest income increased $795,000 to $5.72 million
for the quarter ended September 30, 2005 from $4.93 million for the quarter
ended September 30, 2004, primarily due to increased interest income from a
larger interest earning asset base. Total interest income increased $1.50
million to $8.17 million for the quarter ended September 30, 2005 from $6.67
million for the quarter ended September 30, 2004 as average total interest
earning assets increased by $92.95 million. The increased interest earning
asset balances were primarily a result of investing the funds received in
connection with the October 2004 acquisition of deposits into loans and
investment securities. The increased interest earning balances were partially
offset by a reduction in the yield on assets. The yield on interest earning
assets decreased to 6.50% for the quarter ending September 30, 2005 from 6.52%
for the quarter ending September 30, 2004. The decrease in yield was
partially due to a change in the composition of interest earning assets as
investment securities comprised a higher percentage of the total interest
earning asset base during the current quarter. Also partially offsetting the
increased interest income was an increase in interest expense as average
interest bearing deposits and borrowings increased. Total interest expense
increased by $700,000 to $2.44 million for the quarter ended September 30,
2005 from $1.74 million for the quarter ended September 30, 2004 as average
interest bearing liabilities increased $87.42 million. The increased interest
bearing liabilities were primarily a result of the October 2004 deposit
acquisition. Also contributing to increased interest expense was an increase
in the average rate paid for these funding sources to 2.29% for the quarter
ended September 30, 2005 from 2.05% for the quarter ended September 30, 2004.
As a result of these changes, the net interest margin decreased to 4.56% for
the quarter ended September 30, 2005 from 4.81% for the quarter ended
September 30, 2004.
Net interest income increased $3.08 million to $22.33 million for the year
ended September 30, 2005 from $19.25 million for the year ended September 30,
2004, primarily due to increased interest income from a larger interest
earning asset base. Total interest income increased $4.37 million to $30.94
million for the year ended September 30, 2005 from $26.57 million for the year
ended September 30, 2004 as average total interest earning assets increased by
$73.76 million. The increased interest earning asset balances were a result
of investing the funds received in connection with the October 2004
acquisition of deposits. The increased interest earning balances were
partially offset by a reduction in the yield on assets. The yield on earning
assets decreased to 6.37% for the year ended September 30, 2005 from 6.45% for
the year ended September 30, 2004. The decrease in yield was partially due to
a change in the composition of interest earning assets as investment
securities comprised a higher percentage of the total interest earning asset
base during 2005. Also partially offsetting the increased interest income was
an increase in interest expense as average interest bearing deposits and
borrowings increased. Total interest expense increased by $1.28 million to
$8.61 million for the year ended September 30, 2005 from $7.33 million for the
year ended September 30, 2004 as average interest bearing liabilities
increased $75.33 million. As a result of these changes the net interest
margin decreased to 4.60% for the year ended September 30, 2005 from 4.67% for
the year ended September 30, 2004.
6
Provision for Loan Losses: The provision for loan losses decreased to $25,000
and $141,000 for the three months and year ended September 30, 2005 from
$73,000 and $167,000 for the three months and year ended September 30, 2004.
Based on its comprehensive analysis, management deemed the allowance for loan
losses of $4.10 million at September 30, 2005 (1.05% of loans receivable and
140.09% of non-performing loans) adequate to provide for probable losses based
on an evaluation of known and inherent risks in the loan portfolio at that
date. The allowance for loan losses was $3.99 million (1.15% of loans
receivable and 276.77% of non-performing loans) at September 30, 2004. The
Company's net charge-offs were $29,000 and $33,000 for the three months and
year ended September 30, 2005 compared to $9,000 and $67,000 for the three
months and year ended September 30, 2004. The net charge-offs to average
outstanding loans ratio was a minimal 0.01% for the year ended September 30,
2005 and during the last ten fiscal years has averaged less than 0.08%.
The Company's non-performing assets to total assets ratio increased to 0.62%
at September 30, 2005 from 0.61% at June 30, 2005 and 0.40% at September 30,
2004. The non-performing loan total of $2.93 million at September 30, 2005
consisted of $2.34 million in one-to-four family loans, $261,000 in commercial
real estate loans, $300,000 in commercial business loans, and $24,000 in land
loans.
Non-interest Income: Total non-interest income increased $569,000 to $1.65
million for the quarter ended September 30, 2005 from $1.08 million for the
quarter ended September 30, 2004, primarily due to a $242,000 increase in
service charges on deposits, a $193,000 increase in income from loan sales
(gain on sale of loans and servicing income on loans sold), and a $65,000
increase in ATM transaction fees. The increased service charges on deposits
and the increased ATM transaction fees were primarily a result of the
increased transaction account base acquired through the branch acquisition.
The increased income from loan sales was primarily due to an increased volume
of loans sold during the quarter and a decrease in the amortization expense on
existing mortgage servicing rights.
Total non-interest income increased by $1.49 million to $6.07 million for the
year ended September 30, 2005 from $4.58 million for the year ended September
30, 2004, primarily due to an $895,000 increase in service charges on
deposits, a $235,000 increase in ATM transaction fees, a $155,000 increase in
income from loan sales (gain on sale of loans and servicing income on loans
sold) and an $81,000 distribution from one of the Bank's ATM network
associations. The ATM network association distribution was cash consideration
paid to network association members in connection with the association's
merger.
Non-interest Expense: Total non-interest expense increased by $628,000 to
$4.64 million for the quarter ended September 30, 2005 from $4.01 million for
the quarter ended September 30, 2004, as the Company operated with a larger
branch network due to the acquisition of seven branch offices and the
associated employees in October 2004. The increased expense was primarily a
result of a $237,000 increase in salaries and employee benefits, a $94,000
core deposit intangible amortization expense, a $77,000 increase in postage
and courier expenses, and a $62,000 increase in advertising expenses. The
increased employee expenses were primarily due to the larger employee base
resulting from the branch acquisition, annual salary adjustments, and
increased medical insurance costs. The Company also spent approximately
$162,000 in Sarbanes-Oxley Section 404 related costs during the quarter ended
September 30, 2005. The Company's efficiency ratio decreased to 62.96% for
the quarter ended September 30, 2005 from 66.80% for the quarter ended
September 30, 2004.
Total non-interest expense increased by $2.96 million to $18.54 million for
the year ended September 30, 2005 from $15.58 million for the year ended
September 30, 2004. The increase was primarily a result of a $1.40 million
increase in salaries and employee benefits, a $367,000 core deposit intangible
expense, a $350,000 increase in premises and equipment expenses, a $186,000
increase in postage and courier expense, a $69,000 increase in ATM operating
fees and $142,000 in expenses associated with the branch acquisition in
October 2004. Timberland also spent approximately $253,000 in Sarbanes-Oxley
Section 404 related costs during the year ended September 30, 2005.
7
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
LOANS RECEIVABLE BREAKDOWN
(Dollars in thousands)
The following table sets forth the composition of the Company's loan portfolio
by type of loan.
At September 30, At September 30,
2005 2004
Amount Percent Amount Percent
-------------------- --------------------
Mortgage Loans:
One-to-four family (1) $101,763 23.24% $99,835 25.25%
Multi family 20,170 4.61 17,160 4.34
Commercial 124,849 28.51 108,276 27.39
Construction and
land development 112,470 25.68 106,241 26.88
Land 24,981 5.71 19,895 5.03
-------- ------- -------- -------
Total mortgage loans 384,233 87.75 351,407 88.89
Consumer Loans:
Home equity and second
mortgage 32,298 7.38 23,549 5.96
Other 9,330 2.13 9,270 2.34
-------- ------- -------- -------
41,628 9.51 32,819 8.30
Commercial business loans 12,013 2.74 11,098 2.81
-------- ------- -------- -------
Total loans 437,874 100.00% 395,324 100.00%
Less:
Undisbursed portion of
construction loans in
process (42,771) (43,563)
Unearned income (2,895) (3,176)
Allowance for loan losses (4,099) (3,991)
-------- --------
Total loans receivable, net $388,109 $344,594
======== ========
________________
(1) Includes loans held-for-sale.
8
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
DEPOSIT BREAKDOWN
(Dollars in thousands)
September 30, 2005 September 30, 2004
------------------ ------------------
Non-interest bearing $ 51,792 $ 37,150
N.O.W checking 93,477 77,242
Savings 64,274 48,200
Money market accounts 49,295 41,652
Certificates of deposit
under $100,000 117,618 93,750
Certificates of deposit
$100,000 and over 35,209 21,576
-------- --------
Total deposits $411,665 $319,570
======== ========
Timberland Bancorp, Inc. stock trades on the NASDAQ national market under the
symbol "TSBK." The Bank owns and operates branches in the state of Washington
in Hoquiam, Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Panorama
City, Tumwater, Yelm, Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station),
Gig Harbor, Poulsbo, Silverdale, Auburn, Winlock, and Toledo.
CONTACT:
Timberland Bancorp, Inc.
Michael Sand, President & CEO or Dean Brydon, CFO 360/533-4747
9