Timberland Bancorp, Inc. (TSBK) has reported an 8.66 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2.70 million, or $0.38 a share in the quarter, compared with $2.96 million, or $0.42 a share for the same period last year.
Revenue during the quarter went down marginally by 2.65 percent to $10.92 million from $11.21 million in the previous year period. Net interest income for the quarter rose 11.12 percent over the prior year period to $7.81 million. Non-interest income for the quarter rose 16.79 percent over the last year period to $3.11 million.
Net interest margin improved 1 basis points to 3.77 percent in the quarter from 3.76 percent in the last year period. Efficiency ratio for the quarter improved to 63.77 percent from 69.09 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Fiscal year 2016 marked the 6th consecutive year the Company increased net income, earnings per share, return on equity and return on assets," stated Michael R. Sand, president and chief executive officer. "We have continued to prudently grow the balance sheet and, during the current quarter, for the first time exceeded $900 million in total assets. We elected to prepay a $15 million FHLB borrowing on the last day of the fiscal year which reduced year end assets to $891 million, but more importantly reduced interest expense by $54,000 per month. We have two additional high-cost $15 million FHLB borrowings maturing within the next 12 months. The first borrowing matures on August 1st and the second on September 1, 2017. We look forward to their impending maturities since the interest on these two borrowings, and the borrowing that was prepaid at fiscal year end, accounted for slightly less than 50% of our 2016 fiscal year total interest expense."
Liabilities outpace assets growth
Total assets stood at $891.39 million as on Sep. 30, 2016, up 9.26 percent compared with $815.82 million on Sep. 30, 2015. On the other hand, total liabilities stood at $794.55 million as on Sep. 30, 2016, up 9.35 percent from $726.63 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $663.15 million as on Sep. 30, 2016, up 9.74 percent compared with $604.27 million on Sep. 30, 2015. Deposits stood at $761.53 million as on Sep. 30, 2016, up 12.17 percent compared with $678.91 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $172.28 million or 22.62 percent of total deposits on Sep. 30, 2016, compared with $141.39 million or 20.83 percent of total deposits on Sep. 30, 2015.
Investments were almost stable over the past one year at $8.85 million on Sep. 30, 2016. Shareholders equity stood at $96.83 million as on Sep. 30, 2016, up 8.57 percent or $7.65 million from year-ago.
Return on assets moved down 25 basis points to 1.22 percent in the quarter from 1.47 percent in the last year period.
Nonperforming assets moved down 47.53 percent or $7.12 million to $7.86 million on Sep. 30, 2016 from $14.98 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.88 percent in the quarter, down from 1.84 percent in the last year period.
Book value per share was $13.95 for the quarter, up 9.33 percent or $1.19 compared to $12.76 for the same period last year.
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