Net Income of $6.21 Million and EPS of $0.74PPP Loan Originations of $123 millionReturn on Average Assets of 1.70%Return on Average Equity of 13.83%Announces $0.20 Quarterly Cash DividendHOQUIAM, Wash., July 28, 2020 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported net income of $6.21 million for the quarter ended June 30, 2020 compared to $5.05 million for the preceding quarter and $5.96 million for the comparable quarter one year ago. Earnings per diluted common share (“EPS”) were $0.74 for the current quarter compared to $0.60 for the preceding quarter and $0.70 for the comparable quarter one year ago. Net income for the quarters ended June 30, 2020 and March 31, 2020 was reduced by provisions to the loan loss reserve of $1.00 million and $2.00 million, respectively, due to economic uncertainties associated with the COVID-19 pandemic. For the first nine months of fiscal 2020, Timberland earned $17.91 million, or $2.12 per diluted common share, compared to net income of $17.69 million, or $2.09 per diluted common share, for the first nine months of fiscal 2019.Timberland’s Board of Directors declared a quarterly cash dividend to shareholders of $0.20 per common share payable on August 28, 2020, to shareholders of record August 14, 2020.“Timberland generated strong fiscal third quarter financial results in the midst of a decidedly unsettled economic environment,” commented Michael Sand, President and CEO. “Uncharacteristically, deposits grew nearly $193 million during the quarter and Timberland’s active involvement in the Small Business Administration’s Paycheck Protection Program (“PPP”) elevated the quarter’s loan originations to a record $250 million. Increased deposit inflows combined with yet unspent PPP loan proceeds temporarily persisting in our deposit base created excess liquidity precisely at a time when attractive, short term, investment alternatives were, and remain, particularly scarce. As a result, we will take a measured approach to investing a significant portion of this excess liquidity until the durability of these deposits and the direction of the economy become more certain.”“We remain committed to assisting our borrowers who have been affected by COVID related declines in business revenues,” Sand continued. “We have offered assistance with payment deferrals and interest-only payment options since late March and have provided loan accommodations on 184 loans to commercial customers with balances totaling $128.7 million. Our standard accommodation is a 90-day deferral with payments fully deferred or with interest scheduled for payment monthly. Of these 184 loans, 137 were scheduled to resume payments on, or before, July 1, 2020. As of July 23rd, payments were made on 127 (or 93%) of these 137 loans, including five that were paid in full. We have 47 loans scheduled for payment resumption during the next two months. The COVID related deferrals of consumer and residential mortgage loans have been modest by number with 25 loans totaling $7.1 million being placed temporarily in deferral status. We will continue to monitor our loan portfolio diligently in light of the significant impact the Coronavirus could have on borrowers in the months to come.”“A major concern of ours remains the health and safety of our customers and employees,” said Sand. “We implemented several new COVID-19 protocols to assist and protect our employees and customers. We have taken a patient approach to reopening branches following the termination of the State of Washington’s Stay Home, Stay Healthy order, which was lifted May 31, 2020. Near normal branch operations have resumed in our Grays Harbor and Lewis county branches, while lobby access is by appointment only in our Thurston, Pierce, King and Kitsap county branches. We continue to provide drive-up services, ATM machines, mobile banking and call center operations with every effort being made to maintain the high level of service our customers are accustomed to receiving.”On March 16, 2020, Timberland made the decision to temporarily suspend all stock buyback activity. From January 1 – March 16, 2020, Timberland had repurchased 56,601 shares of its stock.Third Fiscal Quarter 2020 Earnings and Balance Sheet Highlights (at or for the period ended June 30, 2020, compared to March 31, 2020, or June 30, 2019):Earnings Highlights:Net income for the first nine months of fiscal 2020 was $17.91 million compared to $17.69 million for the first nine months of fiscal 2019; EPS was $2.12 for the first nine months of fiscal 2020 compared to $2.09 for the first nine months of fiscal 2019;Net income was $6.21 million for the current quarter compared to $5.05 million for the preceding quarter and $5.96 million for the comparable quarter one year ago; EPS was $0.74 for the current quarter compared to $0.60 for the preceding quarter and $0.70 for the comparable quarter one year ago;Return on average equity and return on average assets for the current quarter were 13.83% and 1.70%, respectively;Net interest margin was 3.63% for the current quarter compared to 4.27% for the preceding quarter and 4.49% for the comparable quarter one year ago; andEfficiency ratio improved to 49.96% for the current quarter from 54.43% for the comparable quarter one year ago and 50.04% for the preceding quarter.Balance Sheet Highlights:Total assets increased 22% year-over-year and 15% from the prior quarter;Total deposits increased 23% year-over-year and 17% from the prior quarter;Net loans receivable increased 16% year-over-year and 12% from the prior quarter; andBook and tangible book (non-GAAP) values per common share increased to $22.00 and $19.97, respectively, at June 30, 2020.Operating Results
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