Timberland Bancorp, Inc. Announces Record Earnings

Business Wire,  July 26, 2005  

• E-mail
• Print
• Link

HOQUIAM, Wash. -- Timberland Bancorp, Inc. (Nasdaq:TSBK):

--Diluted Earnings Per Share Increases by 31%

--Return on Equity Increases by 26%

--Efficiency Ratio Improves by 12%

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 June 30, 2005. This compares to net income of $1.45 million, or $0.39 per diluted share that the Company earned for the quarter ended June 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 Company's financial performance during our third fiscal quarter," stated Timberland's President and CEO Michael Sand. "We realized significant increases in net income and earnings per share as we continued to grow our loan portfolio with funding obtained in our October 2004 branch acquisition. The transaction accounts gained in that acquisition have contributed to the increase in non-interest income," Sand also stated.

Net interest income and non-interest income rose 19.0% and 38.5% respectively from same quarter in the prior fiscal year primarily as a result of strong loan growth and increased core funding. During the quarter ended June 30, 2005 the Company also realized a significant improvement in its efficiency ratio to 60.7% from 69.0% for the quarter ended March 31, 2005. The Company intends to continue diligently managing its operating expenses.

During the quarter just ended the Company began testing procedures in accordance with Sarbanes-Oxley internal control requirements. During the next quarter such expenses may be in the $125,000 to $150,000 range as testing and independent audit procedures are performed in preparation for the Company's September 30, 2005 fiscal year end.

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.