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): July 26, 2005
Timberland Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Washington 0-23333 91-1863696
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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 July 26, 2005, Timberland Bancorp, Inc. issued its earnings release
for the quarter ended June 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 July 26, 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: July 26, 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 Record Earnings
* Diluted Earnings Per Share Increases by 31%
* Return on Equity Increases by 26%
* Efficiency Ratio Improves by 12%
HOQUIAM, Wash. - July 26, 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
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 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 and nine months ended June 30, 2005 and 2004
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Nine Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
---------------- ------------------
Interest and Dividend
Income
Loans receivable $7,170 $6,099 $20,271 $18,324
Securities available
for sale and held to
maturity 550 234 1,459 717
Dividends from
investments 270 243 788 762
Interest bearing
deposits in banks 47 16 252 97
------------------ -------------------
Total interest and
dividend income 8,037 6,592 22,770 19,900
Interest Expense
Deposits 1,382 988 3,819 3,199
FHLB advances and other
borrowings 846 723 2,347 2,383
------------------ -------------------
Total interest expense 2,228 1,711 6,166 5,582
------------------ -------------------
Net interest income 5,809 4,881 16,604 14,318
Provision for Loan
Losses 96 14 116 94
------------------ -------------------
Net interest income
after provision 5,713 4,867 16,488 14,224
for loan losses
Non-Interest Income
Service charges on
deposits 723 510 2,062 1,409
Gain on sale of loans,
net 181 159 613 585
Loss on sale of
securities -- -- -- (6)
BOLI net earnings 111 111 320 338
Servicing income on
loans sold 110 18 199 265
ATM transaction fees 223 166 632 462
Other 200 154 600 445
------------------ -------------------
Total non-interest
income 1,548 1,118 4,426 3,498
Non-Interest Expense
Salaries and employee
benefits 2,528 2,155 7,726 6,561
Premises and
equipment 597 426 1,675 1,353
Advertising 187 207 565 559
Real estate owned
expense (income) 19 48 (11) (27)
ATM expenses 134 111 350 303
Postage and courier 80 85 381 272
Amortization of core
deposit intangible 94 -- 273 --
Other 826 862 2,937 2,542
------------------ -------------------
Total non-interest
expense 4,465 3,894 13,896 11,563
Income before federal
income taxes 2,796 2,091 7,018 6,159
Federal Income Taxes 961 645 2,238 1,904
------------------ -------------------
Net Income $ 1,835 $ 1,446 $ 4,780 $ 4,255
================== ===================
Earnings Per Common
Share:
Basic $0.54 $0.41 $1.37 $1.16
Diluted $0.51 $0.39 $1.31 $1.10
Weighted average
shares outstanding:
Basic 3,415,644 3,492,286 3,486,589 3,681,059
Diluted 3,574,410 3,671,143 3,645,658 3,860,573
2
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2005 and September 30, 2004
(Dollars in thousands)
(unaudited)
June 30, September 30,
2005 2004
----------------------------------
ASSETS
Cash and due from financial
institutions $ 17,391 $ 15,268
Interest bearing deposits
in banks 7,321 3,385
Federal funds sold 4,090 1,180
Investment securities -
held to maturity 127 174
Investment securities -
available for sale 91,792 59,889
Federal Home Loan Bank stock 5,705 5,682
Loans receivable 388,236 347,975
Loans held for sale 2,673 610
Less: Allowance for loan losses (4,103) (3,991)
----------------------------------
Total loans 386,806 344,594
Accrued interest receivable 2,144 1,828
Premises and equipment 15,759 13,913
Real estate owned and other
repossessed items 372 421
Bank owned life insurance ("BOLI") 11,348 11,028
Goodwill 5,650 --
Core deposit intangible 1,927 --
Other assets 2,447 3,057
----------------------------------
TOTAL ASSETS $ 552,879 $ 460,419
----------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $408,163 $ 319,570
Federal Home Loan Bank advances 67,400 65,421
Other borrowings: repurchase agreements 1,091 --
Other liabilities and accrued expenses 3,236 2,611
---------------------------------
TOTAL LIABILITIES 479,890 387,602
---------------------------------
SHAREHOLDERS' EQUITY
Common stock - $.01 par value;
50,000,000 shares authorized;
June 30, 2005 - 3,738,737 shares
issued and outstanding
September 30,2004 - 3,882,070
shares issued and outstanding 38 39
Additional paid in capital 21,479 24,867
Unearned shares - Employee Stock
Ownership Plan (3,966) (4,362)
Unearned shares - Management
Recognition & Development Plan (54) (537)
Retained earnings 56,030 52,967
Accumulated other comprehensive loss (538) (157)
----------------------------------
TOTAL SHAREHOLDERS' EQUITY 72,989 72,817
----------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 552,879 $ 460,419
----------------------------------
3
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
KEY FINANCIAL RATIOS AND DATA
(Dollars in thousands, except per share data)
Three Months Nine Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
---------------- ---------------
PERFORMANCE RATIOS:
Return on average
assets (1) 1.35% 1.31% 1.20% 1.26%
Return on average
equity (1) 10.19% 8.11% 8.77% 7.51%
Net interest margin
(1) (2) 4.74% 4.82% 4.62% 4.61%
Efficiency ratio 60.69% 64.91% 66.08% 64.90%
June 30, September 30,
2005 2004
---------------------------
ASSET QUALITY RATIOS:
Non-performing loans $ 2,976 $1,442
REO & other repossessed
assets 372 421
Total non-performing assets 3,348 1,863
Non-performing assets to
total assets 0.61% 0.40%
Allowance for loan losses to
non-performing loans 137.87% 276.77%
Book Value Per Share (3) $19.52 $18.76
Book Value Per Share (4) $21.01 $20.28
Tangible Book Value Per
Share (3) (5) $17.50 $18.76
Tangible Book Value Per
Share (4) (5) $18.83 $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 Nine Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
----------------- ----------------
AVERAGE BALANCE SHEET:
Average Total Loans $385,592 $338,215 $372,183 $338,497
Average Total Interest
Earning Assets 490,359 405,227 479,551 414,298
Average Total Assets 544,149 442,653 532,025 451,039
Average Total Interest
Bearing Deposits 355,367 281,993 353,622 284,127
Average FHLB Advances
& Other Borrowings 68,345 55,512 59,455 57,786
Average Shareholders'
Equity 72,027 71,344 72,708 75,541
4
Comparison of Financial Condition at June 30, 2005 and September 30, 2004
Total Assets: Total assets increased $92.46 million to $552.88 million at June
30, 2005 from $460.42 million at September 30, 2004 primarily due to a $42.21
million increase in net loans receivable, a $31.86 million increase in
investment securities, a $7.58 million increase in goodwill and core deposit
intangible, a $6.85 million increase in interest bearing deposits in banks and
federal funds sold, and a $1.85 million increase in premises and equipment.
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 $31.86 million to $91.92
million at June 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 $42.21 million to $386.81 million at
June 30, 2005 from $344.59 million at September 30, 2004. The increase in the
portfolio was primarily a result of a $17.67 million increase in commercial
real estate loans, a $7.61 million increase in consumer loans, a $7.33 million
increase in construction loans (net of undisbursed portion), a $4.94 million
increase in one-to-four family mortgage loans, a $2.40 million increase in
land loans, a $1.70 million increase in multi-family loans, and a $493,000
increase in commercial business loans.
Loan originations totaled $58.25 million and $168.63 million for the three and
nine months ended June 30, 2005 compared to $46.91 million and $133.63 million
for the same periods a year earlier. The Bank sold loans totaling $8.30
million and $17.78 million ($16.26 million in fixed rate one-to-four family
mortgage loans and $1.52 million in credit card loans) during the three and
nine months ended June 30, 2005, compared to $10.41 million and $33.28 million
in fixed rate one-to-four family mortgage loans sold for the same periods a
year earlier.
Deposits: Deposits increased by $88.59 million to $408.16 million at June 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 $88.59 million
deposit increase is comprised of a $43.83 million increase in certificate of
deposit accounts, a $15.80 million increase in N.O.W. checking accounts, a
$13.55 million increase in savings accounts, a $6.53 million increase in money
market accounts, and an $8.89 million increase in non-interest bearing
accounts.
Shareholders' Equity: Total shareholders' equity increased by $172,000 to
$72.99 million at June 30, 2005 from $72.82 million at September 30, 2004,
primarily due to net income of $4.78 million and a $675,000 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 $483,000 and $396,000 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 $1.72 million in dividends to shareholders, and a $381,000 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 June 30, 2005, the Company had
repurchased 27,850 of these shares at an average price of $23.16.
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 and Nine Months Ended June 30,
2005 and 2004
Net Income: Net income for the quarter ended June 30, 2005 increased to $1.84
million, or $0.51 per diluted share ($0.54 per basic share) from $1.45
million, or $0.39 per diluted share ($0.41 per basic share) for the quarter
ended June 30, 2004. The $0.12 increase in diluted earnings per share for the
quarter ended June 30, 2005 was primarily a result of an $846,000 ($558,000
net of income tax - $0.15 per diluted share) increase in net interest income
after provision for loan losses, and a $430,000 ($284,000 net of income tax -
$0.08 per diluted share) increase in non-interest income. These items were
partially offset by a $571,000 ($377,000 net of income tax - $0.11 per diluted
share) increase in non-interest expense.
Net income for the nine months ended June 30, 2005 increased to $4.78 million,
or $1.31 per diluted share ($1.37 per basic share) from $4.26 million, or
$1.10 per diluted share ($1.16 per basic share) for the nine months ended June
30, 2004. The $0.21 increase in diluted earnings per share for the nine
months ended June 30, 2005 was primarily the result of a $2.26 million ($1.49
million net of income tax - $0.38 per diluted share) increase in net interest
income after provision for loan losses, a $928,000 ($612,000 net of income tax
- $0.15 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 $0.07. These items were partially offset by a $2.33
million ($1.54 million net of income tax - $0.40 per diluted share) increase
in non-interest expense.
Net Interest Income: Net interest income increased $928,000 to $5.81 million
for the quarter ended June 30, 2005 from $4.88 million for the quarter ended
June 30, 2004, primarily due to increased interest income from a larger
interest earning asset base. Total interest income increased $1.45 million
to $8.04 million for the quarter ended June 30, 2005 from $6.59 million for
the quarter ended June 30, 2004 as average total interest earning assets
increased by $85.13 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.
Also contributing to the increased interest income for the current quarter was
an increase in the overall yield on interest-earning assets. The yield on
earning assets for the quarter ended June 30, 2005 increased to 6.56% from
6.51% for the quarter ended June 30, 2004, primarily as a result of the Bank
receiving and recognizing $128,000 in delinquent interest on a large loan that
had been on non-accrual status. 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
$517,000 to $2.23 million for the quarter ended June 30, 2005 from $1.71
million for the quarter ended June 30, 2004 as average interest bearing
liabilities increased $86.21 million. The increased interest bearing
liabilities were primarily a result of the deposit acquisition in October
2004. Also contributing to increased interest expense was an increase in the
average rate paid for these funding sources to 2.10% for the quarter ended
June 30, 2005 from 2.03% for the quarter ended June 30, 2004. As a result of
these changes, the net interest margin decreased to 4.74% for the quarter
ended June 30, 2005 from 4.82% for the quarter ended June 30, 2004.
Net interest income increased $2.28 million to $16.60 million for the nine
months ended June 30, 2005 from $14.32 million for the nine months ended June
30, 2004, primarily due to increased interest income from a larger interest
earning asset base. Total interest income increased $2.87 million to $22.77
million for the nine months ended June 30, 2005 from $19.90 million for the
nine months ended June 30, 2004 as average total interest earning assets
increased by $65.25 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 6.33% for the nine months ended June 30, 2005 from 6.40%
for the nine months ended June 30, 2004. 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 $584,000 to $6.17 million for the nine months ended June 30, 2005
from $5.58 million for the nine months ended June 30, 2004 as average interest
bearing liabilities increased $71.16 million. As a result of these changes
the net interest margin increased to 4.62% for the nine months ended June 30,
2005 from 4.61% for the nine months ended June 30, 2004.
Provision for Loan Losses: The provision for loan losses increased to $96,000
for the quarter ended June 30, 2005 from $14,000 for the quarter ended June
30, 2004. The provision for the nine months ended June 30, 2005 increased to
$116,000 from $94,000 for the nine months ended June 30, 2004. Based on its
analysis, management deemed the allowance for loan losses of $4.10 million at
June 30, 2005 (1.05% of loans receivable and 137.87% of non-performing loans)
adequate to provide for probable losses based on an evaluation of known and
inherent risks in the loan portfolio at
6
that date. The allowance for loan losses was $3.93 million (1.16% of loans
receivable and 186.25% of non-performing loans) at June 30, 2004. The Company
did not have any net charge-offs during the current quarter compared to a net
charge-off of $14,000 in the same quarter of 2004. For the nine months ended
June 30, 2005 and 2004, net charge-offs were $4,000 and $57,000, respectively.
The Company's non-performing assets to total assets ratio increased to 0.61%
at June 30, 2005 from 0.59% at June 30, 2004. The non-performing loan total
of $2.98 million at June 30, 2005 consisted of $2.05 million in one-to-four
family loans, $598,000 in commercial real estate loans, $257,000 in commercial
business loans, and $69,000 in land loans.
Non-interest Income: Total non-interest income increased $430,000 to $1.55
million for the quarter ended June 30, 2005 from $1.12 million for the quarter
ended June 30, 2004, primarily due to a $213,000 increase in service charges
on deposits, a $114,000 increase in income from loan sales (gain on sale of
loans and servicing income on loans sold), and a $57,000 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.
Total non-interest income increased by $928,000 to $4.43 million for the nine
months ended June 30, 2005 from $3.50 million for the nine months ended June
30, 2004, primarily due to a $653,000 increase in service charges on deposits,
a $170,000 increase in ATM transaction fees, 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 recent merger.
Non-interest Expense: Total non-interest expense increased by $571,000 to
$4.47 million for the quarter ended June 30, 2005 from $3.89 million for the
quarter ended June 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 increase was primarily a result of a $373,000
increase in salaries and employee benefits, a $171,000 increase in premises
and equipment expenses, and a $94,000 core deposit intangible amortization
expense. 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's efficiency ratio decreased to 60.69% for the quarter ended June
30, 2005 from 64.91% for the quarter ended June 30, 2004. Effective August 1,
2005 expenses will be reduced by $55,000 per month ($660,000 per year pre-
tax) due to the elimination of the expense associated with the Management
Recognition and Development Plan. The last expense associated with existing
stock grants under the Plan will be recognized on July 31, 2005.
Total non-interest expense increased by $2.33 million to $13.90 million for
the nine months ended June 30, 2005 from $11.56 million for the nine months
ended June 30, 2004. The increase was primarily a result of a $1.17 million
increase in salaries and employee benefits, a $322,000 increase in premises
and equipment expenses, a $273,000 core deposit intangible expense, $142,000
in expenses associated with the branch acquisition, a $109,000 increase in
postage and courier expense, and a $47,000 increase in ATM operating fees.
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 June 30, At September 30,
2005 2004
Amount Percent Amount Percent
----------------- ---------------------
Mortgage Loans:
One-to-four family
(1) $104,771 24.23% $99,835 25.25%
Multi family 18,858 4.36 17,160 4.34
Commercial 125,943 29.12 108,276 27.39
Construction and
land development 108,567 25.11 106,241 26.88
Land 22,291 5.16 19,895 5.03
-------- ------- -------- -------
Total mortgage
loans 380,430 87.98 351,407 88.89
Consumer Loans:
Home equity and
second mortgage 30,936 7.15 23,549 5.96
Other 9,494 2.19 9,270 2.34
-------- ------- -------- -------
40,430 9.34 32,819 8.30
Commercial business
loans 11,591 2.68 11,098 2.81
-------- ------- -------- -------
Total loans 432,451 100.00% 395,324 100.00%
Less:
Undisbursed portion
of construction
loans in process (38,563) (43,563)
Unearned income (2,979) (3,176)
Allowance for loan
losses (4,103) (3,991)
-------- --------
Total loans receivable,
net $386,806 $344,594
======== ========
________________
----------------
(1) Includes loans held-for-sale.
8
TIMBERLAND BANCORP, INC. AND SUBSIDIARIES
DEPOSIT BREAKDOWN
(Dollars in thousands)
June 30, 2005 September 30, 2004
------------- ------------------
Non-interest bearing $ 46,035 $ 37,150
N.O.W checking 93,042 77,242
Savings 61,754 48,200
Money market accounts 48,178 41,652
Certificates of deposit
under $100,000 116,047 93,750
Certificates of deposit
$100,000 and over 43,107 21,576
-------- --------
Total deposits $408,163 $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