Timberland Bank today reported net income of $4.28 million, or $0.58 per diluted common share, for the second quarter of 2017.
This compares to net income of $2.55 million, or $0.36 per diluted common share, for the second quarter of last year. That’s also up from the net income of $3.13 million, or $0.42 per diluted common share, for the preceding quarter.
”This quarter we once again received the financial benefit of growing revenues more than expenses,” said Michael R. Sand, president and CEO of Timberland. “We also recouped interest that had previously been classified as non-accrual and booked a recovery on a previously charged off loan that was fully paid during the quarter.
“Income recognized from these two sources was partially offset by prepayment penalties incurred for the early termination of two legacy Federal Home Loan Bank borrowings,” continued Sand. “The net result of these three items was a $953,000 increase in net income which positively affected the current quarter’s EPS by approximately $0.13. Even without the benefit of these extraordinary items the quarter’s income and EPS significantly exceeded the results posted in the prior fiscal year’s comparable quarter. Prepaying the FHLB borrowings eliminated monthly interest expense by, on average, $100,000 per month which will benefit our fiscal fourth and subsequent quarters.”