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It’s time to party….today I sold TSBK 31.44. That’s a 17.8 percent gain in only 6 weeks over my purchase price of 26.70. Just like I said I would do.
I am HUGE! Bring me your finest meats and cheeses.
That’s a 151% annualized gain. Over the same period, the S&P 500 was up 1.3%. I killed it. Did you get any TSBK? You? YOU??? YOU???!!!
That makes 78 consecutive profitable trades of 15% or better. That’s a record. A 78 actually was a record…you know the kind you play on a record player? But $$$MR. MARKET$$$’s consecutive profitable trades are also a record.
I don’t have time to celebrate. I am going to see Hamilton tomorrow then going to Vegas on Thursday. Here are my college football picks:
Duke +6 vs Miami for 5 units
New Mexico State +16.5 vs Arkansas for 5 units
Buffalo -7 vs Kent for 4 units
Mississippi St +9.5 vs Auburn for 11 units
Notre Dame -22 vs Miami OH for 11 units
UCF -3.5 vs Memphis for 11 units
Washington -27 vs Oregon State for 18 units
Let’s see how I do.
Why don’t you do me a favor and tell a friend about the $$$MR. MARKET$$$ website. Tell one friend and report back to me that you did – if you do that, I’ll show you another stock pick.
I am HUGE!
$$$MR. MARKET$$$
================================================== =========================
08-14-2017, 05:46 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Default TSBK ==> The Whitemarsh Winner!
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
I'm a lumberjack and I'm OK
I sleep all night and I work all day.
He's a lumberjack and he's OK
He sleeps all night and he works all day.
I cut down trees, I eat my lunch
I go to the lavatory.
On Wednesdays I go shopping and have buttered scones for tea
He cut down trees, he eat his lunch
He go to the lavatory.
On Wednesdays he go shopping and has buttered scones for tea.
Out in the wilderness of the Washington state coast are the fishermen and lumberjacks of the great Northwest. When they are done hauling their catch or felling their trees, they line up to get their paychecks from the man. Once they get their paychecks, they drink copious quantities of alcohol and then deposit the rest in their beloved community bank.
Community banks are boring and largely unexciting. The community banking space is often overlooked and, as a result, the stocks of these banks trade at low PE multiples. That’s when I start to get excited. I love boring and quiet companies that make money quarter after quarter and see their stock price rise slowly and under the radar. There are macroeconomic fundamentals that drive the success of some of these companies.
Today I bought Timberland Bancorp, Inc. (TSBK) at 26.70 I will sell it in 4 to 6 weeks at 30.74 Here’s why I like TSBK:
First of all, look at this amazing chart:
This stock is up 73% over the last 52 weeks, and yet it trades at a PE multiple of only 16. It’s such a hidden secret that hardly any ANAL-ysts are even covering it. On top of all this, it pays a dividend too! The company recently declared a quarterly dividend of $0.19 per share. They have grown this dividend payout very consistently which is an excellent sign of a well-managed bank.
Timberland has all of the facets that make them an amazingly well run community bank:
· Strong, consistent earnings with high margins
· Clean asset quality
· Stable and diversified revenue stream
· Sticky, low cost, core deposit base
· Diversified loan portfolio
· Organic income statement and balance sheet growth
· Attractive markets with solid demographics
· Commercial banking relationships
The Bank is a community-oriented bank which has traditionally offered a variety of savings products to its retail customers while concentrating its lending activities on real estate mortgage loans and commercial business loans. Lending activities have historically been focused primarily on the origination of loans secured by real estate, including construction, one- to four-family residential, multi-family, commercial real estate and land loans.
Timberland is making construction loans to spec builders and this is good news as the Tacoma / Seattle economy starts to heat up. Lending rates for construction loans are usually higher than the run of the mill mortgage loans. Washington continues on a strong economic trajectory, highlighted by an all-time low unemployment rate of 4.5 percent in May. Total nonfarm payroll employment rose 17,200 (seasonally adjusted) in March, April, and May, which represents a solid 2.1 percent annual rate of growth.
Construction employment increased 2,600 in the three-month period. Washington housing building got off to a strong start in the second quarter of 2017.
Timberland has promoted a culture of service to build and cultivate throughout their organization. It is a culture that is clearly documented by the question they consistently ask their customers, “How can we help you?”
2016 financial was a year of growth, record net income and significant increases in numerous financial metrics. Compared to their 2015 fiscal year, TSBK achieved the following:
• Increased net income available to common shareholders 22% to $10.15 million
• Increased earnings per diluted common share 22% to $1.43
• Increased return on equity 13% to 11.00% from 9.70%
• Increased return on assets 11% to 1.19% from 1.07%
• Increased net interest margin to 3.88% from 3.80%
• Improved the efficiency ratio to 63.89% from 70.22%
2017 looks even better….more on that later….
The Bank was established in 1915 as “Southwest Washington Savings and Loan Association.” In 1935, the Bank converted from a state-chartered mutual savings and loan association to a federally chartered mutual savings and loan association, and in 1972, changed its name to “Timberland Federal Savings and Loan Association.” On December 29, 2000, the Bank changed its name to “Timberland Bank.”
The Bank considers Grays Harbor, Pierce, Thurston, Kitsap, King and Lewis counties, Washington as its primary market areas. The Bank conducts operations from its main office in Hoquiam (Grays Harbor County). Hoquiam, with a population of approximately 8,400, is located in Grays Harbor County which is situated along Washington State’s central Pacific coast. Hoquiam is located approximately 110 miles southwest of Seattle, Washington and 145 miles northwest of Portland, Oregon. Grays Harbor County, established in 1854, is bounded to its west by the Pacific Ocean. The 1850s brought many settlers. The major industries were logging, milling and timber exports.
The Bank considers its primary market area to include six sub-markets: primarily rural Grays Harbor County with its historical dependence on the timber and fishing industries; Thurston and Kitsap counties with their dependence on state and federal government; Pierce and King counties with their broadly diversified economic bases; and Lewis County with its dependence on retail trade, manufacturing, industrial services and local government. Grays Harbor County has a population of 71,100 and the economic base in Grays Harbor County has been historically dependent on the timber and fishing industries.
Here’s the beautiful thing…. Grays Harbor County has one of the higher unemployment rates in the state, but the good news is it’s on its way down. In fact, unemployment rates within the county have declined over the past five years after cresting at a record-high 16.5 percent in January 2010. In 2015, the average unemployment rate in was down to 9.1 percent. One year later, it dropped to 8.7 percent. The unemployment rate in Grays Harbor is now at 6.9 percent. Although they won’t expect to catch up to the unemployment rate in King County anytime soon, they have made tremendous gains and the numbers are very encouraging for the rest of 2017. What this means is that the future demand for TSBK’s services are tremendously understated if you use history as a guide. The best is what’s ahead!
The picture for more job opportunities is bright, most notably:
• Quinault Beach Resort and Casino is undergoing a $30 million expansion that will lead to an estimated 100 new jobs once completed.
• Summit Pacific Medical Center in Elma is planning to break ground this summer for its expansion and development of a Wellness Center, which is expected to create about 100 jobs.
• Seabrook is constructing their new Main Street that includes some 8 to 10 new businesses, as well as additional jobs in that community.
• Oyhut Bay in Ocean Shores is not only selling lots of real estate, they’ve recently welcomed a new restaurant and bar: the Oyhut Bay Bistro, with a pastry and coffee shop coming next. Also, an 8,000-square-foot retail addition that will include a grocery store and event space is expected to be finished by August.
• Eagles Landing in Elma, which attracted Burger King to town, has announced that a Bi-Mart store is on its way too.
• In 2016, Willis Enterprises purchased Hoquiam Plywood. This helped retain numerous jobs in their community and allowed them to expand from 42 to 106 employees a year later.
• Fox Lumber revived the former mill site of Mary’s River Lumber near Montesano, which had recently closed. The facility is now running and many local jobs were preserved.
• The craft brewing industry has blossomed in Grays Harbor with Steam Donkey Brewing Co. in Aberdeen, Hoquiam Brewing Co. opening this summer, and Bogwater Brewery in Westport reopening last year after rebuilding from a devastating fire at the end of 2015.
• The Port of Grays Harbor has several tenants considering expansion, which could lead to additional family wage jobs in their county.
• In 2016, the port saw an increase in the number of deepwater vessels from 82 in 2015 to 98.
• In 2016, the Satsop Business Park added Fuller Hill Development Co. LLC and Overstock.com as tenants. It also celebrated the grand opening of Xpress Natural Gas’ compressed natural gas facility. (Of the 150 employees hired at Overstock, 141 are residents of Grays Harbor.)
Approximately 135,000 Pierce County residents work outside the county, and that number is expected to grow as lower housing prices compared with the Seattle metro attract more people to Pierce County.
▪ A 2.2 percent growth in jobs projected for 2017 in Pierce County is expected to create an additional 6,800 jobs.
▪ 2017 per capita income is expected to rise 3.1 percent, driven by construction growth and assuming local workers fill those jobs.
▪ In housing activity, new listings, according to the index, were up 8 percent in 2016 and closed sales up 10.5 percent.
According to a recent housing market forecast from Zillow, home prices in Tacoma, Washington are expected to continue rising well into 2018 (and possibly beyond). Earlier this month, the company’s real estate economists predicted that house prices in the city could rise by around 4% between now and March 2018.
In March 2017, the company stated: “Tacoma home values have gone up 14.2% over the past year and Zillow predicts they will rise 4.1% within the next year.”
This is not surprising, given the current state of the Tacoma housing market. Home prices in the area have risen steadily over the last couple of years, and by double digits in 2017 alone. There are a lot of home buyers in the market, but a relatively limited number of properties available. This means that in order for new residents to find affordable housing they will have to look in, wait for it, Grays Harbor County!
The unemployment rate for the Pierce County area increased to 6.0% at September 30, 2016 from 5.7% at September 30, 2015. King County is the most populous county in the state and has a population of 2.1 million according to the U.S. Census Bureau 2015 estimates. The Bank has one branch in King County. According to the Washington State Employment Security Department, the unemployment rate for the King County area increased to 4.0% at September 30, 2016 from 3.9% at September 30, 2015. The number of home sales increased 14.0% for the quarter ended September 30,2016 compared to the same quarter one year earlier. So what we’re seeing is an unemployment rate perched to decrease as the economy heats up. Meanwhile home sales are already taking off. So as more jobs are filled, home sales will really increase. More home sales means more loans for TSBK. We’re right in the middle of this happening! Future job growth over the next ten years is predicted to be 32%. Off we go!
Historically, the principal lending activity of the Bank has consisted of the origination of loans secured by first mortgages on owner-occupied, one- to four-family residences, or by commercial real estate and loans for the construction of one to four-family residences. The Bank’s lending policies generally limit the maximum loan-to-value ratio on mortgage loans secured by owner occupied properties to 95% of the lesser of the appraised value or the purchase price. This is very prudent practice, which keeps the bad loans off of their books. The Bank also inspects such properties annually. Their balance sheet is immaculate.
Commercial real estate loans totaled $312.5 million, or 43.2%, of the total loan portfolio at September 30, 2016. These loans are secured by properties, such as office buildings, retail/wholesale facilities, mini-storage facilities, motels, nursing homes, restaurants and convenience stores, located in the Bank’s primary market area. The Bank typically requires appraisals of properties securing commercial real estate loans. Commercial real estate lending affords the Bank an opportunity to receive interest at rates higher than those generally available from one- to four-family residential lending.
It gets better. Boeing (one of Seattle’s largest employers) is going through the roof. The Seattle area leads the nation as the hottest housing market after a nine-year stretch without being on top.
Timberland has a market cap of $200 million. TSBK last posted its earnings results on Tuesday, July 25th. The savings and loans company reported $0.58 earnings per share for the quarter. The firm had revenue of $12.40 million during the quarter. Timberland Bancorp had a return on equity of 13.19% and a net margin of 26.56%. On average, ANAL-ysts forecast that Timberland Bancorp, Inc. will post $0.97 EPS for the current year. Now that’s a laugh.
For the first nine months of fiscal 2017, Timberland earned $10.55 million, or $1.44 per diluted common share, a 42 percent increase in net income and a 37 percent increase in earnings per diluted common share from the $7.46 million, or $1.05 per diluted common share, reported for the first nine months of fiscal 2016.
So much for history. What’s coming down the pike? $$$MR. MARKET$$$ projects 2017 results as $48.6 million in sales with EPS of $2.09/share. This trend will continue, with 2018 revenues of $58.8 million and earnings of $3.11 per share. Using the modest PE multiple of 16, we’ll see a share price of 33.44/share within the next few months. As for 2018, this stock should get up to $49.76 per share.
Timberland Bancorp, Inc., the holding company for Timberland Bank announced it was added to the Russell 3000 Index and the Russell 2000 Index when Russell investments reconstituted its comprehensive set of U.S. and global equity indexes on June 26, 2017. That means that earnings performance would generate a lot more attention from stock market enthusiasts. Our little secret will be a secret no more and all we will see is buy buy buy buy buy buy buy when the word gets out!
Here’s what the CEO, Mike Sand, had to say:
“Being added to the Russell indexes is a milestone for Timberland, and we are happy to have earned this distinction,” said Michael Sand, president and CEO of Timberland. “Inclusion in these market benchmarks is expected to raise our profile with institutional investors and support trading of our shares.”
“We are pleased with the ongoing strength of the Company’s financial metrics, as we continue to grow the balance sheet toward $1 billion in assets. The December quarter’s net income and earnings per share were both record operating results for the Company and have provided a strong first fiscal quarter for us to build upon during the remainder of our current fiscal year. We expect rising interest rates to have a positive impact on the Company’s earnings this year as will the scheduled maturities of two high cost Federal Home Loan Bank borrowings this summer.”
I’m feeling good about this stock and they are going to need a bigger bank to take on the deposit I am going to have once I make this trade. TIMBER!!!!!
I am HUGE!
$$$MR. MARKET$$$
I am HUGE! Bring me your finest meats and cheeses.
That’s a 151% annualized gain. Over the same period, the S&P 500 was up 1.3%. I killed it. Did you get any TSBK? You? YOU??? YOU???!!!
That makes 78 consecutive profitable trades of 15% or better. That’s a record. A 78 actually was a record…you know the kind you play on a record player? But $$$MR. MARKET$$$’s consecutive profitable trades are also a record.
I don’t have time to celebrate. I am going to see Hamilton tomorrow then going to Vegas on Thursday. Here are my college football picks:
Duke +6 vs Miami for 5 units
New Mexico State +16.5 vs Arkansas for 5 units
Buffalo -7 vs Kent for 4 units
Mississippi St +9.5 vs Auburn for 11 units
Notre Dame -22 vs Miami OH for 11 units
UCF -3.5 vs Memphis for 11 units
Washington -27 vs Oregon State for 18 units
Let’s see how I do.
Why don’t you do me a favor and tell a friend about the $$$MR. MARKET$$$ website. Tell one friend and report back to me that you did – if you do that, I’ll show you another stock pick.
I am HUGE!
$$$MR. MARKET$$$
================================================== =========================
08-14-2017, 05:46 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Default TSBK ==> The Whitemarsh Winner!
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
I'm a lumberjack and I'm OK
I sleep all night and I work all day.
He's a lumberjack and he's OK
He sleeps all night and he works all day.
I cut down trees, I eat my lunch
I go to the lavatory.
On Wednesdays I go shopping and have buttered scones for tea
He cut down trees, he eat his lunch
He go to the lavatory.
On Wednesdays he go shopping and has buttered scones for tea.
Out in the wilderness of the Washington state coast are the fishermen and lumberjacks of the great Northwest. When they are done hauling their catch or felling their trees, they line up to get their paychecks from the man. Once they get their paychecks, they drink copious quantities of alcohol and then deposit the rest in their beloved community bank.
Community banks are boring and largely unexciting. The community banking space is often overlooked and, as a result, the stocks of these banks trade at low PE multiples. That’s when I start to get excited. I love boring and quiet companies that make money quarter after quarter and see their stock price rise slowly and under the radar. There are macroeconomic fundamentals that drive the success of some of these companies.
Today I bought Timberland Bancorp, Inc. (TSBK) at 26.70 I will sell it in 4 to 6 weeks at 30.74 Here’s why I like TSBK:
First of all, look at this amazing chart:
This stock is up 73% over the last 52 weeks, and yet it trades at a PE multiple of only 16. It’s such a hidden secret that hardly any ANAL-ysts are even covering it. On top of all this, it pays a dividend too! The company recently declared a quarterly dividend of $0.19 per share. They have grown this dividend payout very consistently which is an excellent sign of a well-managed bank.
Timberland has all of the facets that make them an amazingly well run community bank:
· Strong, consistent earnings with high margins
· Clean asset quality
· Stable and diversified revenue stream
· Sticky, low cost, core deposit base
· Diversified loan portfolio
· Organic income statement and balance sheet growth
· Attractive markets with solid demographics
· Commercial banking relationships
The Bank is a community-oriented bank which has traditionally offered a variety of savings products to its retail customers while concentrating its lending activities on real estate mortgage loans and commercial business loans. Lending activities have historically been focused primarily on the origination of loans secured by real estate, including construction, one- to four-family residential, multi-family, commercial real estate and land loans.
Timberland is making construction loans to spec builders and this is good news as the Tacoma / Seattle economy starts to heat up. Lending rates for construction loans are usually higher than the run of the mill mortgage loans. Washington continues on a strong economic trajectory, highlighted by an all-time low unemployment rate of 4.5 percent in May. Total nonfarm payroll employment rose 17,200 (seasonally adjusted) in March, April, and May, which represents a solid 2.1 percent annual rate of growth.
Construction employment increased 2,600 in the three-month period. Washington housing building got off to a strong start in the second quarter of 2017.
Timberland has promoted a culture of service to build and cultivate throughout their organization. It is a culture that is clearly documented by the question they consistently ask their customers, “How can we help you?”
2016 financial was a year of growth, record net income and significant increases in numerous financial metrics. Compared to their 2015 fiscal year, TSBK achieved the following:
• Increased net income available to common shareholders 22% to $10.15 million
• Increased earnings per diluted common share 22% to $1.43
• Increased return on equity 13% to 11.00% from 9.70%
• Increased return on assets 11% to 1.19% from 1.07%
• Increased net interest margin to 3.88% from 3.80%
• Improved the efficiency ratio to 63.89% from 70.22%
2017 looks even better….more on that later….
The Bank was established in 1915 as “Southwest Washington Savings and Loan Association.” In 1935, the Bank converted from a state-chartered mutual savings and loan association to a federally chartered mutual savings and loan association, and in 1972, changed its name to “Timberland Federal Savings and Loan Association.” On December 29, 2000, the Bank changed its name to “Timberland Bank.”
The Bank considers Grays Harbor, Pierce, Thurston, Kitsap, King and Lewis counties, Washington as its primary market areas. The Bank conducts operations from its main office in Hoquiam (Grays Harbor County). Hoquiam, with a population of approximately 8,400, is located in Grays Harbor County which is situated along Washington State’s central Pacific coast. Hoquiam is located approximately 110 miles southwest of Seattle, Washington and 145 miles northwest of Portland, Oregon. Grays Harbor County, established in 1854, is bounded to its west by the Pacific Ocean. The 1850s brought many settlers. The major industries were logging, milling and timber exports.
The Bank considers its primary market area to include six sub-markets: primarily rural Grays Harbor County with its historical dependence on the timber and fishing industries; Thurston and Kitsap counties with their dependence on state and federal government; Pierce and King counties with their broadly diversified economic bases; and Lewis County with its dependence on retail trade, manufacturing, industrial services and local government. Grays Harbor County has a population of 71,100 and the economic base in Grays Harbor County has been historically dependent on the timber and fishing industries.
Here’s the beautiful thing…. Grays Harbor County has one of the higher unemployment rates in the state, but the good news is it’s on its way down. In fact, unemployment rates within the county have declined over the past five years after cresting at a record-high 16.5 percent in January 2010. In 2015, the average unemployment rate in was down to 9.1 percent. One year later, it dropped to 8.7 percent. The unemployment rate in Grays Harbor is now at 6.9 percent. Although they won’t expect to catch up to the unemployment rate in King County anytime soon, they have made tremendous gains and the numbers are very encouraging for the rest of 2017. What this means is that the future demand for TSBK’s services are tremendously understated if you use history as a guide. The best is what’s ahead!
The picture for more job opportunities is bright, most notably:
• Quinault Beach Resort and Casino is undergoing a $30 million expansion that will lead to an estimated 100 new jobs once completed.
• Summit Pacific Medical Center in Elma is planning to break ground this summer for its expansion and development of a Wellness Center, which is expected to create about 100 jobs.
• Seabrook is constructing their new Main Street that includes some 8 to 10 new businesses, as well as additional jobs in that community.
• Oyhut Bay in Ocean Shores is not only selling lots of real estate, they’ve recently welcomed a new restaurant and bar: the Oyhut Bay Bistro, with a pastry and coffee shop coming next. Also, an 8,000-square-foot retail addition that will include a grocery store and event space is expected to be finished by August.
• Eagles Landing in Elma, which attracted Burger King to town, has announced that a Bi-Mart store is on its way too.
• In 2016, Willis Enterprises purchased Hoquiam Plywood. This helped retain numerous jobs in their community and allowed them to expand from 42 to 106 employees a year later.
• Fox Lumber revived the former mill site of Mary’s River Lumber near Montesano, which had recently closed. The facility is now running and many local jobs were preserved.
• The craft brewing industry has blossomed in Grays Harbor with Steam Donkey Brewing Co. in Aberdeen, Hoquiam Brewing Co. opening this summer, and Bogwater Brewery in Westport reopening last year after rebuilding from a devastating fire at the end of 2015.
• The Port of Grays Harbor has several tenants considering expansion, which could lead to additional family wage jobs in their county.
• In 2016, the port saw an increase in the number of deepwater vessels from 82 in 2015 to 98.
• In 2016, the Satsop Business Park added Fuller Hill Development Co. LLC and Overstock.com as tenants. It also celebrated the grand opening of Xpress Natural Gas’ compressed natural gas facility. (Of the 150 employees hired at Overstock, 141 are residents of Grays Harbor.)
Approximately 135,000 Pierce County residents work outside the county, and that number is expected to grow as lower housing prices compared with the Seattle metro attract more people to Pierce County.
▪ A 2.2 percent growth in jobs projected for 2017 in Pierce County is expected to create an additional 6,800 jobs.
▪ 2017 per capita income is expected to rise 3.1 percent, driven by construction growth and assuming local workers fill those jobs.
▪ In housing activity, new listings, according to the index, were up 8 percent in 2016 and closed sales up 10.5 percent.
According to a recent housing market forecast from Zillow, home prices in Tacoma, Washington are expected to continue rising well into 2018 (and possibly beyond). Earlier this month, the company’s real estate economists predicted that house prices in the city could rise by around 4% between now and March 2018.
In March 2017, the company stated: “Tacoma home values have gone up 14.2% over the past year and Zillow predicts they will rise 4.1% within the next year.”
This is not surprising, given the current state of the Tacoma housing market. Home prices in the area have risen steadily over the last couple of years, and by double digits in 2017 alone. There are a lot of home buyers in the market, but a relatively limited number of properties available. This means that in order for new residents to find affordable housing they will have to look in, wait for it, Grays Harbor County!
The unemployment rate for the Pierce County area increased to 6.0% at September 30, 2016 from 5.7% at September 30, 2015. King County is the most populous county in the state and has a population of 2.1 million according to the U.S. Census Bureau 2015 estimates. The Bank has one branch in King County. According to the Washington State Employment Security Department, the unemployment rate for the King County area increased to 4.0% at September 30, 2016 from 3.9% at September 30, 2015. The number of home sales increased 14.0% for the quarter ended September 30,2016 compared to the same quarter one year earlier. So what we’re seeing is an unemployment rate perched to decrease as the economy heats up. Meanwhile home sales are already taking off. So as more jobs are filled, home sales will really increase. More home sales means more loans for TSBK. We’re right in the middle of this happening! Future job growth over the next ten years is predicted to be 32%. Off we go!
Historically, the principal lending activity of the Bank has consisted of the origination of loans secured by first mortgages on owner-occupied, one- to four-family residences, or by commercial real estate and loans for the construction of one to four-family residences. The Bank’s lending policies generally limit the maximum loan-to-value ratio on mortgage loans secured by owner occupied properties to 95% of the lesser of the appraised value or the purchase price. This is very prudent practice, which keeps the bad loans off of their books. The Bank also inspects such properties annually. Their balance sheet is immaculate.
Commercial real estate loans totaled $312.5 million, or 43.2%, of the total loan portfolio at September 30, 2016. These loans are secured by properties, such as office buildings, retail/wholesale facilities, mini-storage facilities, motels, nursing homes, restaurants and convenience stores, located in the Bank’s primary market area. The Bank typically requires appraisals of properties securing commercial real estate loans. Commercial real estate lending affords the Bank an opportunity to receive interest at rates higher than those generally available from one- to four-family residential lending.
It gets better. Boeing (one of Seattle’s largest employers) is going through the roof. The Seattle area leads the nation as the hottest housing market after a nine-year stretch without being on top.
Timberland has a market cap of $200 million. TSBK last posted its earnings results on Tuesday, July 25th. The savings and loans company reported $0.58 earnings per share for the quarter. The firm had revenue of $12.40 million during the quarter. Timberland Bancorp had a return on equity of 13.19% and a net margin of 26.56%. On average, ANAL-ysts forecast that Timberland Bancorp, Inc. will post $0.97 EPS for the current year. Now that’s a laugh.
For the first nine months of fiscal 2017, Timberland earned $10.55 million, or $1.44 per diluted common share, a 42 percent increase in net income and a 37 percent increase in earnings per diluted common share from the $7.46 million, or $1.05 per diluted common share, reported for the first nine months of fiscal 2016.
So much for history. What’s coming down the pike? $$$MR. MARKET$$$ projects 2017 results as $48.6 million in sales with EPS of $2.09/share. This trend will continue, with 2018 revenues of $58.8 million and earnings of $3.11 per share. Using the modest PE multiple of 16, we’ll see a share price of 33.44/share within the next few months. As for 2018, this stock should get up to $49.76 per share.
Timberland Bancorp, Inc., the holding company for Timberland Bank announced it was added to the Russell 3000 Index and the Russell 2000 Index when Russell investments reconstituted its comprehensive set of U.S. and global equity indexes on June 26, 2017. That means that earnings performance would generate a lot more attention from stock market enthusiasts. Our little secret will be a secret no more and all we will see is buy buy buy buy buy buy buy when the word gets out!
Here’s what the CEO, Mike Sand, had to say:
“Being added to the Russell indexes is a milestone for Timberland, and we are happy to have earned this distinction,” said Michael Sand, president and CEO of Timberland. “Inclusion in these market benchmarks is expected to raise our profile with institutional investors and support trading of our shares.”
“We are pleased with the ongoing strength of the Company’s financial metrics, as we continue to grow the balance sheet toward $1 billion in assets. The December quarter’s net income and earnings per share were both record operating results for the Company and have provided a strong first fiscal quarter for us to build upon during the remainder of our current fiscal year. We expect rising interest rates to have a positive impact on the Company’s earnings this year as will the scheduled maturities of two high cost Federal Home Loan Bank borrowings this summer.”
I’m feeling good about this stock and they are going to need a bigger bank to take on the deposit I am going to have once I make this trade. TIMBER!!!!!
I am HUGE!
$$$MR. MARKET$$$
Comment