5 unchanged sentences
The Bank opened for business in 1915 and serves consumers and businesses across Grays Harbor, Pierce, Thurston, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).
−Removed: The Bank’s deposits are insured up to applicable legal limits by the Federal Deposit Insurance Corporation (“FDIC”).
+Added: The Bank’s deposits are insured up to applicable legal limits by the FDIC.
The Bank has been a member of the Federal Home Loan Bank System since 1937.
−Removed: The Bank is regulated by the Washington Department of Financial Institutions, Division of Banks (“Division” or “DFI”) and the FDIC.
−Removed: The Company is regulated by the Board of Governors of the Federal Reserve System ("Federal Reserve").
−Removed: On October 1, 2018, the Company completed the acquisition of South Sound Bank, a Washington-state chartered bank, headquartered in Olympia, Washington ("South Sound Acquisition").
−Removed: The Company acquired 100% of the outstanding common stock of South Sound Bank, and South Sound Bank was merged into the Bank.
+Added: The Bank is regulated by the DFI and the FDIC.
+Added: The Company is regulated by the Federal Reserve.
Timberland 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.
27 unchanged sentences
Other industries that support the economic base are tourism, agriculture, shipping, transportation and technology.
−Removed: According to the Washington State Employment Security Department, the unemployment rate in Grays Harbor County increased to 5.8% at September 30, 2022 from 5.3% at September 30, 2021.
−Removed: The median price of a resale home in Grays Harbor County for the quarter ended September 30, 2022 increased 9.2% to $357,200 from $327,100 for the comparable prior year period.
−Removed: The number of home sales increased 1.3% for the quarter ended September 30, 2022 compared to the same quarter one year earlier.
+Added: According to the Washington State Employment Security Department, the unemployment rate in Grays Harbor County decreased to 4.8% at September 30, 2023 from 5.8% at September 30, 2022.
+Added: The median price of a resale home in Grays Harbor County for the quarter ended September 30, 2023 decreased 1.7% to $351,300 from $357,200 for the comparable prior year period.
+Added: The number of home sales decreased 4.2% for the quarter ended September 30, 2023 compared to the same quarter one year earlier.
The Bank has six branches (including its home office) located in the county.
3 unchanged sentences
The economy in Pierce County is diversified with the presence of military related government employment (Joint Base Lewis-McChord), transportation and shipping employment (Port of Tacoma), and aerospace related employment.
−Removed: According to the Washington State Employment Security Department, the unemployment rate for the Pierce County area increased to 4.3% at September 30, 2022 from 4.2% at September 30, 2021.
−Removed: The median price of a resale home in Pierce County for the quarter ended September 30, 2022 increased 7.2% to $554,900 from $517,500 for the comparable prior year period.
+Added: According to the Washington State Employment Security Department, the unemployment rate for the Pierce County area decreased to 3.9% at September 30, 2023 from 4.3% at September 30, 2022.
+Added: The median price of a resale home in Pierce County for the quarter ended September 30, 2023 decreased 1.7% to $545,200 from $554,900 for the comparable prior year period.
The number of home sales decreased 10.7% for the quarter ended September 30, 2023 compared to the same quarter one year earlier.
3 unchanged sentences
Thurston County is home of Washington State’s capital (Olympia), and its economic base is largely driven by state government related employment.
−Removed: According to the Washington State Employment Security Department, the unemployment rate for the Thurston County area increased to 3.8% at September 30, 2022 from 3.5% at September 30, 2021.
+Added: According to the Washington State Employment Security Department, the unemployment rate for the Thurston County area decreased to 3.4% at September 30, 2023 from 3.8% at September 30, 2022.
The median price of a resale home in Thurston County for the quarter ended September 30, 2023 increased 4.7% to $516,300 from $493,000 for the same quarter one year earlier.
6 unchanged sentences
The economic base of Kitsap County is largely supported by military related government employment through the U.S.
−Removed: According to the Washington State Employment Security Department, the unemployment rate for the Kitsap County area increased to 3.6% at September 30, 2022 from 3.4% at September 30, 2021.
+Added: According to the Washington State Employment Security Department, the unemployment rate for the Kitsap County area decreased to 3.5% at September 30, 2023 from 3.6% at September 30, 2022.
The median price of a resale home in Kitsap County for the quarter ended September 30, 2023 increased 2.0% to $552,700 from $541,600 for the same quarter one year earlier.
−Removed: The number of home sales was unchanged for the quarter ended September 30, 2022 compared to the same quarter one year earlier.
+Added: The number of home sales decreased 7.8% for the quarter ended September 30, 2023 compared to the same quarter one year earlier.
King County is the most populous county in the state and has a population of 2.3 million according to the U.S.
3 unchanged sentences
King County’s economic base is diversified with many industries including shipping, transportation, aerospace, computer technology and biotech.
−Removed: According to the Washington State Employment Security Department, the unemployment rate for the King County area decreased to 2.9% at September 30, 2022 from 4.3% at
−Removed: September 30, 2021.
+Added: According to the Washington State Employment Security Department, the unemployment rate for the King County area increased to 3.6% at September 30, 2023 from 2.9% at September 30, 2022.
The median price of a resale home in King County for the quarter ended September 30, 2023 increased 1.6% to $908,100 from $893,800 for the same quarter one year earlier.
3 unchanged sentences
The economic base in Lewis County is supported by manufacturing, retail trade, local government and industrial services.
−Removed: According to the Washington State Employment Security Department, the unemployment rate in Lewis County increased to 4.7% at September 30, 2022 from 4.3% at September 30, 2021.
+Added: According to the Washington State Employment Security Department, the unemployment rate in Lewis County decreased to 4.3% at September 30, 2023 from 4.7% at September 30, 2022.
The median price of a resale home in Lewis County for the quarter ended September 30, 2023 increased 3.6% to $410,900 from $396,500 for the same quarter one year earlier.
6 unchanged sentences
however, they also present a higher degree of risk.
−Removed: The Bank’s internal loan policy limits the maximum amount of loans to one borrower to 20% of its capital plus surplus.
+Added: The Bank’s internal loan policy limits the maximum amount of loans to one borrower to 90% of its legal lending limit (which is 20% of its capital plus surplus).
According to the Washington Administrative Code, capital and surplus are defined as a bank's Tier 1 capital, Tier 2 capital and the balance of a bank's allowance for loan losses not included in the bank's Tier 2 capital as reported in the bank's call report.
At September 30, 2023, the maximum amount which the Bank could have lent to any one borrower and the borrower’s related entities was approximately $42.31 million under this policy.
−Removed: At September 30, 2022, the largest amount outstanding to any one borrower and the borrower’s related entities was $39.79 million (including $4.18 million in available lines of credit), which was secured by various commercial real estate and residential properties and other business assets located primarily in King and Pierce counties, and these borrowings were performing according to their repayment terms at September 30, 2022.
+Added: At September 30, 2023, the largest amount outstanding to any one borrower and the borrower’s related entities was $38.12 million (including $5.28 million in available lines of credit), which was secured by various commercial real estate and residential properties and other business assets located primarily in King and Pierce counties, and these loans were performing according to their repayment terms at September 30, 2023.
The next largest amount outstanding to any one borrower and the borrower’s related entities was $33.98 million (including $1.56 million of undisbursed construction loan proceeds).
−Removed: These loans were secured by multi-family, one- to four-family and commercial real estate properties located primarily in Thurston County and were performing according to their loan repayment terms at September 30, 2022.
+Added: These loans were secured by multi-family, one- to four-family and commercial real estate properties located primarily in Thurston County and were performing according to their repayment terms at September 30, 2023.
Loan Portfolio Analysis.
51 unchanged sentences
The Bank also offers adjustable-rate mortgage (“ARM”) loans.
−Removed: All of the Bank’s ARM loans are retained in its loan portfolio.
+Added: All the Bank’s ARM loans are retained in its loan portfolio.
The Bank offers several ARM products which adjust annually or every three to five years after an initial period ranging from one to five years and are typically subject to a limitation on the annual interest rate increase of 2% and an overall limitation of 6%.
23 unchanged sentences
Thus, average loan maturity is a function of, among other factors, the level of purchase and sale activity in the real estate market, prevailing interest rates and the interest rates received on outstanding loans.
−Removed: The Bank requires that fire and extended coverage casualty insurance be maintained on the collateral for all of its real estate secured loans and flood insurance, if appropriate.
+Added: The Bank requires that fire and extended coverage casualty insurance, and flood insurance if appropriate, be maintained on the collateral for all of its real estate secured loans.
The Bank’s lending policies generally limit the maximum loan-to-value ratio on mortgage loans secured by owner-occupied properties to 85% of the lesser of the appraised value or the purchase price.
However, the Bank usually obtains private mortgage insurance (“PMI”) on the portion of the principal amount that exceeds 80% of the appraised value of the security property.
−Removed: The maximum loan-to-value ratio on mortgage loans secured by non-owner-occupied properties is generally 80% (90% for loans originated for sale in the secondary market to Freddie Mac or the FHLB).
+Added: The maximum loan-to-value ratio on mortgage loans secured by non-owner-occupied properties is generally 80%
+Added: (90% for loans originated for sale in the secondary market to Freddie Mac or the FHLB).
At September 30, 2023, two one- to four-family loans totaling $368,000 were on non-accrual status.
4 unchanged sentences
Treasury Bill Index, the Prime Rate or a matched term FHLB borrowing, with principal and interest payments fully amortizing over terms of up to 30 years.
−Removed: At September 30, 2022, the Bank’s largest multi-family loan had an outstanding
−Removed: principal balance o f $7.01 million and was secured by an apartment building located in Thurston County.
+Added: At September 30, 2023, the Bank’s largest multi-family loan had an outstanding principal balance of $10.00 million and was secured by an apartment building located in Thurston County.
At September 30, 2023, this loan was performing according to its repayment terms.
14 unchanged sentences
These loans are secured by properties, such as industrial warehouses, medical/dental offices, office buildings, retail/wholesale facilities, mini-storage facilities, hotel/motels, nursing homes, restaurants, convenience stores, shopping centers and mobile home parks, generally located in the Bank’s primary market area.
−Removed: At September 30, 2022, the largest commercial real estate loan was secured by a medical office building in Thurston County, had a balance of $7.91 million and was perf orming according to its repayment terms.
−Removed: At September 30, 2022, three commercial real estate loans totaling $657,00 0 were on non-accrual status.
+Added: At September 30, 2023, the largest commercial real estate loan was secured by a medical office building in Thurston County, had a balance of $7.75 million and was perf or ming according to its repayment terms.
+Added: At September 30, 2023, two commercial real estate loans totaling $683,000 were on non-accrual status.
See “Lending Activities - Non-performing Loans and Delinquencies.”
14 unchanged sentences
(i) custom construction and owner/builder construction loans and (ii) speculative construction loans.
−Removed: The Bank believes that its lengthy experience in providing residential construction loans has enabled it to establish processing and disbursement procedures to meet the needs of its borrowers while reducing many of the risks inherent with construction lending.
+Added: The Bank believes that its lengthy experience in providing residential construction loans has enabled it to establish processing and disbursement procedures to
+Added: meet the needs of its borrowers while reducing many of the risks inherent with construction lending.
The Bank also originates construction loans for commercial properties, multi-family properties, and land development projects.
17 unchanged sentences
At the completion of construction, the loan is converted to or refinanced into either a fixed-rate mortgage loan, which conforms to secondary market standards, or an ARM loan for retention in the Bank’s portfolio.
−Removed: At September 30, 2022, the largest outstanding custom and owner/builder construction loan had an outstanding balance of $1.51 million (including $1.31 million of undisbursed loans in process) and was performing according to its repayment terms.
+Added: At September 30, 2023, the largest outstanding custom and owner/builder construction loan had an outstanding balance of $1.18 million (including $502,000 of undisbursed loans in process) and was performing according to its repayment terms.
Speculative one- to four-family construction loans are made to home builders and are termed “speculative” because the home builder does not have, at the time of loan origination, a signed contract with a home buyer who has a commitment for permanent financing with either the Bank or another lender for the finished home.
1 unchanged sentence
Rather than originating lines of credit to home builders to construct several homes at once, the Bank generally originates and underwrites a separate loan for each home.
−Removed: Speculative construction loans are generally originated for a term of 12 months, with current rates generally ranging from 5.50% to 7.50 %, an d with a loan-to-value ratio of no more than 80 % of the appraised value of the completed property.
−Removed: At September 30, 2022, the largest aggregate outstanding balance to one borrower for speculative one- to four-family construction loans to taled $4.04 million (including $642,000 of undisbursed loans in process) and was comprised of four loans that were performing according to their repayment terms.
+Added: Speculative construction loans are generally originated for a term of 12 months, with current rates generally ranging fr om 6.50% to 9.50%, an d with a loan-to-value ratio of no more than 80 % of the appraised value of the completed property.
+Added: At September 30, 2023, the largest aggregate outstanding balance to one borrower for speculative one- to four-family construction loans to taled $3.12 million (including $796,000 of undisbursed loans in process) and was comprised of five loans that were performing according to their repayment terms.
The Bank also provides construction financing for multi-family and commercial properties.
At September 30, 2023, these loans amounted to $108.20 million, or 39.5%, of construction loan balances.
−Removed: These loans are typically secured by apartment buildings, condominiums, mini-storage facilities, office buildings, hotels and retail rental space predominantly located in the Bank’s primary market area.
−Removed: At September 30, 2022, the largest outstanding multi-family construction loan was for $10.00 million (including $3.50 million of undisbursed loans in process) secured by an apartment building project in Thurston County.
−Removed: At September 30, 2022, the largest outstanding commercial real estate construction loan was secured by a mini-storage facility in Grays Harbor, Washington and had a balance of $7.21 million (including $348,000 of undisbursed loans in process).
−Removed: This loan was performing according to its repayment terms at September 30, 2022.
+Added: These loans are typically secured by apartment buildings, condominiums, mini-storage facilities, office buildings, hotels and retail rental space predominantly loc ated in the Bank’s primary market area.
+Added: At September 30, 2023, the largest outstanding multi-family construction loan was for $8.00 million (including $233,000 of undisbursed loans in process) secured by an apartment building project in Pierce County.
+Added: At September 30, 2023, the largest outstanding commercial real estat e construction loan was secured by a mini-storage facility in Grays Harbor, Washington and had a balance of $7.10 million (including $108,000 of undisbursed loans in process).
+Added: These loans were performing according to their repayment terms at September 30, 2023.
All construction loans must be approved by a member of one of the Bank’s Loan Committees or the Bank’s Board of Directors, or in the case of one- to four-family construction loans that meet Freddie Mac guidelines, by the Regional Manager of Community Lending, the Loan Department Supervisor or a Bank underwriter.
See “Lending Activities - Loan Solicitation and Processing.” Prior to approval of any construction loan application, an independent fee appraiser inspects the site and prepares an appraisal on an "as completed" basis, and the Bank reviews the existing or proposed improvements, identifies the market for the proposed project and analyzes the pro-forma data and assumptions on the project.
−Removed: In the case of a speculative or custom construction loan, the Bank reviews the experience and expertise of the builder.
+Added: In the case of a speculative or
+Added: custom construction loan, the Bank reviews the experience and expertise of the builder.
After this preliminary review, the application is processed, which includes obtaining credit reports, financial statements and tax returns or verification of income on the borrowers and guarantors, an independent appraisal of the project, and any other expert reports necessary to evaluate the proposed project.
20 unchanged sentences
The Bank historically originated loans to real estate developers with whom it had established relationships for the purpose of developing residential subdivisions (i.e .
−Removed: , installing roads, sewers, water and other utilities;
−Removed: generally with ten to 50 lots).
+Added: , installing roads, sewers, water and other utilities) generally with ten to 50 lots.
Currently, the Bank is originating land development loans on a limited basis.
8 unchanged sentences
Land loans originated by the Bank generally have maturities of one to ten years.
−Removed: The largest land loan is secured by land in Pierce County, had an outstanding balance of $1.72 million and was performing according to its repayment terms at September 30, 2022 .
−Removed: At September 30, 2022, two land loans totaling $450,000 were on non-accrual status.
+Added: The largest land loan is secured by land in Grays Harbor County, had an outstanding balance of $1.40 million and was performing according to its repayment terms at September 30, 2023 .
+Added: At September 30, 2023, all land loans were performing according to their repayment terms .
See “Lending Activities - Non-performing Loans and Delinquencies.”
Loans secured by undeveloped land or improved lots involve greater risks than one- to four-family residential mortgage loans because these loans are more difficult to evaluate.
−Removed: If the estimate of value proves to be inaccurate, in the event of default and foreclosure, the Bank may be confronted with a property the value of which is insufficient to assure full
+Added: If the estimate of value proves to be inaccurate, in the event of default and foreclosure, the Bank may be confronted with a property the value of which is insufficient to assure full repayment.
Land loans also pose additional risk because of the lack of income being produced by the property and potential illiquid nature of the collateral.
5 unchanged sentences
Consumer loans are made with both fixed and variable interest rates and with varying terms.
−Removed: Home equity lines of credit and second mortgage loans are made for purposes such as the improvement of residential properties, debt consolidation and education expenses, among others.
−Removed: The majority of these loans are made to existing customers and are secured by a first or second mortgage on residential property.
−Removed: The loan-to-value ratio is typically 90% or less, when taking into account both the first and second mortgage loans.
+Added: Home equity lines of credit and second mortgage loans are made for purposes such as the improvement of residential properties, debt consolidation and education expenses, among others.The majority of these loans are made to existing customers and are secured by a first or second mortgage on residential property.
+Added: The loan-to-value ratio is typically 90% or less, when considering both the first and second mortgage loans.
Second mortgage loans typically carry fixed interest rates with a fixed payment over a term between five and 15 years.
8 unchanged sentences
The Bank believes that these risks are not as prevalent in the case of the Bank’s consumer loan portfolio, because a large percentage of the portfolio consists of second mortgage loans and home equity lines of credit that are underwritten in a manner such that they result in credit risk that is substantially similar to one- to four-family residential mortgage loans.
−Removed: At September 30, 2022, three consumer loans totaling $255,000 were on non-accrual status.
+Added: At September 30, 2023, one consumer loan totaling $177,000 was on non-accrual status.
See “Lending Activities - Non-performing Loans and Delinquencies.”
Commercial Business Lending .
−Removed: Commercial business loans totaled $126.04 million, or 10.1%, of the loan portfolio at September 30, 2022.
+Added: Commercial business loans (including SBA PPP loans) totaled $136.27 million, or 9.55%, of the loan portfolio at September 30, 2023.
Commercial business loans are generally secured by business equipment, accounts receivable, inventory and/or other property and are made at variable rates of interest equal to a negotiated margin above the Prime Rate.
1 unchanged sentence
The largest commercial business loan had an outstanding balance of $3.85 million at September 30, 2023 and was performing according to its repayment terms.
−Removed: At September 30, 2022, seven commercial business loans totaling $309,000 were on non-accrual status.
+Added: At September 30, 2023, five commercial business loans totaling $286,000 were on non-accrual status.
See “Lending Activities - Non-performing Loans and Delinquencies.”
8 unchanged sentences
SBA 7(a) loans are all adjustable rate loans based on the Prime Rate.
−Removed: Under the SBA 7(a) program, the Bank can sell in the secondary market the guaranteed portion of its SBA 7(a) loans and retain the related unguaranteed portion of these loans, as well as the servicing on such loans, for which it is paid a fee.
+Added: Under the SBA 7(a) program, the Bank can
+Added: sell in the secondary market the guaranteed portion of its SBA 7(a) loans and retain the related unguaranteed portion of these loans, as well as the servicing on such loans, for which it is paid a fee.
The loan servicing spread is generally a minimum of 1.00% on all SBA 7(a) loans.
The Bank generally offers SBA 7(a) loans within a range of $50,000 to $1.50 million.
−Removed: Commercial business loans also include loans originated under the PPP, a specialized low-interest (1%) forgivable loan program funded by the U.S.
−Removed: Treasury Department and administered by the SBA.
−Removed: The SBA guarantees 100% of the PPP loans made to eligible borrowers.
−Removed: The program was instituted in response to the COVID-19 pandemic and ended May 31.
−Removed: The Bank is now working with its remaining PPP borrowers on the forgiveness phase of the program.
−Removed: principal amount of the borrower's PPP loans, including any accrued interest, is eligible to be forgiven and repaid by the SBA.
−Removed: SBA PPP loans totaled $1.00 million at September 30, 2022.
Commercial business lending generally involves greater risk than residential mortgage lending and involves risks that are different from those associated with residential and commercial real estate lending.
28 unchanged sentences
_____________
−Removed: (1) Includes $119.24 million of customer and owner/building construction/permanent loans, a portion of which may convert to permanent mortgage loans once construction is completed.
+Added: (1) Includes $129.70 million of custom and owner/building construction/permanent loans, a portion of which may convert to permanent mortgage loans once construction is completed.
The following table sets forth the dollar amount of all loans due after one year from September 30, 2023, which have fixed interest rates and have floating or adjustable interest rates:
26 unchanged sentences
All construction loans must be approved by a member of one of the Bank's Loan Committees or the Bank's Board of Directors, or in the case of one- to four- family construction loans that meet Freddie Mac guidelines, by the Regional Manager of Community Lending, the Loan Department Supervisor or a Bank underwriter, subject to their individual or Loan Committee loan limit.
−Removed: The Bank’s Commercial Loan Committee, which consists of the Bank’s Chief Executive Officer, President, Chief Credit Administrator, Executive Vice President of Lending, a commercial underwriter, and two Senior Vice Presidents of Commercial Lending, may approve commercial real estate loans and commercial business loans up to and including $3.00 million.
−Removed: The Bank’s Chief Executive Officer, President, Chief Credit Administrator and Executive Vice President of Lending also have individual lending authority for loans up to and including $750,000.
−Removed: The Bank’s Board Loan Committee, which consists of two rotating non-employee Directors and the Bank’s Chief Executive Officer may approve loans up to and including $5.00 million.
+Added: The Bank’s Commercial Loan Committee, which consists of the Bank’s Chief Executive Officer, Chief Credit Administrator, Executive Vice President of Lending, a commercial underwriter, and the Senior Vice President of Credit Administration, may approve commercial real estate loans and commercial business loans up to and including $3.00 million.
+Added: The Bank’s Chief Executive Officer, Chief Credit Administrator and Executive Vice President of Lending also have individual lending authority for loans up to and including $750,000.
+Added: The Bank’s Board Loan Committee, which consists of one permanent non-employee Director, one rotating non-employee Director and the Bank’s Chief Executive Officer may approve loans up to and including $5.00 million.
Loans in excess of $5.00 million, as well as loans of any amount granted to a single borrower whose aggregate loans exceed $5.00 million, must be approved by the Bank’s Board of Directors.
12 unchanged sentences
These sales are usually made to avoid concentrations in a particular loan type or concentrations to a particular borrower and to generate fee income.
−Removed: During the years ended September 30, 2022, 2021 and 2020, the Bank sold loan participation interests of $14.4 million, $10.0 million and $6.26 million, respectively.
+Added: The Bank did not sell loan participations during the year ended September 30, 2023.
+Added: During the years ended September 30, 2022 and 2021, the Bank sold loan participation interests of $14.4 million and $10.0 million , respectively.
The following table shows total loans originated, purchased, sold and repaid during the years indicated.
30 unchanged sentences
In addition to the 1.0% interest earned on SBA PPP loans, the Bank earned a fee from the SBA to cover processing costs, which is amortized over the life of the loan and recognized fully at payoff or forgiveness.
−Removed: The Bank began processing loan forgiveness applications and receiving SBA PPP forgiveness payments during the three months ended December 31, 2020.
−Removed: Banks may not collect any fees from the SBA PPP loan applicants.
Accounting principles generally accepted in the United States of America ("GAAP") require fees received and certain loan origination costs for originating loans to be deferred and amortized into interest income over the contractual life of the loan.
Net deferred fees or costs associated with loans that are prepaid are recognized as income/expense at the time of prepayment.
−Removed: Unamortized net deferred loan origination fees totaled $4.32 million (including $42,000 for SBA PPP loans) at September 30, 2022.
+Added: Unamortized net deferred loan origination fees totaled $5.24 million at September 30, 2023.
Non-performing Loans and Delinquencies.
2 unchanged sentences
however, the borrower is given a 15-day grace period to make the loan payment.
−Removed: When a mortgage loan borrower fails to make
−Removed: a required payment when due, the Bank institutes collection procedures.
+Added: When a mortgage loan borrower fails to make a required payment when due, the Bank institutes collection procedures.
A notice is mailed to the borrower 16 days after the date the payment was due.
−Removed: Attempts to contact the borrower by telephone generally begin on or before the 30 th day of delinquency.
+Added: Attempts to contact the borrower by telephone generally begin on or before the 30 th day of
If a satisfactory response is not obtained, continuous follow-up contacts are attempted until the loan has been brought current.
36 unchanged sentences
(4) Loans receivable, net for purposes of this table includes the deductions for the undisbursed portion of construction loans in process and deferred loan origination fees and does not include the deduction for the allowance for loan losses.
−Removed: The Bank’s non-accrual loans de creased b y $795,000 to $2.06 million at September 30, 2022 from $2.85 million at September 30, 2021, as a result of a $278,000 decrease in consumer loans, a $233,000 decrease in land loans, a $149,000 decrease in commercial business loans, a $116,000 decrease in commercial mortgage loans and a $19,000 decrease in one- to four-family mortgage loans on non-accrual status.
+Added: The Bank’s non-accrual loans de creased b y $545,000 to $1.51 million at September 30, 2023 from $2.06 million at September 30, 2022, as a result of decreases in non-accrual loans of $450,000 in land loans, $78,000 in consumer loans, $23,000 in commercial business loans, and $20,000 in one- to four-family mortgage loans, partially offset by a $26,000 increase in commercial real estate loans on non-accrual status.
A discussion of the Bank's largest non-performing loans is set forth below under “Asset Classification.”
13 unchanged sentences
TDRs are classified as non-performing loans unless they have been performing in accordance with their modified terms for a period of at least six months.
−Removed: The Bank had TDRs at September 30, 2022 and 2021 totaling $2.61 million and $2.55 million, respectively, of which $143,000 and $182,000, respectively, were on non-accrual status.
+Added: The Bank had TDRs at September 30, 2023 and 2022 totaling $2.49 million and $2.61 million, of which $0 and $143,000, respectively, were on non-accrual status.
None of the allowance for loan losses was allocated to TDRs at September 30, 2023 or 2022.
−Removed: In late March 2020, the Bank announced COVID-19 loan modification programs to support and provide relief for its borrowers during the COVID-19 pandemic.
−Removed: The Company followed the Coronavirus Aid, Relief, and Economic Security Act of 2020 ("CARES Act") and interagency guidance from the federal banking agencies when determining if a borrower's modification is subject to TDR classification.
−Removed: Pursuant to the CARES Act, loan modifications made between March 1, 2020 and the earlier of (i) December 30, 2020 or (ii) 60 days after the President declared a termination of the COVID-19 national emergency were not classified as TDRs if the related loans were not more than 30 days past due as of December 31, 2019.
−Removed: The Consolidated Appropriations Act, 2021 ("CAA 2021") extended the period to suspend the requirements under TDR accounting guidance to January 1, 2022.
−Removed: Modifications included payment deferrals, fee waivers, extensions of repayment term, or other delays in payment.
−Removed: As of September 30, 2022, there were no loan customers deferring loan payments, and all customers that were granted deferrals to assist during the COVID pandemic have resumed contractual payments.
−Removed: At September 30, 2021, one customer with an outstanding balance of $323,000 was deferring loan payments.
Impaired Loans.
3 unchanged sentences
The valuation of real estate collateral is subjective in nature and may be adjusted in future periods because of changes in economic conditions.
−Removed: Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties.
+Added: Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of properties.
In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals.
5 unchanged sentences
At September 30, 2023, the Bank had $4.00 million in impaired loans.
−Removed: For additional information on impaired loans, see Note 4 of the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
−Removed: Other Loans of Concern.
−Removed: Loans not reflected in the table above as non-performing, but where known information about possible credit problems of borrowers causes management to have doubts as to the ability of the borrower to comply with present repayment terms and that may result in disclosure of such loans as non-performing assets in the future, are commonly referred to as “other loans of concern” or “potential problem loans.” The amount included in potential problem loans results from an evaluation, on a loan-by-loan basis, of loans classified as “substandard” and “special mention,” as those terms are defined under “Asset Classification” below.
−Removed: The amount of potential problem loans (not included in the table above as non-performing) was $5.56 million at September 30, 2022.
−Removed: The vast majority of these loans are collateralized by real estate.
−Removed: See “Asset Classification” below for additional information regarding the Bank's problem loans.
+Added: For additional information on impaired loans, see "Note 4-Loans Receivable and Allowance for Loan Losses of the Notes to the Consolidated Financial Statements contained in Item 8 of this report".
Asset Classification.
3 unchanged sentences
substandard, doubtful and loss.
−Removed: Substandard loans are classified as those loans that are inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged.
+Added: Substandard loans are classified as those loans that are inadequately protected by the
+Added: current net worth and paying capacity of the obligor, or of the collateral pledged.
Assets classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt.
3 unchanged sentences
When the Bank classifies problem assets as either substandard or doubtful, it is required to establish allowances for loan losses in an amount deemed prudent by management.
−Removed: These allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities and the risks associated with particular problem assets.
+Added: These allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities and the risks associated with problem assets.
When the Bank classifies problem assets as loss, it charges off the balance of the asset against the allowance for loan losses.
15 unchanged sentences
_____________
−Removed: (1) For further information concerning the change in classified assets, see “Non-performing Loans and Delinquencies" above.
(1) Includes non-performing loans.
−Removed: Loans classified as substandard increased by $3.78 million to $7.39 million at September 30, 2022 from $3.60 million at September 30, 2021.
+Added: Loans classified as substandard decreased by $1.00 million to $6.39 million at September 30, 2023 from $7.39 million at September 30, 2022.
At September 30, 2023, 17 loans were classified as substandard.
Of the $6.39 million in loans classified as substandard at September 30, 2023, $1.51 million were on non-accrual status.
−Removed: The largest loan classified as
−Removed: substandard at September 30, 2022 had a balance of $4.83 million and was secured by a commercial real estate property in King County.
+Added: The largest loan classified as substandard at September 30, 2023 had a balance of $4.73 million and was secured by a commercial real estate property in King County.
This loan was not on non-accrual status at September 30, 2023, as the loan was making payments in accordance with its repayment terms and was adequately collateralized.
1 unchanged sentence
This loan was on non-accrual status at September 30, 2023.
−Removed: Loans classified as special mention decreased by $4.78 million to $237,000 at September 30, 2022 from $5.01 million at September 30, 2021.
−Removed: At September 30, 2 022, two loans were classified as special mention.
−Removed: The largest credit relationship classified as special mention at September 30, 2022 had a balance of $210,000 and was secured by a commercial real estate property in Grays Harbor County.
−Removed: This loan was performing according to its repayment terms at September 30, 2022.
−Removed: Allowance for Loan Losses ("ALL").
−Removed: The allowance for loan losses is maintained to absorb probable losses inherent in the loan portfolio.
+Added: Allowance for Loan Losses.
+Added: The allowance for loan losses ("ALL") is maintained to absorb probable losses inherent in the loan portfolio.
The Bank has established a comprehensive methodology for the determination of provisions for loan losses that takes into consideration the need for an overall general valuation allowance.
−Removed: The Bank’s methodology for assessing the adequacy of its allowance for loan losses is based on its historic loss experience for various loan segments;
+Added: The Bank’s methodology for assessing the adequacy of its ALL is based on its historic loss experience for various loan segments;
adjusted for changes in economic conditions, delinquency rates and other factors.
−Removed: Using these loss estimate factors, management develops a range of probable loss for each loan category.
+Added: Using these loss estimates, management develops a range of probable loss for each loan category.
Certain individual loans for which full collectibility may not be assured are evaluated individually with loss exposure based on estimated discounted cash flows or net realizable collateral values.
The total estimated range of loss based on these two components of the analysis is compared to the loan loss allowance balance.
−Removed: When determining the appropriate loss factors in fiscal 2022, management also took into consideration inflation, a potential recession and slowing economic growth, and any governmental or societal responses to the COVID-19 pandemic on such factors as the national and state unemployment rates and related trends, consumer spending levels and trends, and industries significantly impacted by the COVID-19 pandemic.
+Added: When determining the appropriate loss factors in fiscal 2023, management also took into consideration inflation, a potential recession and slowing economic growth, on such factors as the national and state unemployment rates and related trends, consumer spending levels and trends.
In originating loans, the Bank recognizes that losses will be experienced and that the risk of loss will vary with, among other things, the type of loan being made, the creditworthiness of the borrower over the term of the loan, general economic conditions and, in the case of a secured loan, the quality of the security for the loan.
−Removed: The Bank increases its allowance for loan losses by charging provisions for loan losses against the Bank's operating income.
−Removed: The Board of Directors reviews the adequacy of the allowance for loan losses at least quarterly based on management's assessment of current economic conditions, past loss and collection experience, and risk characteristics of the loan portfolio.
−Removed: The Bank’s allowance for loan losses as a percentage of total loans receivable and non-performing loans was 1.20% and 665.52%, respectively, at September 30, 2022 and 1.37% and 471.93%, respectively, at September 30, 2021.
−Removed: The $1.00 million balance of SBA PPP loans was omitted from the allowance for loan loss calculation at September 30, 2022, as these loans are fully guaranteed by the SBA.
−Removed: Based on its comprehensive analysis, management believes that the amount maintained in the allowance for loan losses is adequate to absorb probable losses inherent in the portfolio.
−Removed: Although management believes that it uses the best information available to make its determinations, future adjustments to the allowance for loan losses may be necessary, and results of operations could be significantly and adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
−Removed: While the Bank believes that it has established its existing allowance for loan losses in accordance with GAAP, there can be no assurance that regulators, in reviewing the Bank's loan portfolio, will not request the Bank to increase significantly its allowance for loan losses.
−Removed: In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate or that substantial increases will not be necessary should the quality of any loans deteriorate.
−Removed: A further decline in national and local economic conditions, as a result of the effects of inflation, a potential recession or slowing economic growth, and any governmental or societal responses to the COVID-19 pandemic, among other factors could result in a material increase in the allowance for loan losses which may adversely affect the Company's financial condition and results of operations.
+Added: The Bank increases its ALL by charging provisions for loan losses against the Bank's operating income.
+Added: The Board of Directors reviews the adequacy of the ALL at least quarterly based on management's assessment of current economic conditions, past loss and collection experience, and risk characteristics of the loan portfolio.
+Added: The Bank’s ALL as a percentage of total loans receivable and as a percentage of non-performing loans was 1.20% and 1,044.72%, at September 30, 2023 and 1.20% and 665.52%, at September 30, 2022, respectively.
+Added: The $466,000 and $1.0 million of SBA PPP loans were omitted from the foregoing percentages at September 30, 2023 and 2022, respectively, as these loans are fully guaranteed by the SBA.
+Added: Based on its comprehensive analysis, management believes that the amount maintained in the ALL is adequate to absorb probable losses inherent in the portfolio.
+Added: Although management believes that it uses the best information available to make its determinations, future adjustments to the ALL may be necessary, and results of operations could be significantly and adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
+Added: While the Bank believes that it has established its existing ALL in accordance with GAAP, there can be no assurance that regulators, in reviewing the Bank's loan portfolio, will not request the Bank to increase significantly its ALL.
+Added: In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing ALL is adequate or that substantial increases will not be necessary should the quality of any loans deteriorate.
+Added: A further decline in national and local economic conditions, as a result of the effects of inflation, a potential recession or slowing economic growth, among other factors could result in a material increase in the ALL which may adversely affect the Company's financial condition and results of operations.
+Added: An accounting change requiring that we calculate the ALL on the basis of the current expected credit losses over the lifetime of our loans, referred to as the CECL model, became applicable to us, as a smaller reporting company, on October 1, 2023.
+Added: This will change the current method of providing allowance for credit losses only when they have been incurred and are probable.
+Added: The adjustment recorded at adoption was not significant to the overall allowance for credit losses ("ACL") or shareholders' equity as compared to the respective balances at September 30, 2023 and consisted of adjustments to the ACL on loans as well as an adjustment to the Company's reserve for unfunded commitments.
+Added: Subsequent to adoption, the Company will record adjustments to its ACL and reserves for unfunded commitments through the provision for credit losses in the consolidated statement of income.
Credit Ratios
10 unchanged sentences
________________________________
−Removed: (1) Loans receivable, net for this table includes the deductions for the undisbursed portion of construction loans in process and net deferred loan origination fees and does not include the deduction for the allowance for loan losses.
−Removed: The following table sets forth the allocation of the allowance for loan losses by loan category at the dates indicated:
+Added: (1) Loans receivable, net for this table includes the deductions for the undisbursed portion of construction loans in process and net deferred loan origination fees and does not include the deduction for the ALL.
+Added: The following table sets forth the ALL by loan category at the dates indicated:
At September 30,
24 unchanged sentences
2023 2022 2021
−Removed: (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loan (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loan (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loan
+Added: (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loans (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loans (Net Charge-offs) Recoveries Average Loans (Net Charge-Offs) Recoveries to Average Loans
(Dollars in thousands)
21 unchanged sentences
At September 30, 2023, the Bank’s investment portfolio was comprised of investments in debt securities that totaled $311.99 million, consisting of $171.63 million of U.S.
−Removed: government agency securities, $93.33 million of mortgage-backed securities held to maturity, $2.10 million of taxable municipal securities held to maturity, $500,000 of bank issued trust preferred securities held to maturity and $41.42 million of mortgage-backed securities available for sale.
+Added: government agency securities held to maturity, $96.31 million of mortgage-backed securities held to maturity, $1.79 million of taxable municipal securities held to maturity, $500,000 of bank issued trust preferred securities held to maturity and $41.77 million of mortgage-backed securities available for sale.
The Bank does not maintain a trading account for any investments.
This compares with a total investment portfolio of $308.02 million at September 30, 2022, consisting of $170.68 million of U.S.
−Removed: government agency securities, $39.84 million of mortgage-backed securities held to maturity, $500,000 of bank issued trust preferred securities held to maturity and $63.18 million of mortgage-backed securities available for sale.
+Added: government agency securities held to maturity, $93.33 million of mortgage-backed securities held to maturity, $2.10 million of taxable municipal securities held to maturity, $500,000 of bank issued trust preferred securities held to maturity and $41.42 million of mortgage-backed securities available for sale.
The following table sets forth the maturities and weighted average yields of the debt securities in the Bank's portfolio at September 30, 2023.
17 unchanged sentences
For additional information regarding investment securities, see “Item 1A.
−Removed: Risk Factors – Our investment securities portfolio may be negatively impacted by fluctuations in market value and interest rates and result in losses” and Note 3 of the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
+Added: Risk Factors – Our investment securities portfolio may be negatively impacted by fluctuations in market value and interest rates and result in losses” and "Note 3-Investment Securities of the Notes to the Consolidated Financial Statements contained in Item 8 of this report".
Deposit Activities and Other Sources of Funds
3 unchanged sentences
Deposit Accounts .
−Removed: Substantially all of the Bank's depositors are residents of Washington.
+Added: Substantially all the Bank's depositors are residents of Washington.
Deposits are attracted from within the Bank's market area through the offering of a broad selection of deposit instruments, including money market deposit accounts, checking accounts, regular savings accounts and certificates of deposit.
10 unchanged sentences
At September 30, 2023, the Bank had $91.71 million of jumbo certificates of deposit of $250,000 or more.
−Removed: The Bank had $4.62 million in brokered reciprocal money market deposits at September 30, 2022.
+Added: The Bank had $59.48 million in reciprocal NOW checking deposits and $11.29 million in reciprocal money market deposits at September 30, 2023.
+Added: At September 30, 2023, the Bank had $38.16 million in brokered certificates of deposit.
The Bank believes that its jumbo certificates of deposit, which represented 5.9% of total deposits at September 30, 2023, present similar interest rate risks as compared to its other deposits.
25 unchanged sentences
Total $ 91,714
−Removed: As of September 30, 2022 and 2021, approximately $122.69 million and $134.25 million, respectively, of our deposit portfolio were uninsured.
−Removed: The uninsured amounts are estimates based on the methodologies and assumptions used for Timberland Bank’s regulatory reporting requirements.
+Added: As of September 30, 2023, approximately $407.61 million of our deposit portfolio was uninsured.
+Added: The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.
+Added: The Bank is an approved depositor for public funds in Washington.
+Added: Per the applicable laws, public funds must be secured by qualified investment securities.
+Added: As of September 30, 2023, $112.10 million of the Bank's uninsured deposits were public funds, all of which were fully secured by qualified investment securities.
The following table sets forth the portion of our time deposits that are in excess of the FDIC insurance limit, by remaining time until maturity, as of September 30, 2023 (dollars in thousands).
50 unchanged sentences
Beginning balance $ 1,632,176 $ 1,570,555 $ 1,358,406
−Removed: Net deposits before interest credited 58,965 209,136 285,544
+Added: Net (withdrawals) deposits before interest credited (82,543) 58,965 209,136
Interest credited 11,302 2,656 3,013
−Removed: Net increase in deposits 61,621 212,149 290,179
+Added: Net (decrease) increase in deposits (71,241) 61,621 212,149
Ending balance $ 1,560,935 $ 1,632,176 $ 1,570,555
−Removed: For additional information regarding our deposits, see “Note 10—Deposits” of the Notes to Consolidated Financial Statements contained in "Part II.
−Removed: Financial Statements and Supplementary Data" of this report on Form 10-K.
+Added: For additional information regarding our deposits, see "Note 10—Deposits of the Notes to Consolidated Financial Statements contained in Item 8 of this report".
Deposits and loan repayments are generally the primary source of funds for the Bank's lending and investment activities and for general business purposes.
−Removed: The Bank has the ability to use borrowings from the FHLB to supplement its supply of lendable funds and to meet deposit withdrawal requirements.
+Added: The Bank may use borrowings from the FHLB to supplement its supply of lendable funds and to meet deposit withdrawal requirements.
The FHLB functions as a central reserve bank providing credit for member financial institutions.
4 unchanged sentences
Depending on the program, limitations on the amount of borrowings are based on the financial condition of the member institution and the adequacy of collateral pledged to secure the credit.
−Removed: At September 30, 2022, the Bank maintained an unused credit facility with the FHLB that provided for immediately available borrowings up to an aggregate amount to 45% of the Bank’s total assets, limited by available collateral, under which no borrowings were outstanding.
−Removed: The Bank maintains a short-term borrowing line of credit with the FRB with total credit based on eligible collateral.
−Removed: At September 30, 2022, the Bank had no outstanding balance and $77.09 million in unused borrowing capacity on this borrowing line of credit.
+Added: At September 30, 2023, the Bank maintained a credit facility with the FHLB that provided for immediately available borrowings up to an aggregate amount to 45% of the Bank’s total assets, limited by available collateral, under which long-term borrowings totaling $15.00 million and short-term borrowings totaling $20.00 million were outstanding at September 30, 2023.
+Added: The Bank maintains two short-term borrowing lines with the FRB with total credit based on eligible collateral:
+Added: Borrower-in-Custody ("BIC") and Bank Term Funding Program ("BTFP").
+Added: At September 30, 2023, the Bank had no outstanding balance on the BIC line, under which $146.26 million was available for future borrowings.
+Added: At September 30, 2023, the Bank had no outstanding balance on the BTFP line, under which $57.00 million was available for future borrowings.
A short-term borrowing line of credit of $50.00 million is also maintained at Pacific Coast Bankers' Bank ("PCBB").
The Bank had no outstanding balance on this borrowing line of credit at September 30, 2023.
−Removed: The Bank did not have any short-term borrowings for the years ended September 30, 2022, 2021 and 2020.
−Removed: For additional information regarding our borrowings, see "Note 11-FHLB Borrowings and Other Borrowings" in the Notes to Consolidated Financial Statements in "Part II.
−Removed: Financial Statements and Supplemental Data" of this report on Form 10-K.
+Added: For additional information regarding our borrowings, see "Note 11-FHLB Borrowings and Other Borrowings of the Notes to Consolidated Financial Statements contained in Item 8 of this report".
Bank Owned Life Insurance
9 unchanged sentences
State law and regulations govern the Bank's ability to take deposits and pay interest thereon, to make loans on or invest in residential and other real estate, to make consumer loans, to invest in securities, to offer various banking services to its customers and to establish branch offices.
−Removed: Under state law, savings banks in Washington also generally have all of the powers that federal savings banks have under federal laws and regulations.
+Added: Under state law, savings banks in Washington also generally have all the powers that federal savings banks have under federal laws and regulations.
The Bank is subject to periodic examination and reporting requirements by and of the Division and the FDIC.
20 unchanged sentences
Total base assessment rates currently range from 3 to 30 basis points subject to certain adjustments.
−Removed: In October 2022, the FDIC finalized a rule that will increase the initial base deposit insurance assessment rates by 2 basis points, beginning with the first quarterly assessment period of 2023 (January 1, 2023 through March 31, 2023).
−Removed: The FDIC, as required under the Federal Deposit Insurance Act, established a plan in September 2020 to restore the DIF reserve ratio to meet or exceed the statutory minimum of 1.35 percent within eight years.
+Added: In October 2022, the FDIC finalized a rule that increased the initial base deposit insurance assessment rates by 2 basis points, beginning with the first quarterly assessment period of 2023 (January 1, 2023 through March 31, 2023).
+Added: The FDIC, as required under the Federal Deposit Insurance Act, established a plan in September 2020 to restore the DIF reserve ratio to meet or exceed the statutory minimum of 1.35% within eight years.
This plan did not include an increase in the deposit insurance assessment rate.
Based on the FDIC’s recent projections, however, the FDIC determined that the DIF reserve ratio is at risk of not reaching the statutory minimum by the statutory deadline of September 30, 2028 without increasing the deposit insurance assessment rates.
−Removed: The increased assessment would improve the likelihood that the DIF reserve ratio would reach the required minimum by the statutory deadline, consistent with the FDIC’s Amended Restoration Plan.
−Removed: The FDIC also concurrently maintained the Designated Reserve Ratio (“DRR”) for the DIF at 2 percent for 2023.
−Removed: The new assessment rate schedules will remain in effect unless and until the reserve ratio meets or exceeds 2 percent in order to support growth in the DIF in progressing toward the FDIC’s long-term goal of a 2 percent DRR.
−Removed: Progressively lower assessment rate schedules will take effect when the reserve ratio reaches 2 percent, and again when it reaches 2.5 percent.
−Removed: The revised assessment rate schedule will remain in effect unless and until the reserve ratio meets or exceeds 2 percent, absent further action by the FDIC.
+Added: The increased assessment would improve the likelihood that the DIF reserve ratio would reach the required minimum by the statutory deadline, consistent with the FDIC’s Amended Restoration Plan.The FDIC also concurrently maintained the Designated Reserve Ratio (“DRR”) for the DIF at 2% for 2023.
+Added: The new assessment rate schedules will remain in effect unless and until the reserve ratio meets or exceeds 2% to support growth in the DIF in progressing toward the FDIC’s long-term goal of a 2% DRR.
+Added: Progressively lower assessment rate schedules will take effect when the reserve ratio reaches 2%, and again when it reaches 2.5%.
+Added: The revised assessment rate schedule will remain in effect unless and until the reserve ratio meets or exceeds 2%, absent further action by the FDIC.
In a banking industry emergency, the FDIC may also impose a special assessment.
21 unchanged sentences
The Bank has not elected to use the CBLR framework as of September 30, 2023.
−Removed: In order to be considered well-capitalized under the prompt corrective action regulations, the Bank must maintain a CET1 risk-based ratio of 6.5%, a Tier 1 risk-based ratio of 8%, a total risk-based capital ratio of 10% and a leverage ratio of 5%, and the Bank must not be subject to an individualized order, directive or agreement under which its primary federal banking regulator requires it to maintain a specific capital level.
−Removed: In addition to the minimum capital requirements, the Bank must maintain a capital conservation buffer that consists of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital ratios in order to avoid limitations on paying dividends, repurchasing shares and paying certain discretionary bonuses.
+Added: To be considered well-capitalized under the prompt corrective action regulations, the Bank must maintain a CET1 risk-based ratio of 6.5%, a Tier 1 risk-based ratio of 8%, a total risk-based capital ratio of 10% and a leverage ratio of 5%, and the Bank must not be subject to an individualized order, directive or agreement under which its primary federal banking regulator requires it to maintain a specific capital level.
+Added: In addition to the minimum capital requirements, the Bank must maintain a capital conservation buffer that consists of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital ratios to avoid limitations on paying dividends, repurchasing shares and paying certain discretionary bonuses.
At September 30, 2023, the Bank met the requirements to be "well capitalized," and the Bank's CET1 capital exceeded the required conservation buffer.
−Removed: The following table compares the Bank's actual capital amounts at September 30, 2022 to its minimum regulatory capital requirements at that date (Dollars in thousands):
−Removed: Actual Regulatory Minimum To Be "Adequately Capitalized Regulatory Minimum To Be "Well Capitalized" Under Prompt Corrective Action Provisions
−Removed: Amount Ratio Amount Ratio Amount Ratio
−Removed: Leverage Capital Ratio:
−Removed: Tier 1 capital $ 202,438 10.9 % $ 74,039 4.0 % $ 92,549 5.0 %
−Removed: Risk-based Capital Ratios:
−Removed: CET1 capital 202,438 18.0 50,551 4.5 73,018 6.5
−Removed: Tier 1 capital 202,438 18.0 67,402 6.0 89,869 8.0
−Removed: Total capital 216,446 19.3 89,869 8.0 112,336 10.0
−Removed: For additional information regarding the Bank's regulatory capital requirements, see Note 17-Regulatory Matters of the Notes to the Consolidated Financial Statements contained in "Item 8.
−Removed: Financial Statements and Supplementary Data" of this Form 10-K.
−Removed: The FASB has adopted a new accounting standard for GAAP that will be effective for us for our first fiscal year beginning after December 15, 2022.
+Added: For additional information regarding the Bank's regulatory capital requirements, see "Note 17-Regulatory Matters" of the Notes to the Consolidated Financial Statements contained in Item 8 of this report.
+Added: The FASB adopted a new accounting standard for GAAP that is effective as of October 1, 2023.
This standard, referred to as Current Expected Credit Loss, or CECL, requires FDIC-insured institutions and their holding companies (banking organizations) to recognize credit losses expected over the life of certain financial assets.
6 unchanged sentences
well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized.
−Removed: An institution’s category depends upon where its capital levels are in relation to relevant capital measures, which include a risk-
−Removed: based capital measure, a leverage ratio capital measure and certain other factors.
+Added: An institution’s category depends upon where its capital levels are in relation to relevant capital measures, which include a risk-based capital measure, a leverage ratio capital measure and certain other factors.
An institution that is not well capitalized is subject to certain restrictions on brokered deposits, including restrictions on the rates it can offer on its deposits generally.
6 unchanged sentences
At September 30, 2023, the Bank was categorized as “well capitalized” under the prompt corrective action regulations of the FDIC.
−Removed: For additional information regarding the Bank's minimum regulatory capital requirements, see "Capital Requirements" above and Note 17 of the Notes to the Consolidated Financial Statements contained in “Item 8.
−Removed: Financial Statements and Supplementary Data” of this Form 10-K.
+Added: For additional information regarding the Bank's minimum regulatory capital requirements, see "Capital Requirements" above and "Note 17-Regulatory Matters" of the Notes to the Consolidated Financial Statements contained in Item 8 of this report.
Federal Home Loan Bank System.
−Removed: The Bank is a member of the FHLB, one of 11 regional Federal Home Loan Banks that administer the home financing credit function of savings institutions, each serving as a reserve or central bank for its members within its assigned region.
+Added: The Bank is a member of the FHLB, one of 11 regional Federal Home Loan Banks that administer the home financing credit function of savings institutions, each serving as a reserve or central bank for its
+Added: members within its assigned region.
The FHLB is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLB System.
27 unchanged sentences
The guidance directs the FDIC and other federal bank regulatory agencies to focus their supervisory resources on institutions that may have significant commercial real estate loan concentration risk.
−Removed: A bank that has experienced
−Removed: rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk:
+Added: A bank that has experienced rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk:
• Total reported loans for construction, land development and other land represent 100% or more of the bank’s total regulatory capital;
5 unchanged sentences
Federal law generally limits the activities and equity investments of FDIC-insured state-chartered banks to those that are permissible for national banks.
−Removed: An insured state bank is not prohibited from, among other things, (i) acquiring or retaining a majority interest in a subsidiary, (ii) investing as a limited partner in a partnership, the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation or new construction of a qualified housing project, provided that such limited partnership investments may not exceed 2% of the bank's total assets, (iii) acquiring up to 10% of the voting stock of a company that solely provides or reinsures directors' and officers' liability insurance coverage or bankers' blanket bond group insurance coverage for insured depository institutions, and (iv) acquiring or retaining the voting shares of a depository institution owned by another FDIC-insured institution if certain requirements are met.
+Added: An insured state bank is not prohibited from, among other things, (i) acquiring or retaining a majority interest in a subsidiary, (ii) investing as a limited partner in a partnership, the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation or new construction of a qualified housing project, provided that such limited partnership investments may not
+Added: exceed 2% of the bank's total assets, (iii) acquiring up to 10% of the voting stock of a company that solely provides or reinsures directors' and officers' liability insurance coverage or bankers' blanket bond group insurance coverage for insured depository institutions, and (iv) acquiring or retaining the voting shares of a depository institution owned by another FDIC-insured institution if certain requirements are met.
Under the laws of Washington State, Washington-chartered savings banks may exercise any of the powers of Washington-chartered commercial banks, national banks and federally-chartered savings banks, subject to the approval of the DFI in certain situations.
4 unchanged sentences
Since the enactment of the CERCLA, this “secured creditor exemption” has been the subject of judicial interpretations which have left open the possibility that lenders could be liable for cleanup costs on contaminated property that they hold as collateral for a loan.
−Removed: To the extent that legal uncertainty exists in this area, all creditors, including the Bank, that have made loans secured by properties with potential hazardous waste contamination (such as petroleum contamination) could be subject to liability for cleanup costs, which costs often substantially exceed the value of the collateral property.
+Added: To the extent that legal uncertainty exists in this area, all creditors, including the Bank, that have made loans secured by properties with potentially hazardous waste contamination (such as petroleum contamination) could be subject to liability for cleanup costs, which costs often substantially exceed the value of the collateral property.
Federal Reserve System.
13 unchanged sentences
The regulatory agency’s assessment of the bank’s record is made available to the public.
−Removed: Further, a bank’s performance must be
−Removed: considered in connection with a bank’s application to, among other things, establish a new branch office that will accept deposits, relocate an existing office or merge or consolidate with, or acquire the assets or assume the liabilities of, a federally regulated financial institution.
+Added: Further, a bank’s performance must be considered in connection with a bank’s application to, among other things, establish a new branch office that will accept deposits, relocate an existing office or merge or consolidate with, or acquire the assets or assume the liabilities of, a federally regulated financial institution.
The Bank received a “satisfactory” rating during its most recent examination.
+Added: On October 24, 2023, the federal banking agencies, including the FDIC, issued a final rule designed to strengthen and modernize regulations implementing the CRA.
+Added: The changes are designed to encourage banks to expand access to credit, investment and banking services in low and moderate income communities, adapt to changes in the banking industry including mobile and internet banking, provide greater clarity and consistency in the application of the CRA regulations and tailor CRA evaluations and data collection to bank size and type.
+Added: The Bank cannot predict the impact the changes to the CRA will have on its operations at this time.
Dividends from the Bank constitute the major source of funds available for dividends which may be paid to Company shareholders.
25 unchanged sentences
Non-compliance with federal or similar state privacy and cybersecurity laws and regulations could lead to substantial regulatory imposed fines and penalties, damages from private causes of action and/or reputational harm.
+Added: Further, on July 26, 2023, the SEC adopted final rules that require public companies to promptly disclose material cybersecurity incidents in a Current Report on Form 8-K (“Form 8-K”) and detailed information regarding their cybersecurity risk management and governance on an annual basis in an Annual Report on Form 10-K (Form 10-K”).
+Added: Companies will be required to report on Form 8-K any cybersecurity incident they determine to be material within four business days of making that determination.
+Added: Smaller reporting companies, such as the Company, must begin complying with incident reporting on Form 8-K no later than June 15, 2024.
+Added: Companies must provide the annual disclosures about cybersecurity risk management and governance beginning with their Form 10-K for fiscal years ending on or after December 15, 2023.
Other Consumer Protection Laws and Regulations.
2 unchanged sentences
The Bank is subject to a broad array of federal and state consumer protection laws and regulations that govern almost every aspect of its business relationships with consumers.
−Removed: While the list set forth below is not exhaustive, these include the Truth-in-Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the
−Removed: Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Right to Financial Privacy Act, the Home Ownership and Equity Protection Act, the Consumer Leasing Act, the Fair Credit Billing Act, the Homeowners Protection Act, the Check Clearing for the 21st Century Act, laws governing flood insurance, laws governing consumer protections in connection with the sale of insurance, federal and state laws prohibiting unfair and deceptive business practices, and various regulations that implement some or all of the foregoing.
+Added: While the list set forth below is not exhaustive, these include the Truth-in-Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Right to Financial Privacy Act, the Home Ownership and Equity Protection Act, the Consumer Leasing Act, the Fair Credit Billing Act, the Homeowners Protection Act, the Check Clearing for the 21st Century Act, laws governing flood insurance, laws governing consumer protections in connection with the sale of insurance, federal and state laws prohibiting unfair and deceptive business practices, and various
+Added: regulations that implement some or all of the foregoing.
These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits, making loans, collecting loans, and providing other services.
3 unchanged sentences
Bank holding companies are subject to comprehensive regulation by the Federal Reserve under the Bank Holding Company Act of 1956, as amended (“BHCA”), and the regulations promulgated thereunder.
−Removed: This regulation and oversight is generally intended to ensure that the Company limits its activities to those allowed by law and that it operates in a safe and sound manner without endangering the financial health of the Bank.
+Added: This regulation and oversight are generally intended to ensure that the Company limits its activities to those allowed by law and that it operates in a safe and sound manner without endangering the financial health of the Bank.
As a bank holding company, the Company is required to file semi-annual reports with the Federal Reserve and any additional information required by the Federal Reserve and is subject to regular examinations by the Federal Reserve.
30 unchanged sentences
In considering such a notice or application, the Federal Reserve takes into consideration certain factors, including the financial and managerial resources of the acquirer and the anti-trust effects of the acquisition.
−Removed: Any company that acquires control becomes subject to regulation as a bank holding
+Added: Any company that acquires control becomes subject to regulation as a bank holding company.
Depending on circumstances, a notice or application may be required to be filed with appropriate state banking regulators and may be subject to their approval or non-objection.
−Removed: Federal Reserve policy limits the payment of cash dividends by bank holding companies, which expresses the Federal Reserve's view that a bank holding company should pay cash dividends only to the extent that the company's net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company's capital needs, asset quality and overall financial condition, and that it is inappropriate for a company experiencing serious financial problems to borrow funds to pay dividends.
+Added: Federal Reserve policy limits the payment of cash dividends by bank holding companies, which expresses the Federal Reserve's view that a bank holding company should pay cash dividends only to the extent that the company's net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the
+Added: company's capital needs, asset quality and overall financial condition, and that it is inappropriate for a company experiencing serious financial problems to borrow funds to pay dividends.
Under Washington corporate law, the Company generally may not pay dividends if after that payment it would not be able to pay its liabilities as they become due in the usual course of business, or its total assets would be less than its total liabilities.
8 unchanged sentences
If the Company were subject to regulatory guidelines for bank holding companies with $3.00 billion or more in assets, at September 30, 2023, the Company would have exceeded all regulatory requirements.
−Removed: The following table presents for informational purposes the regulatory capital ratios for the Company as of September 30, 2022 (Dollars in thousands):
−Removed: Leverage Capital Ratio:
−Removed: Tier 1 capital $ 204,659 11.0 %
−Removed: Risk-based Capital Ratios:
−Removed: CET1 capital 204,659 18.2
−Removed: Tier 1 capital 204,659 18.2
−Removed: Total capital 218,667 19.5
−Removed: For additional information, see Note 17 to the Consolidated Financial Statements contained in "Item 8.
−Removed: Financial Statements and Supplementary Data" of this Form 10-K.
+Added: For additional information, see "Note 17-Regulatory Matters" of the Notes to the Consolidated Financial Statements contained in Item 8 of this report.
Federal Securities Laws.
1 unchanged sentence
The Company is subject to information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.
−Removed: COVID-19 Legislation.
−Removed: In response to the COVID-19 pandemic, Congress and the federal banking agencies, though legislation, rule making, interpretive guidance and modifications to agency policies and procedures, have taken a series of actions to provide national emergency economic relief measures including, among others, the CARES Act and CAA 2021.
−Removed: As the on-going COVID-19 pandemic evolves, federal and state regulatory authorities continue to issue additional guidance with respect to COVID-19.
−Removed: In addition, it is possible that Congress will enact additional COVID-19 response legislation in response to new COVID-19 variants.
−Removed: We will continue to assess the impact of the CARES Act, CAA, 2021 and other statues, regulations and supervisory guidance related to the COVID-19 pandemic.
Federal Taxation
3 unchanged sentences
The Company may exclude from its income 100.0% of dividends received from the Bank as a member of the same affiliated group of corporations.
−Removed: The corporate dividends-received deduction is generally 50.0% in the case of dividends received from unaffiliated corporations with which the Company and the Bank will not file a consolidated tax return, except that if the Company or the Bank owns more than 20.0% of the stock of a corporation distributing a dividend, then 65.0% of any dividends received may be deducted.
+Added: The corporate dividends-received deduction is generally 50.0% in the case of dividends received from unaffiliated corporations with which the Company and the Bank will not file a consolidated tax return, except that if the Company or the Bank owns more than 20.0% and less than 80% of the stock of a corporation distributing a dividend, then 65.0% of any dividends received may be deducted.
The Company is no longer subject to U.S.
13 unchanged sentences
Subsidiary Activities
−Removed: The Bank has one wholly-owned subsidiary, Timberland Service Corp.
+Added: The Company has one wholly-owned subsidiary, the Bank.
+Added: The Bank has one wholly-owned direct subsidiary, Timberland Service Corp.
(“Timberland Service”), whose primary function is to provide escrow services.
Employees and Human Capital Resources
+Added: As part of our commitment to transparency and excellence, we are pleased to share an overview of the Company’s human capital strategies and achievements.
+Added: Our emphasis on nurturing a dynamic, engaged, and resilient workforce remains pivotal to our success.
+Added: Our efforts encapsulate our commitment to fostering a robust and engaged workforce, highlighting our focus on talent, well-being, development, and strategic alignment.
+Added: We are proud of the progress made in enhancing our human capital, recognizing it as a fundamental driver of the Company’s sustained growth.
+Added: These initiatives collectively underscore our commitment to fostering a workforce deeply connected to the needs and values of our community.
+Added: We're dedicated to continued growth, guided by the principles of service, integrity, and community stewardship.
+Added: Workforce Representation.
As of September 30, 2023, the Company had 285 full-time employees and 13 part-time and on-call employees.
−Removed: The employees are not represented by a collective bargaining unit, and the Company believes that its relationship with its employees is good.
+Added: The employees are not represented by a collective bargaining unit, and the Company believes that its relationship with its employees is positive.
We believe that our ability to attract and retain employees is a key to our success.
Accordingly, we strive to offer competitive salaries and employee benefits to all employees and monitor salaries in our market areas.
−Removed: Our average tenure was 7.7 years as of September 30, 2022.
−Removed: Our workforce was 80% female and 20% male, and women held 81% of the Bank's management roles (including department supervisors and managers, as well as executive leadership).
+Added: The average tenure of our employees was 7.9 years as of September 30, 2023.
+Added: Our workforce was 80% female and 20% male, and women held 81% of the Company’s management roles (including department supervisors and managers, as well as executive leadership).
The average tenure of management was 14.8 years.
−Removed: The ethnicity of our workforce was 79% White, 8% Hispanic or Latinx, 4% two or more races, 4% Asian, 2% Native Hawaiian or Pacific Islander, 2% African American or Black and 1% American Indian or Alaska Native.
−Removed: The Company's board of directors is comprised of the Company's Chief Executive Officer and seven non-employee directors, including four identified as female and one identified as a member of a minority community.
−Removed: The Company provides competitive comprehensive benefits to its employees.
−Removed: The Company values the health and well-being of its employees and strives to provide programs to support this.
−Removed: Benefit programs available to eligible employees may include 401(k) savings plan, employee stock ownership plan, health and life insurance, employee assistance program, paid holidays, paid time off, and other leave as applicable.
−Removed: Response to COVID-19 pandemic.
−Removed: As an essential business, the Company responded quickly to implement procedures to assist employees in navigating the challenging impact from the pandemic, as well as protect the safety of both employees and customers.
−Removed: In response to Washington State's stay at home order, the Company moved eligible positions to remote work status.
−Removed: Safety measures were promptly implemented to protect employees working on site, which included installation of protective partitions and fully equipping locations with personal safety supplies.
−Removed: Employees who experienced a reduction in hours due to reduced branch operating hours continued to receive their full pay.
−Removed: Additional sick leave was authorized for employees impacted directly by the COVID-19 virus.
−Removed: As of September 30, 2022, all banking branches are open with normal hours and substantially all employees have returned to their routine working environments.
−Removed: The Bank will continue to monitor branch access and occupancy levels in relation to cases and close contact scenarios and follow governmental restrictions and public health authority guidelines to support our employees and prioritize employee safety.
−Removed: Training and education.
+Added: The ethnicity of our workforce was 80% White, 8% Hispanic or Latinx, 4% Asian, 3% two or more races, 2% Native Hawaiian or Pacific Islander, 2% African American or Black and 1% American Indian or Alaska Native.
+Added: The Company's board of directors is comprised of the Company's Chief Executive Officer and seven non-employee directors, including four directors who identified as female and one who identified as a member of a minority community.
+Added: Talent Acquisition and Attrition.
+Added: Strategic talent acquisition efforts have expanded our workforce with diverse skill sets aligned with our strategic goals.
+Added: We continue to manage attrition rates and showcase a retention-centric approach in working with our leaders, ensuring stability within our talented teams.
+Added: Our recruitment strategy emphasizes local talent acquisition and continues to result in bolstering our teams with individuals deeply rooted in the communities the Company serves.
+Added: The Company continues to evolve its strategy of promoting diversity through the posting of open positions to diverse job sites.
+Added: The Company observes a fair and equitable application process for positions that are advertised both internally and externally.
+Added: Diversity, Equity, and Inclusion (“DEI”).
+Added: The Company recognizes the importance of acknowledging our employees’ unique identities, perspectives and contributions.
+Added: In 2023, Timberland chose to adopt a formal program that fosters an environment that provides all employees with equitable access to opportunities for growth and development and a workforce that reflects the communities we serve.
+Added: Our Human Resources Director and our DEI Officer oversee the program scope of education/training, recruitment, and hiring practices.
+Added: Training programs such as unconscious bias training for hiring managers, DEI online training for all employees of the Company and a newly implemented Employee Resource Group (“ERG”) focuses efforts on equity, fairness, and inclusivity of employee engagement throughout the organization’s workforce.
+Added: The Company provides competitive comprehensive benefits to our employees.
+Added: Our commitment to ensuring a safe, healthy workplace has been unwavering, with proactive measures to safeguard our employees' well-being.
+Added: programs available to eligible employees may include 401(k) savings plan, employee stock ownership plan, health and life insurance, health savings accounts and flexible spending accounts, employee assistance program, paid holidays, paid time off, paid volunteer time, paid time off for the employee’s birthday and other leave as applicable.
+Added: The Company promotes wellness initiatives through DEI and benefits administration to all employees that focuses on self-care, nutrition, work life balance, and financial education.
+Added: Sustained focus on employee health and safety underscores our commitment to a secure workplace.
+Added: Total Rewards (Compensation and Benefits).
+Added: Our commitment to providing competitive and equitable total rewards packages reinforces our employees' dedication and contributions.
+Added: We're proud to provide competitive and meaningful total rewards, acknowledging the contributions of our employees through our transparency of wage and benefit information of posted positions, 401(k), employee stock ownership plan, healthcare and insurance benefits, profit sharing for eligible employees, annual performance based merit increases, semi-annual performance reviews, organizational celebrations, employee wellness campaigns, recognition events, and career development opportunities within the organization.
+Added: Employee Engagement and Training.
+Added: Our community-focused approach has significantly boosted employee engagement, fostering a sense of belonging and purpose.
+Added: The Company’s strategy is to create long term, productive relationships through developmental growth with its employees.
+Added: The Company offers ongoing training to employees throughout their career with the Company.
+Added: A combination of delivery methods for both regulatory and professional development training is used.
+Added: Modalities include third-party training, in-house training, and computer system based training for employees to engage in education.
+Added: Managers and supervisors are offered monthly training on a variety of management areas, including performance coaching and development of employees.
+Added: This training is created and facilitated in-house and offered virtually.
+Added: The Company also recognizes the value of allowing employees to shadow and observe other areas of the Company to promote career development.
+Added: Currently, all Company employees receive two performance reviews each year.
+Added: In 2023, the Company participated in an Employee Climate Survey.
+Added: Results from the survey have been reviewed and additional engagement strategies will continue to be developed based on the survey findings.
+Added: The Company’s culture is one that values integrity, honesty, hard work, and community.
+Added: Employees are free to voice their ideas and supported in their attempts to better themselves professionally and improve the organization.
+Added: The Company offers an employee referral incentive to attract new talent to the organization.
+Added: New employees receive a formal 90 day assessment at the completion of their probationary period.
+Added: Employees are eligible for increased vacation leave accruals based on time in service at the Company.
+Added: Employees receive recognition through several metrics based on performance, time in service, process improvements and efficiencies.
+Added: Talent Development and Succession Planning.
The Company recognizes that the skills and knowledge of its employees are critical to the success of the organization, and promotes training and continuing education as an ongoing function for employees.
−Removed: The Bank's compliance training program provides annual training courses to help ensure that all employees and officers know the rules applicable to their jobs.
+Added: The Company’s compliance training program provides annual training courses to help ensure that all employees and officers know the rules applicable to their jobs.
+Added: Additional training and testing programs are offered to employees of certain job positions within the Company to promote and recognize advancement of skill and mastery within the position.
+Added: Employees are encouraged to attend external education opportunities in the form of training, conferences, and networking events.
+Added: Internal, robust talent development programs cater to the unique needs of our employees, ensuring their growth aligns with our organizational values.
+Added: Succession planning initiatives and specific training programs ensure a pipeline of skilled individuals prepared to lead the Company into the future.
+Added: Volunteerism.
+Added: The Company embraces social responsibility, our workforce actively participates in volunteer initiatives, positively impacting our communities.
+Added: Volunteerism remains a cornerstone of our culture, reflecting our commitment to giving back.
+Added: The Company offers 20 hours of paid time each year for eligible employees to volunteer at non-profit organizations within the Company’s geographic footprint, benefiting the communities Timberland serves.
Executive Officers of the Registrant
3 unchanged sentences
Name Company Bank
−Removed: Sand 68 Chief Executive Officer Chief Executive Officer
−Removed: Brydon 55 President and Chief Financial Officer President and Chief Financial Officer
−Removed: Drugge 71 Executive Vice President of Lending Executive Vice President of Lending
−Removed: Fischer 48 Executive Vice President, Chief Operating Officer and Secretary Executive Vice President,Chief Operating Officer and Secretary
+Added: Brydon 56 Chief Executive Officer Chief Executive Officer
+Added: Fischer 49 President, Chief Operating Officer and Secretary President, Chief Operating Officer and Secretary
+Added: Basich 54 Executive Vice President and Chief Financial Officer Executive Vice President and Chief Financial Officer
+Added: DeBord 43 Executive Vice President and Chief Lending Officer Executive Vice President and Chief Lending Officer
Foster 66 Executive Vice President and Chief Credit Administrator
Executive Vice President and Chief Credit Administrator
−Removed: Basich 53 Senior Vice President and Treasurer
−Removed: Senior Vice President and Treasurer
+Added: Antich 40 Executive Vice President and Chief Technology Officer Executive Vice President and Chief Technology Officer
Biographical Information.
−Removed: Sand has been affiliated with the Bank since 1977 and has served as Chief Executive Officer of the Bank and the Company since September 30, 2003.
−Removed: Sand had served as President of the Bank and the Company from January 23, 2003 through January 24, 2022.
−Removed: Prior to appointment as President and Chief Executive Officer, Mr.
−Removed: Sand had served as Executive Vice President and Secretary of the Bank since 1993 and as Executive Vice President and Secretary of the Company since its formation in 1997.
−Removed: Brydon has been affiliated with the Bank since 1994 and has served as President of the Bank and the Company since January 24, 2022.
−Removed: Brydon has served as the Chief Financial Officer of the Company and the Bank since January 2000.
−Removed: Previously Mr.
−Removed: Brydon had served as Secretary of the Company and the Bank from January 2004 to January 2022.
+Added: Brydon has been affiliated with the Bank since 1994 and has served as Chief Executive Officer of the Bank and the Company since February 1, 2023.
+Added: Prior to his promotion to Chief Executive Officer Mr.
+Added: Brydon served as President of the Bank and Company from January 2022 to January 2023.
+Added: Brydon also served as the Chief Financial Officer of the Company and the Bank from January 2000 to January 2023.
+Added: Brydon also served as Secretary of the Company and the Bank from January 2004 to January 2022.
Brydon is a Certified Public Accountant.
−Removed: Drugge has been affiliated with the Bank since April 2006 and has served as Executive Vice President of Lending since September 2006.
−Removed: Prior to joining Timberland, Mr.
−Removed: Drugge was employed at Bank of America as a senior officer and most recently served as Senior Vice President and Commercial Banking Manager.
−Removed: Drugge began his banking career at Seafirst in 1974, which was acquired by Bank America Corp.
−Removed: and became known as Bank of America.
−Removed: Fischer has been affiliated with the Bank since October 1997 and has served as Chief Operating Officer since August 23, 2012.
−Removed: Fischer has served as Secretary of the Bank and the Company since January 2022.
+Added: Fischer has been affiliated with the Bank since October 1997 and was promoted to President of the Bank and the Company on February 1, 2023.
+Added: Fischer has served as Chief Operating Officer since August 23, 2012 and as Secretary of the Bank and the Company since January 2022.
Prior to that, Mr.
−Removed: Fischer had served as the Chief Risk Officer since October 2010.
−Removed: Fischer had also served as the Compliance Officer, Community Reinvestment Act Officer, and Privacy Officer since January 2000.
+Added: Fischer had served as the Compliance Officer from January 2000 to October 2012 and the Chief Risk Officer from October 2010 to January 2014.
+Added: Basich has been affiliated with the Bank since 1999 and was promoted to Executive Vice President and Chief Financial Officer of the Bank and Company on February 1, 2023.
+Added: Previously Ms.
+Added: Basich served as Treasurer of the Bank and Company from January 2002 to January 2023.
+Added: Basich is a Certified Public Accountant.
+Added: DeBord has been affiliated with the Bank since 2012 and was promoted to Executive Vice President and Chief Lending Officer on April 1, 2023.
+Added: Prior to being promoted to Chief Lending Officer, Mr.
+Added: DeBord served as a Commercial Loan Officer and Commercial Lending Team Leader.
+Added: Prior to joining the Bank, Mr.
+Added: DeBord was employed by a national bank as a Commercial Resolution Officer from January 2010 to December 2012.
+Added: DeBord was a Vice President and Portfolio Manager with a local Savings Bank from April 2006 to January 2010 and was employed by Washington State Department of Financial Institutions - Division of Banks as a Financial Examiner from June of 2003 to April 2006.
Foster has been affiliated with the Bank and has served as Chief Credit Administrator since February 2012.
4 unchanged sentences
Foster served as the Chief Credit Officer for Carson River Community Bank from April 2008 through February 2010.
−Removed: Before joining Carson River Community Bank, Mr.
−Removed: Foster served as a Senior Regional Credit Officer for Omni National Bank from September 2006 through March 2008.
−Removed: Basich has been affiliated with the Bank since 1999 and has served as Treasurer of the Company and the Bank since January 2002.
−Removed: Basich is a Certified Public Accountant.
+Added: Antich, has been affiliated with the Bank since 2007 and was promoted to Chief Technology Officer on January 25, 2022 and was promoted to Executive Vice President on February 1, 2023.
+Added: Prior to this Ms.
+Added: Antich served as our Information Technology Manager.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.