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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1996
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number 33-40799
TIMBERLINE BANCSHARES, INC.
(Exact name of small business issuer as specified in its charter)
California 68-0269988
(State or other jurisdiction of (IRS Employer Identification No.)
of incorporation or organization)
123 N. Main Street P. O. Box 1087, Yreka, Ca 96097
(Address of principal executive offices)
( 916 )842-6191
(Issuer's telephone number)
(Former name, former address and former fiscal year, if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d)
of the Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and report required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a
plan confirmed by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 944278
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED INCOME STATEMENT
Periods Indicated
($ in thousand except per share)
Year Prior Year Prior Year
Quarter End to Date Quarter End to Date
06/30/96 06/30/96 06/30/95 06/30/95
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1. Interest and Fees on Loans 1,062 2,159 1,233 2,475
2. Interest On Securities
Held to Maturity 157 309 213 428
Available for Sale 86 192 61 146
3. Trading Account interest -0- -0- -0- -0-
4. Other interest 178 353 74 92
5. Total Interest Income 1,483 3,013 1,581 3,141
6. Interest on Deposits 496 1,036 566 1,100
7. Interest on short term borrowing -0- -0- -0- -0-
8. Interest on long term debt -0- -0- -0- -0-
9. Total Interest Expense 496 1,036 566 1,100
10. Net Interest Income 987 1,977 1,015 2,041
11. Provision for Loan Losses -0- -0- 8 30
12. Net Interest Income after
Provision for loan losses 987 1,977 1,007 2,011
13. Other Income 118 234 117 229
14. Other Expenses 772 1,549 801 1,590
15. Income before Tax 333 662 323 650
16. Income Tax Expense 153 267 138 243
17. Income before extraordinary
item 180 395 185 407
18. Extraordinary item net of tax -0- -0- -0- -0-
19. Cumulative effect of accounting
changes -0- -0- -0- -0-
20. Net Income $ 180 $ 395 $ 185 $ 407
21. Earnings per share $ .35 $ .77 $ .41 $ .91
Note 1: The financial statements included in this report are unaudited but,
in the opinion of management of the Corporation, reflect all adjustments
(consisting only of normal recurring adjustments) necessary for a fair
presentation of financial position, results of operations, and
changes in financial position for the periods presented.
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TIMBERLINE BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET
06/30/96
ASSETS
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1. Cash and Due from Banks $ 5,676
2. Interest Bearing Deposits other banks -0-
3. Federal Funds sold and securities
purchased under resale agreement 12,700
4. Trading Account Assets -0-
5. Other short-term investments 1,222
6. Investment securities
Held for Sale 6,956
Held to Maturity 11,046
7. Loans, Total 38,175
Allowance for loan losses (479)
Unearned Income (81)
8. Premises and Equipment 2,191
9. Due from customers on acceptances -0-
10. Other assets 1,205
11. Total Assets $ 78,611
LIABILITIES
12. Deposits, non-interest bearing $ 14,293
Interest bearing 57,578
13. Short-term borrowing -0-
14. Bank Acceptances outstanding -0-
15. Other liabilities 274
16. Long-term debt -0-
17. Commitments and contingent liabilities -0-
18. Minority Interests -0-
SHAREHOLDERS EQUITY
19 & 20. Preferred stock -0-
21. Common Stock 2,814
22. Other Shareholders equity 3,652
23. Total Liabilities and Shareholders Equity $ 78,611
($ in thousand)
Note: Held for Sale amount stated net of unrealized loss of $55.
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TIMBERLINE BANCSHARES, INC
CONSOLIDATED STATEMENT OF CASH FLOWS
For Periods Indicated
Year Year
($ in thousand) to Date to Date
06/30/96 06/30/95
Cash Flow from Operating Activities
Net income $ 395 $ 408
Non-cash items included in income
Depreciation 95 79
Net change in Bad Debt Provision 4 29
Cumulative effect of accounting
change
(Increase)Decrease in:
Other Assets 37 (326)
Increase(Decrease) in:
Accrued Expenses 31 45
Prior period adjustment -0- (6)
Net cash provided by operations 562 228
Cash Flow from Investing Activities
Increase(Decrease) in:
Deposits 2038 (214)
(Increase)Decrease in:
Short Term Investment -0- -0-
Securities: Held for Sale 240 4,194
Held to Maturity (36) 367
Federal Funds Sold (2,500) (6,200)
Loans 1,418 1,601
(Purchase)Sale of Fixed assets (95) (9)
Net cash (used for) provided by
investing activities 1,065 (261)
Cash Flow from Financing Activities
Dividends Paid (249) (223)
Additional Paid In Capital 135 40
Net cash (applied to)provided by
financing activities (114) (183)
Net cash increase (decrease) in cash
and due from banks 1,513 (215)
Cash and Due from Banks at
beginning of year 4,163 4,543
Cash and Due from Banks at
end of year $5,676 $4,328
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Item 2. Management's Discussion
(a) Plan of Operation
Timberline Bancshares management is an "ovelay" of its wholly-owned subsidiary, Timberline Community Bank,
and therefore shares the same concepts regarding growth of the institution, protection and preservation of assets,
shareholder enhancement, and fulfilling the joint mission statement to assist the communities which we serve.
(b)
We continue our 15 year history of sustained growth in size and earnings with two notable comments. Loans are
down from a year ago while liquidity is up. This is due to our build up of reserves to fund a new credit card
program which we anticipate beginning in late third quarter or early fourth quarter 1996. Also, net earning appear
to be slightly off from previous year. We believe this to be an overaccrual of taxes as the pretax income is slightly
over prior year, this should self adjust during the 2nd half of the year.
The per share earnings change is due to a 2nd quarter stock dividend of 2 for 1 resulting in a 100% increase in
shares outstanding.
The holding company intends to continue its excellent dividend Payment Rate (adjusted for stock dividend) which
is essentially equal to one half of per share net earnings. Our current dividend policy of semi annual cash payments
began in October 1994 and has been consistantly maintained since, the last payment a $.50 per share on April 1, 1996.
Since a significant portion of our loan funding comes from the Medford, Oregon area, We are attempting to establish
a branch office in that community to avail us of the deposit potential that the loans generate. Due to interstate
constraints were not sure this move can be completed this year.
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PART 11 - OTHER INFORMATION
Item 1. Legal Proceedings
There are no legal proceedings pending other than those in the normal course of doing business that may have
a material impact on the bank.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
TIMBERLINE BANCSHARES, INC.
Date 7/27/96 /s/ Robert J. Youngs
Robert J. Youngs, President & CEO
Date 7/27/96 /s/ Helen L. Gaulden
Helen L. Gaulden, Vice President & Treasurer
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