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, 1997
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: 1,003,112
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED INCOME STATEMENT
Periods Indicated
($ in thousand except per share)
Prior Prior
Year Year Year
Quarter to Quarter to
End Date End Date
06/30/97 06/30/97 06/30/96 06/30/96
1. Interest and Fees on Loans 1,111 2,175 1,062 2,159
2. Interest On Securities
Held to Maturity 182 283 157 309
Available for Sale 120 254 86 192
3. Trading Account interest -0- -0- -0- -0-
4. Other interest 129 312 178 353
5. Total Interest Income 1,542 3,024 1,483 3,013
6. Interest on Deposits 510 1,003 496 1,036
7. Interest on short term borrowing -0- -0- -0- -0-
8. Interest on long term debt -0- -0- -0- -0-
9. Total Interest Expense 510 1,003 496 1,036
10. Net Interest Income 1,032 2,021 987 1,977
11. Provision for Loan Losses -0- -0- -0- -0-
12. Net Interest Income after
Provision for loan losses 1,032 2,021 987 1,977
13. Other Income 109 223 118 234
14. Other Expenses 844 1,691 772 1,549
15. Income before Tax 297 553 333 662
16. Income Tax Expense 40 122 153 267
17. Income before extraordinary item 257 431 180 395
18. Extraordinary item net of tax -0- -0- -0- -0-
19. Cumulative effect of accounting
changes -0- -0- -0- -0-
20. Net Income $ 257 $ 431 $ 180 $ 395
21. Earnings per share $ .26 $ .43 $ .35 $ .77
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.
-1-
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET
06/30/97
($ in thousand)
ASSETS
1. Cash and Due from Banks $ 5,016
2. Interest Bearing Deposits other banks -0-
3. Federal Funds sold and securities
purchased under resale agreement 6,500
4. Trading Account Assets -0-
5. Other short-term investments 1,276
6. Investment securities
Held for Sale 13,925
Held to Maturity 7,989
7. Loans, Total 42,728
Allowance for loan losses (488)
Unearned Income (64)
8. Premises and Equipment 2,256
9. Due from customers on acceptances -0-
10. Other assets 1,228
11. Total Assets $ 80,366
LIABILITIES
12. Deposits, non-interest bearing $ 14,227
Interest bearing 58,540
13. Short-term borrowing -0-
14. Bank Acceptances outstanding -0-
15. Other liabilities 462
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 2,980
22. Other Shareholders equity 4,157
23. Total Liabilities and Shareholders Equity $ 80,366
Note: Held for Sale amount stated net of unrealized loss of $9.
-2-
TIMBERLINE BANCSHARES, INC
CONSOLIDATED STATEMENT OF CASH FLOWS
For Periods Indicated
Year Year
($ in thousand) to Date to Date
06/30/97 06/30/96
Cash Flow from Operating Activities
Net Income $ 435 $ 395
Non-cash items included in income
Depreciation 93 95
Net change in Bad Debt Provision (3) 4
Cumulative effect of accounting
change
(Increase)Decrease in:
Other Assets 52 37
Increase(Decrease) in:
Accrued Expenses 32 31
Prior period adjustment -0- -0-
Net cash provided by operations 609 562
Cash Flow from Investing Activities
Increase(Decrease) in:
Deposits 2,499 2,038
(Increase)Decrease in:
Securities: Held for Sale (7,493) 240
Held to Maturity 1,585 (36)
Federal Funds Sold 6,200 (2,500)
Loans (3,466) 1,418
(Purchase)Sale of Fixed assets (35) (95)
Net cash (used for) provided by
investing activities (710) 1,065
Cash Flow from Financing Activities
Dividends Paid (251) (249)
Additional Paid In Capital 166 135
Net cash (applied to)provided by
financing activities (85) (114)
Net cash increase (decrease) in cash
and due from banks (186) 1,513
Cash and Due from Banks at
beginning of year 5,202 4,163
Cash and Due from Banks at
end of period $5,016 $5,676
-3-
Item 2. Management's Discussion
(a) Plan of Operation
Timberline Bancshares management is an "overlay" 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 history of sustained, manageable growth and are seeing a turn
around in loan demand, which has been on a decline for the past few years. This
gradual repositioning of earning assets is reflected in the increase in net
income over the same period last year.
The per share earnings change is due to exercising of stock options by directors
and employees which increased the outstanding shares some 48 thousand shares.
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 consistently maintained since.
-4-
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 7/24/96 /s/ Robert J. Youngs
Robert J. Youngs, President & CEO
Date 7/24/96 /s/ Helen L. Gaulden
Helen L. Gaulden, Sr. V. P. & Treasurer
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