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 September 30, 2000
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)
( 530 )842-4200
(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:
1,006,860
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
"TIMBERLINE BANCSHARES, INC."
CONSOLIDATED INCOME STATEMENT
Periods Indicated
Quarter YTD Quarter YTD
09/30/00 09/30/00 09/30/99 09/30/99
INTEREST AND FEES ON LOANS 1,441 4,211 1,318 3,765
INTEREST AND DIVIDENDS ON
INVESTMENT SECURITIES
HELD FOR SALE 243 728 244 650
HELD TO MATURITY 33 113 52 174
TRADING ACCOUNT INTEREST - - - -
OTHER INTEREST 81 197 51 295
TOTAL INTEREST INCOME 1,798 5,249 1,665 4,884
INTEREST ON DEPOSITS 625 1,805 544 1,670
INTEREST ON SHORT TERM BORROWING 7 3 3
INTEREST ON LONG TERM DEBT - - - -
TOTAL INTEREST EXPENSE 625 1,812 547 1,673
NET INTEREST INCOME 1,173 3,437 1,118 3,211
PROVISION FOR LOAN LOSSES 21 56 9 27
NET INTEREST INCOME AFTER ALLOWANCE
FOR LOAN LOSSES 1,152 3,381 1,109 3,184
OTHER INCOME 100 303 103 311
OTHER EXPENSES 815 2,630 905 2,731
INCOME BEFORE TAX 437 1,054 307 764
INCOME TAX EXPENSE 124 321 71 185
INCOME BEFORE EXTRAORDINARY ITEMS 313 733 236 579
EXTRAORDINARY ITEM NET OF TAX - - - -
CUMULATIVE EFFECT OF ACCOUNTING
CHANGES - - - -
NET INCOME 313 733 236 579
EARNINGS PER SHARE 0.31 0.73 0.23 0.58
Note 1: The financial statements in this report are un-audited 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.
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET
09/30/00
ASSETS
CASH & DUE FROM BANKS $8,975
INTEREST BEARING DEPOSITS IN OTHER 100
FED FUNDS & RESALE SECURITY AGREE 2,300
TRADING ACCOUNT ASSETS 0
OTHER SHORT TERM 0
INVESTMENT SECURITIES
HELD FOR SALE 17,451
MATURITY 2,287
LOANS TOTAL 59,884
ALLOWANCE FOR LOAN LOSSES (423)
UNEARNED INCOME (120)
PREMISES & EQUIPMENT 1,797
DUE FROM CUSTOMERS, ACCEPTANCES 0
OTHER ASSETS 4,333
TOTAL $96,584
LIABILITIES
DEPOSITS, NON-INTREST BEARING $22,352
INTEREST BEARING 65,168
SHORT TERM BORROWING 0
BANK ACCEPTANCES 0
OTHER LIABILITIES 690
LONG TERM DEBT 0
COMMITMENTS & CONTINGENT LIABILITY 0
MINORITY INTERESTS 0
SHAREHOLDER EQUITY
PERFERED STOCK 0
COMMON STOCK 2,993
OTHER S/H EQUITY 5,381
TOTAL $96,584
Note: Held for Sell amount includes unrealized loss of $484
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED CASH FLOWS
CASH FLOW FROM OPERATING ACT YTD 09/30/00 YTD 09/30/99
NET INCOME 733 579
NON-CASH
DEPRECIATION 162 160
NET CHANGE BAD DEBTS PROV 51 45
CUMU EFFECT ACCTG CH
(INCREASE) DECREASE IN
OTHER ASSETS (299) (51)
INCREASE (DECREASE) IN
ACCRUED EXPENSES (76) 78
CASH PROVIDED BY OPS 571 811
CASH FROM INVESTING
INCREASE (DECREASE) IN
DEPOSITS 4,369 717
(INCREASE) DECREASE IN
SHORT TERM INVESTMENTS 0 (938)
SECURITIES: FOR SALE (126) (4,385)
HOLD 885 1,587
FED FUNDS (1,500) 9,800
LOANS (1,838) (6,352)
(PURCHASE) SALE OF F.A. (85) (107)
CASH (USED) PROVIDED 1,705 322
CASH FROM FINANCING
DIVIDENDS PAID (252) (252)
SHORT TERM BORROWING 0 1,300
ADDITIONAL PD IN CAP 0 0
CASH(APPLIED) PROVIDED (252) 1,048
NET CHANGE 2,024 2,181
OPEN 6,951 4,785
CLOSE 8,975 6,966
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.
Timberline's plans are to increase it's market share in the areas
it serves, continue to upgrade services to it's customers,
continue to offer loans to the customers in it's service area, to
enhance earnings, to control costs, and to enhance the
shareholders' value. To greatly enhance our ability to do this we
have signed a definitive agreement to merge with another bank.
(b) Management's Discussion and Analysis of Financial condition
and Results of Operations
Net interest income in the first nine0 months of 2000 exceeds that of
the same period of 1999 as a result of the recent rises in prime
rate and an increase in loans outstanding coupled with a slower rise in
interest paid to depositors.
Siskiyou county has been in an economic downturn for years as it's main
economy was based on timber products and services. In view of
those economic conditions , the Bank has accelerated its program
of buying participations from other financial institutions outside
its normal lending area. Through this program, the bank has
increased the loan to deposit ratio somewhat and expects an
increase in income from lending for the remainder of the year.
As a relatively small bank in a sparsely populated county, the
bank does not offer mutual funds or insurance as an avenue of
enhancing income. Nor has the bank greatly increased service fees
to its customers, but has relied on the traditional banking
revenue sources; i.e. income from lending. With a loan
delinquency of less than one per cent, the Bank has reduced the
amount set aside in loan loss reserves while still maintaining an
adequate reserve. Other expenses have gone down slightly as the
Bank is no longer investing funds in last year's Y2K readiness.
In addition, the Bank will be paying a $.25 per share cash dividend to
shareholders of record in the fourth quarter of the year.
-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
Definitive Agreement signed in October of 2000 to merge with bank holding
company head-quartered in Medford Oregon.
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.
//ss John A. Linton Date 10/25/2000
John A. Linton, President
//ss Michael W. Jones Date 10/25/2000
Michael W. Jones, Assistant Vice-President
