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, 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
06/30/00 06/30/00 06/30/99 06/30/99
INTEREST AND FEES ON LOANS 1,433 2,770 1,206 2,447
INTEREST AND DIVIDENDS ON
INVESTMENT SECURITIES
HELD FOR SALE 242 485 226 406
HELD TO MATURITY 40 80 56 122
TRADING ACCOUNT INTEREST - - - -
OTHER INTEREST 42 116 106 244
TOTAL INTEREST INCOME 1,757 3,451 1,594 3,219
INTEREST ON DEPOSITS 595 1,180 556 1,126
INTEREST ON SHORT TERM BORROWING 7 7 - -
INTEREST ON LONG TERM DEBT - - - -
TOTAL INTEREST EXPENSE 602 1,187 556 1,126
NET INTEREST INCOME 1,155 2,264 1,038 2,093
PROVISION FOR LOAN LOSSES 14 35 (12) 18
NET INTEREST INCOME AFTER ALLOWANCE
FOR LOAN LOSSES 1,141 2,229 1,050 2,075
OTHER INCOME 103 203 103 208
OTHER EXPENSES 893 1,815 903 1,826
INCOME BEFORE TAX 351 617 250 457
INCOME TAX EXPENSE 123 197 51 114
INCOME BEFORE EXTRAORDINARY ITEMS 228 420 199 343
EXTRAORDINARY ITEM NET OF TAX - - - -
CUMULATIVE EFFECT OF ACCOUNTING
CHANGES - - - -
NET INCOME 228 420 199 343
EARNINGS PER SHARE 0.23 0.42 0.20 0.34
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
06/30/00
ASSETS
CASH & DUE FROM BANKS $6,963
INTEREST BEARING DEPOSITS IN OTHER 100
FED FUNDS & RESALE SECURITY AGREE 0
TRADING ACCOUNT ASSETS 0
OTHER SHORT TERM 0
INVESTMENT SECURITIES
HELD FOR SALE 17,295
MATURITY 2,900
LOANS TOTAL 60,359
ALLOWANCE FOR LOAN LOSSES (400)
UNEARNED INCOME (127)
PREMISES & EQUIPMENT 1,796
DUE FROM CUSTOMERS, ACCEPTANCES 0
OTHER ASSETS 3,536
TOTAL $92,422
LIABILITIES
DEPOSITS, NON-INTREST BEARING $18,743
INTEREST BEARING 64,984
SHORT TERM BORROWING 200
BANK ACCEPTANCES 0
OTHER LIABILITIES 529
LONG TERM DEBT 0
COMMITMENTS & CONTINGENT LIABILITY 0
MINORITY INTERESTS 0
SHAREHOLDER EQUITY
PERFERED STOCK 0
COMMON STOCK 2,993
OTHER S/H EQUITY 4,973
TOTAL $92,422
Note: Held for Sell amount includes unrealized loss of $642
TIMBERLINE BANCSHARES, INC.
CONSOLIDATED CASH FLOWS
CASH FLOW FROM OPERATING ACT YTD 6/30/00 YTD 6/30/99
NET INCOME 420 343
NON-CASH
DEPRECIATION 107 107
NET CHANGE BAD DEBTS PROV 28 18
CUMU EFFECT ACCTG CH
(INCREASE) DECREASE IN
OTHER ASSETS 498 (1,072)
INCREASE (DECREASE) IN
ACCRUED EXPENSES (237) 27
CASH PROVIDED BY OPS 816 (577)
CASH FROM INVESTING
INCREASE (DECREASE) IN
DEPOSITS 576 297
(INCREASE) DECREASE IN
SHORT TERM INVESTMENTS 0 (669)
SECURITIES: FOR SALE (65) (4,468)
HOLD 272 1,253
FED FUNDS 800 8,200
LOANS (2,306) (1,289)
(PURCHASE) SALE OF F.A. (29) (38)
CASH (USED) PROVIDED (752) 3,286
CASH FROM FINANCING
DIVIDENDS PAID (252) (252)
SHORT TERM BORROWING 200
ADDITIONAL PD IN CAP 0 0
CASH(APPLIED) PROVIDED (52) (252)
NET CHANGE 12 2,457
OPEN 6,951 4,886
CLOSE 6,963 7,343
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.
(b) Management's Discussion and Analysis of Financial condition
and Results of Operations
Net interest income in the first six 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 has continued its dividend program and 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
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.
//ss John A. Linton Date 07/27/2000
John A. Linton, President
//ss Michael W. Jones Date 07/27/2000
Michael W. Jones, Assistant Vice-President
