Bank regulators have lifted a memorandum of understanding against Timberland Bank nearly three years after the bank was hit with the enforcement action.
Timberland Bancorp (TSBK), the bank's Hoquiam, Wash., parent company, said late Thursday that its state bank regulator and the Federal Deposit Insurance Corp. lifted the memorandum.
Regulators issued the MOU in December 2009. At that time, Timberland was losing money, and more than 5% of the $735 million-asset bank's assets were nonperforming. The company has since turned a profit, earning $3.5 million in the third quarter. Its total risk-based capital ratio was 15.8% at Sept. 30. Nonperforming assets still remain above 5% of total assets.
"We are pleased that our regulators have acknowledged the significant improvement in the financial condition and operating results of the bank during the past two years, including our significantly increased profitability," Michael Sand, the company's president and chief executive, said in a press release. "The improvement in operating performance is a testament to the diligent efforts of the entire Timberland team."
