Treasure State Bank Reports First Quarter 2016 Operating Results

MISSOULA, MT--(Marketwired - Apr 21, 2016) -  Treasure State Bank ("the Bank") (OTCQB: TRSU), a Montana chartered community bank, today announced:

President and Chief Executive Officer Jim Salisbury stated "On April 20, 2016, Glacier Bancorp, Inc. ("Glacier"), (NASDAQ: GBCI) announced the signing of a definitive agreement to acquire Treasure State Bank (OTCQB: TRSU). We are excited to become part of the Glacier family of banks and to give our customers access to seven additional First Security Bank branches in Missoula. While working with Glacier in arriving at this agreement to join them, one of the foremost considerations of Treasure State Bank's Board of Directors was how our employees would be absorbed into First Security Bank as a result of this acquisition. I am pleased to say that Glacier values our employees as much as we do, and, accordingly, our valued customers will see no change in the individuals who greet and service them with their banking needs. In addition, this partnership gives our customers access to Glacier ATM's and banking facilities throughout Missoula, the state of Montana and the region. In addition, First Security Bank customers will now have access to our convenient location along Mullan Road in Missoula. Our employees are talented, dedicated and committed to giving our customers the best customer service possible. In addition, our shareholders are being treated fairly with the terms of this merger. With approximately 70% of the transaction in the form of shares of Glacier stock, our shareholders will be holding shares in one of the best banks in the country which has a long proven record of performance, shareholder return, dividend payments and excellent market liquidity."

Mr. Salisbury further stated "As noted in the reported financial results for the quarter, the Bank's financial performance continues to improve at a solid pace. We are especially proud of the 57.9% decrease in non-performing assets year over year and our double digit improvement in earnings performance year over year. Our dedicated staff has worked very hard to effect this improvement. The Board of Directors is proud of the financial performance of the Bank and the dedication and quality of its employees. Glacier is acquiring a first class group of employees, as well as quality assets and deposits, along with the accompanying outstanding customer base. Please continue to monitor press releases for further details as to the value of this transaction to Treasure State Bank shareholders and a timeframe for shareholder approval for this pending acquisition, tentatively scheduled for July, 2016."

• The Bank had an unaudited net operating profit of $115,000 for the quarter ended March 31, 2016, or an increase of 16.2%, as compared to $99, 000 for the same quarter last year.
  
  
•  On a pre-tax basis, the unaudited net operating profit for the quarter ended March 31, 2016 was $188,000, or an increase of 17.5%, as compared to pre-tax earnings of $160,000 for the quarter ended March 31, 2015.
  
  
• Earnings before non-cash expenses of depreciation and amortization, loan loss provisions, real estate owned write-downs, stock option expense and income taxes, were $233,000 ($932,000 annualized) for the quarter ended March 31, 2016, as compared to $223,000 ($892,000 annualized) for the same quarter last year.
  
  
• The annualized return on average assets for the quarter ended March 31, 2016 was 0.65%, or an increase of 18.2%, as compared to 0.55% for the same quarter last year.
  
  
•  The annualized return on average assets on a pre-tax basis for the quarter ended March 31, 2016 was 1.06%, or an increase of 19.1%, as compared to 0.89% for the same quarter last year.
  
  
• The annualized return on average equity for the quarter ended March 31, 2016 was 4.78%, an increase of 13.0%, as compared to 4.23% for the same quarter last year.
  
  
• The annualized return on average equity on a pre-tax basis for the quarter ended March 31, 2016 was 7.83%, an increase of 14.1%, as compared to 6.86% for the same quarter last year.
  
  
• Stockholder's Equity to assets at March 31, 2016 was 13.32%, as compared to 13.24% at December 31, 2015.
  
  
• Book value per share was $5.52 as of March 31, 2016 based on 1,740,951 shares outstanding.
  
  
• Total assets increased $300,000 to $72.1MM at March 31, 2016, as compared to $71.8MM at December 31, 2015. 
  
  
•  Gross loans increased to $53.4MM at March 31, 2016 from $53.2MM at December 31, 2015, and increased $3.4MM, or 6.8%, from $50.0MM at March 31, 2015.
  
  
• Core transaction, money market and savings accounts increased $4.8MM, or 11.8%, to $45.4MM from $40.6MM at March 31, 2015. Certificates of deposit decreased $5.0MM, or 27.8%, to $13.0MM at March 31, 2016 from $18.0MM at March 31, 2015. Management allowed these higher cost deposits to roll off while replacing them with the core deposits, which have a lower cost of funds and generate service fee income.
  
  
• Cost of funds decreased 17.2% to 0.48% at March 31, 2016 from 0.58% at March 31, 2015.
  
  
• The net interest margin (interest income less interest expense divided by average earning assets) increased 7.1% to 3.78% for the quarter ended March 31, 2016, as compared to 3.53% for the same period last year.
  
  
• Diluted earnings per share for the quarter were $0.065 ($0.260 annualized).
  
  
• Pre-tax diluted earnings per share for the quarter were $0.106 ($0.424 annualized).
  
  
• Loan loss reserves to total loans were 2.05% ($1.1MM) at March 31, 2016, as compared to 2.02% ($1.1MM) as of December 31, 2015.
  
  
• Total liquidity as of March 31, 2016 was 16.34%.
  
  
• Non-performing assets decreased $300, 000, or 15.8%, to $1.6MM at March 31, 2016 from $1.9MM at December 31, 2015; Non-performing assets decreased $2.2MM, or 57.9%, from $3.8MM at March 31, 2015. Non-performing assets to total assets at March 31, 2016 were 2.48%, as compared to 2.89% at December 31, 2015 and 5.28% at March 31, 2015.
  
  

For more information regarding this release, or the Bank in general, you may contact James A. Salisbury, President and CEO, or Anne Robinson, Chief Financial Officer, at 406-543-8700. 

About Treasure State Bank:

Treasure State Bank, a Montana chartered community bank, is headquartered in Missoula, Montana. The Bank was founded in January 2007. Treasure State Bank currently trades on the OTCBB under the ticker symbol "TRSU". Treasure State Bank serves businesses, professionals, non-profit organizations and individuals through customized banking services and products. For more information, please visit www.treasurestatebank.com.

Safe Harbor Statement
This communication contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Treasure State Bank and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Bank undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.