SOURCE: Treasure State Bank

July 20, 2016 16:14 ET

Treasure State Bank Reports Second Quarter 2016 Operating Results

Shareholder Approval of Merger With Glacier Bancorp, Inc.

MISSOULA, MT--(Marketwired - Jul 20, 2016) -  Treasure State Bank ("the Bank") (OTCBB: TRSU), a Montana chartered community bank, today announced:

President and Chief Executive Officer Jim Salisbury stated, "At a special meeting of the shareholders of Treasure State Bank, held today, July 20, 2016 at 8:00 a.m., it was reported that shareholders approved the proposed merger, announced April 20, 2016, with approval in excess of the required two thirds supermajority. This begins an exciting new chapter for the employees and customers of the Bank as our operations will be merged into First Security Bank of Missoula, a Division of Glacier Bank, a wholly owned subsidiary of Glacier Bancorp, Inc. The merger is to be completed August 31, 2016, with total integration currently scheduled for late October.

Our customers will have access to seven additional First Security Bank branches in Missoula. This partnership gives our customer's 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 ended June 30, 2016, the Bank's financial performance continues to improve at a solid pace as witnessed by the reported record operating earnings. We are especially proud of the 54.3% decrease in non-performing assets from $3.5MM at June 30, 2015 to $1.6MM at June 30, 2016, and our double digit improvement in pre-tax earnings before merger expenses year over year. Our dedicated staff has worked very hard to effect this improvement. August 31, 2016 marks the beginning of my retirement and the end of the responsibilities of the distinguished members of our Board of Directors. The Board of Directors and I are 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 the possibility of a final dividend payout."

  • The Bank had an unaudited net operating profit of $34,000 for the quarter ended June 30, 2016, as compared to $115,000 for the quarter ended March 31, 2016, and $75,000 for the quarter ended June 30, 2015. On a pre-tax basis, the unaudited net operating income for the quarter ended June 30, 2016 was $96,000, as compared to pre-tax earnings of $188,000 for the quarter ended March 31, 2016 and $125,000 for the quarter ended June 30, 2015. This quarter's pre-tax earnings of $96,000 include $192,000 of merger related expenses. Without these expenses, the Bank's pre-tax earnings would be a record $288,000, or a 130.4% increase over the $125,000 pre-tax earnings for the quarter ended June 30, 2015.
  • On a year-to-date basis, the Bank had an unaudited net profit of $149,000 for the six month period ended June 30, 2016 as compared to $174,000 for the same period last year. On a pre-tax basis, the unaudited net operating income for the six month period ended June 30, 2016 was $284,000, as compared to the $285, 000 for the same period last year. This year's pre-tax earnings of $284,000 include $192,000 of merger related expenses. Without these expenses, the Bank's pre-tax earnings would be a record $476,000, or a 67.0% increase over the $285,000 pre-tax earnings for the six month period ended June 30, 2015.
  • The annualized return on average assets for the quarter ended June 30, 2016 was 0.19%, as compared to 0.55% for the quarter ended March 31, 2016 and 0.43% for the quarter ended June 30, 2015. The return on average assets on a pre-tax basis for the quarter ended June 30, 2016 was 0.53%, as compared to 1.06% for the quarter ended March 31, 2016 and 0.71% for the quarter ended June 30, 2015. Excluding the $192,000 of merger related expenses, the annualized after tax return on average assets for the quarter ended June 30, 2016 was 1.25%.
  • The annualized return on average assets for the six month period ended June 30, 2016 was 0.42%, as compared to 0.49% for the same period last year. The return on average assets on a pre-tax basis for the six month period ended June 30, 2016 was 0.79%, as compared to 0.80% for the same period last year. Excluding the $192,000 of merger related expenses, the annualized after tax return on average assets for the six month period ended June 30, 2016 was 0.95%.
  • The annualized return on average equity for the quarter ended June 30, 2016 was 1.40%, as compared to 4.78% for the quarter ended March 31, 2016 and 3.21% for the quarter ended June 30, 2015. The return on average equity on a pre-tax basis for the quarter ended June 30, 2016 was 3.94% as compared to 7.83% for the quarter ended March 31, 2016 and 5.32% for the quarter ended June 30, 2015. Excluding the $192,000 of merger related expenses, the annualized after tax return on average equity for the quarter ended June 30, 2016 was 9.29%.
  • The annualized return on average equity for the six month period ended June 30, 2016 was 3.11%, as compared to 3.72% for the same period last year. The return on average equity on a pre-tax basis for the six month period ended June 30, 2016 was 5.92%, as compared to 6.10% for the same period last year. Excluding the $192,000 of merger related expenses, the annualized after tax return on average equity for the six month period ended June 30, 2016 was 7.11%.
  • Earnings per share for the quarter were $0.019 ($0.077 annualized), and year-to-date were $0.084 ($0.168 annualized) based on 1,775,295 shares outstanding. Earnings per share on a pre-tax basis for the quarter were $0.054 ($0.216 annualized), and year-to-date were $0.16 ($0.32 annualized). Earnings per share after taxes excluding the $192,000 merger related expenses for the quarter were $0.127 ($0.509 annualized), and year-to-date were $0.192 ($0.384 annualized).
  • Stockholder's Equity to assets at June 30, 2016 was 13.18% as compared to 13.24% at December 31, 2015.
  • Book value per share was $5.48 as of June 30, 2016, based on 1,775,295 shares outstanding.
  • Total assets increased $1.6MM to $73.4MM at June 30, 2016, as compared to $71.8MM at December 31, 2015.
  • Gross loans increased $2.2MM, or 4.1%, to $55.4MM at June 30, 2016 from $53.2MM at December 31, 2015, and they increased $5.8MM, or 11.7%, from $49.6MM at June 30, 2015.
  • Core transaction, money market and savings accounts increased $2.8MM, or 6.3%, to $47.2MM from $44.4MM at December 31, 2015. Certificates of deposit decreased $600,000, or 4.5%, to $12.7MM at June 30, 2016 from $13.3MM at December 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 at June 30, 2016 was 0.44%, as compared to 0.48% at March 31, 2016 and 0.58% at June 30, 2015.
  • The net interest margin (interest income less interest expense divided by average earning assets) increased to 3.90% for the quarter ended June 30, 2016, as compared to 3.78% for the quarter ended March 31, 2016. It was 3.56% for the quarter ended June 30, 2015.
  • Loan loss reserves to total loans were 1.98% ($1.1MM) at June 30, 2016, as compared to 2.02% ($1.1MM) at December 31, 2015.
  • Total liquidity as of June 30, 2016 was 15.70%.
  • Non-performing assets decreased $300, 000, or 15.80%, to $1.6MM at June 30, 2016 from $1.9MM at December 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.

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