Timberland Bancorp Reports Second Fiscal Quarter Net Income of $7.1 Million
Rhea-AI Summary
Timberland Bancorp (NASDAQ: TSBK) reported net income of $7.13 million and EPS of $0.90 for the quarter ended March 31, 2026.
Highlights: quarterly ROA 1.43%, ROE 10.72%, NIM 3.81%, total assets $2.05B (+6% YoY), total deposits +6% YoY, 80,000 shares repurchased for $3.09M, and a quarterly cash dividend of $0.29 payable May 22, 2026.
Positive
- Net income of $7.13 million for Q2
- EPS increased 6% year-over-year to $0.90
- Total assets up 6% year-over-year to $2.05B
- Total deposits increased 6% year-over-year
- Board declared $0.29 quarterly cash dividend
- Repurchased 80,000 shares for $3.09M
Negative
- Provision for credit losses rose to $523,000 this quarter
- Non-performing assets to total assets rose to 0.47%
- Net income and EPS declined 13% from prior quarter
- Net interest income decreased 4% sequentially
News Market Reaction – TSBK
In the Apr 29 session, TSBK declined 2.92%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 26 | Quarterly earnings | Positive | +2.4% | Strong Q1 2026 results with higher EPS, NIM, and dividend increase. |
| Jul 22 | Quarterly earnings | Positive | +6.5% | Q3 2025 EPS up 20% YoY with expanding NIM and higher ROE/ROA. |
| Apr 22 | Quarterly earnings | Positive | +2.1% | Q2 2025 EPS and NIM improved, with asset and loan growth and dividend hike. |
| Jan 27 | Quarterly earnings | Positive | +1.7% | Q1 2025 net income and EPS rose with better NIM and credit quality. |
| Oct 31 | Quarterly/annual earnings | Positive | +4.5% | Q4 2024 showed NIM improvement, loan and deposit growth, dividend increase. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have consistently drawn positive price reactions, with all recent earnings events showing gains and an average move around 3.44% on the day after news.
Over the last several quarters, Timberland has reported steadily growing earnings, expanding net interest margin, and regular dividend increases. Recent earnings events on Jan 26, 2026 and across fiscal 2025 featured higher ROA, ROE, and rising deposits and assets, alongside ongoing share repurchases. Today’s second-quarter update, with higher EPS and net income year-over-year and continued dividend payments, fits this pattern of consistent, measured financial improvement.
Key Terms
net interest margin financial
efficiency ratio financial
allowance for credit losses financial
non-accrual financial
pre-payment penalties financial
available for sale investment securities financial
non-performing assets financial
loan origination fees financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- EPS Increases
6% to$0.90 from$0.85 for the Comparable Quarter One Year Ago - Quarterly Return on Average Assets of
1.43% - Quarterly Return on Average Equity of
10.72% - Quarterly Net Interest Margin of
3.81%
HOQUIAM, Wash., April 28, 2026 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of
For the first six months of fiscal 2026, Timberland’s net income increased
“Timberland delivered another strong quarter, with net income and earnings per share both growing
“As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a quarterly cash dividend to shareholders to
“Our net interest margin remained relatively stable, declining four basis points from the prior quarter while improving two basis points year-over-year,” said Marci Basich, Chief Financial Officer. “After largely offsetting the impact of Federal Reserve rate cuts in the prior quarter, we are beginning to see those cuts have a more direct effect on our margin. Our balance sheet positioning and proactive deposit pricing strategies continue to help mitigate these headwinds. It is also worth noting that the comparison to the prior quarter is somewhat affected by one-time items — collected non-accrual interest and late fees added approximately one basis point to the margin during the current quarter, compared to a six basis point benefit from similar items in the prior quarter. On the deposit side, total deposits grew
“Net loans were down slightly during the quarter, driven primarily by higher loan payoff activity,” Brydon continued. “Credit quality is an area we continue to monitor closely, and this quarter delinquent and non-accrual loans increased, driven primarily by an isolated participation loan that was moved to non-accrual status during the quarter. We remain confident in the overall strength of our loan portfolio and our disciplined approach to credit risk management.”
“Our new full-service branch in University Place, which opened January 12, 2026, is gaining traction and expanding our ability to serve clients in the area between our Gig Harbor and Tacoma locations. Early momentum is encouraging, and we see strong opportunity to deepen commercial banking relationships with the businesses driving growth in this community,” added Fischer.
Earnings and Balance Sheet Highlights (at or for the periods ended March 31, 2026, compared to March 31, 2025, or December 31, 2025):
Earnings Highlights:
- Earnings per diluted common share (“EPS”) increased
6% to$0.90 for the current quarter from$0.85 for the comparable quarter one year ago and decreased13% from$1.04 for the preceding quarter; EPS increased13% to$1.94 for the first six months of fiscal 2026 from$1.71 for the first six months of fiscal 2025; - Net income increased
6% to$7.13 million for the current quarter from$6.76 million for the comparable quarter one year ago and decreased13% from$8.22 million for the preceding quarter; Net income increased13% to$15.35 million for the first six months of fiscal 2026 from$13.62 million for the first six months of fiscal 2026; - Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were
10.72% and1.43% , respectively; - Net interest margin (“NIM”) for the current quarter increased to
3.81% from3.79% for the comparable quarter one year ago and decreased from3.85% for the preceding quarter; and - The efficiency ratio for the current quarter was
55.38% compared to56.25% for the comparable quarter one year ago and52.65% for the preceding quarter.
Balance Sheet Highlights:
- Total assets increased
2% from the prior quarter and increased6% year-over-year; - Net loans receivable decreased
1% from the prior quarter and increased2% year-over-year; - Total deposits increased
2% from the prior quarter and increased6% year-over-year; - Total shareholders’ equity increased
1% from the prior quarter and increased7% year-over-year; 80,000 shares of common stock were repurchased during the current quarter for$3.09 million ; - Non-performing assets to total assets ratio was
0.47% at March 31, 2026, compared to0.23% at December 31, 2025, and0.19% at March 31, 2025; - Book and tangible book (non-GAAP) values per common share increased to
$34.61 and$32.65 respectively, at March 31, 2026; and - Liquidity (both on-balance sheet and off-balance sheet) remained strong at March 31, 2026, with only
$20 million in borrowings and additional secured borrowing line capacity of$778 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.
Operating Results
Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter decreased
Net interest income decreased
Timberland’s NIM for the current quarter decreased to
A
Non-interest income increased
Total operating (non-interest) expenses for the current quarter increased
The provision for income taxes for the current quarter decreased
Balance Sheet Management
Total assets increased
Liquidity
Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet. Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was
Loans
Net loans receivable decreased
| Loan Portfolio | |||||||||||||||||
| ($ in thousands) | |||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||
| Mortgage loans: | |||||||||||||||||
| One- to four-family (a) | |||||||||||||||||
| Multi-family | 214,107 | 14 | 212,331 | 14 | 178,590 | 12 | |||||||||||
| Commercial | 611,117 | 39 | 611,989 | 39 | 602,248 | 40 | |||||||||||
| Construction - custom and | |||||||||||||||||
| owner/builder | 104,074 | 7 | 102,177 | 7 | 114,401 | 7 | |||||||||||
| Construction - speculative one-to four-family | 15,840 | 1 | 15,110 | 1 | 9,791 | 1 | |||||||||||
| Construction - commercial | 12,985 | 1 | 20,199 | 1 | 22,352 | 1 | |||||||||||
| Construction - multi-family | 80,246 | 5 | 65,856 | 4 | 46,602 | 3 | |||||||||||
| Construction - land | |||||||||||||||||
| development | 2,915 | -- | 2,387 | -- | 15,032 | 1 | |||||||||||
| Land | 32,214 | 2 | 33,521 | 2 | 32,301 | 2 | |||||||||||
| Total mortgage loans | 1,384,998 | 89 | 1,389,294 | 89 | 1,336,738 | 88 | |||||||||||
| Consumer loans: | |||||||||||||||||
| Home equity and second | |||||||||||||||||
| mortgage | 53,252 | 3 | 52,569 | 3 | 47,458 | 3 | |||||||||||
| Other | 2,018 | -- | 1,898 | -- | 2,375 | -- | |||||||||||
| Total consumer loans | 55,270 | 3 | 54,467 | 3 | 49,833 | 3 | |||||||||||
| Commercial loans: | |||||||||||||||||
| Commercial business | |||||||||||||||||
| loans | 125,087 | 8 | 128,397 | 8 | 131,243 | 9 | |||||||||||
| SBA PPP loans | 5 | -- | 20 | -- | 156 | -- | |||||||||||
| Total commercial loans | 125,092 | 8 | 128,417 | 8 | 131,399 | 9 | |||||||||||
| Total loans | 1,565,360 | 1,572,178 | 1,517,970 | ||||||||||||||
| Less: | |||||||||||||||||
| Undisbursed portion of | |||||||||||||||||
| construction loans in | |||||||||||||||||
| process | (90,576 | ) | (89,883 | ) | (75,042 | ) | |||||||||||
| Deferred loan origination | |||||||||||||||||
| fees | (5,259 | ) | (5,338 | ) | (5,329 | ) | |||||||||||
| Allowance for credit losses | (18,648 | ) | (18,125 | ) | (17,525 | ) | |||||||||||
| Total loans receivable, net | |||||||||||||||||
_______________________
(a) Does not include one- to four-family loans held for sale totaling
The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of March 31, 2026:
| CRE Loan Portfolio Breakdown by Collateral | |||||||||||||
| ($ in thousands) | |||||||||||||
| Collateral Type | Balance | Percent of CRE Portfolio | Percent of Total Loan Portfolio | Average Balance Per Loan | Non- Accrual | ||||||||
| Industrial warehouses | $ | 131,278 | $ | 1,353 | $ | -- | |||||||
| Medical/dental offices | 80,060 | 13 | 5 | 1,213 | 237 | ||||||||
| Office buildings | 69,655 | 11 | 4 | 819 | 294 | ||||||||
| Other retail buildings | 55,702 | 9 | 3 | 619 | -- | ||||||||
| Mini-storage | 37,840 | 6 | 2 | 1,514 | -- | ||||||||
| Hotel/motel | 32,405 | 5 | 2 | 2,315 | 4,328 | ||||||||
| Restaurants | 28,018 | 5 | 2 | 584 | -- | ||||||||
| Gas stations/conv. stores | 26,182 | 4 | 2 | 1,007 | -- | ||||||||
| Churches | 13,842 | 2 | 1 | 923 | -- | ||||||||
| Nursing homes | 13,304 | 2 | 1 | 2,217 | -- | ||||||||
| Shopping centers | 10,290 | 2 | 1 | 1,715 | -- | ||||||||
| Mobile home parks | 9,280 | 2 | 1 | 422 | -- | ||||||||
| Additional CRE | 103,261 | 17 | 7 | 776 | -- | ||||||||
| Total CRE | $ | 611,117 | $ | 965 | $ | 4,859 | |||||||
Timberland originated
Investment Securities
Timberland’s investment securities and CDs held for investment increased
Deposits
Total deposits increased
| Deposit Breakdown ($ in thousands) | ||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||
| Non-interest-bearing demand | ||||||||||||
| NOW checking | 370,385 | 21 | 367,278 | 21 | 333,325 | 20 | ||||||
| Savings | 197,805 | 11 | 197,490 | 12 | 207,857 | 13 | ||||||
| Money market | 325,811 | 19 | 304,316 | 18 | 300,552 | 18 | ||||||
| Certificates of deposit under | 257,449 | 15 | 256,809 | 15 | 227,137 | 14 | ||||||
| Certificates of deposit | 141,843 | 8 | 136,764 | 8 | 124,009 | 7 | ||||||
| Certificates of deposit – brokered | 41,937 | 3 | 37,525 | 2 | 50,139 | 3 | ||||||
| Total deposits | ||||||||||||
Borrowings
Total borrowings were
Shareholders’ Equity and Capital Ratios
Total shareholders’ equity increased
Timberland remains well capitalized with a total risk-based capital ratio of
Asset Quality
Timberland’s non-performing assets to total assets ratio was
Total delinquent loans (past due 30 days or more) and non-accrual loans increased
| Non-Accrual Loans | ||||||||||||||
| ($ in thousands) | ||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||
| Amount | Quantity | Amount | Quantity | Amount | Quantity | |||||||||
| Mortgage loans: | ||||||||||||||
| One- to four-family | $ | 1,934 | 2 | $ | 1,988 | 2 | $ | 47 | 1 | |||||
| Commercial | 4,859 | 4 | 304 | 1 | 324 | 3 | ||||||||
| Construction – custom and | ||||||||||||||
| owner/builder | 553 | 1 | 553 | 1 | -- | -- | ||||||||
| Total mortgage loans | 7,346 | 7 | 2,845 | 4 | 371 | 4 | ||||||||
| Consumer loans: | ||||||||||||||
| Home equity and second | ||||||||||||||
| mortgage | 352 | 4 | 356 | 4 | 575 | 3 | ||||||||
| Other | 20 | 1 | 20 | 1 | -- | -- | ||||||||
| Total consumer loans | 372 | 5 | 376 | 5 | 575 | 3 | ||||||||
| Commercial business loans | 1,687 | 7 | 1,063 | 8 | 1,381 | 11 | ||||||||
| Total loans | $ | 9,405 | 19 | $ | 4,284 | 17 | $ | 2,327 | 18 | |||||
Timberland had two properties classified as other real estate owned (“OREO”) at March 31, 2026:
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||
| Amount | Quantity | Amount | Quantity | Amount | Quantity | |||||||||
| Other real estate owned: | ||||||||||||||
| Commercial | 1 | 1 | 1 | |||||||||||
| Land | -- | 1 | -- | 1 | -- | 1 | ||||||||
| Total mortgage loans | 2 | 2 | 2 | |||||||||||
About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank. The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 24 branches (including its main office in Hoquiam).
Disclaimer
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System ("Federal Reserve") in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board ("FASB"), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company's other reports filed with or furnished to the Securities and Exchange Commission.
Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management's beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2026 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's consolidated financial condition and results of operations as well as its stock price performance.
| TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | ||||||||||||
| ($ in thousands, except per share amounts) (unaudited) | March 31, | Dec. 31 | March 31, | ||||||||||
| 2026 | 2025 | 2025 | |||||||||||
| Interest and dividend income | |||||||||||||
| Loans receivable and loans held for sale | |||||||||||||
| Investment securities | 1,751 | 1,862 | 2,003 | ||||||||||
| Dividends from mutual funds, FHLB stock and other investments | 77 | 82 | 82 | ||||||||||
| Interest bearing deposits in banks | 2,334 | 2,578 | 1,884 | ||||||||||
| Total interest and dividend income | 25,955 | 27,195 | 24,865 | ||||||||||
| Interest expense | |||||||||||||
| Deposits | 7,513 | 8,043 | 7,454 | ||||||||||
| Borrowings | 198 | 203 | 198 | ||||||||||
| Total interest expense | 7,711 | 8,246 | 7,652 | ||||||||||
| Net interest income | 18,244 | 18,949 | 17,213 | ||||||||||
| Provision for credit losses – loans | 523 | 16 | 237 | ||||||||||
| Recapture of credit losses – investment securities | (3 | ) | (2 | ) | (5 | ) | |||||||
| Prov. for (recapture of) credit losses – unfunded commitments | 3 | (49 | ) | 14 | |||||||||
| Net int. income after provision for (recapture of) credit losses | 17,721 | 18,984 | 16,967 | ||||||||||
| Non-interest income | |||||||||||||
| Service charges on deposits | 934 | 989 | 959 | ||||||||||
| ATM and debit card interchange transaction fees | 1,131 | 1,194 | 1,176 | ||||||||||
| Gain on sales of loans, net | 236 | 78 | 122 | ||||||||||
| Bank owned life insurance (“BOLI”) net earnings | 155 | 158 | 165 | ||||||||||
| Other | 351 | 345 | 265 | ||||||||||
| Total non-interest income, net | 2,807 | 2,764 | 2,687 | ||||||||||
| Non-interest expense | |||||||||||||
| Salaries and employee benefits | 6,469 | 6,453 | 5,977 | ||||||||||
| Premises and equipment | 1,116 | 1,074 | 1,075 | ||||||||||
| Advertising | 182 | 192 | 189 | ||||||||||
| OREO and other repossessed assets, net | 3 | 5 | 9 | ||||||||||
| ATM and debit card processing | 471 | 582 | 521 | ||||||||||
| Postage and courier | 155 | 143 | 142 | ||||||||||
| State and local taxes | 428 | 457 | 335 | ||||||||||
| Professional fees | 325 | 316 | 431 | ||||||||||
| FDIC insurance | 228 | 221 | 219 | ||||||||||
| Loan administration and foreclosure | 141 | 80 | 155 | ||||||||||
| Technology and communications | 1,177 | 1,055 | 1,121 | ||||||||||
| Deposit operations | 363 | 347 | 319 | ||||||||||
| Amortization of core deposit intangible (“CDI”) | 34 | 34 | 45 | ||||||||||
| Other, net | 567 | 472 | 656 | ||||||||||
| Total non-interest expense, net | 11,659 | 11,431 | 11,194 | ||||||||||
| Income before income taxes | 8,869 | 10,317 | 8,460 | ||||||||||
| Provision for income taxes | 1,738 | 2,101 | 1,705 | ||||||||||
| Net income | |||||||||||||
| Net income per common share: | |||||||||||||
| Basic | |||||||||||||
| Diluted | 0.90 | 1.04 | 0.85 | ||||||||||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 7,875,436 | 7,885,656 | 7,937,063 | ||||||||||
| Diluted | 7,922,232 | 7,923,037 | 7,968,632 | ||||||||||
| TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME | Six Months Ended | ||||||||||||
| ($ in thousands, except per share amounts) (unaudited) | March 31, | March 31, | |||||||||||
| 2026 | 2025 | ||||||||||||
| Interest and dividend income | |||||||||||||
| Loans receivable and loans held for sale | |||||||||||||
| Investment securities | 3,613 | 4,141 | |||||||||||
| Dividends from mutual funds, FHLB stock and other investments | 158 | 168 | |||||||||||
| Interest bearing deposits in banks | 4,912 | 3,885 | |||||||||||
| Total interest and dividend income | 53,150 | 50,122 | |||||||||||
| Interest expense | |||||||||||||
| Deposits | 15,555 | 15,538 | |||||||||||
| Borrowings | 401 | 402 | |||||||||||
| Total interest expense | 15,956 | 15,940 | |||||||||||
| Net interest income | 37,194 | 34,182 | |||||||||||
| Provision for credit losses – loans | 539 | 289 | |||||||||||
| Recapture of credit losses – investment securities | (5 | ) | (10 | ) | |||||||||
| Recapture of credit losses - unfunded commitments | (46 | ) | (7 | ) | |||||||||
| Net int. income after provision for (recapture of) credit losses | 36,706 | 33,910 | |||||||||||
| Non-interest income | |||||||||||||
| Service charges on deposits | 1,923 | 1,958 | |||||||||||
| ATM and debit card interchange transaction fees | 2,325 | 2,443 | |||||||||||
| Gain on sales of loans, net | 314 | 165 | |||||||||||
| Bank owned life insurance (“BOLI”) net earnings | 312 | 331 | |||||||||||
| Other | 697 | 487 | |||||||||||
| Total non-interest income, net | 5,571 | 5,384 | |||||||||||
| Non-interest expense | |||||||||||||
| Salaries and employee benefits | 12,922 | 12,068 | |||||||||||
| Premises and equipment | 2,190 | 2,025 | |||||||||||
| Advertising | 374 | 370 | |||||||||||
| OREO and other repossessed assets, net | 9 | 9 | |||||||||||
| ATM and debit card processing | 1,052 | 1,043 | |||||||||||
| Postage and courier | 298 | 264 | |||||||||||
| State and local taxes | 885 | 680 | |||||||||||
| Professional fees | 641 | 777 | |||||||||||
| FDIC insurance | 449 | 429 | |||||||||||
| Loan administration and foreclosure | 221 | 283 | |||||||||||
| Technology and communications | 2,232 | 2,261 | |||||||||||
| Deposit operations | 710 | 652 | |||||||||||
| Amortization of core deposit intangible (“CDI”) | 68 | 90 | |||||||||||
| Other, net | 1,039 | 1,309 | |||||||||||
| Total non-interest expense, net | 23,090 | 22,260 | |||||||||||
| Income before income taxes | 19,187 | 17,034 | |||||||||||
| Provision for income taxes | 3,840 | 3,419 | |||||||||||
| Net income | |||||||||||||
| Net income per common share: | |||||||||||||
| Basic | |||||||||||||
| Diluted | 1.94 | 1.71 | |||||||||||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 7,880,602 | 7,947,786 | |||||||||||
| Diluted | 7,922,639 | 7,984,238 | |||||||||||
| TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS | |||||||||||||
| ($ in thousands, except per share amounts) (unaudited) | March 31, | Dec. 31, | March 31, | ||||||||||
| 2026 | 2025 | 2025 | |||||||||||
| Assets | |||||||||||||
| Cash and due from financial institutions | $ | 24,157 | $ | 23,176 | $ | 26,010 | |||||||
| Interest-bearing deposits in banks | 270,514 | 223,688 | 165,201 | ||||||||||
| Total cash and cash equivalents | 294,671 | 246,864 | 191,211 | ||||||||||
| Certificates of deposit (“CDs”) held for investment, at cost | 5,972 | 6,470 | 8,711 | ||||||||||
| Investment securities: | |||||||||||||
| Held to maturity, at amortized cost (net of ACL – investment securities) | 117,327 | 133,259 | 140,954 | ||||||||||
| Available for sale, at fair value | 91,869 | 75,243 | 84,807 | ||||||||||
| Investments in equity securities, at fair value | 862 | 867 | 853 | ||||||||||
| FHLB stock | 2,103 | 2,045 | 2,045 | ||||||||||
| Other investments, at cost | 3,000 | 3,000 | 3,000 | ||||||||||
| Loans held for sale | 1,642 | 3,736 | 1,151 | ||||||||||
| Loans receivable | 1,469,525 | 1,476,957 | 1,437,599 | ||||||||||
| Less: ACL – loans | (18,648 | ) | (18,125 | ) | (17,525 | ) | |||||||
| Net loans receivable | 1,450,877 | 1,458,832 | 1,420,074 | ||||||||||
| Premises and equipment, net | 21,925 | 21,826 | 21,436 | ||||||||||
| OREO and other repossessed assets, net | 221 | 221 | 221 | ||||||||||
| BOLI | 22,143 | 21,988 | 23,942 | ||||||||||
| Accrued interest receivable | 7,397 | 7,435 | 7,127 | ||||||||||
| Goodwill | 15,131 | 15,131 | 15,131 | ||||||||||
| CDI | 203 | 237 | 361 | ||||||||||
| Loan servicing rights, net | 641 | 678 | 1,051 | ||||||||||
| Operating lease right-of-use assets | 2,767 | 2,856 | 1,324 | ||||||||||
| Other assets | 7,635 | 5,439 | 9,331 | ||||||||||
| Total assets | $ | 2,046,386 | $ | 2,006,127 | $ | 1,932,730 | |||||||
| Liabilities and shareholders’ equity | |||||||||||||
| Deposits: Non-interest-bearing demand | $ | 407,980 | $ | 404,300 | $ | 407,811 | |||||||
| Deposits: Interest-bearing | 1,335,230 | 1,300,182 | 1,243,019 | ||||||||||
| Total deposits | 1,743,210 | 1,704,482 | 1,650,830 | ||||||||||
| Operating lease liabilities | 2,937 | 3,015 | 1,426 | ||||||||||
| FHLB borrowings | 20,000 | 20,000 | 20,000 | ||||||||||
| Other liabilities and accrued expenses | 9,150 | 10,221 | 7,950 | ||||||||||
| Total liabilities | 1,775,297 | 1,737,718 | 1,680,206 | ||||||||||
| Shareholders’ equity | |||||||||||||
| Common stock, $.01 par value; 50,000,000 shares authorized; | |||||||||||||
| 7,833,643 shares issued and outstanding – March 31, 2026 7,879,828 shares issued and outstanding – December 31, 2025 7,903,489 shares issued and outstanding – March 31, 2025 | 23,982 | 26,025 | 28,028 | ||||||||||
| Retained earnings | 247,457 | 242,617 | 225,166 | ||||||||||
| Accumulated other comprehensive loss | (350 | ) | (233 | ) | (670 | ) | |||||||
| Total shareholders’ equity | 271,089 | 268,409 | 252,524 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 2,046,386 | $ | 2,006,127 | $ | 1,932,730 | |||||||
| Three Months Ended | |||||||||||
| PERFORMANCE RATIOS: | March 31, 2026 | Dec. 31, 2025 | March 31, 2025 | ||||||||
| Return on average assets (a) | 1.43 | % | 1.60 | % | 1.43 | % | |||||
| Return on average equity (a) | 10.72 | % | 12.33 | % | 10.95 | % | |||||
| Net interest margin (a) | 3.81 | % | 3.85 | % | 3.79 | % | |||||
| Efficiency ratio | 55.38 | % | 52.65 | % | 56.25 | % | |||||
| Six Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||
| Return on average assets (a) | 1.52 | % | 1.42 | % | |||||||
| Return on average equity (a) | 11.53 | % | 10.99 | % | |||||||
| Net interest margin (a) | 3.83 | % | 3.71 | % | |||||||
| Efficiency ratio | 53.99 | % | 56.26 | % | |||||||
| At or for the Period Indicated | |||||||||||
| March 31, 2026 | Dec. 31, 2025 | March 31, 2025 | |||||||||
| ASSET QUALITY RATIOS AND DATA: ($ in thousands) | |||||||||||
| Non-accrual loans | $ | 9,405 | $ | 4,284 | $ | 2,327 | |||||
| Loans past due 90 days and still accruing | -- | -- | -- | ||||||||
| Non-performing investment securities | 30 | 32 | 41 | ||||||||
| OREO and other repossessed assets | 221 | 221 | 221 | ||||||||
| Total non-performing assets (b) | $ | 9,656 | $ | 4,537 | $ | 2,589 | |||||
| Non-performing assets to total assets (b) | 0.47 | % | 0.23 | % | 0.13 | % | |||||
| Net charge-offs (recoveries) during quarter | $ | -- | $ | (18 | ) | $ | -- | ||||
| Allowance for credit losses - loans to non-accrual loans | 198 | % | 423 | % | 753 | % | |||||
| Allowance for credit losses - loans to loans receivable (c) | 1.27 | % | 1.23 | % | 1.22 | % | |||||
| CAPITAL RATIOS: | |||||||||||
| Tier 1 leverage capital | 12.82 | % | 12.61 | % | 12.55 | % | |||||
| Tier 1 risk-based capital | 20.29 | % | 20.01 | % | 19.04 | % | |||||
| Common equity Tier 1 risk-based capital | 20.29 | % | 20.01 | % | 19.04 | % | |||||
| Total risk-based capital | 21.55 | % | 21.26 | % | 20.29 | % | |||||
| Tangible common equity to tangible assets (non-GAAP) | 12.59 | % | 12.71 | % | 12.36 | % | |||||
| BOOK VALUES: | |||||||||||
| Book value per common share | $ | 34.61 | $ | 34.06 | $ | 31.95 | |||||
| Tangible book value per common share (d) | 32.65 | 32.11 | 29.99 | ||||||||
________________________________________________
(a) Annualized
(b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets.
(c) Does not include loans held for sale and is before the allowance for credit losses.
(d) Tangible common equity divided by common shares outstanding (non-GAAP).
AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
($ in thousands)
(unaudited)
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, 2026 | Dec. 31, 2025 | March 31, 2025 | |||||||||||||||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Loans receivable and loans held for sale | $ | 1,474,095 | 5.99 | % | $ | 1,478,563 | 6.08 | % | $ | 1,435,999 | 5.90 | % | |||||||||||
| Investment securities and FHLB stock (1) | 213,089 | 3.48 | 218,584 | 3.53 | 232,532 | 3.64 | |||||||||||||||||
| Interest-earning deposits in banks and CDs | 255,300 | 3.71 | 256,379 | 3.99 | 172,175 | 4.44 | |||||||||||||||||
| Total interest-earning assets | 1,942,484 | 5.42 | 1,953,526 | 5.52 | 1,840,706 | 5.48 | |||||||||||||||||
| Other assets | 78,917 | 79,280 | 77,563 | ||||||||||||||||||||
| Total assets | $ | 2,021,401 | $ | 2,032,806 | $ | 1,918,269 | |||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
| NOW checking accounts | $ | 364,926 | 1.53 | % | $ | 368,557 | 1.61 | % | $ | 328,115 | 1.32 | % | |||||||||||
| Money market accounts | 312,593 | 2.70 | 304,183 | 2.86 | 306,137 | 3.18 | |||||||||||||||||
| Savings accounts | 197,031 | 0.28 | 198,384 | 0.30 | 206,054 | 0.28 | |||||||||||||||||
| Certificates of deposit accounts | 399,665 | 3.56 | 401,821 | 3.73 | 343,945 | 3.82 | |||||||||||||||||
| Brokered CDs | 38,176 | 4.29 | 39,282 | 4.31 | 50,104 | 4.85 | |||||||||||||||||
| Total interest-bearing deposits | 1,312,391 | 2.32 | 1,312,227 | 2.43 | 1,234,355 | 2.45 | |||||||||||||||||
| Borrowings | 20,000 | 4.03 | 20,000 | 4.03 | 20,000 | 4.04 | |||||||||||||||||
| Total interest-bearing liabilities | 1,332,391 | 2.35 | 1,332,227 | 2.46 | 1,254,355 | 2.47 | |||||||||||||||||
| Non-interest-bearing demand deposits | 407,936 | 420,521 | 403,738 | ||||||||||||||||||||
| Other liabilities | 11,373 | 15,640 | 10,064 | ||||||||||||||||||||
| Shareholders’ equity | 269,701 | 264,418 | 250,112 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,021,401 | $ | 2,032,806 | $ | 1,918,269 | |||||||||||||||||
| Interest rate spread | 3.07 | % | 3.06 | % | 3.01 | % | |||||||||||||||||
| Net interest margin (2) | 3.81 | % | 3.85 | % | 3.79 | % | |||||||||||||||||
| Average interest-earning assets to | |||||||||||||||||||||||
| average interest-bearing liabilities | 145.79 | % | 146.64 | % | 146.75 | % | |||||||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income / average interest-earning assets
| For the Six Months Ended | |||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| Amount | Rate | Amount | Rate | ||||||||||||||||||
| Assets | |||||||||||||||||||||
| Loans receivable and loans held for sale | $ | 1,476,356 | 6.04 | % | $ | 1,437,081 | 5.85 | % | |||||||||||||
| Investment securities and FHLB stock (1) | 215,866 | 3.50 | 239,966 | 3.60 | |||||||||||||||||
| Interest-earning deposits in banks and CDs | 255,847 | 3.85 | 169,444 | 4.60 | |||||||||||||||||
| Total interest-earning assets | 1,948,069 | 5.47 | 1,846,491 | 5.44 | |||||||||||||||||
| Other assets | 79,097 | 76,535 | |||||||||||||||||||
| Total assets | $ | 2,027,166 | $ | 1,923,026 | |||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||
| NOW checking accounts | $ | 366,761 | 1.57 | % | $ | 328,287 | 1.35 | % | |||||||||||||
| Money market accounts | 308,342 | 2.78 | 315,381 | 3.31 | |||||||||||||||||
| Savings accounts | 197,715 | 0.29 | 205,849 | 0.28 | |||||||||||||||||
| Certificates of deposit accounts | 400,643 | 3.65 | 337,798 | 3.95 | |||||||||||||||||
| Brokered CDs | 38,847 | 4.29 | 48,239 | 4.91 | |||||||||||||||||
| Total interest-bearing deposits | 1,312,308 | 2.38 | 1,235,554 | 2.52 | |||||||||||||||||
| Borrowings | 20,000 | 4.03 | 20,000 | 4.02 | |||||||||||||||||
| Total interest-bearing liabilities | 1,332,308 | 2.40 | 1,255,554 | 2.55 | |||||||||||||||||
| Non-interest-bearing demand deposits | 415,309 | 409,000 | |||||||||||||||||||
| Other liabilities | 12,519 | 10,107 | |||||||||||||||||||
| Shareholders’ equity | 267,030 | 248,365 | |||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,027,166 | $ | 1,923,026 | |||||||||||||||||
| Interest rate spread | 3.07 | % | 2.89 | % | |||||||||||||||||
| Net interest margin (2) | 3.83 | % | 3.71 | % | |||||||||||||||||
| Average interest-earning assets to | |||||||||||||||||||||
| average interest-bearing liabilities | 146.22 | % | 147.07 | % | |||||||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.
Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders’ equity less goodwill and CDI. In addition, tangible assets equal total assets less goodwill and CDI.
The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).
| ($ in thousands) | March 31, 2026 | Dec. 31, 2025 | March 31, 2025 | ||||||||
| Shareholders’ equity | $ | 271,089 | $ | 268,409 | $ | 252,524 | |||||
| Less goodwill and CDI | (15,334 | ) | (15,368 | ) | (15,492 | ) | |||||
| Tangible common equity | $ | 255,755 | $ | 253,041 | $ | 237,032 | |||||
| Total assets | $ | 2,046,386 | $ | 2,006,127 | $ | 1,932,730 | |||||
| Less goodwill and CDI | (15,334 | ) | (15,368 | ) | (15,492 | ) | |||||
| Tangible assets | $ | 2,031,052 | $ | 1,990,759 | $ | 1,917,238 | |||||
| Contact: | Dean J. Brydon, CEO |
| Jonathan A. Fischer, President & COO | |
| Marci A. Basich, CFO | |
| (360) 533-4747 | |
| www.timberlandbank.com |
