Timberland Bancorp Q4 profit falls to $8.11M
Timberland reported $1.07 million in net charge-offs in the quarter, compared with net recoveries of $1,000 in the preceding quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Timberland Bancorp, Inc. reported fiscal 2026 net income of $31.17 million, up 7% from $29.16 million in fiscal 2025, and diluted earnings per share of $3.96, up 8% from $3.67. For the quarter ended September 30, 2026, net income was $8.11 million and diluted EPS was $1.04, compared with $8.45 million and $1.07 in the year-earlier quarter; in the preceding quarter, net income was $7.72 million and diluted EPS was $0.98.
Quarterly net interest margin was 3.96%, versus 3.82% a year earlier. The company declared a quarterly cash dividend of $0.31 per common share, a 3% increase. The non-performing-assets-to-total-assets ratio was 0.42% at September 30, 2026, compared with 0.23% a year earlier; non-accrual loans were $8.39 million, versus $4.41 million at September 30, 2025. Timberland repurchased 40,395 shares for $1.85 million during the quarter, at an average price of $45.83 per share; 117,582 shares were available for repurchase under its existing plan at September 30, 2026.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFiscal 2026 net income increased 7% to $31.17 million.
Negative
- Moderate pointNon-performing assets were 0.42% of total assets, versus 0.23% a year earlier.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Fiscal-year net income: $31.17 million
Fiscal-year diluted EPS: $3.96 per share
Quarterly net income: $8.11 million
+4 more
7 metrics
Fiscal-year net income
$31.17 million
Fiscal year ended September 30, 2026; increased 7% from $29.16 million in fiscal 2025.
Fiscal-year diluted EPS
$3.96 per share
Fiscal year ended September 30, 2026; increased 8% from $3.67 in fiscal 2025.
Quarterly net income
$8.11 million
Quarter ended September 30, 2026; compared with $8.45 million in the year-earlier quarter and $7.72 million in the preceding quarter.
Quarterly diluted EPS
$1.04 per share
Quarter ended September 30, 2026; compared with $1.07 in the year-earlier quarter and $0.98 in the preceding quarter.
Quarterly net interest margin
3.96%
Quarter ended September 30, 2026; compared with 3.82% in the year-earlier quarter.
Non-performing assets to total assets
0.42%
At September 30, 2026; compared with 0.23% at September 30, 2025.
Quarterly cash dividend
$0.31 per common share
Declared as a quarterly cash dividend; increased 3%.
Key Terms
Net interest margin, Allowance for credit losses, Non-accrual loans, Tangible common equity
4 terms
Net interest margin financial
"Quarterly net interest margin increases to 3.96%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Allowance for credit losses financial
"The allowance for credit losses (“ACL”) for loans"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Non-accrual loans financial
"Non-accrual loans decreased $163,000"
A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.
Tangible common equity financial
"Tangible common equity to tangible assets (non-GAAP)"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
Earnings Snapshot
Fiscal-year net income: $31.17 million
Fiscal year and quarter ended September 30, 2026
Fiscal-year net income
$31.17 million
Increased 7% from $29.16 million in fiscal 2025.
Fiscal-year diluted EPS
$3.96 per share
Increased 8% from $3.67 in fiscal 2025.
Quarterly net income
$8.11 million
Compared with $8.45 million in the year-earlier quarter and $7.72 million in the preceding quarter.
Quarterly diluted EPS
$1.04 per share
Compared with $1.07 in the year-earlier quarter and $0.98 in the preceding quarter.
Quarterly net interest margin
3.96%
Compared with 3.82% in the year-earlier quarter.
Quarterly cash dividend
$0.31 per common share
Increased 3%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did TSBK earn in fiscal 2026?
Timberland Bancorp reported fiscal 2026 net income of $31.17 million, up 7% from $29.16 million in fiscal 2025. Diluted earnings per share were $3.96, up 8% from $3.67.
What quarterly dividend did TSBK declare?
Timberland Bancorp declared a quarterly cash dividend of $0.31 per common share, an increase of 3%.
What drove TSBK's fourth-quarter charge-offs?
Timberland said the $1.07 million in quarterly net charge-offs primarily resulted from charging off specific reserves established in prior quarters on several loans, including $436,000 on a participation loan.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| | | | ||
| State or other jurisdiction Of incorporation | Commission File Number | (I.R.S. Employer Identification No.) |
| | | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number (including area code) (360 ) 533-4747
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. |
| |
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on
which registered | ||
| |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On October 29, 2026, Timberland Bancorp, Inc. (the “Company”) issued its earnings release for the quarter ended September 30, 2026. The release also announced the declaration of a quarterly cash dividend of $0.31 per common share. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Timberland Bancorp is filing a fourth quarter investor presentation that is available for distribution to investors.
A copy of the presentation materials is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information furnished pursuant to this item and the related exhibit is being “furnished” and will not except to the extent required by applicable law or regulation, be deemed “filed” by Timberland Bancorp for purpose of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filings.
Item 9.01 Financial Statements and Exhibits
(d)
Exhibits
99.1
Earnings Release of Timberland Bancorp, Inc. dated October 29, 2026
99.2
Fourth Quarter 2026 Investor Presentation
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| TIMBERLAND BANCORP, INC. | |
| DATE: October 29, 2026 | By: /s/ Marci A. Basich |
| Marci A. Basich Chief Financial Officer |
Exhibit 99.1
Contact: Dean J. Brydon, CEO
Jonathan A. Fischer, President & COO
Marci A. Basich, CFO
(360) 533-4747
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp 2026 Fiscal Year’s Net Income Increases 7% to $31.2 Million
●
Fiscal Year EPS Increases 8% to $3.96
●
Quarterly EPS Increases 6% to $1.04 from $0.98 for Preceding Quarter
●
Quarterly Return on Average Assets Increases to 1.56%
●
Quarterly Return on Average Equity Increases to 11.72%
●
Quarterly Net Interest Margin Increases to 3.96%
●
Quarterly Cash Dividend Increases 3%
HOQUIAM, WA – October 29, 2026 – Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $31.17 million for the fiscal year ended September 30, 2026, an increase of 7% from $29.16 million for the fiscal year ended September 30, 2025. Earnings per diluted common share (“EPS”) increased 8% to $3.96 for the 2026 fiscal year from $3.67 for the 2025 fiscal year.
Timberland also reported net income of $8.11 million, or $1.04 per diluted common share for the quarter ended September 30, 2026. This compares to net income of $7.72 million, or $0.98 per diluted common share for the preceding quarter, and $8.45 million, or $1.07 per diluted common share, for the comparable quarter one year ago. (Note: net income for the comparable quarter one year ago was increased by a $1.04 million bank owned life insurance benefit claim.)
“We closed out the fiscal year on a high note, delivering record annual earnings per share and a strong fourth quarter,” stated Dean Brydon, Chief Executive Officer. “Net income and earnings per share increased 5% and 6%, respectively, from the prior quarter, while net interest margin widened compared with both the prior quarter and year-ago quarter. While earnings were lower than the year-ago quarter, that period included a $1.04 million BOLI insurance claim, and excluding that benefit, results compared favorably. For the full fiscal year, we also improved our net interest margin and return on average assets while generating solid growth in net loans. We are proud of what our team accomplished this year in serving our customers, communities, and shareholders, and we look forward to building on that progress in the new year.”
“As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a 3% increase to the quarterly cash dividend to shareholders of $0.31 per share, payable on November 27, 2026, to shareholders of record on November 12, 2026,” stated Jonathan Fischer, President and Chief Operating Officer. “Marking our 56th consecutive quarterly cash dividend, this payment reflects the Board’s continued confidence in Timberland’s long-term prospects.”
“Overall, fourth quarter earnings were strong and largely free of non-recurring items,” said Marci Basich, Chief Financial Officer. “Revenue generation was strong and net interest margin expanded 11 basis points from the prior quarter and 14 basis points from the year-ago quarter, reflecting our disciplined approach to pricing on both sides of the balance sheet. We also continued to build shareholder value during the quarter, growing tangible book value per share (non-GAAP) to $33.54, while repurchasing 40,395 shares of our common stock. These actions, combined with the dividend increase, reflect both the strength of our earnings and our confidence in the long-term value of the franchise.”
“Net loans grew 2% from the prior quarter, a testament to the strength of our lending teams and the continued demand we are seeing in our markets,” Brydon continued. “Credit quality held steady with modest improvements in non-performing asset levels, delinquency levels, and substandard loan levels. While net charge-offs increased, that was largely the result of charging off specific reserves we had already set up on several loans in prior periods. Our markets continue to offer solid growth opportunities and we remain confident in the quality of our loan portfolio and our disciplined approach to credit risk management.”
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 2
Earnings and Balance Sheet Highlights (at or for the periods ended September 30, 2026, compared to September 30, 2025, or June 30, 2026):
Earnings Highlights:
●
EPS increased 6% to $1.04 for the current quarter from $0.98 for the preceding quarter and decreased 3% from $1.07 for the comparable quarter one year ago;
●
EPS increased 8% to $3.96 for fiscal year 2026 from $3.67 for fiscal year 2025;
●
Net income increased 5% to $8.11 million for the current quarter from $7.72 million for the preceding quarter and decreased 4% from $8.45 million for the comparable quarter one year ago;
●
Net income increased 7% to $31.17 million for the 2026 fiscal year from $29.16 million for the 2025 fiscal year;
●
Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.72% and 1.56%, respectively;
●
Net interest margin (“NIM”) for the current quarter increased to 3.96% from 3.85% for the preceding quarter and 3.82% for the comparable quarter one year ago; and
●
The efficiency ratio for the current quarter was 53.94% compared to 53.40% for the preceding quarter and 53.18% for the comparable quarter one year ago.
Balance Sheet Highlights:
●
Total assets increased slightly, less than 1%, from the prior quarter and increased 3% year-over-year;
●
Net loans receivable increased 2% from the prior quarter and increased 4% year-over-year;
●
Total deposits increased slightly, less than 1%, from the prior quarter and increased 3% year-over-year;
●
Total shareholders’ equity increased 1% from the prior quarter and increased 5% year-over-year; 40,395 shares of common stock were repurchased during the current quarter for $1.85 million;
●
Non-performing assets to total assets ratio was 0.42% at September 30, 2026, compared to 0.43% at June 30, 2026, and 0.23% at September 30, 2025;
●
Book and tangible book (non-GAAP) values per common share increased to $35.51 and $33.54, respectively, at September 30, 2026; and
●
Liquidity (both on-balance sheet and off-balance sheet) remained strong at September 30, 2026, with only $5 million in borrowings and additional secured borrowing line capacity of $810 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 increased 5% to $22.79 million from $21.79 million for the preceding quarter and increased 1% from $22.49 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to an increase in interest income on loans receivable, and to a lesser extent, an increase in non-interest income. These increases in operating revenue were partially offset by a decrease in interest income on interest-bearing deposits in banks, and to a lesser extent, an increase in interest expense. Operating revenue increased 6%, to $87.34 million for the 2026 fiscal year from $82.55 million for the 2025 fiscal year, primarily due to increases in interest income on loans receivable and interest income on interest-bearing deposits in banks, and a decrease in interest expense. These increases in operating revenue for the fiscal year were partially offset by decreases in interest income on investment securities and net BOLI earnings.
Net interest income increased $857,000 or 5%, to $19.66 million for the current quarter from $18.81 million for the preceding quarter and increased $1.27 million, or 7%, from $18.40 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to an $11.46 million increase in the average interest-earning assets, a nine-basis point increase in the weighted average yield on interest-bearing assets and, to a lesser extent, a one-basis point decrease in the weighted average cost of interest-bearing liabilities. Net interest income for the 2026 fiscal year increased $5.46 million, or 8%, to $75.66 million from $70.20 million for the 2025 fiscal year, primarily due to an $89.24 million increase in average interest-earning assets and a 17-basis point decrease in the weighted average cost of interest-bearing liabilities.
Timberland’s NIM for the current quarter increased to 3.96% from 3.85% for the preceding quarter and from 3.82% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately two basis points due to the collection of $94,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value discount on acquired loans. The NIM for the preceding quarter was increased by approximately two basis points due to the
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 3
collection of $82,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value discount on acquired loans. The NIM for the comparable quarter one year ago was increased by approximately two basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $11,000 of the fair value discount on acquired loans. Timberland’s NIM expanded to 3.87% for fiscal year 2026 from 3.76% for fiscal year 2025.
A $475,000 provision for credit losses on loans was recorded for the quarter ended September 30, 2026. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $600,000 provision for credit losses on loans for the preceding quarter and a $213,000 provision for credit losses on loans for the comparable quarter one year ago.
Non-interest income increased $134,000, or 4%, to $3.12 million for the current quarter from $2.99 million for the preceding quarter and decreased $971,000, or 24%, from $4.09 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $99,000 increase in BOLI net earnings and smaller increases in several other categories. Non-interest income for the 2026 fiscal year decreased by 5%, to $11.68 million from $12.35 million for the 2025 fiscal year. The decrease in non-interest income compared to the prior year periods was primarily the result of a $1.04 million BOLI death benefit claim recorded in the comparable quarter one year ago.
Total operating (non-interest) expenses for the current quarter increased $652,000, or 6%, to $12.29 million from $11.64 million for the preceding quarter and increased $331,000, or 3%, from $11.96 million for the comparable quarter one year ago. The increase in operating expenses compared to the preceding quarter was primarily due to increases in salary and employee benefits expense and ATM and debit card processing expense and smaller decreases and increases in several other expense categories. The efficiency ratio for the current quarter was 53.94% compared to 53.40% for the preceding quarter and 53.18% for the comparable quarter one year ago. For the 2026 fiscal year, operating expenses increased $1.63 million, or 4%, to $47.02 million from $45.39 million for the 2025 fiscal year. The efficiency ratio for the 2026 fiscal year improved to 53.83% from 54.98% for the 2025 fiscal year.
The provision for income taxes for the current quarter increased $32,000, or 2%, to $1.96 million from $1.93 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 19.5% for the quarter ended September 30, 2026, compared to 20.0% for the quarter ended June 30, 2026, and 18.1% for the quarter ended September 30, 2025. Timberland’s effective income tax rate was 19.9% for fiscal year 2026 compared to 19.5% for fiscal year 2025.
Balance Sheet Management
Total assets increased $2.97 million, or less than 1%, during the quarter to $2.06 billion at September 30, 2026, from $2.06 billion at June 30, 2026, and increased $51.01 million, or 3%, from $2.01 billion one year ago. The increase during the quarter was primarily due to an increase in net loans receivable, which was partially offset by decreases in total cash and cash equivalents and investment securities.
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 18.5% of total liabilities at September 30, 2026, compared to 19.3% at June 30, 2026, and 18.8% one year ago. Timberland also had secured borrowing line capacity of $810 million available through the FHLB and the Federal Reserve at September 30, 2026. With a strong and diversified deposit base, only 20% of Timberland’s deposits were uninsured or uncollateralized at September 30, 2026. (Note: This calculation excludes public deposits that are fully collateralized.)
Loans
Net loans receivable increased $30.60 million, or 2%, during the quarter to $1.53 billion at September 30, 2026, from $1.50 billion at June 30, 2026, and increased $62.66 million, or 4%, from $1.46 billion at September 30, 2025. The increase during the quarter was primarily due to an $18.19 million increase in multi-family loans, a $6.33 million increase in one- to four-family loans, a $3.12 million increase in land loans, a $2.04 million increase in commercial business loans, a $1.03 million increase in construction and land development loans, and smaller increases in several other loan categories. These increases
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 4
were partially offset by a $1.85 million increase in the undisbursed portion of construction loans in process and smaller changes in several other loan categories.
Loan Portfolio
($ in thousands)
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
|
Mortgage loans:
|
||||||||||||||||||||||||||
|
One- to four-family (a)
|
$ | 306,251 | 18 | % | $ | 299,921 |
18
| % | $ | 317,691 | 20 | % | ||||||||||||||
|
Multi-family
|
232,772 | 14 | 214,583 |
13
| 207,767 | 13 | ||||||||||||||||||||
|
Commercial
|
647,197 | 39 | 646,376 |
40
| 610,692 | 39 | ||||||||||||||||||||
|
Construction - custom and
|
||||||||||||||||||||||||||
| owner/builder | 111,294 | 7 | 113,303 | 7 | 130,341 | 9 | ||||||||||||||||||||
|
Construction - speculative
one-to four-family
|
26,871 | 2 | 28,445 | 2 | 10,745 | 1 | ||||||||||||||||||||
|
Construction - commercial
|
19,932 | 1 | 12,991 | 1 | 21,818 | 1 | ||||||||||||||||||||
|
Construction - multi-family
|
81,810 | 5 | 91,271 | 6 | 45,660 | 3 | ||||||||||||||||||||
|
Construction - land
|
||||||||||||||||||||||||||
|
development
|
7,660 | -- | 530 | -- | 15,324 | 1 | ||||||||||||||||||||
|
Land
|
40,531 | 3 | 37,416 | 2 | 35,952 | 2 | ||||||||||||||||||||
|
Total mortgage loans
|
1,474,318 | 89 | 1,444,836 | 89 | 1,395,990 | 89 | ||||||||||||||||||||
|
Consumer loans:
|
||||||||||||||||||||||||||
|
Home equity and second
|
||||||||||||||||||||||||||
|
mortgage
|
55,447 | 4 | 54,971 | 4 | 50,479 | 3 | ||||||||||||||||||||
|
Other
|
1,758 | -- | 1,915 | -- | 2,034 | -- | ||||||||||||||||||||
|
Total consumer loans
|
57,205 | 4 | 56,886 | 4 | 52,513 | 3 | ||||||||||||||||||||
|
Commercial loans:
|
||||||||||||||||||||||||||
| Commercial business | ||||||||||||||||||||||||||
|
loans
|
120,896 | 7 | 118,852 | 7 | 126,937 | 8 | ||||||||||||||||||||
|
SBA PPP loans
|
-- | -- | -- | -- | 58 | -- | ||||||||||||||||||||
|
Total commercial loans
|
120,896 | 7 | 118,852 | 7 | 126,995 | 8 | ||||||||||||||||||||
|
Total loans
|
1,652,419 | 100 | % | 1,620,574 | 100 | % | 1,575,498 | 100 | % | |||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||
|
Undisbursed portion of
|
||||||||||||||||||||||||||
|
construction loans in
|
||||||||||||||||||||||||||
|
process
|
(102,122 | ) | (100,275 | ) | (88,289 | ) | ||||||||||||||||||||
|
Deferred loan origination
|
||||||||||||||||||||||||||
|
fees
|
(5,390 | ) | (5,399 | ) | (5,528 | ) | ||||||||||||||||||||
|
Allowance for credit losses
|
(18,657 | ) | (19,249 | ) | (18,091 | ) | ||||||||||||||||||||
|
Total loans receivable, net
|
$ | 1,526,250 | $ | 1,495,651 | $ | 1,463,590 | ||||||||||||||||||||
_______________________
(a)
Does not include one- to four-family loans held for sale totaling $2,210, $2,774, and $1,127 at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 5
The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of September 30, 2026:
CRE Loan Portfolio Breakdown by Collateral
($ in thousands)
|
Collateral Type
|
Balance
|
Percent of
CRE Portfolio |
Percent of
Total Loan Portfolio |
Average
Balance Per Loan |
Non- Accrual
| |||||||||||||||
|
Industrial warehouses
|
$ | 145,595 | 23 | % | 9 | % | $ | 1,427 | $ | -- | ||||||||||
|
Medical/dental offices
|
82,329 | 13 | 5 | 1,211 | 220 | |||||||||||||||
|
Office buildings
|
74,132 | 11 | 4 | 862 | -- | |||||||||||||||
|
Other retail buildings
|
55,582 | 9 | 3 | 625 | -- | |||||||||||||||
|
Hotel/motel
|
40,568 | 6 | 2 | 2,704 | 3,842 | |||||||||||||||
|
Mini-storage
|
38,908 | 6 | 2 | 1,441 | -- | |||||||||||||||
|
Restaurants
|
28,756 | 4 | 2 | 575 | -- | |||||||||||||||
|
Gas stations/conv. stores
|
27,543 | 4 | 2 | 984 | -- | |||||||||||||||
|
Nursing homes
|
13,668 | 2 | 1 | 1,953 | -- | |||||||||||||||
|
Churches
|
13,501 | 2 | 1 | 964 | -- | |||||||||||||||
|
Mobile home parks
|
10,257 | 2 | 1 | 466 | -- | |||||||||||||||
|
Shopping centers
|
10,143 | 2 | 1 | 1,690 | -- | |||||||||||||||
|
Additional CRE
|
106,215 | 16 | 6 | 787 | -- | |||||||||||||||
|
Total CRE
|
$ | 647,197 | 100 | % | 39 | % | $ | 997 | $ | 4,062 |
Timberland originated $101.88 million in loans during the quarter ended September 30, 2026, compared to $133.67 million for the preceding quarter and $100.09 million for the comparable quarter one year ago. Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income. During the current quarter, fixed-rate one- to four-family mortgage loans totaling $9.52 million were sold compared to $7.83 million for the preceding quarter and $9.01 million for the comparable quarter one year ago.
Investment Securities
Timberland’s investment securities and CDs held for investment decreased $8.62 million, or 4%, to $208.28 million at September 30, 2026, from $216.89 million at June 30, 2026, and decreased $14.90 million, or 7% from $223.18 million at September 30, 2025. The decreases were primarily due to the maturities of U.S. Treasury Securities and scheduled amortization, which were partially offset by the purchase of additional CDs and U.S. government agency mortgage-backed investment securities.
Bank Owned Life Insurance (“BOLI”)
BOLI increased $345,000, or 1%, to $37.73 million at September 30, 2026, from $37.39 million at June 30, 2026, and increased $15.90 million, or 73% from $21.83 million at September 30, 2025. The increase during the year was primarily due to $15.00 million in additional BOLI policies purchased during the June 30, 2026 quarter.
Deposits
Total deposits increased $5.58 million, or less than 1%, during the quarter to $1.77 billion at September 30, 2026, from $1.76 billion at June 30, 2026, and increased $52.49 million, or 3%, from $1.72 billion at September 30, 2025. The quarter’s increase consisted of an $11.59 million increase in non-interest-bearing deposit account balances, a $2.85 million increase in money market deposit account balances, and a $2.00 million increase in savings account balances. These increases were partially offset by a $7.88 million decrease in NOW checking account balances and a $2.99 million decrease in certificates of deposit account balances.
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 6
Deposit Breakdown
($ in thousands)
| September30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
| |||||||||||||||||||
|
Non-interest-bearing
demand
|
$ | 422,561 | 24 | % | $ | 410,967 | 23 | % | $ | 430,685 | 25 | % | ||||||||||||
|
NOW
checking
|
366,592 | 21 | 374,476 | 21 | 345,599 | 20 | ||||||||||||||||||
|
Savings
|
200,509 | 11 | 198,505 | 11 | 201,678 | 12 | ||||||||||||||||||
|
Money
market
|
334,229 | 19 | 331,375 | 19 | 296,152 | 17 | ||||||||||||||||||
|
Certificates
of deposit under $250
|
256,675 | 15 | 263,668 | 15 | 256,597 | 15 | ||||||||||||||||||
|
Certificates
of deposit $250 and over
|
148,202 | 8 | 144,209 | 8 | 142,813 | 8 | ||||||||||||||||||
|
Certificates
of deposit – brokered
|
40,359 | 2 | 40,349 | 3 | 43,111 | 3 | ||||||||||||||||||
|
Total
deposits
|
$ | 1,769,127 | 100 | % | $ | 1,763,549 | 100 | % | $ | 1,716,635 | 100 | % | ||||||||||||
Borrowings
Total borrowings decreased $5.00 million, or 50%, to $5.00 million at September 30, 2026, from $10.00 million at June 30, 2026 and decreased $15.00 million, or 75% at September 30, 2025.
Shareholders’ Equity and Capital Ratios
Total shareholders’ equity increased $3.10 million, or 1%, to $276.31 million at September 30, 2026, from $273.21 million at June 30, 2026, and increased $13.70 million, or 5%, from $262.61 million at September 30, 2025. The increase in shareholders’ equity during the quarter was primarily due to net income of $8.11 million and proceeds from stock option exercises of $325,000. These increases to shareholders’ equity were partially offset by the payment of $2.33 million in dividends to shareholders and the repurchase of 40,395 shares of common stock for $1.85 million (an average price of $45.83 per share), and a $1.43 million increase in the accumulated other comprehensive loss. At September 30, 2026, Timberland had 117,582 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan.
Timberland remains well capitalized with a total risk-based capital ratio of 20.86%, a Tier 1 leverage capital ratio of 12.91%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.74%, and a shareholders’ equity to total assets ratio of 13.39% at September 30, 2026. Timberland’s held to maturity investment securities were $105.35 million at September 30, 2026, with a net unrealized loss of $5.49 million (pre-tax). Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 13.21%, compared to 13.39%, as reported.
Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.42% at September 30, 2026, compared to 0.43% at June 30, 2026, and 0.23% at September 30, 2025. Net charge-offs were $1.07 million for the current quarter compared to net recoveries of $1,000 for the preceding quarter and net charge-offs of less than $1,000 for the comparable quarter one year ago. The increase in charge-offs was primarily the result of charging off specific reserves that had been set up in prior quarters on several loans, including $436,000 on a participation loan. During the current quarter, a $475,000 provision for credit losses on loans was made, which was partially offset by a $45,000 recapture of credit losses on unfunded commitments and a $1,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.21% at September 30, 2026, compared to 1.27% at June 30, 2026, and 1.22% one year ago.
Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $3,000, less than 1%, to $8.70 million at September 30, 2026, from $8.71 million at June 30, 2026, and increased $3.05 million, or 54%, from $5.66 million at September 30, 2025. Non-accrual loans decreased $163,000 or 2%, to $8.39 million at September 30, 2026 from $8.56 million at June 30, 2026, and increased $3.99 million, or 90%, from $4.41 million at September 30, 2025. Loans graded
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 7
“Substandard” decreased $271,000, or 3%, to $8.39 million at September 30, 2026 from $8.66 million at June 30, 2026 and decreased $24.41 million, or 74%, from $32.80 million at September 30, 2025.
Non-Accrual Loans
($ in thousands)
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
|
Amount
|
Quantity
|
Amount
|
Quantity
|
Amount
|
Quantity
| |||||||||||||||||||
|
Mortgage loans:
|
||||||||||||||||||||||||
|
One- to four-family
|
$ | 2,878 | 4 | $ | 1,930 | 2 | $ | 1,781 | 1 | |||||||||||||||
|
Multi-family
|
18 | 1 | -- | -- | -- | -- | ||||||||||||||||||
|
Commercial
|
4,062 | 3 | 4,534 | 3 | 159 | 1 | ||||||||||||||||||
|
Construction – custom and
|
||||||||||||||||||||||||
|
owner/builder
|
-- | -- | -- | -- | 553 | 1 | ||||||||||||||||||
|
Total mortgage loans
|
6,958 | 8 | 6,464 | 5 | 2,493 | 3 | ||||||||||||||||||
|
Consumer loans:
|
||||||||||||||||||||||||
|
Home equity and second
|
||||||||||||||||||||||||
|
mortgage
|
618 | 5 | 452 | 4 | 602 | 4 | ||||||||||||||||||
|
Other
|
-- | -- | 20 | 1 | 22 | 1 | ||||||||||||||||||
|
Total consumer loans
|
618 | 5 | 472 | 5 | 624 | 5 | ||||||||||||||||||
|
Commercial business loans
|
817 | 7 | 1,620 | 8 | 1,290 | 9 | ||||||||||||||||||
|
Total loans
|
$ | 8,393 | 20 | $ | 8,556 | 18 | $ | 4,407 | 17 | |||||||||||||||
Timberland had two properties classified as other real estate owned (“OREO”) at September 30, 2026:
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||
|
Amount
|
Quantity
|
Amount
|
Quantity
|
Amount
|
Quantity
| |||||||||||||||||||
|
OREO:
|
||||||||||||||||||||||||
|
Commercial
|
$ | 221 | 1 | $ | 221 | 1 | $ | 221 | 1 | |||||||||||||||
|
Land
|
-- | 1 | -- | 1 | -- | 1 | ||||||||||||||||||
|
Total OREO
|
$ | 221 | 2 | $ | 221 | 2 | $ | 221 | 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
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 8
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 2027 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 Fiscal Q4 2026 Earnings
October 29, 2026
Page 9
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended | |||||||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
Sept. 30, | June 30, | Sept. 30, | |||||||||||||
| 2026 | 2026 | 2025 | ||||||||||||||
|
Interest and dividend income
|
||||||||||||||||
|
Loans receivable and loans held for sale
|
$23,562 | $22,457 | $ | 22,186 | ||||||||||||
|
Investment securities
|
1,818 | 1,800 | 1,992 | |||||||||||||
|
Dividends from mutual funds, FHLB stock and other investments
|
66 | 71 | 83 | |||||||||||||
|
Interest bearing deposits in banks
|
2,137 | 2,343 | 2,350 | |||||||||||||
|
Total interest and dividend income
|
27,583 | 26,671 | 26,611 | |||||||||||||
|
Interest expense
|
||||||||||||||||
|
Deposits
|
7,852 | 7,728 | 8,013 | |||||||||||||
|
Borrowings
|
68 | 137 | 203 | |||||||||||||
|
Total interest expense
|
7,920 | 7,865 | 8,216 | |||||||||||||
|
Net interest income
|
19,663 | 18,806 | 18,395 | |||||||||||||
|
Provision for credit losses – loans
|
475 | 600 | 213 | |||||||||||||
|
Recapture of credit losses – investment securities
|
(1) | (1) | (10 | ) | ||||||||||||
|
(Recapture of) prov. for credit losses – unfunded commitments
|
(45) | (91) | 18 | |||||||||||||
|
Net int. income after provision for (recapture of) credit losses
|
19,234 | 18,298 | 18,174 | |||||||||||||
|
Non-interest income
|
||||||||||||||||
|
Service charges on deposits
|
973 | 956 | 991 | |||||||||||||
|
ATM and debit card interchange transaction fees
|
1,199 | 1,193 | 1,269 | |||||||||||||
|
Gain on sales of loans, net
|
193 | 150 | 208 | |||||||||||||
|
Bank owned life insurance (“BOLI”) net earnings
|
345 | 246 | 1,200 | |||||||||||||
|
Other
|
412 | 443 | 425 | |||||||||||||
|
Total non-interest income, net
|
3,122 | 2,988 | 4,093 | |||||||||||||
|
Non-interest expense
|
||||||||||||||||
|
Salaries and employee benefits
|
6,576 | 6,383 | 6,029 | |||||||||||||
|
Premises and equipment
|
1,125 | 1,082 | 1,114 | |||||||||||||
|
Advertising
|
217 | 202 | 208 | |||||||||||||
|
OREO and other repossessed assets, net
|
3 | 3 | 3 | |||||||||||||
|
ATM and debit card processing
|
634 | 532 | 578 | |||||||||||||
|
Postage and courier
|
149 | 145 | 143 | |||||||||||||
|
State and local taxes
|
457 | 453 | 432 | |||||||||||||
|
Professional fees
|
418 | 361 | 558 | |||||||||||||
|
FDIC insurance
|
220 | 222 | 211 | |||||||||||||
|
Loan administration and foreclosure
|
181 | 155 | 151 | |||||||||||||
|
Technology and communications
|
1,095 | 1,109 | 1,116 | |||||||||||||
|
Deposit operations
|
397 | 348 | 350 | |||||||||||||
|
Amortization of core deposit intangible (“CDI”)
|
34 | 34 | 45 | |||||||||||||
|
Other, net
|
784 | 609 | 1,021 | |||||||||||||
|
Total non-interest expense, net
|
12,290 | 11,638 | 11,959 | |||||||||||||
|
Income before income taxes
|
10,066 | 9,648 | 10,308 | |||||||||||||
|
Provision for income taxes
|
1,960 | 1,928 | 1,861 | |||||||||||||
|
Net income
|
$ 8,106 | $ 7,720 | $ | 8,447 | ||||||||||||
|
Net income per common share:
|
||||||||||||||||
|
Basic
|
$1.04 | $0.99 | $ | 1.07 | ||||||||||||
|
Diluted
|
1.04 | 0.98 | 1.07 | |||||||||||||
|
Weighted average common shares outstanding:
|
||||||||||||||||
|
Basic
|
7,765,413 | 7,805,218 | 7,880,299 | |||||||||||||
|
Diluted
|
7,819,576 | 7,855,407 | 7,920,617 | |||||||||||||
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 10
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
|
Year Ended | |||||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
Sept. 30, | Sept. 30, | ||||||||||||
| 2026 | 2025 | |||||||||||||
|
Interest and dividend income
|
||||||||||||||
|
Loans receivable and loans held for sale
|
$90,486 | $ | 85,525 | |||||||||||
|
Investment securities
|
7,230 | 8,197 | ||||||||||||
|
Dividends from mutual funds, FHLB stock and other investments
|
295 | 335 | ||||||||||||
|
Interest bearing deposits in banks
|
9,392 | 8,220 | ||||||||||||
|
Total interest and dividend income
|
107,403 | 102,277 | ||||||||||||
|
Interest expense
|
||||||||||||||
|
Deposits
|
31,135 | 31,272 | ||||||||||||
|
Borrowings
|
606 | 805 | ||||||||||||
|
Total interest expense
|
31,741 | 32,077 | ||||||||||||
|
Net interest income
|
75,662 | 70,200 | ||||||||||||
|
Provision for credit losses – loans
|
1,615 | 853 | ||||||||||||
|
Recapture of credit losses – investment securities
|
(7) | (24 | ) | |||||||||||
|
(Recapture of) prov. for credit losses - unfunded commitments
|
(182) | 105 | ||||||||||||
|
Net int. income after provision for (recapture of) credit losses
|
74,236 | 69,266 | ||||||||||||
|
Non-interest income
|
||||||||||||||
|
Service charges on deposits
|
3,853 | 3,915 | ||||||||||||
|
ATM and debit card interchange transaction fees
|
4,717 | 4,975 | ||||||||||||
|
Gain on sales of investment securities, net
|
-- | 24 | ||||||||||||
|
Gain on sales of loans, net
|
657 | 511 | ||||||||||||
|
BOLI net earnings
|
904 | 1,702 | ||||||||||||
|
Other
|
1,551 | 1,225 | ||||||||||||
|
Total non-interest income, net
|
11,682 | 12,352 | ||||||||||||
|
Non-interest expense
|
||||||||||||||
|
Salaries and employee benefits
|
25,881 | 23,922 | ||||||||||||
|
Premises and equipment
|
4,398 | 4,112 | ||||||||||||
|
Advertising
|
793 | 761 | ||||||||||||
|
OREO and other repossessed assets, net
|
14 | 20 | ||||||||||||
|
ATM and debit card processing
|
2,218 | 2,279 | ||||||||||||
|
Postage and courier
|
592 | 544 | ||||||||||||
|
State and local taxes
|
1,795 | 1,682 | ||||||||||||
|
Professional fees
|
1,421 | 1,676 | ||||||||||||
|
FDIC insurance
|
892 | 851 | ||||||||||||
|
Loan administration and foreclosure
|
557 | 534 | ||||||||||||
|
Technology and communications
|
4,435 | 4,369 | ||||||||||||
|
Deposit operations
|
1,455 | 1,347 | ||||||||||||
|
Amortization of CDI
|
135 | 180 | ||||||||||||
|
Other, net
|
2,431 | 3,110 | ||||||||||||
|
Total non-interest expense, net
|
47,017 | 45,387 | ||||||||||||
|
Income before income taxes
|
38,901 | 36,231 | ||||||||||||
|
Provision for income taxes
|
7,727 | 7,070 | ||||||||||||
|
Net income
|
$ 31,174 | $ | 29,161 | |||||||||||
|
Net income per common share:
|
||||||||||||||
|
Basic
|
$3.98 | $ | 3.68 | |||||||||||
|
Diluted
|
3.96 | 3.67 | ||||||||||||
|
Weighted average common shares outstanding:
|
||||||||||||||
|
Basic
|
7,832,774 | 7,917,193 | ||||||||||||
|
Diluted
|
7,879,899 | 7,952,626 | ||||||||||||
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 11
|
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
Sept. 30, | June 30, | Sept. 30, | |||||||||||
| 2026 | 2026 | 2025 | ||||||||||||
|
Assets
|
||||||||||||||
|
Cash and due from financial institutions
|
$ 25,135 | $ 32,800 | $ 23,649 | |||||||||||
|
Interest-bearing deposits in banks
|
202,926 | 213,282 | 219,779 | |||||||||||
|
Total cash and cash equivalents
|
228,061 | 246,082 | 243,428 | |||||||||||
|
Certificates of deposit (“CDs”) held for investment, at cost
|
12,188 | 7,964 | 7,217 | |||||||||||
|
Investment securities:
|
||||||||||||||
|
Held to maturity, at amortized cost (net of ACL – investment securities)
|
105,347 | 117,587 | 136,861 | |||||||||||
|
Available for sale, at fair value
|
90,743 | 90,484 | 78,240 | |||||||||||
|
Investments in equity securities, at fair value
|
-- | 858 | 864 | |||||||||||
|
FHLB stock
|
1,428 | 1,653 | 2,045 | |||||||||||
|
Other investments, at cost
|
3,000 | 3,000 | 3,000 | |||||||||||
|
Loans held for sale
|
2,210 | 2,774 | 1,127 | |||||||||||
|
Loans receivable
|
1,544,907 | 1,514,900 | 1,481,681 | |||||||||||
|
Less: ACL – loans
|
(18,657) | (19,249) | (18,091) | |||||||||||
|
Net loans receivable
|
1,526,250 | 1,495,651 |
1,463,590
|
|||||||||||
|
Premises and equipment, net
|
22,362 | 22,149 | 21,684 | |||||||||||
|
OREO and other repossessed assets, net
|
221 | 221 | 221 | |||||||||||
|
BOLI
|
37,734 | 37,389 | 21,830 | |||||||||||
|
Accrued interest receivable
|
7,796 | 7,321 | 7,393 | |||||||||||
|
Goodwill
|
15,131 | 15,131 | 15,131 | |||||||||||
|
CDI
|
135 | 169 | 271 | |||||||||||
|
Loan servicing rights, net
|
625 | 608 | 815 | |||||||||||
|
Operating lease right-of-use assets
|
4,033 | 4,122 | 2,949 | |||||||||||
|
Other assets
|
6,527 | 7,663 | 6,113 | |||||||||||
|
Total assets
|
$2,063,791 | $2,060,826 | $2,012,779 | |||||||||||
|
Liabilities and shareholders’ equity
|
||||||||||||||
|
Deposits: Non-interest-bearing demand
|
$ 422,561 | $ 410,967 | $ 430,685 | |||||||||||
|
Deposits: Interest-bearing
|
1,346,566 | 1,352,582 | 1,285,950 | |||||||||||
|
Total deposits
|
1,769,127 | 1,763,549 | 1,716,635 | |||||||||||
|
Operating lease liabilities
|
4,246 | 4,323 | 3,077 | |||||||||||
|
FHLB borrowings
|
5,000 | 10,000 | 20,000 | |||||||||||
|
Other liabilities and accrued expenses
|
9,109 | 9,748 | 10,453 | |||||||||||
|
Total liabilities
|
1,787,482 | 1,787,620 | 1,750,165 | |||||||||||
|
Shareholders’ equity
|
||||||||||||||
|
Common stock, $.01 par value; 50,000,000 shares authorized;
7,782,243 shares issued and outstanding – September 30, 2026
7,769,668 shares issued and outstanding – June 30, 2026
7,889,571 shares issued and outstanding – September 30, 2025
|
20,219 | 21,465 | 26,305 | |||||||||||
|
Retained earnings
|
258,682 | 252,908 | 236,607 | |||||||||||
|
Accumulated other comprehensive loss
|
(2,592) | (1,167) | (298) | |||||||||||
|
Total shareholders’ equity
|
276,309 | 273,206 | 262,614 | |||||||||||
|
Total liabilities and shareholders’ equity
|
$2,063,791 | $2,060,826 | $2,012,779 | |||||||||||
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 12
| Three Months Ended | ||||||||||||
|
PERFORMANCE RATIOS:
|
Sept. 30, 2026 |
June 30, 2026 |
Sept. 30, 2025 | |||||||||
|
Return on average assets (a)
|
1.56 | % | 1.51 | % | 1.68 | % | ||||||
|
Return on average equity (a)
|
11.72 | % | 11.42 | % | 12.97 | % | ||||||
|
Net interest margin (a)
|
3.96 | % | 3.85 | % | 3.82 | % | ||||||
|
Efficiency ratio
|
53.94 | % | 53.4 | % | 53.18 | % | ||||||
| Year Ended | ||||||||||||
| Sept. 30, 2026 |
Sept. 30, 2025 | |||||||||||
|
Return on average assets
|
1.53 | % | 1.5 | % | ||||||||
|
Return on average equity
|
11.55 | % | 11.56 | % | ||||||||
|
Net interest margin
|
3.87 | % | 3.76 | % | ||||||||
|
Efficiency ratio
|
53.83 | % | 54.98 | % | ||||||||
| At or for the Period Indicated | ||||||||||||
| Sept. 30, 2026 |
June 30, 2026 |
Sept. 30, 2025 | ||||||||||
|
ASSET QUALITY RATIOS AND DATA: ($ in thousands)
|
||||||||||||
|
Non-accrual loans
|
$ | 8,393 | $ | 8,556 | $ | 4,407 | ||||||
|
Loans past due 90 days and still accruing
|
-- | -- | -- | |||||||||
|
Non-performing investment securities
|
28 | 29 | 35 | |||||||||
|
OREO and other repossessed assets
|
221 | 221 | 221 | |||||||||
|
Total non-performing assets (b)
|
$ | 8,642 | $ | 8,806 | $ | 4,663 | ||||||
|
Non-performing assets to total assets (b)
|
0.42 | % | 0.43 | % | 0.23 | % | ||||||
|
Net charge-offs (recoveries) during quarter
|
$ | 1,067 | $ | (1 | ) | $ | -- | |||||
|
Allowance for credit losses - loans to non-accrual loans
|
222 | % | 225 | % | 411 | % | ||||||
|
Allowance for credit losses - loans to loans receivable (c)
|
1.21 | % | 1.27 | % | 1.22 | % | ||||||
|
CAPITAL RATIOS:
|
||||||||||||
|
Tier 1 leverage capital
|
12.91 | % | 12.82 | % | 12.59 | % | ||||||
|
Tier 1 risk-based capital
|
19.61 | % | 19.61 | % | 19.42 | % | ||||||
|
Common equity Tier 1 risk-based capital
|
19.61 | % | 19.61 | % | 19.42 | % | ||||||
|
Total risk-based capital
|
20.86 | % | 20.86 | % | 20.67 | % | ||||||
|
Tangible common equity to tangible assets (non-GAAP)
|
12.74 | % | 12.61 | % | 12.38 | % | ||||||
|
BOOK VALUES:
|
||||||||||||
|
Book value per common share
|
$ | 35.51 | $ | 35.16 | $ | 33.29 | ||||||
|
Tangible book value per common share (d)
|
33.54 | 33.19 | 31.33 | |||||||||
________________________________________________
(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).
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 13
AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
($ in thousands)
(unaudited)
|
For
the Three Months Ended
|
||||||||||||||||||||||||
|
Sept.
30, 2026
|
June
30, 2026
|
Sept.
30, 2025
|
||||||||||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
| |||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Loans receivable and loans held for sale
|
$ | 1,531,973 | 6.10 | % | $ | 1,489,910 | 6.04 | % | $ | 1,470,460 | 5.99 | % | ||||||||||||
|
Investment securities and FHLB stock (1)
|
210,144 | 3.56 | 213,161 | 3.52 | 228,710 | 3.60 | ||||||||||||||||||
|
Interest-earning deposits in banks and CDs
|
226,443 | 3.74 | 254,034 | 3.70 | 210,864 | 4.42 | ||||||||||||||||||
|
Total
interest-earning assets
|
1,968,560 | 5.56 | 1,957,105 | 5.47 | 1,910,034 | 5.53 | ||||||||||||||||||
|
Other assets
|
97,418 | 86,893 | 79,211 | |||||||||||||||||||||
|
Total
assets
|
$ | 2,065,978 | $ | 2,043,998 | $ | 1,989,245 | ||||||||||||||||||
|
Liabilities
and Shareholders’ Equity
|
||||||||||||||||||||||||
|
NOW checking accounts
|
$ | 368,508 | 1.48 | % | $ | 360,166 | 1.46 | % | $ | 339,838 | 1.46 | % | ||||||||||||
|
Money market accounts
|
333,920 | 2.76 | 337,150 | 2.76 | 298,102 | 3.04 | ||||||||||||||||||
|
Savings accounts
|
200,064 | 0.28 | 197,959 | 0.27 | 204,671 | 0.35 | ||||||||||||||||||
|
Certificates of deposit accounts
|
404,859 | 3.51 | 405,958 | 3.51 | 390,478 | 3.77 | ||||||||||||||||||
|
Brokered CDs
|
41,164 | 4.09 | 39,389 | 4.16 | 43,118 | 5.47 | ||||||||||||||||||
|
Total
interest-bearing deposits
|
1,348,515 | 2.31 | 1,340,622 | 2.31 | 1,276,207 | 2.49 | ||||||||||||||||||
|
Borrowings
|
6,793 | 3.97 | 13,629 | 4.02 | 20,000 | 4.03 | ||||||||||||||||||
|
Total
interest-bearing liabilities
|
1,355,308 | 2.32 | 1,354,251 | 2.33 | 1,296,207 | 2.51 | ||||||||||||||||||
|
Non-interest-bearing demand deposits
|
421,432 | 406,444 | 423,177 | |||||||||||||||||||||
|
Other liabilities
|
14,736 | 12,113 | 11,542 | |||||||||||||||||||||
|
Shareholders’ equity
|
274,502 | 271,190 | 258,319 | |||||||||||||||||||||
|
Total
liabilities and shareholders’ equity
|
$ | 2,065,978 | $ | 2,043,998 | $ | 1,989,245 | ||||||||||||||||||
|
Interest
rate spread
|
3.24 | % | 3.14 | % | 3.02 | % | ||||||||||||||||||
|
Net
interest margin (2)
|
3.96 | % | 3.85 | % | 3.82 | % | ||||||||||||||||||
|
Average
interest-earning assets to
|
||||||||||||||||||||||||
|
average
interest-bearing liabilities
|
145.25 | % | 144.52 | % | 147.36 | % | ||||||||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 14
AVERAGE BALANCES, YIELDS, AND RATES – YEAR TO DATE
($ in thousands)
(unaudited)
|
For the Year Ended
|
||||||||||||||||
|
Sept. 30, 2026
|
Sept. 30, 2025
|
|||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
| |||||||||||||
|
Assets
|
||||||||||||||||
|
Loans
receivable and loans held for sale
|
$ | 1,493,753 | 6.06 | % | $ | 1,448,803 | 5.90 | % | ||||||||
|
Investment
securities and FHLB stock (1)
|
213,750 | 3.52 | 235,210 | 3.57 | ||||||||||||
|
Interest-earning
deposits in banks and CDs
|
247,984 | 3.79 | 182,239 | 4.51 | ||||||||||||
|
Total interest-earning assets
|
1,955,487 | 5.49 | 1,866,252 | 5.48 | ||||||||||||
|
Other
assets
|
85,658 | 78,000 | ||||||||||||||
|
Total assets
|
$ | 2,041,145 | $ | 1,944,252 | ||||||||||||
|
Liabilities and Shareholders’ Equity
|
||||||||||||||||
|
NOW
checking accounts
|
$ | 365,557 | 1.52 | % | $ | 332,392 | 1.39 | % | ||||||||
|
Money
market accounts
|
321,971 | 2.77 | 308,319 | 3.21 | ||||||||||||
|
Savings
accounts
|
198,368 | 0.28 | 205,488 | 0.31 | ||||||||||||
|
Certificates
of deposit accounts
|
403,031 | 3.58 | 357,444 | 3.86 | ||||||||||||
|
Brokered
CDs
|
39,566 | 4.20 | 46,896 | 5.02 | ||||||||||||
|
Total interest-bearing deposits
|
1,328,493 | 2.34 | 1,250,539 | 2.50 | ||||||||||||
|
Borrowings
|
15,083 | 4.02 | 20,002 | 4.02 | ||||||||||||
|
Total interest-bearing liabilities
|
1,343,576 | 2.36 | 1,270,541 | 2.53 | ||||||||||||
|
Non-interest-bearing
demand deposits
|
414,642 | 411,007 | ||||||||||||||
|
Other
liabilities
|
12,976 | 10,506 | ||||||||||||||
|
Shareholders’
equity
|
269,951 | 252,198 | ||||||||||||||
|
Total liabilities and shareholders’
equity
|
$ | 2,041,145 | $ | 1,944,252 | ||||||||||||
|
Interest rate spread
|
3.13 | % | 2.95 | % | ||||||||||||
|
Net interest margin (2)
|
3.87 | % | 3.76 | % | ||||||||||||
|
Average interest-earning assets to
|
||||||||||||||||
|
average interest-bearing liabilities
|
145.54 | % | 146.89 | % | ||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
Timberland Fiscal Q4 2026 Earnings
October 29, 2026
Page 15
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)
|
Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | |||||||||
|
Shareholders’ equity
|
$ | 276,309 | $ | 273,206 | $ | 262,614 | ||||||
|
Less goodwill and CDI
|
(15,266 | ) | (15,300 | ) | (15,402 | ) | ||||||
|
Tangible common equity
|
$ | 261,043 | $ | 257,906 | $ | 247,212 | ||||||
|
Total assets
|
$ | 2,063,791 | $ | 2,060,826 | $ | 2,012,779 | ||||||
|
Less goodwill and CDI
|
(15,266 | ) | (15,300 | ) | (15,402 | ) | ||||||
|
Tangible assets
|
$ | 2,048,525 | $ | 2,045,526 | $ | 1,997,377 |
Exhibit 99.2
