Timberland Bancorp (NASDAQ: TSBK) lifts Q3 profit to $7.72M

Rhea-AI Filing Summary

Timberland Bancorp reported third fiscal quarter 2026 net income of $7.72 million, or $0.98 per diluted share, up from $7.10 million, or $0.90, a year earlier and $7.13 million, or $0.90, in the prior quarter. Operating revenue rose to $21.79 million, while net interest income grew 7% year-over-year to $18.81 million. Net interest margin expanded to 3.85%, and the efficiency ratio improved to 53.40%. For the first nine months of fiscal 2026, net income increased 11% to $23.07 million, or $2.92 per diluted share.

Total assets reached $2.06 billion and net loans grew 3% during the quarter to $1.50 billion, with deposits up 1% sequentially and 6% year-over-year to $1.76 billion. Liquidity (cash, CDs and available-for-sale securities) equaled 19.3% of total liabilities, and only 17% of deposits were uninsured or uncollateralized. Asset quality remained solid but higher than a year ago, with non-performing assets at 0.43% of total assets and an allowance for credit losses of 1.27% of loans. Capital ratios were strong, including a total risk-based capital ratio of 20.86%. The board raised the quarterly cash dividend 3% to $0.30 per share and continued share repurchases.

Positive

• Nine-month net income up 11% to $23.07 million, with return on average assets of 1.52% and robust capital, including a total risk-based capital ratio of 20.86% and a tangible common equity to tangible assets ratio of 12.61%.

Negative

• Credit quality metrics weakened year-over-year as non-accrual loans rose 123% to $8.56 million and non-performing assets to total assets increased to 0.43% from 0.21%, despite modest improvement versus the prior quarter.

Filing Explained

The declared 30-cent dividend is payable August 24, while 70,000 repurchased shares leave 157,977 shares available under the plan.

Under the Form 8-K's role of reporting specified material events, Timberland Bancorp discloses a declared quarterly cash dividend and completed share repurchases; the dividend is scheduled, while the repurchases are recorded as completed during the quarter. The $0.30-per-share dividend is payable on August 24, 2026, to shareholders of record on August 10, 2026.

During the quarter, the company repurchased 70,000 common shares for $2.83 million, at an average price of $40.49 per share; 7,769,668 shares were issued and outstanding at June 30, 2026.

The remaining disclosed capacity under the existing repurchase plan is 157,977 shares, making that authorization and the August 10 record date the specific next items for tracking.

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, and exhibit attachments filed with this report.

Key Figures

Q3 2026 net income: $7.72 million Q3 2026 diluted EPS: $0.98 per share Nine-month 2026 net income: $23.07 million +5 more

8 metrics

Q3 2026 net income $7.72 million For the quarter ended June 30, 2026

Q3 2026 diluted EPS $0.98 per share Quarter ended June 30, 2026, up from $0.90 a year earlier

Nine-month 2026 net income $23.07 million First nine months of fiscal 2026, up 11% from $20.72 million

Quarterly dividend $0.30 per common share Payable August 24, 2026 to shareholders of record August 10, 2026

Total assets $2.06 billion Balance at June 30, 2026

Net interest margin 3.85% Q3 2026, up from 3.81% prior quarter and 3.80% a year ago

Non-performing assets ratio 0.43% Non-performing assets to total assets at June 30, 2026

Total risk-based capital ratio 20.86% Regulatory capital ratio at June 30, 2026

Key Terms

net interest margin, efficiency ratio, non-performing assets, allowance for credit losses, +2 more

6 terms

net interest margin financial

"Timberland’s NIM for the current quarter increased to 3.85% from 3.81%"

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.

efficiency ratio financial

"The efficiency ratio for the current quarter improved to 53.40% from 55.38%"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

non-performing assets financial

"Timberland’s non-performing assets to total assets ratio was 0.43% at June 30, 2026"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

"The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.27%"

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.

Tier 1 leverage capital financial

"a total risk-based capital ratio of 20.87%, a Tier 1 leverage capital ratio of 12.82%"

Tier 1 leverage capital is the core financial cushion a bank holds—mainly shareholder equity and retained profits—measured against its total assets and off‑balance obligations to show how much of the business is funded by truly loss‑absorbing money. For investors, it matters because a higher ratio means the bank has more plain‑spoken protection against losses and is less likely to face regulatory restrictions, capital raises, or cuts to dividends; think of it as the firm’s emergency savings compared to its total bills.

tangible common equity financial

"a tangible common equity to tangible assets ratio (non-GAAP) of 12.61%"

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

Q3 net income: $7.72 million

Quarter and nine months ended June 30, 2026

Q3 net income $7.72 million up from $7.10 million in the comparable quarter one year ago

Q3 diluted EPS $0.98 up from $0.90 in both the prior and year-ago quarters

Nine-month net income $23.07 million increased 11% from $20.72 million for the first nine months of fiscal 2025

Operating revenue (Q3) $21.79 million up from $21.05 million in the prior quarter and $20.50 million a year earlier

Net interest margin (Q3) 3.85% up from 3.81% in the prior quarter and 3.80% in the comparable quarter one year ago

Efficiency ratio (Q3) 53.40% improved from 55.38% in the prior quarter and 54.48% a year earlier

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Available on EDGAR 07/29/2026 - 01:15 PM Accepted by SEC EDGAR 07/29/2026 - 01:14 PM Learn about SEC filing dates

FAQ

What were Timberland Bancorp (TSBK)'s Q3 2026 earnings results?

Timberland Bancorp earned $7.72 million in Q3 2026, or $0.98 per diluted share. That compares with $7.10 million, or $0.90, a year earlier and $7.13 million, or $0.90, in the prior quarter, as operating revenue reached $21.79 million.

How did Timberland Bancorp (TSBK)'s net interest margin and efficiency ratio change in Q3 2026?

Net interest margin was 3.85% in Q3 2026, up from 3.81% in the prior quarter and 3.80% a year earlier. The efficiency ratio improved to 53.40%, better than 55.38% in the prior quarter and 54.48% in the year-ago quarter.

What dividend did Timberland Bancorp (TSBK) declare for Q3 2026?

The board declared a quarterly cash dividend of $0.30 per common share, a 3% increase. It is payable on August 24, 2026 to shareholders of record on August 10, 2026, marking the 55th consecutive quarter of cash dividends.

How strong is Timberland Bancorp (TSBK)'s capital position as of June 30, 2026?

Timberland reported a total risk-based capital ratio of 20.86%, Tier 1 leverage ratio of 12.82%, tangible common equity to tangible assets of 12.61%, and shareholders’ equity to total assets of 13.26%, all indicating a well-capitalized balance sheet.

What is Timberland Bancorp (TSBK)'s asset quality profile as of June 30, 2026?

Non-performing assets totaled $8.81 million, or 0.43% of total assets. Non-accrual loans were $8.56 million, while the allowance for credit losses on loans was 1.27% of loans receivable. Delinquent and non-accrual loans were $8.71 million, down from $10.40 million in March 2026.

How did Timberland Bancorp (TSBK)'s loans and deposits change in Q3 2026?

Net loans receivable increased 3% during the quarter to $1.50 billion, driven by commercial real estate and construction lending. Total deposits rose $20.34 million, or 1% sequentially and 6% year-over-year, reaching $1.76 billion at June 30, 2026.

false000104605000010460502026-07-282026-07-28

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): July 28, 2026

Timberland Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Washington		0-23333		91-1863696
State or other jurisdiction Of incorporation		Commission File Number		(I.R.S. Employer Identification No.)

624 Simpson Avenue, Hoquiam, Washington	98550
(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
Common Stock, par value $.01 per share		TSBK	The Nasdaq Stock Market LLC

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 July 28, 2026, Timberland Bancorp, Inc. (the “Company”) issued its earnings release for the quarter ended June 30, 2026.  The release also announced the declaration of a quarterly cash dividend of $0.30 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 third 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 July 28, 2026

99.2 Third 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:  July 28, 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         www.timberlandbank.com

Timberland Bancorp Reports Third Fiscal Quarter Net Income of $7.72 Million

• Quarterly EPS Increases 9% to $0.98 from $0.90 for the Comparable Quarter One Year Ago

• Quarterly Return on Average Assets Increases to 1.51%

• Quarterly Return on Average Equity Increases to 11.42%

• Quarterly Net Interest Margin Increases to 3.85%

• Announces a 3% Increase in the Quarterly Cash Dividend

HOQUIAM, WA – July 28, 2026 – Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.72 million, or $0.98 per diluted common share for the quarter ended June 30, 2026.  This compares to net income of $7.10 million, or $0.90 per diluted common share for the comparable quarter one year ago, and $7.13 million, or $0.90 per diluted common share, for the preceding quarter.

For the first nine months of fiscal 2026, Timberland’s net income increased 11% to $23.07 million, or $2.92 per diluted common share, from $20.72 million, or $2.60 per diluted common share, for the first nine months of fiscal 2025.

“Timberland delivered another strong quarter, with net income and earnings per share up 8% and 9%, respectively, from the prior quarter, and up 9% from the year ago quarter,” stated Dean Brydon, Chief Executive Officer.  “Net interest margin expanded, loan growth was solid, and most of our income-related ratios compared favorably with both the linked-quarter and year-over-year.  We remain encouraged by our business model and believe we are well positioned as we head into the end of our fiscal 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 $0.30 per share, payable on August 24, 2026, to shareholders of record on August 10, 2026,” stated Jonathan Fischer, President and Chief Operating Officer.  “This represents the 55th consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board’s continued confidence in our long-term outlook.”

“Overall, this was a relatively clean quarter from an earnings standpoint, with minimal non-recurring items impacting results,” said Marci Basich, Chief Financial Officer.  “Net interest margin improved this quarter, up four basis points after a modest decline last quarter and improved five basis points year-over-year.  Our balance sheet positioning and proactive deposit pricing strategies continue to help mitigate the headwinds of the current interest rate environment.  On the deposit side, total deposits grew 1% from the prior quarter and 6% year over year.  Maintaining a disciplined funding mix and stable margin will remain a top priority going forward.”

“Net loans were up 3% from the prior quarter and 4% year-over-year,” Brydon continued.  “Even with a shifting rate environment, demand across our lending categories has remained healthy.  Credit quality held steady with modest improvements in non-performing asset levels, delinquency levels, and substandard loan levels.  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 Q3 2026 Earnings

July 28, 2026

Page 2

Earnings and Balance Sheet Highlights (at or for the periods ended June 30, 2026, compared to June 30, 2025, or March 31, 2026):

   Earnings Highlights:

• Earnings per diluted common share (“EPS”) increased 9% to $0.98 for the current quarter from $0.90 for the comparable quarter one year ago and $0.90 for the preceding quarter; EPS increased 12% to $2.92 for the first nine months of fiscal 2026 from $2.60 for the first nine months of fiscal 2025;

• Net income increased 9% to $7.72 million for the current quarter from $7.10 million for the comparable quarter one year ago and increased 8% from $7.13 million for the preceding quarter; Net income increased 11% to $23.07 million for the first nine months of fiscal 2026 from $20.72 million for the first nine months of fiscal 2026;

• Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.42% and 1.51%, respectively;

• Net interest margin (“NIM”) for the current quarter increased to 3.85% from 3.80% for the comparable quarter one year ago and 3.81% for the preceding quarter; and

• The efficiency ratio for the current quarter improved to 53.40% from 54.48% for the comparable quarter one year ago and 55.37% for the preceding quarter.

  Balance Sheet Highlights:

• Total assets increased 1% from the prior quarter and increased 5% year-over-year;

• Net loans receivable increased 3% from the prior quarter and increased 4% year-over-year;

• Total deposits increased 1% from the prior quarter and increased 6% year-over-year;

• Total shareholders’ equity increased 1% from the prior quarter and increased 6% year-over-year; 70,000 shares of common stock were repurchased during the current quarter for $2.83 million;

• Non-performing assets to total assets ratio was 0.43% at June 30, 2026, compared to 0.47% at March 31, 2026, and 0.21% at March 31, 2025;

• Book and tangible book (non-GAAP) values per common share increased to $35.16 and $33.19 respectively, at June 30, 2026; and

• Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2026, with only $10 million in borrowings and additional secured borrowing line capacity of $791 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 4% to $21.79 million from $21.05 million for the preceding quarter and increased 6% from $20.50 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, which was partially offset by an increase in interest expense on deposits.  Operating revenue increased 7%, to $64.56 million for the first nine months of fiscal 2026 from $60.06 million for the first nine months of fiscal 2025, primarily due to increases in interest income on loans receivable, interest income on interest-bearing deposits in banks, and non-interest income which were partially offset by a decrease in interest income from investments securities.

Net interest income increased $562,000, or 3%, to $18.81 million for the current quarter from $18.24 million for the preceding quarter and increased $1.18 million, or 7%, from $17.62 million for the comparable quarter one year ago.  The increase in net interest income compared to the preceding quarter was primarily due to a $14.62 million increase in the average interest-earning assets, a five-basis point increase in the weighted average yield on interest-bearing assets and, to a lesser extent, a two-basis point decrease in the weighted average cost of interest-bearing liabilities.  Net interest income for the first nine months of fiscal 2026 increased $4.19 million, or 8%, to $56.00 million from $51.81 million for the first nine months of fiscal 2025, primarily due to a $99.58 million increase in average interest-earning assets and a 15-basis point decrease in the weighted average cost of interest-bearing liabilities.

Timberland’s NIM for the current quarter increased to 3.85% from 3.81% for the preceding quarter and from 3.80% 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 $82,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value

Timberland Fiscal Q3 2026 Earnings

July 28, 2026

Page 3

discount on acquired loans.  The NIM for the preceding quarter was increased by approximately one basis point due to the collection of $38,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $10,000 of the fair value discount on acquired loans.  The NIM for the comparable quarter one year ago was increased by approximately four basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $68,000 of the fair value discount on acquired loans. Timberland’s NIM expanded to 3.84% for the first nine months of fiscal 2026 from 3.74% for the first nine months of fiscal 2025.

A $600,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2026.  The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio.  This compares to a $523,000 provision for credit losses on loans for the preceding quarter and a $351,000 provision for credit losses on loans for the comparable quarter one year ago.

Non-interest income increased $181,000, or 6%, to $2.99 million for the current quarter from $2.81 million for the preceding quarter and increased $113,000, or 4%, from $2.88 million for the comparable quarter one year ago.  The increase in non-interest income compared to the preceding quarter was primarily due to a $91,000 increase in BOLI net earnings, a $62,000 increase in ATM and debit card interchange fees and smaller increases in several other categories.  These increases were partially offset by an $86,000 decrease in net gain on sales of loans.  Fiscal year-to-date non-interest income increased by 4%, to $8.56 from $8.26 million for the first nine months of fiscal 2025.

Total operating (non-interest) expenses for the current quarter decreased $21,000, or less than 1%, to $11.64 million from $11.66 million for the preceding quarter and increased $471,000, or 4%, from $11.17 million for the comparable quarter one year ago.  The slight decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salary and employee benefits expense and technology and communications expense and smaller decreases and increases in several other expense categories.  The efficiency ratio for the current quarter improved to 53.40% from 55.38% for the preceding quarter and 54.48% for the comparable quarter one year ago.  Fiscal year-to-date operating expenses increased 4% to $34.73 million from $33.43 million for the first nine months of fiscal 2025.

The provision for income taxes for the current quarter increased $190,000, or 11%, to $1.93 million from $1.74 million for the preceding quarter, primarily due to higher taxable income.  Timberland’s effective income tax rate was 20.0% for the quarter ended June 30, 2026, compared to 19.6% for the quarter ended March 31, 2026, and 20.1% for the quarter ended June 30, 2025.  Timberland’s effective income tax rate was 20.0% for the first nine months of fiscal 2026 compared to 20.1% for the first nine months of fiscal 2025.

Balance Sheet Management

Total assets increased $14.44 million, or 1%, during the quarter to $2.06 billion at June 30, 2026, from $2.05 billion at March 31, 2026, and increased $103.63 million, or 5%, from $1.96 billion one year ago.  The increase during the quarter was primarily due to increases in net loans receivable and bank owned life insurance, which were partially offset by a decrease in total cash and cash equivalents.

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 19.3% of total liabilities at June 30, 2026, compared to 22.1% at March 31, 2026, and 17.0% one year ago.  Timberland also had secured borrowing line capacity of $791 million available through the FHLB and the Federal Reserve at June 30, 2026.  With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2026.  (Note: This calculation excludes public deposits that are fully collateralized.)

Loans

Net loans receivable increased $44.77 million, or 3%, during the quarter to $1.50 billion at June 30, 2026, from $1.45 billion at March 31, 2026, and increased $54.16 million, or 4%, from $1.44 billion at June 30, 2025.  The increase during the quarter was primarily due to a $35.26 million increase in commercial real estate loans, a $30.48 million increase in construction loans and smaller increases in several other loan categories.  These increases were partially offset by an $11.58 million decrease in one- to four-family loans, a $9.70 million increase in the undisbursed portion of construction loans in process and smaller changes in several other loan categories.

Timberland Fiscal Q3 2026 Earnings

July 28, 2026

Page 4

Loan Portfolio

($ in thousands)

		June 30, 2026								March 31, 2026								June 30, 2025
		Amount				Percent				Amount				Percent				Amount				Percent
Mortgage loans:
One- to four-family (a)		$	299,921				18	%		$	311,500				20	%		$	317,574				21	%
Multi-family			214,583				13				214,107				14				200,418				13
Commercial			646,376				40				611,117				39				607,924				40
Construction - custom and
owner/builder			113,303				7				104,074				7				128,900				8
Construction - speculative             one-to four-family			28,445				2				15,840				1				9,595				1
Construction - commercial			12,991				1				12,985				1				15,992				1
Construction - multi-family			91,271				6				80,246				5				32,731				2
Construction - land
development			530				--				2,915				--				15,461				1
Land			37,416				2				32,214				2				36,193				2
Total mortgage loans			1,444,836				89				1,384,998				89				1,364,788				89
Consumer loans:
Home equity and second
mortgage			54,971				4				53,252				3				47,511				3
Other			1,915				--				2,018				--				2,176				--
Total consumer loans			56,886				4				55,270				3				49,687				3
Commercial loans:
Commercial business
loans			118,852				7				125,087				8				126,497				8
SBA PPP loans			--				--				5				--				101				--
Total commercial loans			118,852				7				125,092				8				126,598				8
Total loans			1,620,574				100	%			1,565,360				100	%			1,541,073				100	%
Less:
Undisbursed portion of
construction loans in
process			(100,275	)							(90,576	)							(76,272	)
Deferred loan origination
fees			(5,399	)							(5,259	)							(5,427	)
Allowance for credit losses			(19,249	)							(18,648	)							(17,878	)
Total loans receivable, net		$	1,495,651							$	1,450,877							$	1,441,496

_______________________

(a) Does not include one- to four-family loans held for sale totaling $2,774, $1,642, and $1,763 at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Timberland Fiscal Q3 2026 Earnings

July 28, 2026

Page 5

The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 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		$	146,809				23	%			9	%		$	1,425			$	--
Medical/dental offices			82,696				13				5				1,216				224
Office buildings			74,252				11				5				863				--
Other retail buildings			55,677				9				3				619				--
Hotel/motel			41,450				6				2				2,763				4,310
Mini-storage			38,190				6				2				1,469				--
Gas stations/conv. stores			27,769				4				2				1,028				--
Restaurants			27,660				4				2				576				--
Nursing homes			13,746				2				1				1,963				--
Churches			13,710				2				1				979				--
Shopping centers			10,216				2				1				1,703				--
Mobile home parks			9,255				2				1				441				--
Additional CRE			104,946				16				6				795				--
Total CRE		$	646,376				100	%			40	%		$	1,005			$	4,534

Timberland originated $133.67 million in loans during the quarter ended June 30, 2026, compared to $71.12 million for the preceding quarter and $81.99 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 $7.83 million were sold compared to $11.36 million for the preceding quarter and $5.11 million for the comparable quarter one year ago.

Investment Securities

Timberland’s investment securities and CDs held for investment increased $863,000 or less than 1%, to $216.89 million at June 30, 2026, from $216.03 million at March 31, 2026.  The increase was primarily due to the purchase of additional CDs and U.S. government agency mortgage-backed investment securities, which were  partially offset by maturities of U.S. Treasury Securities and scheduled amortization.

Bank Owned Life Insurance (“BOLI”)

BOLI increased $15.25 million, or 69%, to $37.39 million at June 30, 2026, from $22.14 million at March 31, 2026.  The increase was primarily due to $15.00 million in additional BOLI policies purchased during the quarter.

Deposits

Total deposits increased $20.34 million, or 1%, during the quarter to $1.76 billion at June 30, 2026, from $1.74 billion at March 31, 2026, and increased $94.07 million, or 6%, from $1.67 billion at June 30, 2025.  The quarter’s increase consisted of a $7.00 million increase in certificates of deposit account balances, a $5.56 million increase in money market account balances, a $4.09 million increase in NOW account balances, a $2.99 million increase in non-interest-bearing deposit account balances, and a $700,000 increase in savings account balances.

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Deposit Breakdown ($ in thousands)
		June 30, 2026								March 31, 2026								June 30, 2025
		Amount				Percent				Amount				Percent				Amount				Percent
Non-interest-bearing demand		$	410,967				23	%		$	407,980				23	%		$	406,222				24	%
NOW checking			374,476				21				370,385				21				334,922				20
Savings			198,505				11				197,805				11				205,829				12
Money market			331,375				19				325,811				19				305,207				18
Certificates of deposit under $250			263,668				15				257,449				15				244,063				15
Certificates of deposit $250 and over			144,209				8				141,843				8				126,254				8
Certificates of deposit – brokered			40,349				3				41,937				3				46,980				3
Total deposits		$	1,763,549				100	%		$	1,743,210				100	%		$	1,669,477				100	%

Borrowings

Total borrowings decreased $10.00 million, or 50%, to $10.00 million at June 30, 2026, from $20.00 million as March 31, 2026 and June 30, 2025.

Shareholders’ Equity and Capital Ratios

Total shareholders’ equity increased $2.12 million, or 1%, to $273.21 million at June 30, 2026, from $271.09 million at March 31, 2026, and increased $16.54 million, or 6%, from $256.66 million at June 30, 2025.  The increase in shareholders’ equity during the quarter was primarily due to net income of $7.72 million and proceeds from stock option exercises of $140,000.  These increases to shareholders’ equity were partially offset by the payment of $2.27 million in dividends to shareholders and the repurchase of 70,000 shares of common stock for $2.83 million (an average price of $40.49 per share), and a $817,000 increase of accumulated other comprehensive loss.  At June 30, 2026, Timberland had 157,977 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 20.87%, a Tier 1 leverage capital ratio of 12.82%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.61%, and a shareholders’ equity to total assets ratio of 13.26% at June 30, 2026.  Timberland’s held to maturity investment securities were $117.59 million at June 30, 2026, with a net unrealized loss of $4.37 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 13.11%, compared to 13.26%, as reported.

Asset Quality

Timberland’s non-performing assets to total assets ratio was 0.43% at June 30, 2026, compared to 0.47% at March 31, 2026, and 0.21% at June 30, 2025.  Net recoveries were $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net recoveries of $1,000 for the comparable quarter one year ago.  During the current quarter, a $600,000 provision for credit losses on loans was made, which was offset by a $91,000 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 1.27% at June 30, 2026, compared to 1.27% at March 31, 2026, and 1.23% one year ago.

Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $1.69 million, or 16%, to $8.71 million at June 30, 2026, from $10.40 million at March 31,2026, and increased $2.54 million, or 41%, from $6.17 million at June 30, 2025.  Non-accrual loans decreased $849,000 or 9%, to $8.56 million at June 30, 2026 from $9.41 million at March 31, 2026, and increased $4.71 million, or 123%, from $3.84 million at June 30, 2025.  Loans graded “Substandard” decreased $874,000, or 9%, to $8.66 million at June 30, 2026 from $9.54 million at March 31, 2026 and decreased $23.71 million, or 73%, from $32.37 million at June 30, 2025.

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Non-Accrual Loans

($ in thousands)

		June 30, 2026								March 31, 2026								June 30, 2025
		Amount				Quantity				Amount				Quantity				Amount				Quantity
Mortgage loans:
One- to four-family		$	1,930				2			$	1,934				2			$	1,781				1
Commercial			4,534				3				4,859				4				161				2
Construction – custom and
owner/builder			--				--				553				1				--				--
Total mortgage loans			6,464				5				7,346				7				1,942				3
Consumer loans:
Home equity and second
mortgage			452				4				352				4				575				3
Other			20				1				20				1				--				--
Total consumer loans			472				5				372				5				575				3
Commercial business loans			1,620				8				1,687				7				1,326				9
Total loans		$	8,556				18			$	9,405				19			$	3,843				15

Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2026:

		June 30, 2026								March 31, 2026								June 30, 2025
		Amount				Quantity				Amount				Quantity				Amount				Quantity
Other real estate owned:
Commercial		$	221				1			$	221				1			$	221				1
Land			--				1				--				1				--				1
Total mortgage loans		$	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 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

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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.

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TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Three Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,				March, 31				June 30,
		2026				2026				2025
Interest and dividend income
Loans receivable and loans held for sale		$	22,457			$	21,793			$	21,411
Investment securities			1,800				1,751				2,064
Dividends from mutual funds, FHLB stock and other investments			71				77				83
Interest bearing deposits in banks			2,343				2,334				1,986
Total interest and dividend income			26,671				25,955				25,544
Interest expense
Deposits			7,728				7,513				7,721
Borrowings			137				198				201
Total interest expense			7,865				7,711				7,922
Net interest income			18,806				18,244				17,622
Provision for credit losses – loans			600				523				351
Recapture of credit losses – investment securities			(1	)			(3	)			(4	)
(Recapture of) prov. for credit losses – unfunded commitments			(91	)			3				93
Net int. income after provision for (recapture of) credit losses			18,298				17,721				17,182
Non-interest income
Service charges on deposits			956				934				966
ATM and debit card interchange transaction fees			1,193				1,131				1,262
Gain on sales of investment securities, net			--				--				24
Gain on sales of loans, net			150				236				138
Bank owned life insurance (“BOLI”) net earnings			246				155				171
Other			443				351				314
Total non-interest income, net			2,988				2,807				2,875
Non-interest expense
Salaries and employee benefits			6,383				6,469				5,825
Premises and equipment			1,082				1,116				973
Advertising			202				182				182
OREO and other repossessed assets, net			3				3				8
ATM and debit card processing			532				471				658
Postage and courier			145				155				137
State and local taxes			453				428				570
Professional fees			361				325				341
FDIC insurance			222				228				211
Loan administration and foreclosure			155				141				99
Technology and communications			1,109				1,177				993
Deposit operations			348				363				345
Amortization of core deposit intangible (“CDI”)			34				34				45
Other, net			609				567				780
Total non-interest expense, net			11,638				11,659				11,167
Income before income taxes			9,648				8,869				8,890
Provision for income taxes			1,928				1,738				1,790
Net income		$	7,720			$	7,131			$	7,100
Net income per common share:
Basic		$	0.99			$	0.91			$	0.90
Diluted			0.98				0.90				0.90
Weighted average common shares outstanding:
Basic			7,804,449				7,875,436				7,893,308
Diluted			7,854,638				7,922,232				7,921,762

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TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Nine Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,								June 30,
		2026								2025
Interest and dividend income
Loans receivable and loans held for sale		$	66,924							$	63,339
Investment securities			5,413								6,205
Dividends from mutual funds, FHLB stock and other investments			229								252
Interest bearing deposits in banks			7,255								5,870
Total interest and dividend income			79,821								75,666
Interest expense
Deposits			23,284								23,259
Borrowings			538								602
Total interest expense			23,822								23,861
Net interest income			55,999								51,805
Provision for credit losses – loans			1,140								640
Recapture of credit losses – investment securities			(6	)							(14	)
Prov. for (recapture of) credit losses - unfunded commitments			(137	)							87
Net int. income after provision for (recapture of) credit losses			55,002								51,092
Non-interest income
Service charges on deposits			2,879								2,924
ATM and debit card interchange transaction fees			3,518								3,706
Gain on sales of investment securities, net			--								24
Gain on sales of loans, net			464								303
Bank owned life insurance (“BOLI”) net earnings			559								503
Other			1,140								799
Total non-interest income, net			8,560								8,259
Non-interest expense
Salaries and employee benefits			19,305								17,893
Premises and equipment			3,273								2,998
Advertising			576								552
OREO and other repossessed assets, net			11								17
ATM and debit card processing			1,584								1,700
Postage and courier			443								401
State and local taxes			1,338								1,251
Professional fees			1,003								1,118
FDIC insurance			671								640
Loan administration and foreclosure			376								383
Technology and communications			3,340								3,253
Deposit operations			1,058								997
Amortization of core deposit intangible (“CDI”)			102								135
Other, net			1,647								2,090
Total non-interest expense, net			34,727								33,428
Income before income taxes			28,835								25,923
Provision for income taxes			5,767								5,208
Net income		$	23,068							$	20,715
Net income per common share:
Basic		$	2.94							$	2.61
Diluted			2.92								2.60
Weighted average common shares outstanding:
Basic			7,855,218								7,929,626
Diluted			7,899,972								7,963,412

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TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts) (unaudited)		June 30,				March 31,				June 30,
		2026				2026				2025
Assets
Cash and due from financial institutions		$	32,800			$	24,157			$	32,532
Interest-bearing deposits in banks			213,282				270,514				161,095
Total cash and cash equivalents			246,082				294,671				193,627
Certificates of deposit (“CDs”) held for investment, at cost			7,964				5,972				8,462
Investment securities:
Held to maturity, at amortized cost (net of ACL – investment securities)			117,587				117,327				141,570
Available for sale, at fair value			90,484				91,869				86,475
Investments in equity securities, at fair value			858				862				855
FHLB stock			1,653				2,103				2,045
Other investments, at cost			3,000				3,000				3,000
Loans held for sale			2,774				1,642				1,763
Loans receivable			1,514,900				1,469,525				1,459,374
Less: ACL – loans			(19,249	)			(18,648	)			(17,878	)
Net loans receivable			1,495,651				1,450,877				1,441,496
Premises and equipment, net			22,149				21,925				21,490
OREO and other repossessed assets, net			221				221				221
BOLI			37,389				22,143				24,113
Accrued interest receivable			7,321				7,397				7,174
Goodwill			15,131				15,131				15,131
CDI			169				203				316
Loan servicing rights, net			608				641				911
Operating lease right-of-use assets			4,122				2,767				1,248
Other assets			7,663				7,635				7,295
Total assets		$	2,060,826			$	2,046,386			$	1,957,192
Liabilities and shareholders’ equity
Deposits: Non-interest-bearing demand		$	410,967			$	407,980			$	406,222
Deposits: Interest-bearing			1,352,582				1,335,230				1,263,255
Total deposits			1,763,549				1,743,210				1,669,477
Operating lease liabilities			4,323				2,937				1,350
FHLB borrowings			10,000				20,000				20,000
Other liabilities and accrued expenses			9,748				9,150				9,701
Total liabilities			1,787,620				1,775,297				1,700,528
Shareholders’ equity
Common stock, $.01 par value; 50,000,000 shares authorized;         7,769,668 shares issued and outstanding – June 30, 2026         7,833,643 shares issued and outstanding – March 31, 2026         7,876,853 shares issued and outstanding – June 30, 2025			21,465				23,982				27,226
Retained earnings			252,908				247,457				230,213
Accumulated other comprehensive loss			(1,167	)			(350	)			(775	)
Total shareholders’ equity			273,206				271,089				256,664
Total liabilities and shareholders’ equity		$	2,060,826			$	2,046,386			$	1,957,192

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	Three Months Ended
PERFORMANCE RATIOS:		June 30, 2026				March 31, 2026				June 30, 2025
Return on average assets (a)			1.51	%			1.43	%			1.47	%
Return on average equity (a)			11.42	%			10.72	%			11.23	%
Net interest margin (a)			3.85	%			3.81	%			3.80	%
Efficiency ratio			53.40	%			55.38	%			54.48	%
	Nine Months Ended
		June 30, 2026								June 30, 2025
Return on average assets (a)			1.52	%							1.44	%
Return on average equity (a)			11.49	%							11.07	%
Net interest margin (a)			3.84	%							3.74	%
Efficiency ratio			53.79	%							55.65	%
	At or for the Period Indicated
		June 30, 2026				March 31, 2026				June 30, 2025
ASSET QUALITY RATIOS AND DATA: ($ in thousands)
Non-accrual loans		$	8,556			$	9,405			$	3,843
Loans past due 90 days and still accruing			--				--				--
Non-performing investment securities			29				30				38
OREO and other repossessed assets			221				221				221
Total non-performing assets (b)		$	8,806			$	9,656			$	4,102
Non-performing assets to total assets (b)			0.43	%			0.47	%			0.21	%
Net charge-offs (recoveries) during quarter		$	(1	)		$	--			$	(1	)
Allowance for credit losses - loans to non-accrual loans			225	%			198	%			465	%
Allowance for credit losses - loans to loans receivable (c)			1.27	%			1.27	%			1.23	%
CAPITAL RATIOS:
Tier 1 leverage capital			12.82	%			12.82	%			12.63	%
Tier 1 risk-based capital			19.61	%			20.29	%			19.29	%
Common equity Tier 1 risk-based capital			19.61	%			20.29	%			19.29	%
Total risk-based capital			20.86	%			21.55	%			20.54	%
Tangible common equity to tangible assets (non-GAAP)			12.61	%			12.59	%			12.42	%
BOOK VALUES:
Book value per common share		$	35.16			$	34.61			$	32.58
Tangible book value per common share (d)			33.19				32.65				30.62

________________________________________________

(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).

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AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY

($ in thousands)

(unaudited)

		For the Three Months Ended
		June 30, 2026								March 31, 2026								June 30, 2025
		Amount				Rate				Amount				Rate				Amount				Rate
Assets
Loans receivable and loans held for sale		$	1,489,910				6.04	%		$	1,474,095				5.99	%		$	1,450,350				5.92	%
Investment securities and FHLB stock (1)			213,161				3.52				213,089				3.48				232,272				3.71
Interest-earning deposits in banks and CDs			254,034				3.70				255,300				3.71				178,887				4.45
Total interest-earning assets			1,957,105				5.47				1,942,484				5.42				1,861,509				5.50
Other assets			86,893								78,917								79,715
Total assets		$	2,043,998							$	2,021,401							$	1,941,224
Liabilities and Shareholders’ Equity
NOW checking accounts		$	360,166				1.46	%		$	364,926				1.53	%		$	333,074				1.39	%
Money market accounts			337,150				2.76				312,593				2.70				304,526				3.16
Savings accounts			197,959				0.27				197,031				0.28				205,592				0.35
Certificates of deposit accounts			405,958				3.51				399,665				3.56				363,342				3.77
Brokered CDs			39,389				4.16				38,176				4.29				48,028				4.83
Total interest-bearing deposits			1,340,622				2.31				1,312,391				2.32				1,254,562				2.47
Borrowings			13,629				4.02				20,000				4.03				20,002				4.03
Total interest-bearing liabilities			1,354,251				2.33				1,332,391				2.35				1,274,564				2.49
Non-interest-bearing demand deposits			406,444								407,936								402,717
Other liabilities			12,113								11,373								10,266
Shareholders’ equity			271,190								269,701								253,677
Total liabilities and shareholders’ equity		$	2,043,998							$	2,021,401							$	1,941,224
Interest rate spread							3.14	%							3.07	%							3.01	%
Net interest margin (2)							3.85	%							3.81	%							3.80	%
Average interest-earning assets to
average interest-bearing liabilities			144.52	%							145.79	%							146.05	%

          _____________________________________

(1) Includes other investments

(2) Net interest margin = annualized net interest income /

     average interest-earning assets

Timberland Fiscal Q3 2026 Earnings

July 28, 2026

Page 14

AVERAGE BALANCES, YIELDS, AND RATES – YEAR TO DATE

($ in thousands)

(unaudited)

		For the Nine Months Ended
		June 30, 2026								June 30, 2025
		Amount				Rate				Amount				Rate
Assets
Loans receivable and loans held for sale		$	1,480,873				6.04	%		$	1,441,506				5.87	%
Investment securities and FHLB stock (1)			214,965				3.51				237,400				3.81
Interest-earning deposits in banks and CDs			255,243				3.80				172,591				4.55
Total interest-earning assets			1,951,081				5.47				1,851,497				5.49
Other assets			81,696								77,595
Total assets		$	2,032,777							$	1,929,092
Liabilities and Shareholders’ Equity
NOW checking accounts		$	364,563				1.53	%		$	329,883				1.36	%
Money market accounts			317,944				2.77				311,762				3.26
Savings accounts			197,796				0.28				205,764				0.30
Certificates of deposit accounts			402,415				3.60				346,313				3.89
Brokered CDs			39,028				4.25				48,169				4.89
Total interest-bearing deposits			1,321,746				2.37				1,241,891				2.50
Borrowings			17,876				4.02				20,001				4.02
Total interest-bearing liabilities			1,339,622				2.38				1,261,892				2.53
Non-interest-bearing demand deposits			412,354								406,906
Other liabilities			12,384								10,159
Shareholders’ equity			268,417								250,135
Total liabilities and shareholders’ equity		$	2,032,777							$	1,929,092
Interest rate spread							3.09	%							2.96	%
Net interest margin (2)							3.84	%							3.74	%
Average interest-earning assets to
average interest-bearing liabilities			145.64	%							146.72	%

  _____________________________________

(1) Includes other investments

(2) Net interest margin = annualized net interest income /

     average interest-earning assets

Timberland Fiscal Q3 2026 Earnings

July 28, 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)		June 30, 2026				March 31, 2026				June 30, 2025
Shareholders’ equity		$	273,206			$	271,089			$	256,664
Less goodwill and CDI			(15,300	)			(15,334	)			(15,447	)
Tangible common equity		$	257,906			$	255,755			$	241,217
Total assets		$	2,060,826			$	2,046,386			$	1,957,192
Less goodwill and CDI			(15,300	)			(15,334	)			(15,447	)
Tangible assets		$	2,045,526			$	2,031,052			$	1,941,745

Exhibit 99.2

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 timb8k72826exh991.htm 1.1 MB
• EX-99.2 timb8k72826exh992.htm 28.7 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 21.5 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 15.7 KB