業績公告
即時報告
8-K
2026-07-29
Timberland Bancorp 第三財季淨收入772萬美元 每股盈利0.98美元 按年增長9%
AI 繁中摘要
美國證交會8-K申報：Timberland Bancorp（納斯達克：TSBK）公佈截至2026年6月30日止第三財季業績。期內淨收入772萬美元，每股攤薄盈利0.98美元，較去年同期的710萬美元（0.90美元）增長9%，亦較上一季度的713萬美元（0.90美元）增長8%。首三季淨收入累計2,307萬美元，每股2.92美元，較去年同期增加11%。
📈 淨息差（NIM）擴闊至3.85%，高於去年同期的3.80%及上一季度的3.81%。季度平均資產回報率（ROA）達1.51%，平均權益回報率（ROE）為11.42%，效率比率改善至53.40%。
資產負債表方面，總資產增至20.6億美元，較上一季度增加1%，按年升5%。貸款淨額15.0億美元，按季增長3%，按年增4%。存款總額17.6億美元，按季升1%，按年升6%。期內公司回購7萬股普通股，涉資283萬美元。
董事會宣佈季度現金股息增加3%至每股0.30美元，將於2026年8月24日派發，為連續第55個季度派息，反映對長期前景的信心。
信貸質素穩定，不良資產佔總資產比率降至0.43%（上一季度為0.47%），貸款信貸損失準備維持在1.27%。管理層指貸款組合增長健康，信貸風險管理審慎。
資本狀況維持充裕，總風險資本比率20.86%，一級槓桿資本比率12.82%，有形普通股權益對有形資產比率12.61%。
管理層展望：CEO Dean Brydon 表示季度表現強勁，貸款增長可觀，盈利相關比率按季及按年均見改善；對業務模式有信心，隨財政年尾臨近，公司處於有利位置。CFO Marci Basich 指出淨息差在利率環境下繼續擴大，存款定價策略有效，未來將優先維持穩定的資金組合及利潤率。整體而言，業績未受重大非經常性項目影響，營運表現相對「乾淨」。
展開英文正文
EX-99.1
2
timb8k72826exh991.htm
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 $700,000 increase in savings account balances.
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 6
Deposit Breakdown
($ 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 $32.37 million at
June 30, 2025.
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 7
Non-Accrual Loans
($ 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
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 8
losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring
us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short
and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas;
secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State
Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank
subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of
which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or
regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits;
our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks
associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security
breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior
management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies;
changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and
composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and
practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board ("FASB"), including additional guidance and interpretation on accounting issues and details of the implementation of new
accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other
economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company's other reports filed with or furnished
to the Securities and Exchange Commission.
Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon
management's beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or
otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could
cause our actual results for fiscal 2026 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's consolidated financial condition and results of
operations as well as its stock price performance.
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 9
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
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 10
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
Timberland Fiscal Q3 2026 Earnings
July 28, 2026
Page 11
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
$