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Regulatory Matters
 12 Months Ended
Sep. 30, 2017
Regulatory Capital Requirements [Abstract]  
Regulatory Matters
Regulatory Matters

The Bank, as a state-chartered, federally insured savings bank, is subject to the capital requirements established by the FDIC. Under the FDIC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements.

The minimum requirements are a common equity Tier 1 ("CET1") capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, a total capital ratio of 8.0% and a leverage ratio of 4.0%. In addition to the minimum regulatory capital ratios, the Bank must maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year to an amount equal to 2.5% of risk-weighted assets when fully implemented in January 2019. At September 30, 2017, the conservation buffer was 1.25%.

At September 30, 2017 and 2016 the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well capitalized" at September 30, 2017 and 2016 under the regulations of the FDIC. The following tables compare the Bank’s actual capital amounts at September 30, 2017 and 2016 to its minimum regulatory capital requirements and "Well Capitalized" regulatory capital at those dates (dollars in thousands):
September 30, 2017
Actual
 
Regulatory Minimum To Be "Adequately Capitalized"
 
Regulatory MinimumTo Be "Well Capitalized" Under Prompt Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Leverage Capital Ratio:
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital
$
104,102

 
11.2
%
 
$
37,116

 
4.0
%
 
$
46,395

 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Risk-based Capital Ratios:
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital
104,102

 
15.9

 
29,547

 
4.5

 
42,678

 
6.5

 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital
104,102

 
15.9

 
39,395

 
6.0

 
52,527

 
8.0

 
 
 
 
 
 
 
 
 
 
 
 
Total capital
112,329

 
17.1

 
52,527

 
8.0

 
65,659

 
10.0

September 30, 2016
Actual
 
Regulatory Minimum To Be "Adequately Capitalized"
 
Regulatory Minimum To Be "Well Capitalized" Under Prompt Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
Leverage Capital Ratio:
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital
$
90,266

 
10.3
%
 
$
35,183

 
4.0
%
 
$
43,979

 
5.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Risk-based Capital Ratios:
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital
90,266

 
14.3

 
28,318

 
4.5

 
40,904

 
6.5

 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital
90,266

 
14.3

 
37,758

 
6.0

 
50,344

 
8.0

 
 
 
 
 
 
 
 
 
 
 
 
Total capital
98,158

 
15.6

 
50,344

 
8.0

 
62,930

 
10.0



Timberland Bancorp is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For a bank holding company with less than $1.0 billion in assets, the capital guidelines apply on a bank only basis, and the Federal Reserve expects the holding company's subsidiary bank to be well capitalized under the prompt corrective action regulations. If Timberland Bancorp were subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets at September 30, 2017, Timberland Bancorp would have exceeded all regulatory requirements.

The following table presents the regulatory capital ratios for Timberland Bancorp at September 30, 2017 and 2016 (dollars in thousands):
 
2017
 
2016
 
Actual
 
Actual
 
Amount
 
Ratio
 
Amount
 
Ratio
Leverage Capital Ratio:
 
 
 
 
 
 
 
Tier 1 capital
$
107,145

 
11.5
%
 
$
92,860

 
10.5
%
 
 
 
 
 
 
 
 
Risk-based Capital Ratios:
 
 
 
 
 
 
 
Common equity Tier 1 capital
107,145

 
16.3

 
92,860

 
14.8

 
 
 
 
 
 
 
 
Tier 1 capital
107,145

 
16.3

 
92,860

 
14.8

 
 
 
 
 
 
 
 
Total capital
115,376

 
17.6

 
100,755

 
16.0