Contact: Dean J. Brydon, CEO
Jonathan A. Fischer,
President & COO
Marci A. Basich, CFO
(360) 533-4747
(360) 533-4747
www.timberlandbank.com
Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million
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•
|
Quarterly EPS Increases 22% to $0.90 from $0.74 One Year Ago
|
|
•
|
Quarterly Net Interest Margin Increases to 3.80%
|
|
•
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Quarterly Return on Average Assets Increases to 1.47%
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|
•
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Quarterly Return on Average Equity Increases to 11.23%
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•
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Announces New Stock Repurchase Program
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HOQUIAM, WA – July 22, 2025 – Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”),
today reported net income of $7.10 million, or $0.90 per diluted common share for the quarter ended June 30, 2025. This compares to net income of $6.76 million, or $0.85 per diluted common share for the preceding quarter and $5.92 million, or $0.74
per diluted common share, for the comparable quarter one year ago.
For the first nine months of fiscal 2025, Timberland’s net income increased 16% to $20.72 million, or $2.60 per diluted common share, from $17.93 million, or
$2.21 per diluted common share for the first nine months of fiscal 2024.
“Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth,” stated Dean
Brydon, Chief Executive Officer. “Net income and earnings per share increased 20% and 22%, respectively, compared to the third fiscal quarter a year ago. Compared to the prior quarter, net income and earnings per share increased 5% and 6%,
respectively, primarily due to higher net interest income and non-interest income. We also posted year-over-year improvements across all key profitability metrics, and our tangible book value per share (non-GAAP) continued its upward trend. Looking
ahead we believe our strong capital position, solid earnings, and continued focus on disciplined growth position us well to navigate the current environment and drive
long-term shareholder value.”
“As a result of Timberland’s strong earnings and sound capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.26
per share, payable on August 22, 2025, to shareholders of record on August 8, 2025,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 51st consecutive quarter Timberland will have paid a cash dividend. In
addition, the Company also announced the adoption of a new stock repurchase program. We believe Timberland stock presents a strong investment opportunity, and buying back shares is a strategy to enhance long-term value for shareholders. Under the
new repurchase program, the Company may repurchase up to 5% of the outstanding shares, or 393,842 shares. The new stock repurchase program replaces our existing stock repurchase program, which had 31,762 shares available to be repurchased.”
“Our net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%,” said Marci Basich, Chief Financial Officer.
“This represents a one basis point increase from the prior quarter and a 27 basis point improvement compared to the same period last year, reflecting our disciplined asset-liability management and favorable shift in earning asset yields. Total
deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit. This growth highlights the continued strength of our customer relationships and the effectiveness of our deposit-gathering
strategies. We remain focused on maintaining a well-balanced funding mix while sustaining stable margin performance going forward.”
“The loan portfolio continues to expand at a steady pace, with growth of 2% over the prior quarter and 3% year-over year,” Brydon continued. “Credit quality
remains an area we are monitoring closely, as we are seeing a mix of stable-to-positive trends alongside a few metrics that have shown modest deterioration. Net charge-offs continue to be minimal, with net recoveries of $1,000 during the third
quarter. Our non-performing assets (“NPA”) ratio increased to 0.21% at June 30, 2025, compared to 0.13% at the end of the prior quarter. However, it remains a slight improvement from the 0.22% reported a year ago. Although non-accrual loans
increased this quarter primarily due to a single matured loan, total non-accrual balances remain modestly below year-ago levels.”
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 2
Earnings and Balance Sheet Highlights (at or for the
periods ended June 30, 2025, compared to June 30, 2024, or March 31, 2025):
Earnings Highlights:
|
•
|
Earnings per diluted common share (“EPS”) increased 6% to $0.90 for the current quarter from $0.85 for the preceding quarter and increased 22% from
$0.74 for the comparable quarter one year ago; EPS increased 18% to $2.60 for the first nine months of fiscal 2025 from $2.21 for the first nine months of fiscal 2024;
|
|
•
|
Net income increased 5% to $7.10 million for the current quarter from $6.76 million for the preceding quarter and increased 20% from $5.92 million
for the comparable quarter one year ago; Net income increased 16% to $20.72 million for the first nine months of fiscal 2025 from $17.93 million for the first nine months of fiscal 2024;
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|
•
|
Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.23% and 1.47%, respectively;
|
|
•
|
Net interest margin (“NIM”) for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one
year ago; and
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|
•
|
The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year
ago.
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Balance Sheet Highlights:
|
•
|
Total assets increased 1% from the prior quarter and increased 3% year-over-year;
|
|
•
|
Net loans receivable increased 2% from the prior quarter and increased 3% year-over-year;
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|
•
|
Total deposits increased 1% from the prior quarter and increased 3% year-over-year;
|
|
•
|
Total shareholders’ equity increased 2% from the prior quarter and increased 6% year-over-year; 34,236 shares of common stock were repurchased
during the current quarter for $1.02 million;
|
|
•
|
Non-performing assets to total assets ratio was 0.21% at June 30, 2025 compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024;
|
|
•
|
Book and tangible book (non-GAAP) values per common share increased to $32.58 and $30.62 respectively, at June 30, 2025; and
|
|
•
|
Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2025 with only $20 million in borrowings and additional secured
borrowing line capacity of $674 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 3% to $20.50 million
from $19.90 million for the preceding quarter and increased 9% from $18.77 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increases in total interest and
dividend income and non-interest income, which were partially offset by an increase in total funding costs. Operating revenue increased 8% to $60.06 million for the first nine months of fiscal 2025 from $55.82 million for the first nine months of
fiscal 2024, primarily due to an increase in total interest and dividend income, which was partially offset by an increase in funding costs.
Net interest income increased $409,000, or 2%, to $17.62 million for the current quarter from $17.21 million for the preceding quarter and increased $1.64
million, or 10%, from $15.98 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $20.80 million increase in the average balance of total interest-earning
assets and, to a lesser extent, a two-basis point increase in the weighted average yield on total interest-earning assets to 5.50% from 5.48%. These increases were partially offset by a $20.21 million increase in the average balance of
interest-bearing liabilities and a two-basis point increase in the weighted average cost of interest-bearing liabilities. Timberland’s NIM for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable
quarter one year ago. The NIM for the current quarter 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. The NIM for the preceding quarter was increased by approximately five basis points due to the collection of $201,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $17,000 of the fair
value discount on acquired loans. The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $124,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of
$9,000 of the fair value discount on acquired loans. Net interest income for the first nine months of fiscal 2025 increased $4.19
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 3
million, or 9%, to $51.81 million from $47.62 million for the first nine months of fiscal 2024, primarily due to a 32 basis point increase in the weighted
average yield of total interest-earning assets to 5.49% from 5.17% and a $49.96 million increase in the average balance of total interest-earning assets. These increases to net interest income were partially offset by a seven basis point increase in
the weighted average cost of interest-bearing liabilities to 2.53% from 2.46% and a $58.86 million increase in the average balance of total interest-bearing liabilities. Timberland’s NIM expanded to 3.74% for the first nine months of fiscal 2025 from
3.53% for the first nine months of fiscal 2024.
A $351,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2025. The provision was primarily due to loan portfolio growth
and changes in the composition of the loan portfolio. This compares to a $237,000 provision for credit losses on loans for the preceding quarter and a $264,000 provision for credit losses on loans for the comparable quarter one year ago. In
addition, a $93,000 provision for credit losses on unfunded commitments and a $4,000 recapture of credit losses on investment securities were recorded for the current quarter.
Non-interest income increased $188,000, or 7%, to $2.88 million for the current quarter from $2.69 million for the preceding quarter and increased $84,000, or
3%, from $2.79 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to an increase in ATM and debit card interchange transaction fees and smaller changes in several
other categories. Fiscal year-to-date non-interest income increased by 1%, to $8.26 million from $8.20 million for the first nine months of fiscal 2024.
Total operating (non-interest) expenses for the current quarter decreased $27,000 (less than 1%), to $11.17 million from $11.19 million for the preceding
quarter and increased $98,000, or 1%, from $11.07 million for the comparable quarter one year ago. The decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salaries and employee benefits, premises and
equipment, technology and communications, professional fees, and smaller decreases in several other expense categories. These decreases were partially offset by increases in state and local taxes and smaller increases in several other expense
categories. The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 2% to $33.43 million from $32.68
million for the first nine months of fiscal 2024. The efficiency ratio for the first nine months of fiscal 2025 improved to 55.65% from 58.55% for the first nine months of fiscal 2024.
The provision for income taxes for the current quarter increased $85,000, or 5%, to $1.79 million from $1.71 million for the preceding quarter, primarily due
to higher taxable income. Timberland’s effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to 20.2% for the quarter ended March 31, 2025 and 20.6% for the quarter ended June 30, 2024. Timberland’s effective income tax
rate was 20.1% for the first nine months of fiscal 2025 compared to 20.2% for the first nine months of fiscal 2024.
Balance Sheet Management
Total assets increased $24.46 million, or 1%, during the quarter to $1.96 billion at June 30, 2025 from $1.93 billion at March 31, 2025 and increased $56.56
million, or 3%, from $1.90 billion one year ago. The increase during the current quarter was primarily due to a $21.42 million increase in net loans receivable and smaller increases in several other categories.
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 17.0% of total liabilities at June 30, 2025, compared to 16.9% at March 31, 2025, and 14.7% one year ago. Timberland also had secured borrowing line
capacity of $674 million available through the FHLB and the Federal Reserve at June 30, 2025. With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2025. (Note: This calculation
excludes public deposits that are fully collateralized.)
Loans
Net loans receivable increased $21.42 million, or 2%, during the quarter to $1.44 billion at June 30, 2025 from $1.42 billion at March 31, 2025. This
increase was primarily due to a $21.83 million increase in multi-family loans, a $5.67 million increase in commercial real estate loans, a $3.89 million increase in land loans and smaller increases in several other loan categories. These increases
were partially offset by a $5.50 million decrease in construction loans, a $4.80 million decrease in commercial
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 4
business loans, and smaller decreases in several other loan categories. The increase in multi-family loans was, in large part, due to several multi-family
construction projects being completed and converting to permanent financing during the quarter.
Loan Portfolio
($ in thousands)
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
|
Mortgage loans:
|
||||||||||||||||||||||||
|
One- to four-family (a)
|
$
|
317,574
|
21
|
%
|
$
|
315,421
|
21
|
%
|
$
|
288,611
|
19
|
%
|
||||||||||||
|
Multi-family
|
200,418
|
13
|
178,590
|
12
|
177,950
|
12
|
||||||||||||||||||
|
Commercial
|
607,924
|
40
|
602,248
|
40
|
597,865
|
40
|
||||||||||||||||||
|
Construction - custom and
|
||||||||||||||||||||||||
|
owner/builder
|
128,900
|
8
|
114,401
|
7
|
128,222
|
9
|
||||||||||||||||||
|
Construction - speculative
one-to four-family
|
9,595
|
1
|
9,791
|
1
|
11,441
|
1
|
||||||||||||||||||
|
Construction - commercial
|
15,992
|
1
|
22,352
|
1
|
32,130
|
2
|
||||||||||||||||||
|
Construction - multi-family
|
32,731
|
2
|
46,602
|
3
|
35,631
|
2
|
||||||||||||||||||
|
Construction - land
|
||||||||||||||||||||||||
|
development
|
15,461
|
1
|
15,032
|
1
|
19,104
|
1
|
||||||||||||||||||
|
Land
|
36,193
|
2
|
32,301
|
2
|
32,384
|
2
|
||||||||||||||||||
|
Total mortgage loans
|
1,364,788
|
89
|
1,336,738
|
88
|
1,323,338
|
88
|
||||||||||||||||||
|
Consumer loans:
|
||||||||||||||||||||||||
|
Home equity and second
|
||||||||||||||||||||||||
|
mortgage
|
47,511
|
3
|
47,458
|
3
|
43,679
|
3
|
||||||||||||||||||
|
Other
|
2,176
|
--
|
2,375
|
--
|
3,121
|
--
|
||||||||||||||||||
|
Total consumer loans
|
49,687
|
3
|
49,833
|
3
|
46,800
|
3
|
||||||||||||||||||
|
Commercial loans:
|
||||||||||||||||||||||||
|
Commercial business loans
|
126,497
|
8
|
131,243
|
9
|
136,213
|
9
|
||||||||||||||||||
|
SBA PPP loans
|
101
|
--
|
156
|
--
|
314
|
--
|
||||||||||||||||||
|
Total commercial loans
|
126,598
|
8
|
131,399
|
9
|
136,527
|
9
|
||||||||||||||||||
|
Total loans
|
1,541,073
|
100
|
%
|
1,517,970
|
100
|
%
|
1,506,665
|
100
|
%
|
|||||||||||||||
|
Less:
|
||||||||||||||||||||||||
|
Undisbursed portion of
|
||||||||||||||||||||||||
|
construction loans in
|
||||||||||||||||||||||||
|
process
|
(76,272
|
)
|
(75,042
|
)
|
(87,196
|
)
|
||||||||||||||||||
|
Deferred loan origination
|
||||||||||||||||||||||||
|
fees
|
(5,427
|
)
|
(5,329
|
)
|
(5,404
|
)
|
||||||||||||||||||
|
Allowance for credit losses
|
(17,878
|
)
|
(17,525
|
)
|
(17,046
|
)
|
||||||||||||||||||
|
Total loans receivable, net
|
$
|
1,441,496
|
$
|
1,420,074
|
$
|
1,397,019
|
||||||||||||||||||
_______________________
|
(a)
|
Does not include one- to four-family loans held for sale totaling $1,763, $1,151, and $1,795 at June 30, 2025, March 31, 2025, and June 30, 2024,
respectively.
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Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 5
The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 30, 2025:
CRE Loan Portfolio Breakdown by Collateral
($ in thousands)
|
Collateral Type
|
Balance
|
Percent of
CRE
Portfolio
|
Percent of
Total Loan Portfolio
|
Average Balance Per Loan
|
Non-
Accrual
|
|||||||||||||||
|
Industrial warehouses
|
$
|
128,822
|
21
|
%
|
8
|
%
|
$
|
1,301
|
$
|
161
|
||||||||||
|
Medical/dental offices
|
81,238
|
13
|
5
|
1,269
|
--
|
|||||||||||||||
|
Office buildings
|
68,916
|
11
|
5
|
801
|
--
|
|||||||||||||||
|
Other retail buildings
|
54,472
|
9
|
3
|
567
|
--
|
|||||||||||||||
|
Mini-storage
|
38,483
|
6
|
2
|
1,539
|
--
|
|||||||||||||||
|
Hotel/motel
|
31,656
|
5
|
2
|
2,638
|
--
|
|||||||||||||||
|
Restaurants
|
27,485
|
5
|
2
|
585
|
--
|
|||||||||||||||
|
Gas stations/conv. stores
|
24,359
|
4
|
2
|
1,015
|
--
|
|||||||||||||||
|
Churches
|
14,690
|
3
|
1
|
918
|
--
|
|||||||||||||||
|
Nursing homes
|
13,532
|
2
|
1
|
2,255
|
--
|
|||||||||||||||
|
Shopping centers
|
10,507
|
2
|
1
|
1,751
|
--
|
|||||||||||||||
|
Mobile home parks
|
8,882
|
2
|
1
|
444
|
--
|
|||||||||||||||
|
Additional CRE
|
104,882
|
17
|
7
|
760
|
--
|
|||||||||||||||
|
Total CRE
|
$
|
607,924
|
100
|
%
|
40
|
%
|
$
|
951
|
$
|
161
|
||||||||||
Timberland originated $81.99 million in loans during the quarter ended June 30, 2025, compared to $56.76 million for the preceding quarter and $74.32 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 $5.11 million were sold compared to $5.17 million for the preceding quarter and $3.05 million for the comparable quarter one year ago.
Investment Securities
Timberland’s investment securities and CDs held for investment increased $2.04 million, or 1%, to $237.36 million at June 30, 2025, from $235.33 million at
March 31, 2025. The increase was primarily due to the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities. Partially offsetting these increases was the sale of $13.49 million
available for sale investment securities, which resulted in a net gain of $24,000.
Deposits
Total deposits increased $18.65 million, or 1%, during the quarter to $1.67 billion at June 30, 2025, from $1.65 billion at March 31, 2025. The quarter’s
increase consisted of a $16.01 million increase in certificates of deposit account balances, a $4.66 million increase in money market account balances, and a $1.60 million increase in NOW checking account balances. These decreases were partially
offset by a $2.03 million decrease in savings account balances and a $1.59 million decrease in non-interest-bearing checking account balances.
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 6
|
Deposit Breakdown
($ in thousands)
|
||||||||||||||||||||||||
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
|
Non-interest-bearing demand
|
$
|
406,222
|
24
|
%
|
$
|
407,811
|
25
|
%
|
$
|
407,125
|
25
|
%
|
||||||||||||
|
NOW checking
|
334,922
|
20
|
333,325
|
20
|
324,795
|
20
|
||||||||||||||||||
|
Savings
|
205,829
|
12
|
207,857
|
13
|
207,921
|
13
|
||||||||||||||||||
|
Money market
|
305,207
|
18
|
300,552
|
18
|
327,162
|
20
|
||||||||||||||||||
|
Certificates of deposit under $250
|
244,063
|
15
|
227,137
|
14
|
195,022
|
12
|
||||||||||||||||||
|
Certificates of deposit $250 and over
|
126,254
|
8
|
124,009
|
7
|
117,788
|
7
|
||||||||||||||||||
|
Certificates of deposit – brokered
|
46,980
|
3
|
50,139
|
3
|
48,731
|
3
|
||||||||||||||||||
|
Total deposits
|
$
|
1,669,477
|
100
|
%
|
$
|
1,650,830
|
100
|
%
|
$
|
1,628,544
|
100
|
%
|
||||||||||||
Borrowings
Total borrowings were $20.00 million at both June 30, 2025 and March 31, 2025. At June 30, 2025, the weighted average rate on the borrowings was 3.97%.
Shareholders’ Equity and Capital Ratios
Total shareholders’ equity increased $4.14 million, or 2%, to $256.66 million at June 30, 2025, from $252.52 million at March 31, 2025, and increased $15.44
million, or 6%, from $241.22 million at June 30, 2024. The increase in shareholders’ equity during the quarter was primarily due to net income of $7.10 million, which was partially offset by the payment of $2.05 million in dividends to shareholders
and the repurchase of 34,236 shares of common stock for $1.02 million (an average price of $29.74 per share).
Timberland remains well capitalized with a total risk-based capital ratio of 20.54%, a Tier 1 leverage capital ratio of 12.63%, a tangible common equity to
tangible assets ratio (non-GAAP) of 12.42%, and a shareholders’ equity to total assets ratio of 13.11% at June 30, 2025. Timberland’s held to maturity investment securities were $141.57 million at June 30, 2025, with a net unrealized loss of $5.99
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 12.90%, compared to 13.11%, as reported.
New Stock Repurchase Program
The Company announced a new stock repurchase program today. Under the repurchase program, the Company may repurchase up to 5% of the Company’s outstanding
shares, or 393,842 shares. The new stock repurchase program replaces the existing stock repurchase program which had 31,762 shares available to be repurchased.
The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that
may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission (“SEC”). Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interest of both the Company and its
shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the
limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements. The repurchase program may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing the shares,
the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase
any particular number of shares.
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 7 Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.21% at June 30, 2025, compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024. Net
recoveries totaled $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net charge-offs of $36,000 for the comparable quarter one year ago. During the current quarter, provisions for credit
losses of $351,000 on loans and $93,000 unfunded commitments were made, which was partially offset by a $4,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable
was 1.23% at June 30, 2025, compared to 1.22% at March 31, 2025 and 1.21% one year ago.
Total delinquent loans (past due 30 days or more) and non-accrual loans increased $2.86 million or 86%, to $6.18 million at June 30, 2025, from $3.32 million
at March 31, 2025 and increased $1.95 million, or 46%, from $4.23 million at June 30, 2024. Non-accrual loans increased $1.52 million, or 65%, to $3.84 million at June 30, 2025 from $2.33 million at March 31, 2025 and decreased $277,000, or 7%, from
$4.12 million at March 31, 2024. The quarterly increase in non-accrual loans was primarily due to one loan (secured by several single family homes) being past maturity. The loan is well collateralized (based on recent appraisals) and the Bank is
working with the borrower to renew the loan. Loans graded “Substandard” totaled $32.37 million (or 2% of total loans receivable) at June 30, 2025.
Non-Accrual Loans
($ in thousands)
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
||||||||||||||||||||||
|
Amount
|
Quantity
|
Amount
|
Quantity
|
Amount
|
Quantity
|
|||||||||||||||||||
|
Mortgage loans:
|
||||||||||||||||||||||||
|
One- to four-family
|
$
|
1,781
|
1
|
$
|
47
|
1
|
$
|
135
|
2
|
|||||||||||||||
|
Commercial
|
161
|
2
|
324
|
3
|
1,310
|
4
|
||||||||||||||||||
|
Construction – custom and
|
||||||||||||||||||||||||
|
owner/builder
|
--
|
--
|
--
|
--
|
152
|
1
|
||||||||||||||||||
|
Total mortgage loans
|
1,942
|
3
|
371
|
4
|
1,597
|
7
|
||||||||||||||||||
|
Consumer loans:
|
||||||||||||||||||||||||
|
Home equity and second
|
||||||||||||||||||||||||
|
mortgage
|
575
|
3
|
575
|
3
|
615
|
3
|
||||||||||||||||||
|
Other
|
--
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||
|
Total consumer loans
|
575
|
3
|
575
|
3
|
615
|
3
|
||||||||||||||||||
|
Commercial business loans
|
1,326
|
9
|
1,381
|
11
|
1,908
|
8
|
||||||||||||||||||
|
Total loans
|
$
|
3,843
|
15
|
$
|
2,327
|
18
|
$
|
4,120
|
18
|
|||||||||||||||
Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2025:
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
||||||||||||||||||||||
|
Amount
|
Quantity
|
Amount
|
Quantity
|
Amount
|
Quantity
|
|||||||||||||||||||
|
Other real estate owned:
|
||||||||||||||||||||||||
|
Commercial
|
$
|
221
|
1
|
$
|
221
|
1
|
$
|
--
|
--
|
|||||||||||||||
|
Land
|
--
|
1
|
--
|
1
|
--
|
1
|
||||||||||||||||||
|
Total mortgage loans
|
$
|
221
|
2
|
$
|
221
|
2
|
$
|
--
|
1
|
|||||||||||||||
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 23 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,
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 8 objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often
include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,”
“would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to
economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels,
labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System
("Federal Reserve") in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and
non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either
nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the
demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations
of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility
that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or
affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other
banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory
policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our
assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the
implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the
third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business
strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules,
or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market
liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board
("FASB"), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and
other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services;
and other risks described elsewhere in this press release and in the Company's other reports filed with or furnished to the Securities and Exchange Commission.
Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management's beliefs and
assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated
events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025
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 2025 Earnings
July 22, 2025
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,
|
|||||||||
|
2025
|
2025
|
2024
|
||||||||||
|
Interest and dividend income
|
||||||||||||
|
Loans receivable
|
$
|
21,411
|
$
|
20,896
|
$
|
19,537
|
||||||
|
Investment securities
|
2,064
|
2,003
|
2,335
|
|||||||||
|
Dividends from mutual funds, FHLB stock and other investments
|
83
|
82
|
94
|
|||||||||
|
Interest bearing deposits in banks
|
1,986
|
1,884
|
2,173
|
|||||||||
|
Total interest and dividend income
|
25,544
|
24,865
|
24,139
|
|||||||||
|
Interest expense
|
||||||||||||
|
Deposits
|
7,721
|
7,454
|
7,938
|
|||||||||
|
Borrowings
|
201
|
198
|
220
|
|||||||||
|
Total interest expense
|
7,922
|
7,652
|
8,158
|
|||||||||
|
Net interest income
|
17,622
|
17,213
|
15,981
|
|||||||||
|
Provision for credit losses – loans
|
351
|
237
|
264
|
|||||||||
|
Recapture of credit losses – investment securities
|
(4
|
)
|
(5
|
)
|
(12
|
)
|
||||||
|
Prov. for (recapture of ) credit losses - unfunded commitments
|
93
|
14
|
(8
|
)
|
||||||||
|
Net int. income after provision for (recapture of) credit losses
|
17,182
|
16,967
|
15,737
|
|||||||||
|
Non-interest income
|
||||||||||||
|
Service charges on deposits
|
966
|
959
|
1,014
|
|||||||||
|
ATM and debit card interchange transaction fees
|
1,262
|
1,176
|
1,297
|
|||||||||
|
Gain on sales of investment securities, net
|
24
|
--
|
--
|
|||||||||
|
Gain on sales of loans, net
|
138
|
122
|
68
|
|||||||||
|
Bank owned life insurance (“BOLI”) net earnings
|
171
|
165
|
158
|
|||||||||
|
Other
|
314
|
265
|
254
|
|||||||||
|
Total non-interest income, net
|
2,875
|
2,687
|
2,791
|
|||||||||
|
Non-interest expense
|
||||||||||||
|
Salaries and employee benefits
|
5,825
|
5,977
|
5,928
|
|||||||||
|
Premises and equipment
|
973
|
1,075
|
1,011
|
|||||||||
|
Gain on sale of premises and equipment, net
|
--
|
--
|
(3
|
)
|
||||||||
|
Advertising
|
182
|
189
|
211
|
|||||||||
|
OREO and other repossessed assets, net
|
8
|
9
|
--
|
|||||||||
|
ATM and debit card processing
|
658
|
521
|
580
|
|||||||||
|
Postage and courier
|
137
|
142
|
130
|
|||||||||
|
State and local taxes
|
570
|
335
|
335
|
|||||||||
|
Professional fees
|
341
|
431
|
335
|
|||||||||
|
FDIC insurance
|
211
|
219
|
208
|
|||||||||
|
Loan administration and foreclosure
|
99
|
155
|
156
|
|||||||||
|
Technology and communications
|
993
|
1,121
|
1,086
|
|||||||||
|
Deposit operations
|
345
|
319
|
450
|
|||||||||
|
Amortization of core deposit intangible (“CDI”)
|
45
|
45
|
56
|
|||||||||
|
Other, net
|
780
|
656
|
586
|
|||||||||
|
Total non-interest expense, net
|
11,167
|
11,194
|
11,069
|
|||||||||
|
Income before income taxes
|
8,890
|
8,460
|
7,459
|
|||||||||
|
Provision for income taxes
|
1,790
|
1,705
|
1,535
|
|||||||||
|
Net income
|
$
|
7,100
|
$
|
6,755
|
$
|
5,924
|
||||||
|
Net income per common share:
|
||||||||||||
|
Basic
|
$
|
0.90
|
$
|
0.85
|
$
|
0.74
|
||||||
|
Diluted
|
0.90
|
0.85
|
0.74
|
|||||||||
|
Weighted average common shares outstanding:
|
||||||||||||
|
Basic
|
7,893,308
|
7,937,063
|
8,004,552
|
|||||||||
|
Diluted
|
7,921,762
|
7,968,632
|
8,039,345
|
|||||||||
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
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,
|
|||||||||
|
2025
|
2024
|
||||||||||
|
Interest and dividend income
|
|||||||||||
|
Loans receivable
|
$
|
63,339
|
$
|
56,841
|
|||||||
|
Investment securities
|
6,205
|
6,892
|
|||||||||
|
Dividends from mutual funds, FHLB stock and other investments
|
252
|
266
|
|||||||||
|
Interest bearing deposits in banks
|
5,870
|
5,791
|
|||||||||
|
Total interest and dividend income
|
75,666
|
69,790
|
|||||||||
|
Interest expense
|
|||||||||||
|
Deposits
|
23,259
|
21,383
|
|||||||||
|
Borrowings
|
602
|
787
|
|||||||||
|
Total interest expense
|
23,861
|
22,170
|
|||||||||
|
Net interest income
|
51,805
|
47,620
|
|||||||||
|
Provision for credit losses – loans
|
640
|
810
|
|||||||||
|
Recapture of credit losses – investment securities
|
(14
|
)
|
(20
|
)
|
|||||||
|
Prov. for (recapture of) credit losses - unfunded commitments
|
87
|
(130
|
)
|
||||||||
|
Net int. income after provision for (recapture of) credit losses
|
51,092
|
46,960
|
|||||||||
|
Non-interest income
|
|||||||||||
|
Service charges on deposits
|
2,924
|
3,024
|
|||||||||
|
ATM and debit card interchange transaction fees
|
3,706
|
3,773
|
|||||||||
|
Gain on sales of investment securities, net
|
24
|
--
|
|||||||||
|
Gain on sales of loans, net
|
303
|
188
|
|||||||||
|
Bank owned life insurance (“BOLI”) net earnings
|
503
|
470
|
|||||||||
|
Other
|
799
|
749
|
|||||||||
|
Total non-interest income, net
|
8,259
|
8,204
|
|||||||||
|
Non-interest expense
|
|||||||||||
|
Salaries and employee benefits
|
17,893
|
17,863
|
|||||||||
|
Premises and equipment
|
2,998
|
3,065
|
|||||||||
|
Gain on sale of premises and equipment, net
|
--
|
(3
|
)
|
||||||||
|
Advertising
|
552
|
556
|
|||||||||
|
OREO and other repossessed assets, net
|
17
|
1
|
|||||||||
|
ATM and debit card processing
|
1,700
|
1,796
|
|||||||||
|
Postage and courier
|
401
|
401
|
|||||||||
|
State and local taxes
|
1,251
|
979
|
|||||||||
|
Professional fees
|
1,118
|
908
|
|||||||||
|
FDIC insurance
|
640
|
624
|
|||||||||
|
Loan administration and foreclosure
|
383
|
395
|
|||||||||
|
Technology and communications
|
3,253
|
3,101
|
|||||||||
|
Deposit operations
|
997
|
1,094
|
|||||||||
|
Amortization of core deposit intangible (“CDI”)
|
135
|
169
|
|||||||||
|
Other, net
|
2,090
|
1,735
|
|||||||||
|
Total non-interest expense, net
|
33,428
|
32,684
|
|||||||||
|
Income before income taxes
|
25,923
|
22,480
|
|||||||||
|
Provision for income taxes
|
5,208
|
4,552
|
|||||||||
|
Net income
|
$
|
20,715
|
$
|
17,928
|
|||||||
|
Net income per common share:
|
|||||||||||
|
Basic
|
$
|
2.61
|
$
|
2.22
|
|||||||
|
Diluted
|
2.60
|
2.21
|
|||||||||
|
Weighted average common shares outstanding:
|
|||||||||||
|
Basic
|
7,929,626
|
8,067,068
|
|||||||||
|
Diluted
|
7,963,412
|
8,109,043
|
|||||||||
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 11 |
TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
|
($ in thousands, except per share amounts) (unaudited)
|
June 30,
|
March 31,
|
June 30,
|
|||||||||
|
2025
|
2025
|
2024
|
||||||||||
|
Assets
|
||||||||||||
|
Cash and due from financial institutions
|
$
|
32,532
|
$
|
26,010
|
$
|
25,566
|
||||||
|
Interest-bearing deposits in banks
|
161,095
|
165,201
|
133,347
|
|||||||||
|
Total cash and cash equivalents
|
193,627
|
191,211
|
158,913
|
|||||||||
|
Certificates of deposit (“CDs”) held for investment, at cost
|
8,462
|
8,711
|
10,458
|
|||||||||
|
Investment securities:
|
||||||||||||
|
Held to maturity, at amortized cost (net of ACL – investment securities)
|
141,570
|
140,954
|
176,787
|
|||||||||
|
Available for sale, at fair value
|
86,475
|
84,807
|
74,515
|
|||||||||
|
Investments in equity securities, at fair value
|
855
|
853
|
836
|
|||||||||
|
FHLB stock
|
2,045
|
2,045
|
2,037
|
|||||||||
|
Other investments, at cost
|
3,000
|
3,000
|
3,000
|
|||||||||
|
Loans held for sale
|
1,763
|
1,151
|
1,795
|
|||||||||
|
Loans receivable
|
1,459,374
|
1,437,599
|
1,414,065
|
|||||||||
|
Less: ACL – loans
|
(17,878
|
)
|
(17,525
|
)
|
(17,046
|
)
|
||||||
|
Net loans receivable
|
1,441,496
|
1,420,074
|
1,397,019
|
|||||||||
|
Premises and equipment, net
|
21,490
|
21,436
|
21,558
|
|||||||||
|
OREO and other repossessed assets, net
|
221
|
221
|
--
|
|||||||||
|
BOLI
|
24,113
|
23,942
|
23,436
|
|||||||||
|
Accrued interest receivable
|
7,174
|
7,127
|
7,045
|
|||||||||
|
Goodwill
|
15,131
|
15,131
|
15,131
|
|||||||||
|
CDI
|
316
|
361
|
508
|
|||||||||
|
Loan servicing rights, net
|
911
|
1,051
|
1,526
|
|||||||||
|
Operating lease right-of-use assets
|
1,248
|
1,324
|
1,550
|
|||||||||
|
Other assets
|
7,295
|
9,331
|
4,515
|
|||||||||
|
Total assets
|
$
|
1,957,192
|
$
|
1,932,730
|
$
|
1,900,629
|
||||||
|
Liabilities and shareholders’ equity
|
||||||||||||
|
Deposits: Non-interest-bearing demand
|
$
|
406,222
|
$
|
407,811
|
$
|
407,125
|
||||||
|
Deposits: Interest-bearing
|
1,263,255
|
1,243,019
|
1,221,419
|
|||||||||
|
Total deposits
|
1,669,477
|
1,650,830
|
1,628,544
|
|||||||||
|
Operating lease liabilities
|
1,350
|
1,426
|
1,649
|
|||||||||
|
FHLB borrowings
|
20,000
|
20,000
|
20,000
|
|||||||||
|
Other liabilities and accrued expenses
|
9,701
|
7,950
|
9,213
|
|||||||||
|
Total liabilities
|
1,700,528
|
1,680,206
|
1,659,406
|
|||||||||
|
Shareholders’ equity
|
||||||||||||
|
Common stock, $.01 par value; 50,000,000 shares authorized;
7,876,853 shares issued and outstanding – June 30, 2025
7,903,489 shares issued and outstanding – March 31, 2025
7,953,431 shares issued and outstanding – June 30, 2024
|
27,226
|
28,028
|
30,681
|
|||||||||
|
Retained earnings
|
230,213
|
225,166
|
211,087
|
|||||||||
|
Accumulated other comprehensive loss
|
(775
|
)
|
(670
|
)
|
(545
|
)
|
||||||
|
Total shareholders’ equity
|
256,664
|
252,524
|
241,223
|
|||||||||
|
Total liabilities and shareholders’ equity
|
$
|
1,957,192
|
$
|
1,932,730
|
$
|
1,900,629
|
||||||
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 12 |
Three Months Ended
|
||||||||||||
|
PERFORMANCE RATIOS:
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
|||||||||
|
Return on average assets (a)
|
1.47
|
%
|
1.43
|
%
|
1.25
|
%
|
||||||
|
Return on average equity (a)
|
11.23
|
%
|
10.95
|
%
|
9.95
|
%
|
||||||
|
Net interest margin (a)
|
3.80
|
%
|
3.79
|
%
|
3.53
|
%
|
||||||
|
Efficiency ratio
|
54.48
|
%
|
56.25
|
%
|
58.97
|
%
|
||||||
|
Nine Months Ended
|
||||||||||||
|
June 30, 2025
|
June 30, 2024
|
|||||||||||
|
Return on average assets (a)
|
1.44
|
%
|
1.27
|
%
|
||||||||
|
Return on average equity (a)
|
11.07
|
%
|
10.10
|
%
|
||||||||
|
Net interest margin (a)
|
3.74
|
%
|
3.53
|
%
|
||||||||
|
Efficiency ratio
|
55.65
|
%
|
58.55
|
%
|
||||||||
|
Three Months Ended
|
||||||||||||
|
ASSET QUALITY RATIOS AND DATA: ($ in thousands)
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
|||||||||
|
Non-accrual loans
|
$
|
3,843
|
$
|
2,327
|
$
|
4,120
|
||||||
|
Loans past due 90 days and still accruing
|
--
|
--
|
--
|
|||||||||
|
Non-performing investment securities
|
38
|
41
|
72
|
|||||||||
|
OREO and other repossessed assets
|
221
|
221
|
--
|
|||||||||
|
Total non-performing assets (b)
|
$
|
4,102
|
$
|
2,589
|
$
|
4,192
|
||||||
|
Non-performing assets to total assets (b)
|
0.21
|
%
|
0.13
|
%
|
0.22
|
%
|
||||||
|
Net charge-offs (recoveries) during quarter
|
$
|
(1
|
)
|
$
|
--
|
$
|
36
|
|||||
|
Allowance for credit losses - loans to non-accrual loans
|
465
|
%
|
753
|
%
|
414
|
%
|
||||||
|
Allowance for credit losses - loans to loans receivable (c)
|
1.23
|
%
|
1.22
|
%
|
1.21
|
%
|
||||||
|
CAPITAL RATIOS:
|
||||||||||||
|
Tier 1 leverage capital
|
12.63
|
%
|
12.55
|
%
|
12.04
|
%
|
||||||
|
Tier 1 risk-based capital
|
19.29
|
%
|
19.04
|
%
|
17.97
|
%
|
||||||
|
Common equity Tier 1 risk-based capital
|
19.29
|
%
|
19.04
|
%
|
17.97
|
%
|
||||||
|
Total risk-based capital
|
20.54
|
%
|
20.29
|
%
|
19.22
|
%
|
||||||
|
Tangible common equity to tangible assets (non-GAAP)
|
12.42
|
%
|
12.36
|
%
|
11.97
|
%
|
||||||
|
BOOK VALUES:
|
||||||||||||
|
Book value per common share
|
$
|
32.58
|
$
|
31.95
|
$
|
30.33
|
||||||
|
Tangible book value per common share (d)
|
30.62
|
29.99
|
28.36
|
|||||||||
________________________________________________
(a) Annualized
(b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other
repossessed assets.
(c) Does not include loans held for sale and is before the allowance for credit losses.
(d) Tangible common equity divided by common shares outstanding (non-GAAP).
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 13 AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
($ in thousands)
(unaudited)
|
For the Three Months Ended
|
||||||||||||||||||||||||
|
June 30, 2025
|
March 31, 2025
|
June 30, 2024
|
||||||||||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Loans receivable and loans held for sale
|
$
|
1,450,350
|
5.92
|
%
|
$
|
1,435,999
|
5.90
|
%
|
$
|
1,391,582
|
5.65
|
%
|
||||||||||||
|
Investment securities and FHLB stock (1)
|
232,272
|
3.71
|
232,532
|
3.64
|
268,954
|
3.63
|
||||||||||||||||||
|
Interest-earning deposits in banks and CDs
|
178,887
|
4.45
|
172,175
|
4.44
|
161,421
|
5.41
|
||||||||||||||||||
|
Total interest-earning assets
|
1,861,509
|
5.50
|
1,840,706
|
5.48
|
1,821,957
|
5.33
|
||||||||||||||||||
|
Other assets
|
79,715
|
77,563
|
82,008
|
|||||||||||||||||||||
|
Total assets
|
$
|
1,941,224
|
$
|
1,918,269
|
$
|
1,903,965
|
||||||||||||||||||
|
Liabilities and Shareholders’ Equity
|
||||||||||||||||||||||||
|
NOW checking accounts
|
$
|
333,074
|
1.39
|
%
|
$
|
328,115
|
1.32
|
%
|
$
|
329,344
|
1.29
|
%
|
||||||||||||
|
Money market accounts
|
304,526
|
3.16
|
306,137
|
3.18
|
326,023
|
3.56
|
||||||||||||||||||
|
Savings accounts
|
205,592
|
0.35
|
206,054
|
0.28
|
208,488
|
0.27
|
||||||||||||||||||
|
Certificates of deposit accounts
|
363,342
|
3.77
|
343,945
|
3.82
|
311,545
|
4.21
|
||||||||||||||||||
|
Brokered CDs
|
48,028
|
4.83
|
50,104
|
4.85
|
45,442
|
5.32
|
||||||||||||||||||
|
Total interest-bearing deposits
|
1,254,562
|
2.47
|
1,234,355
|
2.45
|
1,220,842
|
2.62
|
||||||||||||||||||
|
Borrowings
|
20,002
|
4.03
|
20,000
|
4.04
|
20,001
|
4.42
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
1,274,564
|
2.49
|
1,254,355
|
2.47
|
1,240,843
|
2.64
|
||||||||||||||||||
|
Non-interest-bearing demand deposits
|
402,717
|
403,738
|
413,494
|
|||||||||||||||||||||
|
Other liabilities
|
10,266
|
10,064
|
10,245
|
|||||||||||||||||||||
|
Shareholders’ equity
|
253,677
|
250,112
|
239,383
|
|||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
1,941,224
|
$
|
1,918,269
|
$
|
1,903,965
|
||||||||||||||||||
|
Interest rate spread
|
3.01
|
%
|
3.01
|
%
|
2.69
|
%
|
||||||||||||||||||
|
Net interest margin (2)
|
3.80
|
%
|
3.79
|
%
|
3.53
|
%
|
||||||||||||||||||
|
Average interest-earning assets to
|
||||||||||||||||||||||||
|
average interest-bearing liabilities
|
146.05
|
%
|
146.75
|
%
|
146.83
|
%
|
||||||||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 14 AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands)
(unaudited)
|
For the Nine Months Ended
|
||||||||||||||||
|
June 30, 2025
|
June 30, 2024
|
|||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
|
Assets
|
||||||||||||||||
|
Loans receivable and loans held for sale
|
$
|
1,441,506
|
5.87
|
%
|
$
|
1,363,213
|
5.57
|
%
|
||||||||
|
Investment securities and FHLB stock (1)
|
237,400
|
3.81
|
294,789
|
3.24
|
||||||||||||
|
Interest-earning deposits in banks and CDs
|
172,591
|
4.55
|
143,537
|
5.39
|
||||||||||||
|
Total interest-earning assets
|
1,851,497
|
5.49
|
1,801,539
|
5.17
|
||||||||||||
|
Other assets
|
77,595
|
81,650
|
||||||||||||||
|
Total assets
|
$
|
1,929,092
|
$
|
1,883,189
|
||||||||||||
|
Liabilities and Shareholders’ Equity
|
||||||||||||||||
|
NOW checking accounts
|
$
|
329,883
|
1.36
|
%
|
$
|
358,052
|
1.48
|
%
|
||||||||
|
Money market accounts
|
311,762
|
3.26
|
273,683
|
3.09
|
||||||||||||
|
Savings accounts
|
205,764
|
0.30
|
214,275
|
0.24
|
||||||||||||
|
Certificates of deposit accounts
|
346,313
|
3.89
|
291,707
|
4.12
|
||||||||||||
|
Brokered CDs
|
48,169
|
4.71
|
42,856
|
5.37
|
||||||||||||
|
Total interest-bearing deposits
|
1,241,891
|
2.50
|
1,180,573
|
2.42
|
||||||||||||
|
Borrowings
|
20,001
|
4.02
|
22,457
|
4.68
|
||||||||||||
|
Total interest-bearing liabilities
|
1,261,892
|
2.53
|
1,203,030
|
2.46
|
||||||||||||
|
Non-interest-bearing demand deposits
|
406,906
|
431,849
|
||||||||||||||
|
Other liabilities
|
10,159
|
11,273
|
||||||||||||||
|
Shareholders’ equity
|
250,135
|
237,037
|
||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
1,929,092
|
$
|
1,883,189
|
||||||||||||
|
Interest rate spread
|
2.96
|
%
|
2.71
|
%
|
||||||||||||
|
Net interest margin (2)
|
3.74
|
%
|
3.53
|
%
|
||||||||||||
|
Average interest-earning assets to
|
||||||||||||||||
|
average interest-bearing liabilities
|
146.72
|
%
|
149.75
|
%
|
||||||||||||
_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 15 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, 2025
|
March 31, 2025
|
June 30, 2024
|
|||
|
Shareholders’ equity
|
$ 256,664
|
$ 252,524
|
$ 241,223
|
|||
|
Less goodwill and CDI
|
(15,447)
|
(15,492)
|
(15,639)
|
|||
|
Tangible common equity
|
$ 241,217
|
$ 237,032
|
$ 225,584
|
|||
|
Total assets
|
$ 1,957,192
|
$ 1,932,730
|
$ 1,900,629
|
|||
|
Less goodwill and CDI
|
(15,447)
|
(15,492)
|
(15,639)
|
|||
|
Tangible assets
|
$ 1,941,745
|
$ 1,917,238
|
$ 1,884,990
|