-- Fiscal Year EPS Increases 22% to $3.67 -- Quarterly EPS Increases 19% to $1.07 from $0.90 for Preceding Quarter -- Quarterly Net Interest Margin Increases to 3.82% -- Quarterly Return on Average Assets Increases to 1.68% -- Quarterly Return on Average Equity Increases to 12.97% -- Announces an 8% Increase in the Quarterly Cash Dividend -- Announces Plans to Open a Branch in University Place
HOQUIAM, Wash., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) ("Timberland" or "the Company"), the holding company for Timberland Bank (the "Bank"), today reported that net income increased 20% to $29.16 million for the fiscal year ended September 30, 2025, from $24.28 million for the fiscal year ended September 30, 2024. Earnings per diluted common share ("EPS") increased 22% to $3.67 for the 2025 fiscal year from $3.01 for the 2024 fiscal year.
Timberland also reported net income of $8.45 million, or $1.07 per diluted common share for the quarter ended September 30, 2025. This compares to net income of $7.10 million, or $0.90 per diluted common share for the preceding quarter, and $6.36 million, or $0.79 per diluted common share, for the comparable quarter one year ago.
"We closed our fiscal year with record results, reflecting the hard work and dedication of our employees in serving our customers, communities and shareholders," stated Dean Brydon, Chief Executive Officer. "For the full year, net income and earnings per share reached new highs with year-over-year gains across every major profitability measure, while tangible book value per share continued its steady climb. In the fourth quarter, net income increased 33% from a year ago and 19% from the prior quarter, with earnings per share up 35% and 19%, respectively. We also recorded a $1.04 million bank owned life insurance benefit claim during the quarter, which contributed to net income; however, even excluding this item, all comparisons to prior periods remain favorable. These strong quarterly results were driven by continued expansion in our net interest margin, balance sheet growth, and higher non-interest income."
"As a result of Timberland's strong earnings and capital position, our Board of Directors announced an 8% increase to the quarterly cash dividend to shareholders to $0.28 per share, payable on November 28, 2025, to shareholders of record on November 14, 2025," stated Jonathan Fischer, President and Chief Operating Officer. "This represents the 52nd consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board's continued confidence in our long-term outlook."
"Our net interest margin strengthened again in the fourth fiscal quarter, increasing to 3.82%," said Marci Basich, Chief Financial Officer. "This marks a two-basis point increase from the prior quarter and a 24-basis point improvement year-over- year, underscoring the benefits of our disciplined asset-liability management and the improvement in earning asset yields. Total deposits increased by $47 million, or 3%, with more than half of that growth driven by higher non-interest-bearing balances. This continued deposit momentum reflects the depth of our customer relationships and the success of our funding strategies. We remain committed to maintaining a balanced funding profile and sustaining stable margin performance in the periods ahead."
"Timberland delivered solid balance sheet growth during the fourth fiscal quarter, highlighted by total assets increasing 3% and surpassing the $2 billion dollar mark for the first time in our Company's history," Brydon continued. "Credit quality remains an area we continue to monitor closely. Overall, performance across the portfolio remains solid, with no net charge-offs for the quarter. While our non-performing assets ("NPA") ratio increased modestly to 0.23% at September 30, 2025 from 0.21% in the prior quarter, we also saw total delinquencies decline during the period. We remain confident in the overall health of our loan portfolio and our disciplined approach to credit risk management."
"We are excited to announce the opening of a new full-service branch in University Place later this quarter, marking an important milestone in our growth strategy," said Fischer. "This expansion positions us to serve a growing market with strong business potential and deepen our commercial banking relationships in the area. We are enthusiastic about the opportunities ahead to welcome new clients, strengthen existing partnerships, and further advance our commitment to supporting the region's economic growth," stated Matt DeBord, Chief Lending Officer.
Earnings and Balance Sheet Highlights (at or for the periods ended September 30, 2025, compared to September 30, 2024, or June 30, 2025):
Earnings Highlights:
-- EPS increased 19% to $1.07 for the current quarter from $0.90 for the
preceding quarter and increased 35% from $0.79 for the comparable quarter
one year ago; EPS for the 2025 fiscal year increased 22% to $3.67 from
$3.01 for the 2024 fiscal year;
-- Net income increased 19% to $8.45 million for the current quarter from
$7.10 million for the preceding quarter and increased 33% from $6.36
million for the comparable quarter one year ago; Net income increased 20%
to $29.16 million for the 2025 fiscal year from $24.28 million for the
2024 fiscal year;
-- Return on average equity ("ROE") and return on average assets ("ROA") for
the current quarter were 12.97% and 1.68%, respectively;
-- Net interest margin ("NIM") for the current quarter increased to 3.82%
from 3.80% for the preceding quarter and 3.58% for the comparable quarter
one year ago; and
-- The efficiency ratio for the current quarter improved to 53.18% from
54.48% for the preceding quarter and 56.79% for the comparable quarter
one year ago.
Balance Sheet Highlights:
-- Total assets reached $2.0 billion with a 3% increase from the prior
quarter and a 5% increase year-over-year;
-- Net loans receivable increased 2% from the prior quarter and increased 3%
year-over-year;
-- Total deposits increased 3% from the prior quarter and increased 4%
year-over-year;
-- Total shareholders' equity increased 2% from the prior quarter and
increased 7% year-over-year; 56,562 shares of common stock were
repurchased during the current quarter for $1.89 million;
-- Non-performing assets to total assets ratio was 0.23% at September 30,
2025, compared to 0.21% at June 30, 2025, and 0.20% at September 30,
2024;
-- Book and tangible book (non-GAAP) values per common share increased to
$33.29 and $31.33 respectively, at September 30, 2025; and
-- Liquidity (both on-balance sheet and off-balance sheet) remained strong
at September 30, 2025, with only $20 million in borrowings and additional
secured borrowing line capacity of $690 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 10% to $22.49 million from $20.50 million for the preceding quarter and increased 15% from $19.48 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increases in non-interest income and interest income from loans and interest-bearing deposits in banks, which were partially offset by an increase in total funding costs. The increase in non-interest income was primarily due to a $1.04 million bank owned life insurance ("BOLI") death benefit claim. Operating revenue increased 10% to $82.55 million for the 2025 fiscal year from $75.30 million for the 2024 fiscal year, 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 $773,000, or 4%, to $18.40 million for the current quarter from $17.62 million for the preceding quarter and increased $1.85 million, or 11%, from $16.55 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $48.52 million increase in the average balance of total interest-earning assets and, to a lesser extent, a three-basis point increase in the weighted average yield on total interest-earning assets to 5.53% from 5.50%. These increases were partially offset by a $21.64 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 improved to 3.82% from 3.80% for the preceding quarter and 3.58% 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 $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $11,000 of the fair value discount on acquired loans. The NIM for the preceding 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 comparable quarter one year ago was increased by approximately one basis point due to the collection of $20,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $7,000 of the fair value discount on acquired loans.
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