Core Points - Timberland Bancorp reported a net income of $6.86 million, or $0.86 per diluted common share for the quarter ended December 31, 2024, representing an increase of 8% from the previous quarter and 9% year-over-year [1][5][41] - The company experienced improvements in key performance metrics, including a 9% increase in earnings per share compared to the prior quarter and a 12% increase year-over-year [2][5] - A quarterly cash dividend of $0.25 per share was announced, marking the 49th consecutive quarter of dividend payments [2] Earnings Highlights - Quarterly earnings per diluted common share increased 9% to $0.86 from $0.79 for the preceding quarter and 12% from $0.77 for the comparable quarter one year ago [5][4] - Net income increased 8% to $6.86 million for the current quarter from $6.36 million for the preceding quarter and 9% from $6.30 million for the comparable quarter one year ago [5][4] Balance Sheet Highlights - Total assets decreased 1% from the prior quarter to $1.91 billion, while increasing 1% year-over-year [11][14] - Total shareholders' equity increased 2% from the prior quarter to $249.20 million, and increased 5% year-over-year [28] - The non-performing assets to total assets ratio improved to 0.16% at December 31, 2024, compared to 0.20% at September 30, 2024 [31] Operating Results - Operating revenue for the current quarter increased 1% to $19.67 million from $19.48 million for the preceding quarter and increased 5% from $18.80 million for the comparable quarter one year ago [7] - Net interest income increased 3% to $16.97 million for the current quarter from $16.55 million for the preceding quarter and increased 6% from $16.00 million for the comparable quarter one year ago [8] - Non-interest income decreased 8% to $2.70 million for the current quarter from $2.93 million for the preceding quarter [10] Loan and Deposit Activity - Total deposits decreased 1% during the quarter to $1.63 billion, with a notable decrease in money market account balances [24][26] - Net loans receivable decreased 1% during the quarter to $1.41 billion, primarily due to an increase in the undisbursed portion of construction loans [16][22] - Timberland originated $72.07 million in loans during the quarter, compared to $48.82 million for the preceding quarter [22] Credit Quality - The provision for credit losses on loans was recorded at $52,000 for the quarter, significantly lower than the $444,000 provision for the preceding quarter [9] - Total delinquent loans decreased 10% to $4.02 million at December 31, 2024, from $4.49 million at September 30, 2024 [32]

Financial Performance - Quarterly net income increased by 7% to $6.36 million, with EPS of $0.79, compared to $5.92 million and $0.74 in the previous quarter[1] - Fiscal year net income decreased by 10% to $24.28 million, with EPS of $3.01, down from $27.12 million and $3.29 in the previous fiscal year[2] - Operating revenue for the quarter increased by 4% to $19.48 million, while fiscal year revenue decreased by 5% to $75.30 million[7][10] - Non-interest income for the quarter increased by 5% to $2.93 million, while fiscal year non-interest income decreased slightly to $11.136 million[12][13] - Net income for Q4 2024 was $1,572 thousand, slightly up from $1,535 thousand in Q3 2024, reflecting a growth of 2.4%[41] - Basic net income per common share increased to $0.80 in Q4 2024 from $0.74 in Q3 2024, a rise of 8.1%[41] - Basic net income per common share decreased to $3.02 for the year ended September 30, 2024, down from $3.32 in the previous year, a decline of 9.0%[42] Asset and Loan Growth - Net loans increased by 9% year-over-year, totaling $1.42 billion, with a quarterly increase of 2% or $24.50 million[4][19] - Total assets increased by 1% to $1.92 billion during the quarter, with a year-over-year increase of 5%[6][17] - Loans receivable rose to $1,439,001,000 as of September 30, 2024, compared to $1,318,122,000 a year earlier, indicating an increase of 9.2%[43] - Total mortgage loans decreased to $1,207 million in Q4 2024 from $1,597 million in Q3 2024, a decline of 24.4%[34] - Timberland originated $48.82 million in loans during the quarter ended September 30, 2024, compared to $74.32 million for the preceding quarter[23] Deposit and Equity Changes - Total deposits increased by 6% year-over-year, reaching $1.5 billion, with a quarterly increase of 1% or $19 million[4][6] - Total deposits increased to $1,647,668,000 as of September 30, 2024, compared to $1,560,935,000 a year earlier, reflecting a rise of 5.5%[43] - Total shareholders' equity increased by $4.19 million, or 2%, to $245.41 million at September 30, 2024, from $241.22 million at June 30, 2024[30] - Shareholders' equity increased to $245,413 thousand in September 2024, up from $241,223 thousand in June 2024 and $233,073 thousand in September 2023, reflecting a year-over-year growth of 5.5%[52] Interest and Margin Analysis - Net interest margin improved to 3.58% for the quarter, up from 3.53% in the previous quarter, but down from 3.85% a year ago[5][8] - Total interest and dividend income increased to $25,035 thousand in Q4 2024, up 3.7% from $24,139 thousand in Q3 2024[41] - Net interest income after provision for credit losses was $16,057 thousand in Q4 2024, compared to $15,737 thousand in Q3 2024, an increase of 2%[41] - The company reported a net interest margin of 3.58% for the quarter ended September 30, 2024, compared to 3.53% in the previous quarter[44] Credit Quality and Risk Management - Non-performing assets to total assets ratio was 0.20% at September 30, 2024, compared to 0.22% at June 30, 2024[32] - Total delinquent loans increased by $244,000, or 6%, to $4.49 million at September 30, 2024, from $4.23 million at June 30, 2024[33] - The allowance for credit losses (ACL) for loans as a percentage of loans receivable was 1.21% at September 30, 2024[32] - Non-accrual loans decreased to $3,885 million in Q4 2024 from $4,120 million in Q3 2024, a reduction of 5.7%[36] - The allowance for credit losses to non-accrual loans ratio increased to 450% in Q4 2024 from 414% in Q3 2024, reflecting a conservative approach to credit risk management[46] Dividend and Shareholder Returns - A 4% increase in the quarterly cash dividend to $0.25 per share was announced, marking the 48th consecutive quarter of dividend payments[3] Economic Outlook - The company anticipates potential economic challenges, including inflation and credit risks, which may impact future performance[38]

Financial Performance - Timberland reported net income of $5.92 million, or $0.74 per diluted common share, for Q3 2024, a 4% increase in net income and a 6% increase in EPS compared to the prior quarter[2][11]. - For the first nine months of fiscal 2024, net income decreased 12% to $17.93 million, or $2.21 per diluted common share, compared to $20.48 million, or $2.47 per diluted common share for the same period in fiscal 2023[3][11]. - Net income for Q3 2024 was $5,924,000, a decrease of 6.0% from $6,306,000 in Q3 2023[38]. - Net income for the nine months ended June 30, 2024, was $17,928,000, down 12.5% from $20,476,000 in the same period of 2023[39]. - Basic net income per common share for Q3 2024 was $0.74, compared to $0.77 in Q3 2023[38]. Asset and Loan Growth - Net loans receivable increased by $38 million, or 3%, during the quarter, with year-over-year growth of 11%[5][6][19]. - Total mortgage loans increased to $1,323,338 thousand at June 30, 2024, up from $1,205,575 thousand a year ago, representing a growth of 9.8%[21]. - Timberland originated $74.32 million in loans during the quarter ended June 30, 2024, compared to $39.37 million in the previous quarter, marking an increase of 88.7%[22]. - Total assets decreased slightly by less than 1% during the quarter but increased by 5% year-over-year to $1.90 billion[17][11]. - Total assets as of June 30, 2024, were $1,900,629,000, a decrease from $1,907,234,000 in March 2024 and an increase from $1,807,713,000 in June 2023[40]. - Net loans receivable increased to $1,397,019,000 from $1,359,116,000 in March 2024, and from $1,260,647,000 in June 2023, reflecting a growth of 2.8% quarter-over-quarter and 10.8% year-over-year[40]. Deposits and Equity - Total deposits decreased by $10 million during the quarter but increased by 5% year-over-year[5][11]. - Total deposits decreased by $10.01 million, or 1%, to $1.63 billion at June 30, 2024, from $1.64 billion at March 31, 2024[24]. - Total shareholders' equity rose by $2.54 million, or 1%, to $241.23 million at June 30, 2024, driven by net income of $5.92 million for the quarter[28]. - Shareholders' equity grew to $241,223, up from $229,263 a year ago, reflecting an increase of 5.22%[49]. Interest and Income Metrics - The net interest margin improved to 3.53% for Q3 2024, up from 3.48% in the previous quarter, but down from 3.94% in the comparable quarter one year ago[5][11]. - Total interest and dividend income for Q3 2024 was $24,139,000, an increase of 26.5% compared to $19,889,000 in Q3 2023[38]. - The company reported a total interest expense of $8,158,000 in Q3 2024, up from $3,255,000 in Q3 2023, reflecting rising interest rates[38]. - For the nine months ended June 30, 2024, total interest and dividend income was $69,790,000, up 19.5% from $58,389,000 in the same period of 2023[39]. Credit Quality and Loss Provisions - A provision for credit losses of $264,000 was recorded for the quarter, compared to $166,000 in the previous quarter[13][11]. - Provision for credit losses on loans was $264,000 in Q3 2024, compared to $610,000 in Q3 2023, indicating improved credit quality[38]. - Non-performing assets to total assets ratio increased to 0.22% at June 30, 2024, compared to 0.19% at March 31, 2024[30]. - Total delinquent loans increased by $33,000, or 1%, to $4.23 million at June 30, 2024, with non-accrual loans rising by 14% to $4.12 million[31]. - The allowance for credit losses to loans receivable ratio was 1.21% in Q3 2024, consistent with 1.22% in Q2 2024 and slightly up from 1.20% in Q3 2023[41]. Efficiency and Ratios - The efficiency ratio improved to 58.97% for Q3 2024, down from 60.22% in the previous quarter[11][15]. - Return on average assets for Q3 2024 was 1.25%, up from 1.22% in Q2 2024 but down from 1.42% in Q3 2023[41]. - Return on average equity improved to 9.95% in Q3 2024 from 9.67% in Q2 2024, but decreased from 11.07% in Q3 2023[41]. - The efficiency ratio for Q3 2024 was 58.97%, an improvement from 60.22% in Q2 2024 but higher than 56.01% in Q3 2023[41]. Investment and Securities - Investment securities and CDs held for investment decreased by $23.01 million, or 8%, to $262.60 million at June 30, 2024[23]. - Total interest-earning assets reached $1,801,539, with an average interest rate of 5.17%, up from $1,722,265 and 4.52% in the prior year[45]. - Total interest-bearing deposits increased to $1,180,573, with an average interest rate of 2.42%, compared to $1,076,772 and 0.84% last year[45]. Capital Adequacy - The total risk-based capital ratio stood at 19.22% at June 30, 2024, indicating that Timberland remains well capitalized[29]. - The company continues to focus on enhancing capital adequacy through non-GAAP financial measures, providing a broader understanding of financial performance[46].

Core Viewpoint Timberland Bancorp, Inc. reported a net income of $5.92 million for the quarter ended June 30, 2024, reflecting a 4% increase from the previous quarter, but a 6% decrease compared to the same quarter last year. The company experienced improvements in net interest margin and loan portfolio growth, although overall earnings were lower than the previous year due to increased deposit costs impacting margins. Earnings Highlights - Net income for the quarter was $5.92 million, or $0.74 per diluted common share, up from $5.71 million and $0.70 per share in the prior quarter, but down from $6.31 million and $0.77 per share a year ago [1][10][12] - Earnings per diluted common share (EPS) increased by 6% from the previous quarter but decreased by 4% year-over-year [12] - For the first nine months of fiscal 2024, net income decreased by 12% to $17.93 million, or $2.21 per diluted common share, compared to $20.48 million, or $2.47 per share for the same period in fiscal 2023 [10][12] Balance Sheet Highlights - Total assets decreased by $6.61 million, or less than 1%, to $1.90 billion from the previous quarter, but increased by $92.92 million, or 5%, year-over-year [7][13] - Total deposits decreased by $10.01 million, or 1%, during the quarter, but increased by 5% year-over-year [34][13] - Total shareholders' equity increased by $2.54 million, or 1%, to $241.23 million at June 30, 2024 [37] Loan Portfolio - Net loans receivable increased by $37.90 million, or 3%, during the quarter, with an 11% increase year-over-year [27][10] - The loan portfolio growth was primarily driven by increases in commercial real estate, one- to four-family, and multi-family loans [2][27] - Timberland originated $74.32 million in loans during the quarter, compared to $39.37 million in the previous quarter [32] Non-Interest Income and Expenses - Non-interest income increased by $176,000, or 7%, to $2.79 million for the current quarter compared to the previous quarter [24] - Total operating (non-interest) expenses increased by $78,000, or 1%, to $11.07 million from the previous quarter [6][10] Asset Quality - Non-performing assets to total assets ratio was 0.22% at June 30, 2024, compared to 0.19% at March 31, 2024 [39] - Net charge-offs totaled $36,000 for the current quarter, up from $3,000 in the previous quarter [39][40] Dividend Announcement - The Board of Directors announced a quarterly cash dividend of $0.24 per share, marking the 47th consecutive quarter of dividend payments [11]

[Part I. Financial Information](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements, detailing financial position, operating results, and cash flows, including CECL adoption [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at period-end - Total assets increased by **3.7%** to **$1.91 billion** at March 31, 2024, from **$1.84 billion** at September 30, 2023, primarily driven by an increase in net loans receivable and cash equivalents, funded by a rise in total deposits[143](index=143&type=chunk) Consolidated Balance Sheet Summary (in thousands USD) | Account | March 31, 2024 (Unaudited) | September 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $180,349 | $128,721 | | Loans receivable, net | $1,359,116 | $1,302,305 | | Investment securities (AFS & HTM) | $273,564 | $311,989 | | **Total Assets** | **$1,907,234** | **$1,839,905** | | **Liabilities & Equity** | | | | Total deposits | $1,638,554 | $1,560,935 | | FHLB borrowings | $20,000 | $35,000 | | **Total Liabilities** | **$1,668,555** | **$1,606,832** | | **Total Shareholders' Equity** | **$238,679** | **$233,073** | | **Total Liabilities & Equity** | **$1,907,234** | **$1,839,905** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) This section details the company's revenues, expenses, and net income over specific periods - Net income for the quarter ended March 31, 2024, decreased by **14.3%** year-over-year, primarily due to a significant increase in interest expense which compressed net interest income, partially offset by a lower provision for credit losses[170](index=170&type=chunk) Income Statement Highlights (in thousands USD, except per share data) | Metric | Q2 2024 | Q2 2023 | Change | 6 Months 2024 | 6 Months 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $15,635 | $17,151 | -8.8% | $31,639 | $34,894 | -9.3% | | Provision for Credit Losses | $81 | $475 | -82.9% | $417 | $1,000 | -58.3% | | **Net Income** | **$5,708** | **$6,663** | **-14.3%** | **$12,004** | **$14,169** | **-15.3%** | | Diluted EPS | $0.70 | $0.80 | -12.5% | $1.47 | $1.70 | -13.5% | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the sources and uses of cash from operating, investing, and financing activities - For the six months ended March 31, 2024, the company experienced a net increase in cash and cash equivalents of **$51.6 million**, driven by strong net cash from financing activities (**$56.2 million**) primarily from an increase in deposits, offsetting net cash used in operating and investing activities[27](index=27&type=chunk) Cash Flow Summary for Six Months Ended March 31 (in thousands USD) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,975 | $15,364 | | Net cash used in investing activities | ($13,506) | ($100,772) | | Net cash provided by (used in) financing activities | $56,159 | ($88,864) | | **Net increase (decrease) in cash** | **$51,628** | **($174,272)** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, financial statement line items, and the impact of CECL adoption - Effective October 1, 2023, the Company adopted ASU 2016-13 (CECL), resulting in a cumulative effect adjustment that increased the ACL on loans by **$461,000**, the ACL on investment securities by **$92,000**, and the ACL on unfunded commitments by **$65,000**, with a net-of-tax charge of **$488,000** to retained earnings[118](index=118&type=chunk) - The loan portfolio is primarily composed of mortgage loans (**87.6%**), with commercial real estate loans representing the largest single category at **39.6%** of total loans receivable[53](index=53&type=chunk) - The investment securities portfolio is primarily composed of U.S. Treasury, government agency, and mortgage-backed securities, with gross unrealized losses of **$11.34 million** in held-to-maturity and **$977,000** in available-for-sale categories as of March 31, 2024, primarily due to interest rate changes[31](index=31&type=chunk)[32](index=32&type=chunk) [Management's Discussion and Analysis (MD&A)](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operating results, and liquidity, highlighting key performance drivers and trends [Comparison of Financial Condition](index=47&type=section&id=Comparison%20of%20Financial%20Condition) This section analyzes changes in the company's balance sheet, including assets, liabilities, and equity over time - Total assets grew by **$67.33 million** (**3.7%**) to **$1.91 billion** at March 31, 2024, from September 30, 2023, mainly due to a **$56.81 million** (**4.4%**) increase in net loans receivable[143](index=143&type=chunk)[144](index=144&type=chunk) - Total deposits increased by **$77.62 million** (**5.0%**) to **$1.64 billion**, primarily driven by a **$122.12 million** increase in money market accounts and a **$53.85 million** increase in certificates of deposit, partially offset by decreases in non-interest-bearing demand and NOW checking accounts[145](index=145&type=chunk)[156](index=156&type=chunk) - Shareholders' equity rose by **$5.61 million** (**2.4%**) to **$238.68 million**, reflecting net income of **$12.00 million**, partially offset by **$3.82 million** in dividends and **$3.03 million** in stock repurchases over the six-month period[146](index=146&type=chunk)[159](index=159&type=chunk) [Comparison of Operating Results](index=55&type=section&id=Comparison%20of%20Operating%20Results) This section compares the company's financial performance across different periods, focusing on revenue, expenses, and profitability - Quarterly net income decreased **14.3%** YoY to **$5.71 million**, and six-month net income decreased **15.3%** to **$12.00 million**, with the decline primarily caused by a decrease in net interest income[170](index=170&type=chunk)[171](index=171&type=chunk) - Net interest margin (NIM) compressed to **3.48%** for the quarter ended March 31, 2024, down from **3.99%** in the prior-year quarter, driven by a **236.4%** increase in total interest expense as the average cost of interest-bearing liabilities rose from **0.84%** to **2.50%**[173](index=173&type=chunk)[176](index=176&type=chunk)[179](index=179&type=chunk) - The efficiency ratio deteriorated to **60.22%** for the quarter, compared to **55.31%** a year ago, reflecting lower total revenue and slightly higher non-interest expense[201](index=201&type=chunk) [Asset Quality](index=53&type=section&id=Asset%20Quality) This section assesses the quality of the company's loan and investment portfolios, including non-performing assets and credit loss provisions - Non-performing assets (NPAs) increased by **130.8%** to **$3.68 million** at March 31, 2024, from **$1.60 million** at September 30, 2023, with the NPA to total assets ratio rising to **0.19%** from **0.09%**[161](index=161&type=chunk) Non-Performing Assets (in thousands USD) | Category | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Non-accrual loans | $3,605 | $1,514 | | Non-accrual investment securities | $79 | $82 | | **Total non-performing assets** | **$3,684** | **$1,596** | | **NPA as a % of total assets** | **0.19%** | **0.09%** | [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations and maintain adequate capital levels - The Bank is considered 'well-capitalized' under all regulatory requirements as of March 31, 2024[218](index=218&type=chunk) Bank Regulatory Capital Ratios (March 31, 2024) | Ratio | Actual | To Be "Well Capitalized" | | :--- | :--- | :--- | | Tier 1 leverage Capital Ratio | 11.92% | > 5.00% | | Common equity Tier 1 capital Ratio | 17.97% | > 6.50% | | Tier 1 capital Ratio | 17.97% | > 8.00% | | Total capital Ratio | 19.22% | > 10.00% | - The company has significant available liquidity, including **$596.00 million** in borrowing capacity with the FHLB (with **$20.00 million** outstanding) and **$111.22 million** with the FRB[205](index=205&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes in market risk disclosures since the prior annual report - There were no material changes in market risk disclosures from the company's most recent Form 10-K[223](index=223&type=chunk) [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and outlines modifications to internal controls due to CECL adoption - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[228](index=228&type=chunk) - Internal controls were modified during the quarter to accommodate the adoption of the CECL accounting standard (ASU 2016-13), particularly around the modeling of expected credit losses[228](index=228&type=chunk) [Part II. Other Information](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings and equity matters [Legal Proceedings and Risk Factors](index=64&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms no material legal proceedings and no significant changes to previously disclosed risk factors - The Company is not a party to any material legal proceedings[225](index=225&type=chunk) - There have been no material changes in Risk Factors from the 2023 Form 10-K[226](index=226&type=chunk) [Use of Proceeds and Stock Repurchases](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities and remaining authorization under its current plan Stock Repurchases for Quarter Ended March 31, 2024 | Period | Total Shares Repurchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2024 | 0 | $ - | | Feb 2024 | 80,000 | $26.91 | | Mar 2024 | 19,787 | $26.21 | | **Total** | **99,787** | **$26.77** | - As of March 31, 2024, **262,025** shares remained available for purchase under the company's 19th stock repurchase plan, which was announced on July 25, 2023[230](index=230&type=chunk)

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Q2 2024 Earnings Overview](index=1&type=section&id=Q2%202024%20Earnings%20Overview) Timberland Bancorp reported **$5.71 million** net income and **$0.70 diluted EPS** for Q2 2024, primarily due to net interest margin compression Net Income and Diluted EPS (Quarterly) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net Income | $5.71 million | $6.30 million | $6.66 million | | Diluted EPS | $0.70 | $0.77 | $0.80 | Net Income and Diluted EPS (Six Months) | Metric | Six Months Ended 3/31/2024 | Six Months Ended 3/31/2023 | | :--- | :--- | :--- | | Net Income | $12.00 million | $14.17 million | | Diluted EPS | $1.47 | $1.70 | - Management noted Q2 earnings were strong but lower than the year-ago quarter, which was near the peak of the net interest margin cycle[4](index=4&type=chunk) - The Board declared a **$0.24 per share** quarterly cash dividend, marking the **46th consecutive payment**[4](index=4&type=chunk) - The COO stated that net interest margin contraction is stabilizing, with deposit costs believed to be near peak, potentially aiding future margin stability or improvement[5](index=5&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) Operating revenue decreased to **$18.25 million** in Q2 2024, leading to lower net interest income and a **60.22%** efficiency ratio Key Operating Metrics | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Operating Revenue | $18.25M | $18.80M | $19.79M | | Net Interest Income | $15.64M | $16.00M | $17.15M | | Net Interest Margin (NIM) | 3.48% | 3.60% | 3.99% | | Efficiency Ratio | 60.22% | 56.50% | 55.31% | - Net interest income decreased primarily due to the weighted average cost of interest-bearing liabilities rising to **2.50%** from **2.22%**[10](index=10&type=chunk) - A **$166,000** provision for credit losses was recorded, driven by loan portfolio growth, partially offset by reduced construction loan balances[12](index=12&type=chunk) - Non-interest income decreased **7% sequentially** to **$2.62 million**, primarily due to lower ATM/debit card fees and reduced gain on sale of loans[13](index=13&type=chunk) - Operating expenses increased **3%** to **$10.99 million**, driven by higher salaries, premises, and technology costs[14](index=14&type=chunk) [Balance Sheet and Asset Quality Analysis](index=3&type=section&id=Balance%20Sheet%20and%20Asset%20Quality%20Analysis) [Balance Sheet Management and Liquidity](index=3&type=section&id=Balance%20Sheet%20Management%20and%20Liquidity) Total assets grew **1%** to **$1.91 billion**, driven by loans and cash, maintaining strong liquidity - Total assets grew by **$12.12 million (1%)** during the quarter, primarily from a **$22.83 million** increase in net loans and a **$22.33 million** increase in cash, partially offset by a **$34.22 million** decrease in investment securities[16](index=16&type=chunk) - Liquidity remains strong with cash and available-for-sale securities representing **15.2%** of total liabilities, up from **12.7%** in the prior quarter[17](index=17&type=chunk) - The company has access to **$707 million** in additional secured borrowing capacity through the FHLB and Federal Reserve[17](index=17&type=chunk) [Loan Portfolio](index=3&type=section&id=Loan%20Portfolio) Net loans receivable grew **2%** to **$1.36 billion**, shifting from construction to multi-family and one-to-four-family loans Loan Portfolio Composition | Loan Category | March 31, 2024 ($M) | Dec 31, 2023 ($M) | March 31, 2023 ($M) | | :--- | :--- | :--- | :--- | | Commercial Real Estate | $577.4 | $579.0 | $547.9 | | One- to four-family | $276.4 | $263.1 | $216.6 | | Multi-family | $167.3 | $147.3 | $103.9 | | Total Construction | $224.6 | $265.2 | $267.0 | | Commercial business | $135.5 | $136.9 | $129.3 | | **Total Loans Receivable, Net** | **$1,359.1** | **$1,336.3** | **$1,210.2** | - Net loans receivable increased by **$22.83 million (2%)** during the quarter, with a notable shift from construction loans (-**$40.53 million**) to multi-family (+**$19.95 million**) and one-to-four-family loans (+**$13.31 million**) as projects converted to permanent financing[18](index=18&type=chunk) - The Commercial Real Estate (CRE) portfolio of **$577.4 million** is diversified, with the largest concentrations in Industrial warehouse (**20%**), Medical/dental offices (**14%**), and Office buildings (**12%**)[22](index=22&type=chunk) - Loan originations totaled **$39.37 million** for the quarter, a decrease from **$88.93 million** in the preceding quarter and **$77.15 million** in the comparable quarter one year ago[22](index=22&type=chunk) [Deposits and Borrowings](index=5&type=section&id=Deposits%20and%20Borrowings) Total deposits increased **1%** to **$1.64 billion**, shifting to higher-cost money market and CD accounts Deposit Composition | Deposit Category | March 31, 2024 ($M) | % of Total | Dec 31, 2023 ($M) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Non-interest-bearing demand | $424.9 | 26% | $433.1 | 27% | | NOW checking | $336.6 | 20% | $389.5 | 24% | | Money market | $312.0 | 19% | $269.7 | 17% | | Certificates of deposit | $354.0 | 22% | $318.9 | 19% | | **Total Deposits** | **$1,638.6** | **100%** | **$1,627.1** | **100%** | - Deposits saw a shift into higher-cost products: money market accounts increased by **$42.31 million** and CDs by **$35.04 million**, while NOW checking accounts decreased by **$52.84 million** and non-interest-bearing demand deposits fell by **$8.16 million**[24](index=24&type=chunk) - Total borrowings were stable at **$20.00 million** at the end of the quarter, with a weighted average rate of **4.34%**[28](index=28&type=chunk) [Capital and Shareholder Returns](index=6&type=section&id=Capital%20and%20Shareholder%20Returns) Shareholders' equity reached **$238.70 million**, maintaining strong capital ratios well above regulatory requirements Capital Ratios | Capital Ratio | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total risk-based capital | 19.33% | 19.50% | | Tier 1 leverage capital | 12.01% | 12.14% | | Tangible common equity / Tangible assets (non-GAAP) | 11.79% | 11.79% | - Shareholders' equity increased by **$1.31 million**, reflecting **$5.71 million** in net income, partially offset by **$1.94 million** in dividends and **$2.67 million** in common stock repurchases[29](index=29&type=chunk) - At March 31, 2024, **262,025 shares** remained available for repurchase under the existing stock repurchase plan[29](index=29&type=chunk) [Asset Quality](index=6&type=section&id=Asset%20Quality) Asset quality remained stable and strong, with non-performing assets at **0.19%** and negligible net charge-offs Asset Quality Metrics | Metric | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Non-performing assets to total assets (%) | 0.19% | 0.18% | 0.12% | | Net charge-offs (quarterly) ($) | $3,000 | $2,000 | $6,000 | | Non-accrual loans ($M) | $3.61M | $3.37M | $1.97M | | ACL for loans to loans receivable (%) | 1.22% | 1.23% | 1.20% | - The increase in non-accrual loans was mainly due to a **$466,000** rise in commercial real estate loans on non-accrual status, partially offset by a **$222,000** decrease in one- to four-family non-accrual loans[32](index=32&type=chunk) [Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) The income statement details Q2 2024 net income of **$5.71 million**, with six-month net income at **$12.00 million** Consolidated Statements of Income (Quarterly) | ($ in thousands) | Q2 2024 (3 Mo) | Q1 2024 (3 Mo) | Q2 2023 (3 Mo) | | :--- | :--- | :--- | :--- | | Net Interest Income | $15,635 | $16,004 | $17,151 | | Provision for Credit Losses (Net) | $81 | $336 | $475 | | Non-interest Income | $2,615 | $2,798 | $2,636 | | Non-interest Expense | $10,991 | $10,624 | $10,944 | | **Net Income** | **$5,708** | **$6,296** | **$6,663** | Consolidated Statements of Income (Six Months) | ($ in thousands) | FY2024 (6 Mo) | FY2023 (6 Mo) | | :--- | :--- | :--- | | Net Interest Income | $31,639 | $34,894 | | **Net Income** | **$12,004** | **$14,169** | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows total assets of **$1.91 billion**, supported by **$1.64 billion** in deposits and equity Consolidated Balance Sheets | ($ in thousands) | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,907,234** | **$1,895,115** | **$1,786,618** | | Net Loans Receivable | $1,359,116 | $1,336,283 | $1,210,193 | | Total Deposits | $1,638,554 | $1,627,069 | $1,548,767 | | **Total Shareholders' Equity** | **$238,679** | **$237,369** | **$227,661** | [Key Ratios and Metrics](index=12&type=section&id=Key%20Ratios%20and%20Metrics) This section provides detailed performance, asset quality, and capital ratios, including average balance sheet data Performance Ratios (Quarterly) | Performance Ratios (Quarterly) | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 1.22% | 1.36% | 1.48% | | Return on average equity (ROE) | 9.67% | 10.75% | 11.86% | | Net interest margin (NIM) | 3.48% | 3.60% | 3.99% | | Efficiency ratio | 60.22% | 56.50% | 55.31% | Capital Ratios | Capital Ratios | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Tier 1 leverage capital (%) | 12.01% | 12.14% | 11.95% | | Total risk-based capital (%) | 19.33% | 19.50% | 19.41% | | Book value per common share ($) | $29.75 | $29.23 | $27.75 | [Other Information](index=7&type=section&id=Other%20Information) [About the Company](index=7&type=section&id=About%20the%20Company) Timberland Bancorp is the holding company for Timberland Bank, a community bank with 23 branches in Washington state - Timberland Bank, founded in 1915, serves consumers and businesses in Grays Harbor, Thurston, Pierce, King, Kitsap, and Lewis counties, Washington, through its **23 branches**[35](index=35&type=chunk) [Disclaimer and Forward-Looking Statements](index=7&type=section&id=Disclaimer%20and%20Forward-Looking%20Statements) This section disclaims forward-looking statements, noting risks that could cause actual results to differ materially - The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations[36](index=36&type=chunk) - Key risks include adverse economic conditions, credit risks in lending, interest rate fluctuations, regulatory changes, and competition[36](index=36&type=chunk)[37](index=37&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=15&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company provides non-GAAP financial measures like tangible common equity for clearer capital adequacy insights Non-GAAP Financial Measures Reconciliation | ($ in thousands) | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Shareholders' equity (GAAP) | $238,679 | $237,369 | $227,661 | | Less: Goodwill and CDI | ($15,695) | ($15,752) | ($15,944) | | **Tangible common equity (non-GAAP)** | **$222,984** | **$221,617** | **$211,717** | | Total assets (GAAP) | $1,907,234 | $1,895,115 | $1,786,618 | | Less: Goodwill and CDI | ($15,695) | ($15,752) | ($15,944) | | **Tangible assets (non-GAAP)** | **$1,891,539** | **$1,879,363** | **$1,770,674** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____. Commission file number 000-23333 TIMBERLAND BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 91-1863696 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-23333 TIMBERLAND BANCORP, INC. | Washington | (Exact name of registrant as specified in its charter) | 91-1863696 | | --- | --- | --- | | (State or other jurisdiction of incorporat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____. Commission file number 000-23333 TIMBERLAND BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 91-1863696 (State or other jur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____ to _____. Commission file number 000-23333 TIMBERLAND BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 91-1863696 (State or other ju ...