[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 ...

Financial Position - Total assets decreased by $73.89 million, or 4.0%, to $1.79 billion at March 31, 2023, from $1.86 billion at September 30, 2022[126] - Total deposits decreased by $83.41 million, or 5.1%, to $1.55 billion at March 31, 2023, from $1.63 billion at September 30, 2022[128] - Cash and cash equivalents decreased by $177.00 million, or 52.1%, to $162.65 million at March 31, 2023, from $339.65 million at September 30, 2022[130] - The Bank's liquid assets decreased to $218.34 million as of March 31, 2023, from $381.90 million at September 30, 2022, representing a decline of approximately 42.8%[180] Loan Performance - Net loans receivable increased by $77.77 million, or 6.9%, to $1.21 billion at March 31, 2023, from $1.13 billion at September 30, 2022[127] - The increase in net loans receivable was primarily due to increases in one- to four-family loans by $40.52 million and multi-family construction loans by $18.57 million[133] - Loan originations decreased by $128.20 million, or 41.8%, to $178.81 million for the six months ended March 31, 2023 from $307.01 million for the same period in 2022[134] - Total delinquent loans and non-accrual loans increased by $95,000, or 4.5%, to $2.19 million at March 31, 2023, compared to $2.10 million at September 30, 2022[169] - The allowance for loan losses was $14.70 million at March 31, 2023, representing 1.20% of loans receivable[169] Income and Expenses - Net income increased by $3.36 million, or 31.1%, to $14.17 million for the six months ended March 31, 2023 from $10.81 million for the same period in 2022[145] - Net interest income increased by $9.31 million to $34.89 million for the six months ended March 31, 2023 from $25.59 million for the same period in 2022[152] - Total interest and dividend income increased by $11.64 million for the six months ended March 31, 2023, contributing to the rise in net interest income[152] - Total non-interest income decreased by $447,000, or 14.5%, to $2.64 million for the quarter ended March 31, 2023, primarily due to a $370,000 decrease in net gain on sales of loans[169] - Total non-interest expense increased by $1.61 million, or 17.3%, to $10.94 million for the quarter ended March 31, 2023, driven by an $854,000 increase in salaries and employee benefits[171] Interest Rates and Margins - The average yield on interest-earning assets increased by 142 basis points to 4.51% for the quarter ended March 31, 2023 from 3.09% for the same period in 2022[149] - Total interest expense increased by $1.61 million, or 256.6%, to $2.24 million for the quarter ended March 31, 2023 from $627,000 for the same period in 2022[150] - The average cost of interest-bearing liabilities increased to 0.84% for the quarter ended March 31, 2023 from 0.23% for the same period in 2022[150] - Net interest margin increased to 4.02% for the six months ended March 31, 2023, from 2.93% for the same period in 2022[160] - The net interest margin increased to 3.99% for the three months ended March 31, 2023, up from 2.95% in the prior year[193] Capital and Liquidity - Shareholders' equity increased by $9.09 million, or 4.2%, to $227.66 million at March 31, 2023, from $218.57 million at September 30, 2022[129] - The Bank's regulatory liquidity ratio at March 31, 2023, was 16.96%, indicating sufficient liquidity to meet short-term needs[176] - The Bank exceeded all regulatory capital requirements as of March 31, 2023, maintaining a "well-capitalized" status under FDIC regulations[189] - The Bank's Tier 1 capital was $211.485 million, with a Tier 1 capital ratio of 11.89% as of March 31, 2023, significantly above the minimum requirement of 4.00%[191] - Timberland Bancorp's total capital was $228.429 million with a total capital ratio of 19.41% as of March 31, 2023, exceeding regulatory requirements[192] Dividends and Future Commitments - The current quarterly common stock dividend rate is $0.23 per share, with an estimated total dividend payment of approximately $1.89 million per quarter based on outstanding shares as of March 31, 2023[186] - The Bank projects fixed commitments of $155,000 for operating lease payments for the six months ending September 30, 2023, with no scheduled payments for FHLB borrowings during fiscal year 2023[183]

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, 2022 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, 2022 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 ...

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, 2022 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 jurisdiction of incorporation or organization) (IRS Employer Identification ...

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, 2022 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 ...

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, 2021 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 ...