Timberland Bancorp(TSBK) - 2024 Q3 - Quarterly Results

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].