Timberland Bancorp(TSBK) - 2025 Q1 - Quarterly Report

Financial Position - Total assets decreased by $14.00 million, or 0.7%, to $1.91 billion at December 31, 2024, from $1.92 billion at September 30, 2024[136]. - Total deposits decreased by $17.25 million, or 1.0%, to $1.63 billion at December 31, 2024, primarily due to decreases in money market and non-interest bearing account balances[138]. - Cash and cash equivalents and CDs held for investment decreased by $3.40 million, or 1.9%, to $171.54 million at December 31, 2024[140]. - Investment securities decreased by $11.19 million, or 4.6%, to $234.03 million at December 31, 2024, primarily due to maturities and prepayments[141]. - The principal amount of loans serviced for Freddie Mac and SBA decreased by $7.46 million to $363.10 million at December 31, 2024, from $370.56 million at September 30, 2024[148]. - The Bank's liquid assets increased to $249.46 million at December 31, 2024, up from $248.06 million at September 30, 2024[185]. - Timberland Bancorp had liquid assets of $1.73 million on an unconsolidated basis as of December 31, 2024[189]. Loan Performance - Net loans receivable decreased by $9.70 million, or 0.7%, to $1.41 billion at December 31, 2024, primarily due to decreases in commercial business and commercial real estate loans[137]. - Loan originations decreased by $16.86 million, or 19.1%, to $72.07 million for the three months ended December 31, 2024, from $88.93 million for the same period in 2023[144]. - The Company recorded a decrease in commercial business loans by $3.43 million and commercial real estate loans by $2.17 million during the reporting period[143]. - The Bank originated $72.07 million in loans during the three months ended December 31, 2024, compared to $88.93 million in the same period of 2023[183]. Income and Expenses - Net income increased by $564,000, or 9.0%, to $6.86 million for the quarter ended December 31, 2024, compared to $6.30 million for the same quarter in 2023[160]. - Total interest and dividend income increased by $2.76 million, or 12.3%, to $25.26 million for the quarter ended December 31, 2024, from $22.50 million for the same quarter in 2023[162]. - Net interest income rose by $966,000, or 6.0%, to $16.97 million for the quarter ended December 31, 2024, from $16.00 million for the same quarter in 2023[161]. - Total non-interest income decreased by $101,000, or 3.6%, to $2.70 million for the quarter ended December 31, 2024, from $2.80 million for the same quarter in 2023[176]. - Total non-interest expense increased by $443,000, or 4.2%, to $11.07 million for the quarter ended December 31, 2024, from $10.62 million for the same quarter in 2023[177]. - Total interest expense increased by $1.80 million, or 27.6%, to $8.29 million for the quarter ended December 31, 2024, from $6.49 million for the same quarter in 2023[164]. Credit Quality - The provision for credit losses on loans was $52,000 for the three months ended December 31, 2024, compared to $379,000 for the same period in 2023[131]. - A provision for credit losses of $27,000 was recorded for the quarter ended December 31, 2024, compared to $336,000 for the same quarter in 2023[171]. - Net charge-offs were $242,000 for the quarter ended December 31, 2024, compared to $2,000 for the same quarter in 2023[172]. - Non-performing assets decreased by $937,000, or 23.8%, to $3.00 million at December 31, 2024, from $3.94 million at September 30, 2024[152]. Shareholders' Equity - Shareholders' equity increased by $3.79 million, or 1.5%, to $249.20 million at December 31, 2024, primarily due to net income and proceeds from stock option exercises[139]. - Total shareholders' equity increased by $3.79 million, or 1.5%, to $249.20 million at December 31, 2024, from $245.41 million at September 30, 2024[151]. - The current quarterly common stock dividend rate is $0.25 per share, resulting in an average total dividend of approximately $1.99 million per quarter[190]. Regulatory and Capital Ratios - The Bank's Tier 1 capital was $233.57 million, with a Tier 1 capital ratio of 12.23% as of December 31, 2024[195]. - As of December 31, 2024, the Bank's regulatory liquidity ratio was 12.92%[180]. - The Bank had undisbursed lines of credit and commitments to extend credit totaling $131.54 million as of December 31, 2024[183]. Efficiency Metrics - The efficiency ratio improved slightly to 56.27% for the current quarter compared to 56.50% for the same quarter one year ago[177]. - The efficiency ratio improved to 56.27% for the three months ended December 31, 2024, compared to 56.50% in 2023[197]. Interest Margin - The net interest margin increased to 3.64% for the quarter ended December 31, 2024, up from 3.60% for the same quarter in 2023[165]. - The average balance of total interest-earning assets increased by $75.76 million, or 4.3%, to $1.85 billion for the quarter ended December 31, 2024, compared to $1.78 billion for the same quarter in 2023[163]. - The average balance of loans receivable increased by $105.17 million, or 7.9%, while the average balance of interest-bearing deposits in banks and CDs increased by $40.51 million, or 32.1%[163]. Taxation - The provision for income taxes increased by $167,000, or 10.8%, to $1.71 million for the quarter ended December 31, 2024, from $1.55 million for the same quarter in 2023[178].