Timberland Bancorp(US:TSBK)2025-04-24 16:55Financial Performance - Timberland Bancorp reported net income of $6.76 million, or $0.85 per diluted common share for Q2 2025, a decrease of 2% from the previous quarter but an increase of 18% year-over-year[1][9]. - For the first six months of fiscal 2025, net income increased 13% to $13.62 million, or $1.71 per diluted common share, compared to $12.00 million, or $1.47 per diluted common share for the same period in fiscal 2024[2][9]. - Net income for Q2 2025 was $6,755,000, a decrease of 1.53% from $6,860,000 in Q1 2025 and an increase of 18.34% from $5,708,000 in Q2 2024[39]. - Net income for the six months ended March 31, 2025, was $13,615,000, an increase of 13.43% from $12,004,000 for the same period in 2024[40]. Asset and Deposit Growth - Total assets increased by 1% to $1.93 billion, with a $27.14 million increase in cash and cash equivalents contributing to this growth[15][9]. - Total deposits increased by $20 million, or 1%, during the quarter, driven by increases in checking and certificates of deposit account balances[3][9]. - Total deposits rose by $20.41 million, or 1%, to $1.65 billion at March 31, 2025, driven by increases in certificates of deposit and NOW checking accounts[24]. - Total assets increased to $1,932,730 thousand as of March 31, 2025, up from $1,909,480 thousand at December 31, 2024, representing a growth of 1.3%[41]. - Total deposits reached $1,650,830 thousand, an increase from $1,630,416 thousand at the end of 2024, marking a growth of 1.3%[41]. Loan Portfolio - The loan portfolio grew by 1% from the prior quarter and 4% year-over-year, with net loans receivable reaching $1.42 billion[3][9][17]. - Total mortgage loans increased to $1,336.74 million, representing 88% of total loans as of March 31, 2025, compared to $1,277.46 million and 88% a year ago[19]. - Commercial loans totaled $131.40 million, accounting for 9% of total loans, with a slight decrease from $135.87 million in the previous year[19]. - Timberland originated $56.76 million in loans during the quarter, a decrease from $72.07 million in the prior quarter[22]. - Net loans receivable rose to $1,420,074 thousand, compared to $1,411,819 thousand at the end of 2024, reflecting an increase of 0.9%[41]. Income and Expenses - Total interest and dividend income for Q2 2025 was $24,865,000, a decrease of 1.55% from $25,257,000 in Q1 2025 and an increase of 7.37% from $23,156,000 in Q2 2024[39]. - Net interest income for Q2 2025 was $17,213,000, up 1.43% from $16,970,000 in Q1 2025 and up 9.73% from $15,635,000 in Q2 2024[39]. - Total non-interest income for Q2 2025 was $2,687,000, a slight decrease from $2,697,000 in Q1 2025 and an increase from $2,615,000 in Q2 2024[39]. - Total non-interest expense for Q2 2025 was $11,194,000, an increase from $11,067,000 in Q1 2025 and from $10,991,000 in Q2 2024[39]. Capital and Efficiency - The efficiency ratio improved to 56.25% from 56.27% in the previous quarter and 60.22% a year ago[9][13]. - Shareholders' equity increased by $3.32 million, or 1%, to $252.52 million, supported by net income of $6.76 million for the quarter[28]. - The total risk-based capital ratio stood at 20.29%, indicating strong capitalization as of March 31, 2025[29]. - Return on average assets improved to 1.43% for the three months ended March 31, 2025, up from 1.41% in the previous quarter and 1.22% a year ago[42]. - Return on average equity was 10.95% for Q2 2025, slightly down from 11.03% in Q1 2025 but up from 9.67% in Q2 2024[42]. - The efficiency ratio improved to 56.25% for Q2 2025, down from 56.27% in Q1 2025 and significantly better than 60.22% in Q2 2024[42]. Credit Quality - A provision for credit losses of $237,000 was recorded for the quarter, reflecting loan portfolio growth and changes in composition[11]. - Non-performing assets to total assets ratio improved to 0.13%, down from 0.19% a year ago, reflecting enhanced asset quality[30]. - Total delinquent loans decreased by $697,000, or 17%, to $3.32 million compared to the previous quarter[31]. - Non-performing assets decreased to $2,589 thousand, down from $2,999 thousand at December 31, 2024, indicating improved asset quality[42]. - The allowance for credit losses for loans was 1.22% of loans receivable, consistent with the previous year[30]. Dividends - The Board of Directors announced a 4% increase in the quarterly cash dividend to $0.26 per share, marking the 50th consecutive quarter of dividend payments[3][4]. Economic Outlook - The company anticipates continued challenges from economic conditions, including inflation and potential recession risks, which may impact future performance[37].