Timberland Bancorp(TSBK) - 2025 Q4 - Annual Results

Financial Performance - Timberland Bancorp's net income for the fiscal year 2025 increased 20% to $29.16 million from $24.28 million in 2024[2] - Earnings per diluted common share (EPS) rose 22% to $3.67 for fiscal year 2025, compared to $3.01 for fiscal year 2024[2] - For Q4 2025, net income was $8.45 million, a 19% increase from the previous quarter and a 33% increase year-over-year[3][11] - Net income for Q4 2025 was $8,447 million, representing a 19.0% increase from $7,100 million in Q3 2025 and a 33.0% increase from $6,355 million in Q4 2024[39] - Net income rose to $29,161,000 for the year ended September 30, 2025, compared to $24,283,000 in 2024, reflecting a growth of 20.0%[40] Asset and Deposit Growth - Total assets surpassed $2 billion for the first time, increasing 3% from the prior quarter and 5% year-over-year[11][17] - Total assets reached $2,012,779,000 as of September 30, 2025, up from $1,923,475,000 a year earlier, marking a growth of 4.6%[41] - Total deposits increased by $47 million, or 3%, with a notable growth in non-interest-bearing balances[4][11] - Total deposits grew to $1,716,635,000 as of September 30, 2025, compared to $1,647,668,000 in 2024, an increase of 4.2%[41] Loan Performance - Total loans receivable, net increased to $1,463,590 thousand at September 30, 2025, up from $1,441,496 thousand at June 30, 2025, and $1,421,523 thousand at September 30, 2024[20] - Timberland originated $100.09 million in loans during the quarter ended September 30, 2025, compared to $81.99 million for the preceding quarter and $48.82 million for the comparable quarter one year ago[23] - Total loans increased to $4,407 million in Q4 2025, up 14.7% from $3,843 million in Q3 2025 and up 13.4% from $3,885 million in Q4 2024[34] Income and Expense Analysis - Non-interest income for Q4 2025 increased 42% to $4.09 million, driven by a $1.04 million bank-owned life insurance death benefit claim[14] - Total interest and dividend income reached $26,611 million in Q4 2025, an increase of 4.2% from $25,544 million in Q3 2025 and 6.3% from $25,035 million in Q4 2024[39] - Total non-interest expense rose to $11,959 million in Q4 2025, compared to $11,167 million in Q3 2025 and $11,062 million in Q4 2024[39] Efficiency and Ratios - The efficiency ratio improved to 53.18% in Q4 2025, down from 54.48% in the previous quarter and 56.79% year-over-year[11][15] - Return on average assets improved to 1.68% in Q4 2025, up from 1.32% in Q4 2024[42] - The allowance for credit losses for loans as a percentage of loans receivable was 1.22% at September 30, 2025, compared to 1.23% at June 30, 2025[31] Capital and Shareholder Value - Total shareholders' equity increased by $5.95 million, or 2%, to $262.61 million at September 30, 2025, driven by net income of $8.45 million[29] - Basic net income per common share was $1.07 in Q4 2025, up from $0.90 in Q3 2025 and $0.80 in Q4 2024[39] - Book value per common share increased to $33.29 in Q4 2025 from $30.83 in Q4 2024, reflecting a growth of 8.0%[42] Future Outlook and Risks - The company anticipates potential risks including economic conditions, inflation, and regulatory changes that may impact future performance[36] - Timberland plans to open a new full-service branch in University Place, enhancing its market presence[6]