Timberland Bancorp(TSBK) - 2026 Q1 - Quarterly Results

Financial Performance - Net income for the first fiscal quarter increased 20% year-over-year to $8.22 million, or $1.04 per diluted common share[1][9] - Earnings per share (EPS) rose 21% compared to the same quarter last year, from $0.86 to $1.04[3][9] - Net income for Q1 2026 was $8,216,000, representing a 19.7% increase compared to $6,860,000 in Q1 2025[36] - Total shareholders' equity rose by $5,800 thousand, or 2%, to $268,410 thousand at December 31, 2025, driven by net income of $8,220 thousand[26] - The company reported a basic net income per share of $1.04 for Q1 2026, compared to $0.86 in Q1 2025[36] Revenue and Income - Operating revenue decreased 3% from the previous quarter to $21.71 million but increased 10% year-over-year[6][9] - Total interest and dividend income for Q1 2026 was $27,195,000, an increase of 6.5% from $25,257,000 in Q1 2025[36] - Net interest income reached $18,949,000, up 11.6% from $16,970,000 in the same quarter last year[36] - Non-interest income decreased 32% from the previous quarter to $2.76 million, primarily due to a prior quarter BOLI benefit claim[10][11] - Non-interest income for Q1 2026 was $2,764,000, a decrease from $4,093,000 in Q4 2025[36] Asset and Deposit Management - Total assets remained stable, decreasing less than 1% from the prior quarter to $2.01 billion, while increasing 5% year-over-year[13][9] - Total deposits decreased 1% from the prior quarter but increased 5% year-over-year[9][10] - Total deposits amounted to $1,704,482,000, down from $1,716,635,000 in the previous quarter[37] - Total assets as of December 31, 2025, were $2,006,127,000, a slight decrease from $2,012,779,000 at the end of Q3 2025[37] Loan and Credit Quality - Total mortgage loans increased to $1,389,294 thousand, representing 89% of total loans as of December 31, 2025, compared to $1,332,645 thousand or 88% a year earlier[17] - The allowance for credit losses for loans was 1.23% of loans receivable at December 31, 2025, slightly up from 1.21% a year ago[28] - Total delinquent loans increased by $397 thousand, or 7%, to $6,050 thousand at December 31, 2025, compared to $5,660 thousand in the prior quarter[29] - The non-performing assets to total assets ratio remained stable at 0.23% as of December 31, 2025, compared to the previous quarter[28] - The allowance for credit losses to non-accrual loans ratio was 423% in Q1 2026, up from 411% in Q4 2025[38] Efficiency and Ratios - The efficiency ratio improved to 52.65%, down from 53.18% in the previous quarter and 56.27% year-over-year[9][11] - Return on average assets for Q1 2026 was 1.60%, a decrease from 1.68% in Q4 2025 and an increase from 1.41% in Q1 2024[38] - Return on average equity for Q1 2026 was 12.33%, down from 12.97% in Q4 2025 and up from 11.03% in Q1 2024[38] - The Tier 1 risk-based capital ratio improved to 20.01% in Q1 2026 from 19.42% in Q4 2025, indicating stronger capital adequacy[38] Strategic Developments - A new full-service branch was opened in University Place on January 12, 2026, to enhance market presence[2] - The company announced a 4% increase in the quarterly cash dividend to $0.29 per share, reflecting confidence in long-term outlook[2][9]