Timberland Bancorp(TSBK) - 2026 Q1 - Quarterly Report

Financial Position - Total assets decreased by $6.65 million, or 0.3%, to $2.01 billion at December 31, 2025, from $2.013 billion at September 30, 2025[139] - Net loans receivable decreased by $4.76 million, or 0.3%, to $1.46 billion at December 31, 2025, primarily due to decreases in construction and land loans[140] - Total deposits decreased by $12.15 million, or 0.7%, to $1.70 billion at December 31, 2025, primarily due to decreases in non-interest deposit account balances[141] - Other assets decreased by $674,000, or 11.0%, to $5.44 million at December 31, 2025, from $6.11 million at September 30, 2025[152] - The principal amount of loans serviced for Freddie Mac and the U.S. Small Business Administration decreased by $4.99 million to $352.02 million at December 31, 2025, from $357.01 million at September 30, 2025[151] - The Bank's liquid assets decreased to $329.44 million at December 31, 2025, from $329.75 million at September 30, 2025[191] Shareholders' Equity - Shareholders' equity increased by $5.80 million, or 2.2%, to $268.41 million at December 31, 2025, primarily due to net income earned during the current period[142] - Total shareholders' equity increased by $5.80 million, or 2.2%, to $268.41 million at December 31, 2025, from $262.61 million at September 30, 2025, primarily due to net income of $8.22 million[156] Income and Expenses - Net income increased by $1.36 million, or 19.8%, to $8.22 million for the quarter ended December 31, 2025, from $6.86 million for the same period in 2024[166] - Net interest income increased by $1.98 million, or 11.7%, to $18.95 million for the quarter ended December 31, 2025, compared to $16.97 million for the same quarter in 2024[167] - Total interest and dividend income rose by $1.94 million, or 7.7%, to $27.20 million for the quarter ended December 31, 2025, from $25.26 million in the prior year[168] - Total non-interest expense rose by $364,000, or 3.3%, to $11.43 million for the quarter ended December 31, 2025, from $11.07 million in the same quarter of 2024[183] - The provision for income taxes increased by $388,000, or 22.7%, to $2.10 million for the quarter ended December 31, 2025, primarily due to higher pre-tax income[185] Loan Activity - Loan originations increased by $992,000, or 1.4%, to $73.06 million for the three months ended December 31, 2025, compared to $72.07 million for the same period in 2024[147] - The Bank originated $73.06 million in loans during the three months ended December 31, 2025, compared to $72.07 million in the same period of 2024[189] - Sales of fixed-rate one- to four-family loans increased by $1.36 million, or 58.7%, to $3.66 million for the three months ended December 31, 2025, from $2.31 million for the same period in 2024[148] - The loan-to-deposit ratio was approximately 85.59% at December 31, 2025, compared to 85.26% at September 30, 2025[154] Asset Quality - Non-performing assets decreased by $126,000, or 2.7%, to $4.54 million at December 31, 2025, from $4.66 million at September 30, 2025[158] - Substandard loans decreased by $24.19 million to $8.61 million at December 31, 2025, from $32.81 million at September 30, 2025[159] - The provision for credit losses on loans was $16,000 for the three months ended December 31, 2025, compared to $52,000 for the same period in 2024[133] - Net recoveries totaled $18,000 for the quarter ended December 31, 2025, compared to net charge-offs of $242,000 for the same quarter in 2024[180] Market Conditions - The Federal Open Market Committee reduced the target range for the federal funds rate to 3.50% to 3.75% at December 31, 2025[132] - Net interest income is influenced by changes in market interest rates and the volume of interest-earning assets[132] Efficiency and Ratios - The efficiency ratio improved to 52.65% for the current quarter, compared to 56.27% for the comparable quarter one year ago[184] - The efficiency ratio improved to 52.65% for the three months ended December 31, 2025, from 56.27% in 2024[202] - The Bank's return on average assets for the three months ended December 31, 2025, was 1.60%, compared to 1.41% in 2024[202] Capital Position - The Bank's Tier 1 capital was $252.59 million, with a Tier 1 capital ratio of 19.86% as of December 31, 2025[200] - The Bank's total capital was $268.51 million, with a total capital ratio of 21.12% as of December 31, 2025[200] Liquidity - As of December 31, 2025, the Bank's regulatory liquidity ratio was 16.90%[187] - Timberland Bancorp had liquid assets of $1.41 million as of December 31, 2025[195] Dividends - The cash dividend rate announced on January 26, 2026, is $0.29 per share, resulting in an average total quarterly dividend of approximately $2.29 million[196]