Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million

Core Viewpoint - Timberland Bancorp, Inc. reported strong financial results for the third fiscal quarter of 2025, with significant increases in net income and earnings per share, driven by net interest margin expansion and steady balance sheet growth [3][9]. Earnings Highlights - Net income for the quarter ended June 30, 2025, was $7.10 million, or $0.90 per diluted common share, representing a 5% increase from the previous quarter and a 20% increase year-over-year [1][9]. - For the first nine months of fiscal 2025, net income rose 16% to $20.72 million, or $2.60 per diluted common share, compared to $17.93 million, or $2.21 per diluted common share for the same period in fiscal 2024 [2][9]. - The quarterly return on average assets increased to 1.47%, and return on average equity rose to 11.23% [9][5]. Balance Sheet Highlights - Total assets increased by 1% from the prior quarter to $1.96 billion and grew 3% year-over-year [15][9]. - Total deposits rose by $18.65 million, or 1%, to $1.67 billion during the quarter, with significant increases in certificates of deposit and money market accounts [24][9]. - Total shareholders' equity increased by 2% from the prior quarter to $256.66 million, reflecting strong earnings and a stock repurchase program [28][9]. Net Interest Margin and Income - The net interest margin expanded to 3.80%, a one basis point increase from the prior quarter and a 27 basis point improvement year-over-year [3][9]. - Net interest income for the current quarter increased by 2% to $17.62 million, and for the first nine months of fiscal 2025, it rose by 9% to $51.81 million [8][10]. Stock Repurchase Program - The Board of Directors announced a new stock repurchase program allowing the company to repurchase up to 5% of outstanding shares, replacing the previous program [30][31]. Asset Quality - The non-performing assets to total assets ratio was 0.21% at June 30, 2025, compared to 0.13% at March 31, 2025, and 0.22% at June 30, 2024 [32][9]. - Total delinquent loans increased by 86% to $6.18 million, primarily due to one loan being past maturity [33][9]. Loan Portfolio - Net loans receivable increased by 2% during the quarter to $1.44 billion, with notable growth in multi-family and commercial real estate loans [17][9]. - Timberland originated $81.99 million in loans during the quarter, compared to $56.76 million for the preceding quarter [22][9].