Timberland Bancorp(TSBK) - 2026 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net income for fiscal 2025 was $29.2 million, an all-time record, and $4.9 million higher than fiscal 2024 [9] - Earnings per share (EPS) for fiscal 2025 was $3.67, also an all-time record, representing a 22% increase from fiscal 2024 [9] - Return on assets for fiscal 2025 was 1.5%, and return on equity was 11.56%, both favorable compared to peers [10] - Total assets grew by 5% in 2025, surpassing the $2 billion mark [10] - Total capital was over $268 million at the end of the most recent quarter, with strong capital ratios exceeding regulatory levels [10][11] - Cash dividend increased to $0.29 per share, marking the 53rd consecutive quarter of dividend payments [11] Business Line Data and Key Metrics Changes - Total deposits increased by 5% in 2025 after a 4% decrease in fiscal 2023 and a 6% increase in 2024 [12] - The loan portfolio increased by 51% since 2021, although growth has flattened recently due to increased loan payoffs [13] - Non-performing assets were only 23 basis points of total assets at the end of the most recent quarter, indicating strong asset quality [15] Market Data and Key Metrics Changes - The banking industry faced significant challenges in 2023 and 2024, including deposit outflows and margin compression, but 2025 showed improvement with a more favorable yield curve [8] - Timberland Bancorp's stock outperformed the Nasdaq Bank Index and the KBW Regional Bank Index over the past five years, with the stock price increasing from $29.52 to $37.42 [18] Company Strategy and Development Direction - The company is focused on expanding its branch network, recently opening a new branch in University Place, Washington, to better serve local customers [20] - There is an emphasis on enhancing technology resources, including online banking and partnerships with Fintechs to improve customer engagement [24] - The company aims to maintain a strong focus on community service, supporting local food banks and nonprofits [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by the banking industry in recent years but expressed optimism about the recovery and improved profitability in 2025 [8] - The company is committed to maintaining effective fraud controls and enhancing customer service through technology improvements [25][26] Other Important Information - The company has a diversified loan portfolio, with commercial real estate loans being the largest category at 39% [14] - The efficiency ratio remains favorable compared to peer groups, reflecting effective expense management [17] Q&A Session Summary - No questions were submitted during the Q&A session [29]