TSBK · Timberland Bancorp, Inc.

Timberland Bancorp delivered solid Q2 fiscal 2026 results with net income of $7.13 million and EPS of $0.90, reflecting 6% growth over the year-ago quarter despite a 13% decline from the prior quarter due to higher provision for credit losses ($523,000 vs. $16,000) and modestly lower net interest income from reduced average interest-earning assets. CEO Dean Brydon highlighted year-over-year improvements in key metrics and sound fundamentals, while noting increased delinquent and non-accrual loans from an isolated participation loan. NIM held steady at 3.81%, down 4 basis points quarter-over-quarter but up 2 basis points year-over-year, impacted by Federal Reserve rate cuts partially offset by deposit pricing strategies; one-time collections added 1 basis point this quarter vs. 6 last. Deposits grew 2% sequentially and 6% annually, supporting liquidity at 22.1% of liabilities plus $778 million in FHLB/Fed lines. Net loans dipped 1% to $1.45 billion on payoffs, with commercial loans at 39% of portfolio. The board raised confidence with the 54th consecutive quarterly dividend of $0.29 per share. Efficiency ratio rose to 55.38% from lower prior quarter levels amid higher operating expenses. Non-GAAP tangible book value per share reached $32.65, with 80,000 shares repurchased for $3.09 million. New University Place branch shows early traction for commercial growth.