Timberland Bancorp (TSBK) investor relations material

Executive summary

• Net income for the quarter ended March 31, 2026 increased 5.6% year-over-year to $7.13 million, with diluted EPS up 5.9% to $0.90, though both declined sequentially from Q1 2026.

• For the six months ended March 31, 2026, net income rose 12.7% to $15.35 million, and diluted EPS increased 13.5% to $1.94.

• Return on average assets was 1.43% and return on average equity was 10.72% for the quarter.

• Board declared a $0.29 per share quarterly dividend, marking 54 consecutive quarters of dividends.

• Opened a new full-service branch in University Place in January 2026, contributing to higher premises and equipment expenses.

Financial highlights

• Total assets grew to $2.05 billion at March 31, 2026, up 1.7% sequentially and 6% year-over-year, primarily from higher cash and deposits.

• Net loans receivable were $1.45 billion, down 0.9% sequentially but up 2% year-over-year, with declines in construction and land development loans.

• Total deposits increased to $1.74 billion, up 1.5% sequentially and 6% year-over-year, led by money market and NOW checking accounts.

• Shareholders’ equity rose 3.2% to $271.09 million, reflecting net income partially offset by dividends and share repurchases.

• Non-performing assets increased to 0.47% of total assets, driven by a rise in non-accrual loans, especially in commercial real estate.

Outlook and guidance

• Management expects continued focus on core deposit growth, disciplined loan origination, and maintaining strong capital and liquidity positions.

• The company plans to continue quarterly dividends and share repurchases, subject to board discretion and market conditions.

• Focus continues on margin stability and proactive deposit pricing to mitigate rate cut impacts.

• Board's continued dividend payments reflect confidence in long-term outlook.

• Management remains confident in loan portfolio strength and disciplined credit risk management.