Timberland Bancorp (TSBK) Q1 2025 earnings summary

Executive summary

• Net income rose 9% year-over-year to $6.86 million for the quarter ended December 31, 2024, with EPS up 11.7% to $0.86 per diluted share.

• Return on average assets improved to 1.41% and return on average equity to 11.03% for the quarter.

• Net interest margin expanded to 3.64%, up from 3.60% a year ago, driven by lower funding costs.

• Board declared a $0.25 per share quarterly dividend, marking the 49th consecutive payout.

• Tangible book value per share increased to $29.37.

Financial highlights

• Net interest income increased 6% year-over-year to $16.97 million.

• Operating revenue grew 5% year-over-year to $19.67 million.

• Non-interest income decreased 4% year-over-year, mainly due to lower service charges and loan sales.

• Non-interest expense rose 4.2% to $11.07 million, primarily from higher salaries, technology, and professional fees.

• Provision for credit losses decreased to $27,000 from $336,000 year-over-year.

Outlook and guidance

• Management expects adequate liquidity and capital to meet obligations for at least the next 12 months.

• No material capital expenditures are projected for the remainder of fiscal 2025.

• Quarterly dividend of $0.25 per share is expected to continue, subject to Board discretion.

• Management remains optimistic about loan portfolio strength and sees opportunities for loan growth in core markets.

• Liquidity remains robust with $656 million in secured borrowing capacity and only $20 million in borrowings.