Timberland Bancorp (TSBK) Q1 2026 earnings summary

Executive summary

• Net income for the quarter ended December 31, 2025, rose 19.8% year-over-year to $8.22 million, with diluted EPS up 21% to $1.04, driven by higher net interest income and improved efficiency; sequentially, net income was down 3% due to a prior quarter BOLI benefit claim.

• Total assets were $2.01 billion, net loans receivable $1.46 billion, and total deposits $1.70 billion at quarter-end, with assets and deposits both up 5% year-over-year.

• Shareholders' equity increased 8% year-over-year to $268.41 million, reflecting strong earnings, offset by dividends and share repurchases.

• Board approved a 4% increase in the quarterly cash dividend to $0.29 per share, marking the 53rd consecutive quarterly dividend.

• Opened a new full-service branch in University Place, WA, to expand market presence.

Financial highlights

• Net interest income increased 12% year-over-year to $18.95 million, with net interest margin rising to 3.85%, up 21 bps year-over-year.

• Total interest and dividend income grew 7.7% to $27.20 million, while interest expense declined 0.5% to $8.25 million.

• Non-interest income rose 2.5% year-over-year to $2.76 million, but decreased 32% sequentially due to a prior quarter BOLI claim.

• Non-interest expense increased 3.3% to $11.43 million, primarily due to higher salaries, premises, and taxes.

• Efficiency ratio improved to 52.65% from 56.27% a year ago.

Outlook and guidance

• Management expects continued focus on disciplined loan growth, liquidity, and capital management, with an emphasis on stable margin performance and proactive deposit pricing strategies.

• Quarterly dividend of $0.29 per share announced, with ongoing share repurchase program in place.

• Liquidity and capital levels are expected to remain strong, supporting future growth and shareholder returns.