Highlights

  • Fiscal 2025 net income increased 20% year-over-year to USD 29.16 million.
  • Quarterly net income climbed 33% YoY to USD 8.45 million.
  • Announces 8% dividend increase and new branch in University Place.

Timberland Bancorp, Inc. (NASDAQ:TSBK), the holding company for Timberland Bank, reported a 20% increase in net income to USD 29.16 million for the fiscal year ended September 30, 2025, compared to USD 24.28 million in the prior year. Earnings per share rose 22% year-over-year to USD 3.67.

Fiscal Year Performance – Double-Digit Growth Across Metrics

For the fourth quarter, net income was USD 8.45 million, or USD 1.07 per diluted share, compared to USD 7.10 million, or USD 0.90 per diluted share, in the preceding quarter, and USD 6.36 million, or USD 0.79 per diluted share, in the same quarter last year.

“We closed our fiscal year with record results, reflecting the hard work and dedication of our employees in serving our customers, communities and shareholders,” stated Dean Brydon, Chief Executive Officer. “For the full year, net income and earnings per share reached new highs with year-over-year gains across every major profitability measure.”

Dividend Increase and Branch Expansion

Jonathan Fischer, President and Chief Operating Officer, said, “As a result of Timberland’s strong earnings and capital position, our Board of Directors announced an 8% increase to the quarterly cash dividend to shareholders to USD 0.28 per share, payable on November 28, 2025, to shareholders of record on November 14, 2025.” He added that this marks the 52nd consecutive quarter of dividend payments, demonstrating the Board’s confidence in the company’s outlook”.

Margin and Balance Sheet Expansion

Marci Basich, Chief Financial Officer, reported that the company’s net interest margin rose to 3.82% in the fourth quarter, up two basis points from the previous quarter and 24 basis points year-over-year. “Total deposits increased by USD 47 million, or 3%, with more than half of that growth driven by higher non-interest-bearing balances,” she said.

Total assets grew 3% sequentially, surpassing USD 2 billion for the first time in company history. Net loans receivable rose 2% from the prior quarter and 3% year-over-year, while total deposits increased 3% from the previous quarter and 4% from a year ago.

Asset Quality and Capital Position

Non-performing assets represented 0.23% of total assets at September 30, 2025, compared to 0.21% in the previous quarter. The company reported no net charge-offs for the period. Total shareholders’ equity increased 7% year-over-year to USD 262.61 million. Timberland Bancorp remains well capitalized, with a total risk-based capital ratio of 20.67%, a Tier 1 leverage capital ratio of 12.59%, and a tangible common equity to tangible assets ratio of 12.38%.