Timberland Bancorp, Inc. reported fiscal‑year‑end September 30, 2025 results that show net income rising 20% to $29.16 million and diluted earnings per share increasing 22% to $3.67. The quarter ended September 30 delivered $8.45 million in net income, or $1.07 per share, up from $7.10 million ($0.90 per share) in the prior quarter and $6.36 million ($0.79 per share) a year earlier.
Net interest margin climbed to 3.82% from 3.80% in the preceding quarter, while net interest income grew $773 k to $18.40 million. For the full year, net interest income increased $6.03 million to $70.20 million, driven by higher loan yields and loan growth. The increase in net interest margin was attributed to disciplined asset‑liability management and improved earning asset yields.
Total assets reached $2.01 billion, a 3% increase from $1.96 billion, and total deposits rose $47.16 million to $1.72 billion, a 3% gain. Net loans receivable grew $22.09 million to $1.46 billion. The provision for credit losses was $213 k, and the efficiency ratio improved to 53.18% from 54.48% in the prior quarter.
A $1.04 million bank‑owned life insurance (BOLI) benefit claim contributed to the fourth‑quarter net income. Operating expenses increased 4% for the full year, but revenue grew at a faster pace, supporting the improvement in the efficiency ratio.
The company raised its quarterly cash dividend to $0.28 per share, payable November 28, 2025, an 8% increase from the previous dividend. This marks the 52nd consecutive quarter of dividend payments. Timberland also announced the opening of a new full‑service branch in University Place later in the quarter, expanding its geographic footprint.
Capital strength remains robust, with a total risk‑based capital ratio of 20.67% and a tangible common equity to tangible assets ratio of 12.38% as of September 30, 2025. Credit quality is solid, with non‑performing assets at 0.23%, total delinquencies declining, and no net charge‑offs for the quarter.
Deposit growth was driven largely by higher non‑interest‑bearing balances, accounting for more than half of the $47.16 million increase. The company’s focus on community banking and strategic expansion into growing markets underpins its continued asset and earnings growth.
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