Timberland Bancorp Q3 Earnings Soar 22% to $7.10M, EPS at $0.90

Timberland Bancorp reported a 22% increase in EPS to $0.90 for Q3 2025, with a 27 basis point expansion in net interest margin to 3.80%. Total assets grew 1% from the previous quarter and 3% year-over-year, while deposits increased by 1% quarter-over-quarter and 3% year-over-year. The bank also declared a quarterly cash dividend of $0.26 per share and launched a new stock repurchase program for up to 5% of outstanding shares.

Timberland Bancorp, Inc. (NASDAQ: TSBK) reported robust financial results for the third fiscal quarter ended June 30, 2025. The company's earnings per share (EPS) increased by 22% to $0.90, driven by a 27 basis point expansion in net interest margin (NIM) to 3.80%. Total assets grew by 1% from the previous quarter and by 3% year-over-year, while deposits increased by 1% quarter-over-quarter and by 3% year-over-year. The bank also declared a quarterly cash dividend of $0.26 per share and launched a new stock repurchase program for up to 5% of outstanding shares.

Dean Brydon, Chief Executive Officer, commented on the strong performance, stating, "Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth." The increase in net income and EPS was primarily due to higher net interest income and non-interest income. The company's return on average equity (ROE) and return on average assets (ROA) for the quarter were 11.23% and 1.47%, respectively.

The bank's net interest margin continued to show positive momentum, expanding to 3.80% from 3.79% in the previous quarter and 3.53% a year ago. Total deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit. The loan portfolio expanded at a steady pace, growing by 2% over the prior quarter and by 3% year-over-year.

Timberland Bancorp's balance sheet highlights include a 2% increase in total assets and a 6% increase in total shareholders' equity from the prior quarter. The company's tangible book value per share (non-GAAP) continued its upward trend, increasing to $30.62. Liquidity remained strong with only $20 million in borrowings and an additional secured borrowing line capacity of $674 million available through the Federal Home Loan Bank (FHLB) and the Federal Reserve.

Operating revenue increased by 3% to $20.50 million for the current quarter, primarily due to increases in total interest and dividend income and non-interest income. Net interest income increased by $409,000, or 2%, to $17.62 million, while non-interest income increased by $188,000, or 7%, to $2.88 million. The company recorded a provision for credit losses on loans of $351,000 for the quarter.

Jonathan Fischer, President and Chief Operating Officer, stated, "As a result of Timberland’s strong earnings and sound capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.26 per share." The new stock repurchase program allows the company to repurchase up to 5% of the outstanding shares, or 393,842 shares.

The company's strong performance positions it well to navigate the current environment and drive long-term shareholder value.

References:
[1] https://finance.yahoo.com/news/timberland-bancorp-third-fiscal-quarter-213700804.html