Timberland Bancorp Reports 18.3% Increase in Net Income for Q2 Fiscal 2025

Timberland Bancorp, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net income of $6.76 million, a significant increase of 18.3% compared to $5.71 million in the same quarter of the previous year. This growth translated to a diluted earnings per share of $0.85, up from $0.70. The increase in net income was primarily driven by a $1.58 million rise in net interest income, which reached $17.21 million, alongside a $72,000 increase in non-interest income. The company’s total interest and dividend income rose to $24.87 million, reflecting a 7.4% increase from the prior year, largely due to higher yields on loans and investment securities.

In terms of overall financial performance, Timberland Bancorp's total assets increased slightly by $9.26 million, or 0.5%, to $1.93 billion as of March 31, 2025. This growth was attributed to a rise in cash and cash equivalents, which increased by $26.48 million, offset by a decrease in investment securities. The company’s net loans receivable remained relatively stable, decreasing marginally by $1.45 million to $1.42 billion, with notable declines in construction and commercial business loans. Total deposits also saw a modest increase of $3.16 million, or 0.2%, to $1.65 billion, primarily due to growth in certificates of deposit and savings accounts.

Operationally, Timberland Bancorp has maintained a strong capital position, with total shareholders' equity rising by $7.11 million, or 2.9%, to $252.52 million. This increase was supported by net income and proceeds from stock option exercises, although it was partially offset by dividend payments and stock repurchases. The company’s efficiency ratio improved to 56.25% for the quarter, down from 60.22% a year earlier, indicating better cost management relative to revenue generation.

Looking ahead, Timberland Bancorp remains focused on its strategic objectives, including enhancing its digital banking capabilities and expanding its loan offerings. The company has indicated that it will continue to pay quarterly dividends, with the most recent increase to $0.26 per share approved by the Board of Directors. Management is optimistic about maintaining its well-capitalized status and is prepared to navigate potential economic challenges, including fluctuations in interest rates and market conditions. The company’s liquidity position is robust, supported by available lines of credit and a strong deposit base, positioning it well for future growth opportunities.