These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System ("Federal Reserve") in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board ("FASB"), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company's other reports filed with or furnished to the Securities and Exchange Commission. income after provision for (recapture of) credit losses 18,174 17,182 16,057 Non-interest income Service charges on deposits 991 966 1,037 ATM and debit card interchange transaction fees 1,269 1,262 1,293 Gain on sales of investment securities, net -- 24 -- Gain on sales of loans, net 208 138 135 Bank owned life insurance (“BOLI”) net earnings 1,200 171 175 Other 425 314 292 Total non-interest income, net 4,093 2,875 2,932 Non-interest expense Salaries and employee benefits 6,029 5,825 5,867 Premises and equipment 1,114 973 933 Gain on sale of premises and equipment, net -- -- 1 Advertising 208 182 205 OREO and other repossessed assets, net 3 8 4 ATM and debit card processing 578 658 588 Postage and courier 143 137 137 State and local taxes 432 570 343 Professional fees 558 341 410 FDIC insurance 211 211 209 Loan administration and foreclosure 151 99 125 Technology and communications 1,116 993 1,163 Deposit operations 350 345 446 Amortization of core deposit intangible (“CDI”) 45 45 57 Other, net 1,021 780 574 Total non-interest expense, net 11,959 11,167 11,062 Income before income taxes 10,308 8,890 7,927 Provision for income taxes 1,861 1,790 1,572 Net income $ 8,447 $ 7,100 $ 6,355 Net income per common share: Basic $ 1.07 $ 0.90 $ 0.80 Diluted 1.07 0.90 0.79 Weighted average common shares outstanding: Basic 7,880,299 7,893,308 7,954,112 Diluted 7,920,617 7,921,762 7,995,024 TIMBERLAND BANCORP INC. AND SUBSIDIARY income after provision for (recapture of) credit losses 69,266 63,016 Non-interest income Service charges on deposits 3,915 4,062 ATM and debit card interchange transaction fees 4,975 5,066 Gain on sales of investment securities, net 24 -- Gain on sales of loans, net 511 322 Bank owned life insurance (“BOLI”) net earnings 1,702 645 Other 1,225 1,041 Total non-interest income, net 12,352 11,136 Non-interest expense Salaries and employee benefits 23,922 23,730 Premises and equipment 4,112 3,998 Gain on sale of premises and equipment, net -- (2 ) Advertising 761 761 OREO and other repossessed assets, net 20 5 ATM and debit card processing 2,279 2,384 Postage and courier 544 538 State and local taxes 1,682 1,322 Professional fees 1,676 1,317 FDIC insurance 851 833 Loan administration and foreclosure 534 521 Technology and communications 4,369 4,264 Deposit operations 1,347 1,540 Amortization of core deposit intangible (“CDI”) 180 226 Other, net 3,110 2,309 Total non-interest expense, net 45,387 43,746 Income before income taxes 36,231 30,406 Provision for income taxes 7,070 6,123 Net income $ 29,161 $ 24,283 Net income per common share: Basic $ 3.68 $ 3.02 Diluted 3.67 3.01 Weighted average common shares outstanding: Basic 7,917,193 8,038,674 Diluted 7,952,626 8,080,382 TIMBERLAND BANCORP INC. AND SUBSIDIARY
Author: Timberland Bancorp, Inc.
Published at: 2025-10-30 22:33:00
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