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 18,984 18,174 16,943 Non-interest income Service charges on deposits 989 991 999 ATM and debit card interchange transaction fees 1,194 1,269 1,267 Gain on sales of loans, net 78 208 43 Bank owned life insurance (“BOLI”) net earnings 158 1,200 167 Other 345 425 221 Total non-interest income, net 2,764 4,093 2,697 Non-interest expense Salaries and employee benefits 6,453 6,029 6,092 Premises and equipment 1,074 1,114 950 Advertising 192 208 181 OREO and other repossessed assets, net 5 3 -- ATM and debit card interchange transaction fees 582 578 521 Postage and courier 143 143 121 State and local taxes 457 432 346 Professional fees 316 558 346 FDIC insurance 221 211 210 Loan administration and foreclosure 80 151 128 Technology and communications 1,055 1,116 1,140 Deposit operations 347 350 332 Amortization of core deposit intangible (“CDI”) 34 45 45 Other, net 472 1,021 655 Total non-interest expense, net 11,431 11,959 11,067 Income before income taxes 10,317 10,308 8,573 Provision for income taxes 2,101 1,861 1,713 Net income $8,216 $8,447 $6,860 Net income per common share: Basic $1.04 $1.07 $0.86 Diluted 1.04 1.07 0.86 Weighted average common shares outstanding: Basic 7,885,656 7,880,299 7,958,275 Diluted 7,923,037 7,920,617 7,999,504 CONSOLIDATED BALANCE SHEETS ($ in thousands, except per share amounts) (unaudited) Dec. 31, Sept. 30, Dec. 31, 2025 2025 2024 Assets Cash and due from financial institutions $23,176 $23,649 $24,538 Interest-bearing deposits in banks 223,688 219,779 139,533 Total cash and cash equivalents 246,864 243,428 164,071 Certificates of deposit (“CDs”) held for investment, at cost 6,470 7,217 7,470 Investment securities: Held to maturity, at amortized cost (net of ACL – investment securities) 133,259 136,861 156,105 Available for sale, at fair value 75,243 78,240 77,080 Investments in equity securities, at fair value 867 864 840 FHLB stock, at cost 2,045 2,045 2,037 Other investments, at cost 3,000 3,000 3,000 Loans held for sale 3,736 1,127 411 Loans receivable 1,476,957 1,481,681 1,429,107 Less: ACL – loans (18,125 ) (18,091 ) (17,288 ) Net loans receivable 1,458,832 1,463,590 1,411,819 Premises and equipment, net 21,826 21,684 21,617 OREO and other repossessed assets, net 221 221 221 BOLI 21,988 21,830 23,777 Accrued interest receivable 7,435 7,393 7,095 Goodwill 15,131 15,131 15,131 CDI 237 271 406 Loan servicing rights, net 678 815 1,195 Operating lease right-of-use assets 2,856 2,949 1,400 Other assets 5,439 6,113 15,805 Total assets $2,006,127 $2,012,779 $1,909,480 Liabilities and shareholders’ equity Deposits: Non-interest-bearing demand $404,300 $430,685 $402,911 Deposits: Interest-bearing 1,300,182 1,285,950 1,227,505 Total deposits 1,704,482 1,716,635 1,630,416 Operating lease liabilities 3,015 3,077 1,501 FHLB borrowings 20,000 20,000 20,000 Other liabilities and accrued expenses 10,221 10,453 8,364 Total liabilities 1,737,718 1,750,165 1,660,281 Shareholders’ equity Common stock, $.01 par value; 50,000,000 shares authorized; 7,879,828 shares issued and outstanding – December 31, 2025
Author: Timberland Bancorp, Inc.
Published at: 2026-01-26 21:15:00
Still want to read the full version? Full article
