Timberland Bancorp reported fiscal second‑quarter 2026 results, posting net income of $7.13 million and earnings per diluted share of $0.90. Net income grew 6% year‑over‑year from $6.76 million, but fell 13% sequentially from $8.22 million in the prior quarter, reflecting a higher provision for credit losses and a modest decline in net interest income.
The bank’s net interest margin stood at 3.81%, a four‑basis‑point decline from the previous quarter but a two‑basis‑point improvement year‑over‑year. The margin shift reflects disciplined asset repricing and deposit‑cost management in a competitive rate environment.
Credit quality remained solid, with non‑performing assets at 0.47% of total assets—up from 0.23% a year earlier—due to a $523,000 provision for credit losses. The provision was driven by changes in the loan portfolio and an increase in non‑accrual loans. Net loans were slightly down 1% sequentially but up 2% year‑over‑year.
Deposits grew 6% year‑over‑year, though the exact figure was not disclosed. Net interest income for the quarter was $18.24 million, adjusted revenue reached $21.1 million, and total revenue was $28.8 million.
The bank declared a quarterly cash dividend of $0.29 per share, payable on May 22, 2026 to shareholders of record on May 8, 2026. This marks the 54th consecutive quarter of dividend payments. Insiders sold $0.5 million of shares in the past three months.
"Timberland delivered another strong quarter, with net income and earnings per share both growing 6% compared to the year‑ago quarter. Net income and earnings per share were down 13% from the prior quarter, primarily due to higher provision for credit losses and a modest reduction in net interest income reflecting a decrease in average interest‑earning assets," said CEO Dean Brydon. "As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.29 per share, payable on May 22, 2026, to shareholders of record on May 8, 2026. This represents the 54th consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board’s continued confidence in our long‑term outlook," added COO Jonathan Fischer.
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