Executive Summary

EPS rose 6% q/q to $0.90 and 22% y/y versus $0.74; net income increased 5% q/q to $7.10M and 20% y/y, driven by higher net interest income and non-interest income .
Net interest margin expanded to 3.80% (up 1 bp q/q, +27 bps y/y); efficiency ratio improved to 54.48% from 56.25% in Q2 and 58.97% y/y, reflecting disciplined asset-liability management and cost control .
Balance sheet growth continued: total assets +1% q/q to $1.96B, deposits +1% q/q to $1.67B, and net loans +2% q/q to $1.44B; liquidity strong with $674M in secured borrowing capacity and only 17% uninsured/uncollateralized deposits .
Capital return remained a catalyst: the Board declared a $0.26 dividend (51st consecutive quarter) and adopted a new stock repurchase program up to 5% of shares outstanding (393,842 shares), replacing the prior program .
Credit quality mixed: NPAs/Assets increased to 0.21% from 0.13% q/q due largely to a single matured loan, while net recoveries of $1K and ACL/loans at 1.23% indicate ongoing credit discipline .

What Went Well and What Went Wrong

What Went Well

Margin and profitability momentum: “Net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%,” aided by asset yields and fee/discount accretion; ROA 1.47% and ROE 11.23% improved y/y .
Balanced growth and strong liquidity: Assets, loans, and deposits each increased ~1–2% q/q, with $674M of secured borrowing capacity and only 17% uninsured/uncollateralized deposits, supporting funding resiliency .
Shareholder returns: Management declared a $0.26 dividend and announced a new repurchase program for up to 5% of shares; tangible book value per share rose to $30.62 .

What Went Wrong

Non-performing assets rose: NPAs/Assets increased to 0.21% from 0.13% q/q, with non-accrual loans up to $3.84M; driven primarily by a single matured loan, although collateral coverage is strong per appraisals .
Slight uptick in credit provisioning: Provision for credit losses on loans increased to $351K (vs $237K in Q2), reflecting loan growth and portfolio mix changes .
Funding cost pressure remains a watch item: While NIM expanded, interest-bearing liability costs ticked up 2 bps q/q, partially offsetting asset yield improvements .

Financial Results

Key Financials vs Prior Periods and Prior Year

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Net Income ($USD Millions)	$5.924	$6.860	$6.755	$7.100
Diluted EPS ($USD)	$0.74	$0.86	$0.85	$0.90
Operating Revenue ($USD Millions)	$18.77	$19.67	$19.90	$20.50
Net Interest Income ($USD Millions)	$15.981	$16.970	$17.213	$17.622
Net Interest Margin (%)	3.53%	3.64%	3.79%	3.80%
ROA (%)	1.25%	1.41%	1.43%	1.47%
ROE (%)	9.95%	11.03%	10.95%	11.23%
Efficiency Ratio (%)	58.97%	56.27%	56.25%	54.48%

Actual vs Consensus (S&P Global)

Metric	Consensus (S&P Global)	Actual (Company)
EPS (Q3 2025)	N/A*	$0.90
Operating Revenue (Q3 2025)	N/A*	$20.50M

*Values retrieved from S&P Global. Consensus fields were unavailable.

Balance Sheet Snapshot

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Assets ($USD Billions)	$1.901	$1.909	$1.933	$1.957
Total Deposits ($USD Billions)	$1.629	$1.630	$1.651	$1.669
Net Loans Receivable ($USD Billions)	$1.397	$1.412	$1.420	$1.441
Shareholders’ Equity ($USD Millions)	$241.223	$249.199	$252.524	$256.664
TCE / Tangible Assets (%)	11.97%	12.34%	12.36%	12.42%
NPAs / Total Assets (%)	0.22%	0.16%	0.13%	0.21%

Segment / Portfolio Breakdown (selected categories, gross)

Loan Category ($USD Millions)	Mar 31, 2025	Jun 30, 2025
One- to four-family mortgage	$315.421	$317.574
Multi-family mortgage	$178.590	$200.418
Commercial real estate mortgage	$602.248	$607.924
Construction – commercial	$22.352	$15.992
Construction – multi-family	$46.602	$32.731
Land	$32.301	$36.193
Commercial business loans	$131.243	$126.497
Total Loans (gross)	$1,517.970	$1,541.073

KPIs and Mix

KPI	Q3 2024	Q2 2025	Q3 2025
Certificates of Deposit (Total, $USD Millions)	$361.541 (incl. brokered)	$401.285 (incl. brokered)	$417.297 (incl. brokered)
Money Market ($USD Millions)	$327.162	$300.552	$305.207
NOW Checking ($USD Millions)	$324.795	$333.325	$334.922
Non-Interest Demand ($USD Millions)	$407.125	$407.811	$406.222
ACL / Loans (%)	1.21%	1.22%	1.23%
Net Charge-offs (Recoveries) ($USD Thousands)	$36	$0	$(1)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Cash Dividend	Payable Aug 22, 2025	$0.26 (declared Apr 22, 2025; +4% vs prior)	$0.26 declared for Q3	Maintained
Share Repurchase Program	Ongoing	Prior program had 31,762 shares remaining	New authorization up to 5% of shares (393,842 shares)	Raised capacity (program replaced)

Note: No quantitative revenue/EPS guidance was provided in company materials .

Earnings Call Themes & Trends

There was no published Q3 2025 earnings call transcript for Timberland Bancorp; the IR site posts press releases and filings but no transcript, and third-party sites indicate transcripts unavailable at this time .

Topic	Q-2 (Q2 2025)	Q-1 (Q1 2025)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	NIM expanded to 3.79%, driven by 15 bp lower funding costs and higher asset yields	NIM expanded to 3.64% on lower funding costs	NIM at 3.80%; aided by fee/discount accretion and asset yield; slight funding cost uptick	Improving
Deposit mix and growth	Deposits +1% q/q; increases in CDs and NOW checking	Deposits −1% q/q; shift toward CDs; year-end seasonal effects	Deposits +1% q/q; CD balances +$16M; money market +$4.7M	Stabilizing to improving
Loan growth and mix	Net loans +1% q/q; growth in 1–4 family and CRE; construction down	Net loans −1% q/q; payoffs offset originations; mix shifts	Net loans +2% q/q; multi-family conversions to permanent financing; CRE +$5.7M	Improving
Credit quality	NPAs/Assets improved to 0.13%; non-accruals down 15%	NPAs/Assets improved to 0.16%; non-accruals down ~30%	NPAs/Assets increased to 0.21%; non-accruals up due to single matured loan; net recoveries $1K	Mixed
Capital and shareholder returns	Dividend raised to $0.26; buybacks 61,764 shares ($1.91M)	Dividend $0.25; buybacks 27,260 shares ($0.883M)	Dividend $0.26; new buyback up to 5% outstanding shares	Increasing capital return

Management Commentary

CEO: “Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth… we believe our strong capital position, solid earnings, and continued focus on disciplined growth position us well to navigate the current environment and drive long-term shareholder value.”
CFO: “Our net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%… Total deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit.”
President & COO: “This represents the 51st consecutive quarter Timberland will have paid a cash dividend… the Company also announced the adoption of a new stock repurchase program… up to 5% of the outstanding shares.”

Q&A Highlights

No Q&A transcript was published or available for Q3 2025; investor materials consisted of the 8‑K and press release .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was unavailable; therefore, formal beat/miss vs consensus cannot be determined at this time.*
Company-reported actuals: EPS $0.90 and operating revenue $20.50M for Q3 2025 .

*Values retrieved from S&P Global.

Key Takeaways for Investors

Margin resilience amid funding cost pressures: NIM reached 3.80%; prepayment fees and accretion added ~4 bps, but the core trajectory reflects asset yield improvements and disciplined ALM .
Loan growth is broadening with multi-family conversions and CRE additions; watch construction exposures trending down and commercial business balances easing .
Liquidity and capital are robust (TCE/TA 12.42%; $674M secured capacity; 17% uninsured/uncollateralized deposits), supporting flexibility should rates or deposit competition shift .
Credit quality warrants monitoring: NPAs/Assets increased to 0.21% largely from one matured, collateralized loan; provisioning rose with growth—risk remains manageable given coverage and recoveries .
Shareholder return cadence accelerated: stable $0.26 dividend and expanded buyback authorization to 5% of shares provide support for the stock and potential EPS accretion .
Efficiency gains are material: ratio improved to 54.48%, reflecting cost control and operating leverage—sustained progress could underpin ROE >11% .
Near-term trading: catalysts include buyback execution, continued NIM stability, and loan growth; watch disclosures on the matured loan resolution and any shifts in deposit pricing .

TIMBERLAND BANCORP INC (TSBK)·Q3 2025 Earnings Summary