Executive Summary

Strong quarter: EPS $1.07, up 19% q/q and 35% y/y; operating revenue rose 10% q/q to $22.49M; NIM expanded to 3.82% and efficiency ratio improved to 53.18% .
Balance sheet crossed $2.01B in assets; deposits up 3% q/q to $1.72B with more than half of growth from non-interest-bearing balances; liquidity robust with $690M secured capacity and only $20M borrowings .
Dividend raised 8% to $0.28/share; continued buybacks (56,562 shares for $1.89M); planned University Place branch opening supports growth narrative .
Estimate context: S&P Global consensus EPS/revenue for Q4 FY25 was unavailable; no beat/miss determination; actual EPS $1.07 and operating revenue $22.49M reported by company (values from S&P Global unavailable; see disclaimer) .

What Went Well and What Went Wrong

What Went Well

Net income and EPS hit record highs; EPS $1.07 (+19% q/q, +35% y/y) driven by NIM expansion, balance sheet growth, and higher non-interest income; CEO: “record results” and favorable comps even excluding a $1.04M BOLI claim .
Margin and efficiency improved: NIM to 3.82% (+2bps q/q, +24bps y/y) and efficiency ratio to 53.18% (from 54.48% q/q and 56.79% y/y) as disciplined ALM and earning asset yields supported spread .
Deposits and liquidity strengthened: deposits +$47M q/q with >$24M growth in non-interest-bearing; secured borrowing capacity of $690M; uninsured/un-collateralized deposits only ~20% .

What Went Wrong

Asset quality mixed: NPA ratio increased modestly to 0.23% (from 0.21% q/q), and non-accrual loans rose to $4.41M (+15% q/q), driven by a single-family construction loan placed on non-accrual .
Operating expenses rose 7% q/q (+$792K) on salaries/benefits, premises/equipment, technology/communications, and professional fees; tax rate volatility tied to BOLI income lowered ETR to 18.1% (vs 20.1% q/q) .
Revenue quality: non-interest income strength benefited from a one-time $1.04M BOLI death benefit; while comps remain favorable excluding it, investors should adjust for non-recurring items .

Financial Results

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Operating Revenue ($USD Millions)	$19.48	$19.90	$20.50	$22.49
Net Interest Income ($USD Millions)	$16.55	$17.21	$17.62	$18.40
Net Income ($USD Millions)	$6.36	$6.76	$7.10	$8.45
Diluted EPS ($USD)	$0.79	$0.85	$0.90	$1.07
Net Interest Margin %	3.58%	3.79%	3.80%	3.82%
Efficiency Ratio %	56.79%	56.25%	54.48%	53.18%
ROA % (annualized)	1.32%	1.43%	1.47%	1.68%
ROE % (annualized)	10.43%	10.95%	11.23%	12.97%

Deposit Mix

Category ($USD Thousands)	Sep 30, 2024	Jun 30, 2025	Sep 30, 2025
Non-interest-bearing demand	$413,116	$406,222	$430,685
NOW checking	$333,329	$334,922	$345,599
Savings	$205,993	$205,829	$201,678
Money market	$326,922	$305,207	$296,152
CDs under $250K	$205,970	$244,063	$256,597
CDs $250K+	$113,579	$126,254	$142,813
Brokered CDs	$48,759	$46,980	$43,111
Total deposits	$1,647,668	$1,669,477	$1,716,635

Asset Quality KPIs

KPI	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Non-accrual loans ($USD Thousands)	$3,885	$2,327	$3,843	$4,407
NPA / Total Assets %	0.20%	0.13%	0.21%	0.23%
Net charge-offs (recoveries) ($USD Thousands)	$12	$0	$(1)	$0
ACL-Loans / Loans Receivable %	1.21%	1.22%	1.23%	1.22%

Guidance Changes

Metric	Period	Previous Guidance/Level	Current Guidance/Level	Change
Quarterly dividend per share	Q4 FY25 payable Nov 28, 2025	$0.26 (Q3 FY25)	$0.28	Raised
Margin outlook (qualitative)	Forward	“NIM continued to improve” with ALM driving lower funding cost (Q2 FY25)	CFO: committed to “sustaining stable margin performance” ahead	Maintained positive/stable outlook
Branch expansion	Near-term	No new branch in Q3 FY25	Opening new University Place branch later this quarter	New expansion
Stock repurchase program	Ongoing	New 5% program announced (up to 393,842 shares)	56,562 shares repurchased in Q4 ($1.89M); 337,280 shares remain under plan	Active execution

No explicit quantitative guidance on revenue, expenses, OI&E, or tax rate was provided; effective tax rate reported (current quarter 18.1%) reflects mix effects from BOLI income rather than forward guidance .

Earnings Call Themes & Trends

Note: No public Q4 FY25 earnings call transcript was furnished; themes reflect management’s press releases across quarters .

Topic	Q-2 (Q2 FY25 press release)	Q-1 (Q3 FY25 press release)	Current Period (Q4 FY25)	Trend
Net interest margin	Expanded to 3.79%; driven by 15bps lower cost of interest-bearing liabilities	Increased to 3.80%; focus on disciplined ALM and favorable earning asset yields	Rose to 3.82%; CFO cites continued NIM strengthening, customer relationships	Improving sequentially
Deposit mix and uninsured %	Deposits +1% q/q; uninsured/un-collateralized ~18%	Deposits +1% q/q; uninsured/un-collateralized ~17%	Deposits +3% q/q; uninsured/un-collateralized ~20%	Growth with stable funding profile
Asset quality	NPA down to 0.13%; non-accrual down q/q; substandard loans increased due to isolated borrower legal issue	NPA up to 0.21%; non-accrual up due to matured loan, still collateralized	NPA modestly up to 0.23%; non-accrual up on single-family construction loan; subsequent payoff of largest substandard loan post-qtr	Mixed but contained
Capital return	Dividend raised 4% to $0.26; buybacks 61,764 shares	Dividend $0.26; new 5% buyback program announced	Dividend raised 8% to $0.28; buybacks 56,562 shares	Accelerating dividends; steady buybacks
Strategic expansion	—	New repurchase program; branch network steady	New University Place branch later in quarter	Positive growth initiative

Management Commentary

CEO: “We closed our fiscal year with record results… In the fourth quarter, net income increased 33% from a year ago and 19% from the prior quarter… driven by continued expansion in our net interest margin, balance sheet growth, and higher non-interest income.”
CFO: “Our net interest margin strengthened again in the fourth fiscal quarter, increasing to 3.82%… Total deposits increased by $47 million, or 3%, with more than half… from higher non-interest-bearing balances… We remain committed to… sustaining stable margin performance.”
President/COO: “Board… announced an 8% increase to the quarterly cash dividend to $0.28 per share… 52nd consecutive quarter… demonstrates the Board’s continued confidence.”
Growth: “Opening of a new full-service branch in University Place later this quarter… to deepen commercial banking relationships… and support the region’s economic growth.”

Q&A Highlights

No Q4 FY25 earnings call transcript was furnished in filings; the company provided an 8-K with the press release and investor presentation, but no public call transcript was included .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 FY25 were unavailable; thus beat/miss analysis versus Street is not determinable at this time.*
Actual Q4 FY25 results: EPS $1.07 and operating revenue $22.49M (company-reported) .
Implication: Street models may need to reflect stronger NIM, deposit growth, and one-time BOLI income; but without consensus, we cannot quantify revisions.*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Sequential and y/y profitability momentum: EPS up 19% q/q and 35% y/y with NIM expansion and improved efficiency; durability supported by deposit growth and balanced funding .
Adjust for non-recurring items: $1.04M BOLI death benefit boosted non-interest income; underlying trends still favorable ex-BOLI .
Asset quality watchpoints: modest uptick in NPA and non-accruals, but net charge-offs de minimis; subsequent payoff of largest substandard loan mitigates risk .
Capital return and growth catalysts: dividend increased to $0.28, continued buybacks, and new branch opening in University Place provide near-term support and medium-term growth platform .
Funding mix improving: >$24M q/q rise in non-interest-bearing deposits and stable liquidity with $690M secured capacity; supports NIM resilience against rate volatility .
With no Street consensus available, trade setup hinges on narrative of margin expansion and asset quality stability; watch subsequent disclosures for estimate formation and investor-day materials .
Medium-term thesis: disciplined ALM, growing deposit franchise, prudent CRE exposure with granularity; monitor consumer credit and construction exposure, and expense trajectory amid tech/communications and premises investments .

TIMBERLAND BANCORP INC (TSBK)·Q4 2025 Earnings Summary