EX-99.1 2 ex99163025.htm
Exhibit 99.1


       Contact:   Dean J. Brydon, CEO
       Jonathan A. Fischer, President & COO
          Marci A. Basich, CFO
          (360) 533-4747
                          www.timberlandbank.com


Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million

•
Quarterly EPS Increases 22% to $0.90 from $0.74 One Year Ago
•
Quarterly Net Interest Margin Increases to 3.80%
•
Quarterly Return on Average Assets Increases to 1.47%
•
Quarterly Return on Average Equity Increases to 11.23%
•
Announces New Stock Repurchase Program

HOQUIAM, WA – July 22, 2025 – Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.10 million, or $0.90 per diluted common share for the quarter ended June 30, 2025.  This compares to net income of $6.76 million, or $0.85 per diluted common share for the preceding quarter and $5.92 million, or $0.74 per diluted common share, for the comparable quarter one year ago.

For the first nine months of fiscal 2025, Timberland’s net income increased 16% to $20.72 million, or $2.60 per diluted common share, from $17.93 million, or $2.21 per diluted common share for the first nine months of fiscal 2024.

“Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth,” stated Dean Brydon, Chief Executive Officer.  “Net income and earnings per share increased 20% and 22%, respectively, compared to the third fiscal quarter a year ago.  Compared to the prior quarter, net income and earnings per share increased 5% and 6%, respectively, primarily due to higher net interest income and non-interest income.  We also posted year-over-year improvements across all key profitability metrics, and our tangible book value per share (non-GAAP) continued its upward trend.  Looking ahead 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.”

“As a result of Timberland’s strong earnings and sound capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.26 per share, payable on August 22, 2025, to shareholders of record on August 8, 2025,” stated Jonathan Fischer, President and Chief Operating Officer.  “This represents the 51st consecutive quarter Timberland will have paid a cash dividend.  In addition, the Company also announced the adoption of a new stock repurchase program.  We believe Timberland stock presents a strong investment opportunity, and buying back shares is a strategy to enhance long-term value for shareholders.  Under the new repurchase program, the Company may repurchase up to 5% of the outstanding shares, or 393,842 shares.  The new stock repurchase program replaces our existing stock repurchase program, which had 31,762 shares available to be repurchased.”

“Our net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%,” said Marci Basich, Chief Financial Officer.  “This represents a one basis point increase from the prior quarter and a 27 basis point improvement compared to the same period last year, reflecting our disciplined asset-liability management and favorable shift in earning asset yields.  Total deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit. This growth highlights the continued strength of our customer relationships and the effectiveness of our deposit-gathering strategies. We remain focused on maintaining a well-balanced funding mix while sustaining stable margin performance going forward.”

“The loan portfolio continues to expand at a steady pace, with growth of 2% over the prior quarter and 3% year-over year,” Brydon continued.  “Credit quality remains an area we are monitoring closely, as we are seeing a mix of stable-to-positive trends alongside a few metrics that have shown modest deterioration.  Net charge-offs continue to be minimal, with net recoveries of $1,000 during the third quarter. Our non-performing assets (“NPA”) ratio increased to 0.21% at June 30, 2025, compared to 0.13% at the end of the prior quarter.  However, it remains a slight improvement from the 0.22% reported a year ago.  Although non-accrual loans increased this quarter primarily due to a single matured loan, total non-accrual balances remain modestly below year-ago levels.”


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 2


Earnings and Balance Sheet Highlights (at or for the periods ended June 30, 2025, compared to June 30, 2024, or March 31, 2025):

   Earnings Highlights:
•
Earnings per diluted common share (“EPS”) increased 6% to $0.90 for the current quarter from $0.85 for the preceding quarter and increased 22% from $0.74 for the comparable quarter one year ago; EPS increased 18% to $2.60 for the first nine months of fiscal 2025 from $2.21 for the first nine months of fiscal 2024;
•
Net income increased 5% to $7.10 million for the current quarter from $6.76 million for the preceding quarter and increased 20% from $5.92 million for the comparable quarter one year ago; Net income increased 16% to $20.72 million for the first nine months of fiscal 2025 from $17.93 million for the first nine months of fiscal 2024;
•
Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.23% and 1.47%, respectively;
•
Net interest margin (“NIM”) for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago; and
•
The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago.

  Balance Sheet Highlights:
•
Total assets increased 1% from the prior quarter and increased 3% year-over-year;
•
Net loans receivable increased 2% from the prior quarter and increased 3% year-over-year;
•
Total deposits increased 1% from the prior quarter and increased 3% year-over-year;
•
Total shareholders’ equity increased 2% from the prior quarter and increased 6% year-over-year; 34,236 shares of common stock were repurchased during the current quarter for $1.02 million;
•
Non-performing assets to total assets ratio was 0.21% at June 30, 2025 compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024;
•
Book and tangible book (non-GAAP) values per common share increased to $32.58 and $30.62 respectively, at June 30, 2025; and
•
Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2025 with only $20 million in borrowings and additional secured borrowing line capacity of $674 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.

Operating Results

Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter increased 3% to $20.50 million from $19.90 million for the preceding quarter and increased 9% from $18.77 million for the comparable quarter one year ago.  The increase in operating revenue compared to the preceding quarter was primarily due to increases in total interest and dividend income and non-interest income, which were partially offset by an increase in total funding costs.  Operating revenue increased 8% to $60.06 million for the first nine months of fiscal 2025 from $55.82 million for the first nine months of fiscal 2024, primarily due to an increase in total interest and dividend income, which was partially offset by an increase in funding costs.

Net interest income increased $409,000, or 2%, to $17.62 million for the current quarter from $17.21 million for the preceding quarter and increased $1.64 million, or 10%, from $15.98 million for the comparable quarter one year ago.  The increase in net interest income compared to the preceding quarter was primarily due to a $20.80 million increase in the average balance of total interest-earning assets and, to a lesser extent, a two-basis point increase in the weighted average yield on total interest-earning assets to 5.50% from 5.48%.  These increases were partially offset by a $20.21 million increase in the average balance of interest-bearing liabilities and a two-basis point increase in the weighted average cost of interest-bearing liabilities.  Timberland’s NIM for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago.  The NIM for the current quarter was increased by approximately four basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $68,000 of the fair value discount on acquired loans.  The NIM for the preceding quarter was increased by approximately five basis points due to the collection of $201,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $17,000 of the fair value discount on acquired loans.  The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $124,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $9,000 of the fair value discount on acquired loans.  Net interest income for the first nine months of fiscal 2025 increased $4.19


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 3


million, or 9%, to $51.81 million from $47.62 million for the first nine months of fiscal 2024, primarily due to a 32 basis point increase in the weighted average yield of total interest-earning assets to 5.49% from 5.17% and a $49.96 million increase in the average balance of total interest-earning assets.  These increases to net interest income were partially offset by a seven basis point increase in the weighted average cost of interest-bearing liabilities to 2.53% from 2.46% and a $58.86 million increase in the average balance of total interest-bearing liabilities. Timberland’s NIM expanded to 3.74% for the first nine months of fiscal 2025 from 3.53% for the first nine months of fiscal 2024.

A $351,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2025.  The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio.  This compares to a $237,000 provision for credit losses on loans for the preceding quarter and a $264,000 provision for credit losses on loans for the comparable quarter one year ago.  In addition, a $93,000 provision for credit losses on unfunded commitments and a $4,000 recapture of credit losses on investment securities were recorded for the current quarter.

Non-interest income increased $188,000, or 7%, to $2.88 million for the current quarter from $2.69 million for the preceding quarter and increased $84,000, or 3%, from $2.79 million for the comparable quarter one year ago.  The increase in non-interest income compared to the preceding quarter was primarily due to an increase in ATM and debit card interchange transaction fees and smaller changes in several other categories.  Fiscal year-to-date non-interest income increased by 1%, to $8.26 million from $8.20 million for the first nine months of fiscal 2024.

Total operating (non-interest) expenses for the current quarter decreased $27,000 (less than 1%), to $11.17 million from $11.19 million for the preceding quarter and increased $98,000, or 1%, from $11.07 million for the comparable quarter one year ago.  The decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salaries and employee benefits, premises and equipment, technology and communications, professional fees, and smaller decreases in several other expense categories.  These decreases were partially offset by increases in state and local taxes and smaller increases in several other expense categories.  The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago.  Fiscal year-to-date operating expenses increased 2% to $33.43 million from $32.68 million for the first nine months of fiscal 2024.  The efficiency ratio for the first nine months of fiscal 2025 improved to 55.65% from 58.55% for the first nine months of fiscal 2024.

The provision for income taxes for the current quarter increased $85,000, or 5%, to $1.79 million from $1.71 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to 20.2% for the quarter ended March 31, 2025 and 20.6% for the quarter ended June 30, 2024.  Timberland’s effective income tax rate was 20.1% for the first nine months of fiscal 2025 compared to 20.2% for the first nine months of fiscal 2024.

Balance Sheet Management

Total assets increased $24.46 million, or 1%, during the quarter to $1.96 billion at June 30, 2025 from $1.93 billion at March 31, 2025 and increased $56.56 million, or 3%, from $1.90 billion one year ago.  The increase during the current quarter was primarily due to a $21.42 million increase in net loans receivable and smaller increases in several other categories.


Liquidity

Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet.  Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 17.0% of total liabilities at June 30, 2025, compared to 16.9% at March 31, 2025, and 14.7% one year ago.  Timberland also had secured borrowing line capacity of $674 million available through the FHLB and the Federal Reserve at June 30, 2025.  With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2025.  (Note: This calculation excludes public deposits that are fully collateralized.)

Loans

Net loans receivable increased $21.42 million, or 2%, during the quarter to $1.44 billion at June 30, 2025 from $1.42 billion at March 31, 2025.  This increase was primarily due to a $21.83 million increase in multi-family loans, a $5.67 million increase in commercial real estate loans, a $3.89 million increase in land loans and smaller increases in several other loan categories.  These increases were partially offset by a $5.50 million decrease in construction loans, a $4.80 million decrease in commercial


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 4

business loans, and smaller decreases in several other loan categories. The increase in multi-family loans was, in large part, due to several multi-family construction projects being completed and converting to permanent financing during the quarter.



Loan Portfolio
($ in thousands)
   
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
   
Amount
    
Percent
    
Amount
    
Percent
    
Amount
    
Percent
  
Mortgage loans:
                                    
   One- to four-family (a)
  
$
317,574
      
21
%
  
$
315,421
      
21
%
  
$
288,611
      
19
%
   Multi-family
    
200,418
      
13
      
178,590
      
12
      
177,950
      
12
  
   Commercial
    
607,924
      
40
      
602,248
      
40
      
597,865
      
40
  
   Construction - custom and
                                                
owner/builder
    
128,900
      
8
      
114,401
      
7
      
128,222
      
9
  
   Construction - speculative
            one-to four-family
    
9,595
      
1
      
9,791
      
1
      
11,441
      
1
  
   Construction - commercial
    
15,992
      
1
      
22,352
      
1
      
32,130
      
2
  
   Construction - multi-family
    
32,731
      
2
      
46,602
      
3
      
35,631
      
2
  
   Construction - land
                                                
            development
    
15,461
      
1
      
15,032
      
1
      
19,104
      
1
  
   Land
    
36,193
      
2
      
32,301
      
2
      
32,384
      
2
  
Total mortgage loans
    
1,364,788
      
89
      
1,336,738
      
88
      
1,323,338
      
88
  
                                                 
Consumer loans:
                                                
   Home equity and second
                                                
mortgage
    
47,511
      
3
      
47,458
      
3
      
43,679
      
3
  
   Other
    
2,176
      
--
      
2,375
      
--
      
3,121
      
--
  
Total consumer loans
    
49,687
      
3
      
49,833
      
3
      
46,800
      
3
  
                                                 
Commercial loans:
                                                
     Commercial business loans
    
126,497
      
8
      
131,243
      
9
      
136,213
      
9
  
     SBA PPP loans
    
101
      
--
      
156
      
--
      
314
      
--
  
          Total commercial loans
    
126,598
      
8
      
131,399
      
9
      
136,527
      
9
  
Total loans
    
1,541,073
      
100
%
    
1,517,970
      
100
%
    
1,506,665
      
100
%
Less:
                                                
Undisbursed portion of
                                                
construction loans in
                                                
        process
    
(76,272
)
            
(75,042
)
            
(87,196
)
        
Deferred loan origination
                                                
fees
    
(5,427
)
            
(5,329
)
            
(5,404
)
        
Allowance for credit losses
    
(17,878
)
            
(17,525
)
            
(17,046
)
        
Total loans receivable, net
  
$
1,441,496
            
$
1,420,074
            
$
1,397,019
          
_______________________
(a)
Does not include one- to four-family loans held for sale totaling $1,763, $1,151, and $1,795 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 5

The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 30, 2025:

CRE Loan Portfolio Breakdown by Collateral
($ in thousands)

Collateral Type
  
Balance
    
Percent of
CRE
Portfolio
    
Percent of
Total Loan Portfolio
    
Average Balance Per Loan
    
Non-
Accrual
  
Industrial warehouses
  
$
128,822
      
21
%
    
8
%
  
$
1,301
    
$
161
  
Medical/dental offices
    
81,238
      
13
      
5
      
1,269
      
--
  
Office buildings
    
68,916
      
11
      
5
      
801
      
--
  
Other retail buildings
    
54,472
      
9
      
3
      
567
      
--
  
Mini-storage
    
38,483
      
6
      
2
      
1,539
      
--
  
Hotel/motel
    
31,656
      
5
      
2
      
2,638
      
--
  
Restaurants
    
27,485
      
5
      
2
      
585
      
--
  
Gas stations/conv. stores
    
24,359
      
4
      
2
      
1,015
      
--
  
Churches
    
14,690
      
3
      
1
      
918
      
--
  
Nursing homes
    
13,532
      
2
      
1
      
2,255
      
--
  
Shopping centers
    
10,507
      
2
      
1
      
1,751
      
--
  
Mobile home parks
    
8,882
      
2
      
1
      
444
      
--
  
Additional CRE
    
104,882
      
17
      
7
      
760
      
--
  
     Total CRE
  
$
607,924
      
100
%
    
40
%
  
$
951
    
$
161
  

Timberland originated $81.99 million in loans during the quarter ended June 30, 2025, compared to $56.76 million for the preceding quarter and $74.32 million for the comparable quarter one year ago.  Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income.  During the current quarter, fixed-rate one- to four-family mortgage loans totaling $5.11 million were sold compared to $5.17 million for the preceding quarter and $3.05 million for the comparable quarter one year ago.

Investment Securities

Timberland’s investment securities and CDs held for investment increased $2.04 million, or 1%, to $237.36 million at June 30, 2025, from $235.33 million at March 31, 2025. The increase was primarily due to the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities.  Partially offsetting these increases was the sale of $13.49 million available for sale investment securities, which resulted in a net gain of $24,000.

Deposits

Total deposits increased $18.65 million, or 1%, during the quarter to $1.67 billion at June 30, 2025, from $1.65 billion at March 31, 2025.  The quarter’s increase consisted of a $16.01 million increase in certificates of deposit account balances, a $4.66 million increase in money market account balances, and a $1.60 million increase in NOW checking account balances. These decreases were partially offset by a $2.03 million decrease in savings account balances and a $1.59 million decrease in non-interest-bearing checking account balances.


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 6


Deposit Breakdown
($ in thousands)
  
   
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
   
Amount
    
Percent
    
Amount
    
Percent
    
Amount
    
Percent
  
Non-interest-bearing demand
  
$
406,222
      
24
%
  
$
407,811
      
25
%
  
$
407,125
      
25
%
NOW checking
    
334,922
      
20
      
333,325
      
20
      
324,795
      
20
  
Savings
    
205,829
      
12
      
207,857
      
13
      
207,921
      
13
  
Money market
    
305,207
      
18
      
300,552
      
18
      
327,162
      
20
  
Certificates of deposit under $250
    
244,063
      
15
      
227,137
      
14
      
195,022
      
12
  
Certificates of deposit $250 and over
    
126,254
      
8
      
124,009
      
7
      
117,788
      
7
  
Certificates of deposit – brokered
    
46,980
      
3
      
50,139
      
3
      
48,731
      
3
  
    Total deposits
  
$
1,669,477
      
100
%
  
$
1,650,830
      
100
%
  
$
1,628,544
      
100
%


Borrowings

Total borrowings were $20.00 million at both June 30, 2025 and March 31, 2025.  At June 30, 2025, the weighted average rate on the borrowings was 3.97%.

Shareholders’ Equity and Capital Ratios

Total shareholders’ equity increased $4.14 million, or 2%, to $256.66 million at June 30, 2025, from $252.52 million at March 31, 2025, and increased $15.44 million, or 6%, from $241.22 million at June 30, 2024.  The increase in shareholders’ equity during the quarter was primarily due to net income of $7.10 million, which was partially offset by the payment of $2.05 million in dividends to shareholders and the repurchase of 34,236 shares of common stock for $1.02 million (an average price of $29.74 per share).

Timberland remains well capitalized with a total risk-based capital ratio of 20.54%, a Tier 1 leverage capital ratio of 12.63%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.42%, and a shareholders’ equity to total assets ratio of 13.11% at June 30, 2025.  Timberland’s held to maturity investment securities were $141.57 million at June 30, 2025, with a net unrealized loss of $5.99 million (pre-tax).  Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 12.90%, compared to 13.11%, as reported.

New Stock Repurchase Program

The Company announced a new stock repurchase program today.  Under the repurchase program, the Company may repurchase up to 5% of the Company’s outstanding shares, or 393,842 shares.  The new stock repurchase program replaces the existing stock repurchase program which had 31,762 shares available to be repurchased.

The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission (“SEC”).  Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interest of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance.  Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements.  The repurchase program may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing the shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate.  These factors may also affect the timing and amount of share repurchases.  The repurchase program does not obligate the Company to purchase any particular number of shares.


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 7

Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.21% at June 30, 2025, compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024.  Net recoveries totaled $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net charge-offs of $36,000 for the comparable quarter one year ago.  During the current quarter, provisions for credit losses of $351,000 on loans and $93,000 unfunded commitments were made, which was partially offset by a $4,000 recapture of credit losses on investment securities.  The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.23% at June 30, 2025, compared to 1.22% at March 31, 2025 and 1.21% one year ago.

Total delinquent loans (past due 30 days or more) and non-accrual loans increased $2.86 million or 86%, to $6.18 million at June 30, 2025, from $3.32 million at March 31, 2025 and increased $1.95 million, or 46%, from $4.23 million at June 30, 2024.  Non-accrual loans increased $1.52 million, or 65%, to $3.84 million at June 30, 2025 from $2.33 million at March 31, 2025 and decreased $277,000, or 7%, from $4.12 million at March 31, 2024.  The quarterly increase in non-accrual loans was primarily due to one loan (secured by several single family homes) being past maturity.  The loan is well collateralized (based on recent appraisals) and the Bank is working with the borrower to renew the loan.  Loans graded “Substandard” totaled $32.37 million (or 2% of total loans receivable) at June 30, 2025.

Non-Accrual Loans
($ in thousands)

   
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
   
Amount
    
Quantity
    
Amount
    
Quantity
    
Amount
    
Quantity
  
Mortgage loans:
                                    
     One- to four-family
  
$
1,781
      
1
    
$
47
      
1
    
$
135
      
2
  
     Commercial
    
161
      
2
      
324
      
3
      
1,310
      
4
  
     Construction – custom and
                                                
          owner/builder
    
--
      
--
      
--
      
--
      
152
      
1
  
          Total mortgage loans
    
1,942
      
3
      
371
      
4
      
1,597
      
7
  
                                                 
Consumer loans:
                                                
     Home equity and second
                                                
          mortgage
    
575
      
3
      
575
      
3
      
615
      
3
  
     Other
    
--
      
--
      
--
      
--
      
--
      
--
  
          Total consumer loans
    
575
      
3
      
575
      
3
      
615
      
3
  
                                                 
Commercial business loans
    
1,326
      
9
      
1,381
      
11
      
1,908
      
8
  
Total loans
  
$
3,843
      
15
    
$
2,327
      
18
    
$
4,120
      
18
  

Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2025:

   
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
   
Amount
    
Quantity
    
Amount
    
Quantity
    
Amount
    
Quantity
  
Other real estate owned:
                                    
     Commercial
  
$
221
      
1
    
$
221
      
1
    
$
--
      
--
  
     Land
    
--
      
1
      
--
      
1
      
--
      
1
  
          Total mortgage loans
  
$
221
      
2
    
$
221
      
2
    
$
--
      
1
  


About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank.  The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).

Disclaimer
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements relate to our financial condition, results of operations, plans,


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 8


objectives, future performance or business.  Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”  Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. 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.

Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management's beliefs and assumptions at the time they are made.  We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise.  In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's consolidated financial condition and results of operations as well as its stock price performance.
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 9

TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
  
Three Months Ended
  
($ in thousands, except per share amounts) (unaudited)
  
June 30,
    
March 31,
    
June 30,
  
   
2025
    
2025
    
2024
  
Interest and dividend income
                  
Loans receivable
  
$
21,411
    
$
20,896
    
$
19,537
  
Investment securities
    
2,064
      
2,003
      
2,335
  
Dividends from mutual funds, FHLB stock and other investments
    
83
      
82
      
94
  
Interest bearing deposits in banks
    
1,986
      
1,884
      
2,173
  
    Total interest and dividend income
    
25,544
      
24,865
      
24,139
  
                         
Interest expense
                        
Deposits
    
7,721
      
7,454
      
7,938
  
Borrowings
    
201
      
198
      
220
  
     Total interest expense
    
7,922
      
7,652
      
8,158
  
     Net interest income
    
17,622
      
17,213
      
15,981
  
Provision for credit losses – loans
    
351
      
237
      
264
  
Recapture of credit losses – investment securities
    
(4
)
    
(5
)
    
(12
)
Prov. for (recapture of ) credit losses - unfunded commitments
    
93
      
14
      
(8
)
    Net int. income after provision for (recapture of) credit losses
    
17,182
      
16,967
      
15,737
  
                         
Non-interest income
                        
Service charges on deposits
    
966
      
959
      
1,014
  
ATM and debit card interchange transaction fees
    
1,262
      
1,176
      
1,297
  
Gain on sales of investment securities, net
    
24
      
--
      
--
  
Gain on sales of loans, net
    
138
      
122
      
68
  
Bank owned life insurance (“BOLI”) net earnings
    
171
      
165
      
158
  
Other
    
314
      
265
      
254
  
    Total non-interest income, net
    
2,875
      
2,687
      
2,791
  
                         
Non-interest expense
                        
Salaries and employee benefits
    
5,825
      
5,977
      
5,928
  
Premises and equipment
    
973
      
1,075
      
1,011
  
Gain on sale of premises and equipment, net
    
--
      
--
      
(3
)
Advertising
    
182
      
189
      
211
  
OREO and other repossessed assets, net
    
8
      
9
      
--
  
ATM and debit card processing
    
658
      
521
      
580
  
Postage and courier
    
137
      
142
      
130
  
State and local taxes
    
570
      
335
      
335
  
Professional fees
    
341
      
431
      
335
  
FDIC insurance
    
211
      
219
      
208
  
Loan administration and foreclosure
    
99
      
155
      
156
  
Technology and communications
    
993
      
1,121
      
1,086
  
Deposit operations
    
345
      
319
      
450
  
Amortization of core deposit intangible (“CDI”)
    
45
      
45
      
56
  
Other, net
    
780
      
656
      
586
  
    Total non-interest expense, net
    
11,167
      
11,194
      
11,069
  
                         
Income before income taxes
    
8,890
      
8,460
      
7,459
  
Provision for income taxes
    
1,790
      
1,705
      
1,535
  
    Net income
  
$
7,100
    
$
6,755
    
$
5,924
  
                         
Net income per common share:
                        
    Basic
  
$
0.90
    
$
0.85
    
$
0.74
  
    Diluted
    
0.90
      
0.85
      
0.74
  
                         
Weighted average common shares outstanding:
                        
    Basic
    
7,893,308
      
7,937,063
      
8,004,552
  
    Diluted
    
7,921,762
      
7,968,632
      
8,039,345
  


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 10


TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
  
($ in thousands, except per share amounts) (unaudited)
June 30,
        
June 30,
  
   
2025
          
2024
  
Interest and dividend income
                  
Loans receivable
  
$
63,339
          
$
56,841
  
Investment securities
    
6,205
            
6,892
  
Dividends from mutual funds, FHLB stock and other investments
    
252
            
266
  
Interest bearing deposits in banks
    
5,870
            
5,791
  
    Total interest and dividend income
    
75,666
            
69,790
  
                       
Interest expense
                      
Deposits
    
23,259
            
21,383
  
Borrowings
    
602
            
787
  
     Total interest expense
    
23,861
            
22,170
  
     Net interest income
    
51,805
            
47,620
  
Provision for credit losses – loans
    
640
            
810
  
Recapture of credit losses – investment securities
    
(14
)
          
(20
)
Prov. for (recapture of) credit losses - unfunded commitments
    
87
            
(130
)
    Net int. income after provision for (recapture of) credit losses
    
51,092
            
46,960
  
                       
Non-interest income
                      
Service charges on deposits
    
2,924
            
3,024
  
ATM and debit card interchange transaction fees
    
3,706
            
3,773
  
Gain on sales of investment securities, net
    
24
            
--
  
Gain on sales of loans, net
    
303
            
188
  
Bank owned life insurance (“BOLI”) net earnings
    
503
            
470
  
Other
    
799
            
749
  
    Total non-interest income, net
    
8,259
            
8,204
  
                       
Non-interest expense
                      
Salaries and employee benefits
    
17,893
            
17,863
  
Premises and equipment
    
2,998
            
3,065
  
Gain on sale of premises and equipment, net
    
--
            
(3
)
Advertising
    
552
            
556
  
OREO and other repossessed assets, net
    
17
            
1
  
ATM and debit card processing
    
1,700
            
1,796
  
Postage and courier
    
401
            
401
  
State and local taxes
    
1,251
            
979
  
Professional fees
    
1,118
            
908
  
FDIC insurance
    
640
            
624
  
Loan administration and foreclosure
    
383
            
395
  
Technology and communications
    
3,253
            
3,101
  
Deposit operations
    
997
            
1,094
  
Amortization of core deposit intangible (“CDI”)
    
135
            
169
  
Other, net
    
2,090
            
1,735
  
    Total non-interest expense, net
    
33,428
            
32,684
  
                       
Income before income taxes
    
25,923
            
22,480
  
Provision for income taxes
    
5,208
            
4,552
  
    Net income
  
$
20,715
          
$
17,928
  
                       
Net income per common share:
                      
    Basic
  
$
2.61
          
$
2.22
  
    Diluted
    
2.60
            
2.21
  
                       
Weighted average common shares outstanding:
                      
    Basic
    
7,929,626
            
8,067,068
  
    Diluted
    
7,963,412
            
8,109,043
  


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 11


TIMBERLAND BANCORP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
      
($ in thousands, except per share amounts) (unaudited)
  
June 30,
    
March 31,
    
June 30,
  
   
2025
    
2025
    
2024
  
Assets
                  
Cash and due from financial institutions
  
$
32,532
    
$
26,010
    
$
25,566
  
Interest-bearing deposits in banks
    
161,095
      
165,201
      
133,347
  
Total cash and cash equivalents
    
193,627
      
191,211
      
158,913
  
                         
Certificates of deposit (“CDs”) held for investment, at cost
    
8,462
      
8,711
      
10,458
  
Investment securities:
                        
Held to maturity, at amortized cost (net of ACL – investment securities)
    
141,570
      
140,954
      
176,787
  
Available for sale, at fair value
    
86,475
      
84,807
      
74,515
  
Investments in equity securities, at fair value
    
855
      
853
      
836
  
FHLB stock
    
2,045
      
2,045
      
2,037
  
Other investments, at cost
    
3,000
      
3,000
      
3,000
  
Loans held for sale
    
1,763
      
1,151
      
1,795
  
                         
Loans receivable
    
1,459,374
      
1,437,599
      
1,414,065
  
Less: ACL – loans
    
(17,878
)
    
(17,525
)
    
(17,046
)
Net loans receivable
    
1,441,496
      
1,420,074
      
1,397,019
  
                         
Premises and equipment, net
    
21,490
      
21,436
      
21,558
  
OREO and other repossessed assets, net
    
221
      
221
      
--
  
BOLI
    
24,113
      
23,942
      
23,436
  
Accrued interest receivable
    
7,174
      
7,127
      
7,045
  
Goodwill
    
15,131
      
15,131
      
15,131
  
CDI
    
316
      
361
      
508
  
Loan servicing rights, net
    
911
      
1,051
      
1,526
  
Operating lease right-of-use assets
    
1,248
      
1,324
      
1,550
  
Other assets
    
7,295
      
9,331
      
4,515
  
Total assets
  
$
1,957,192
    
$
1,932,730
    
$
1,900,629
  
                         
Liabilities and shareholders’ equity
                        
Deposits: Non-interest-bearing demand
  
$
406,222
    
$
407,811
    
$
407,125
  
Deposits: Interest-bearing
    
1,263,255
      
1,243,019
      
1,221,419
  
Total deposits
    
1,669,477
      
1,650,830
      
1,628,544
  
                         
Operating lease liabilities
    
1,350
      
1,426
      
1,649
  
FHLB borrowings
    
20,000
      
20,000
      
20,000
  
Other liabilities and accrued expenses
    
9,701
      
7,950
      
9,213
  
Total liabilities
    
1,700,528
      
1,680,206
      
1,659,406
  
                         
Shareholders’ equity
                        
Common stock, $.01 par value; 50,000,000 shares authorized;
        7,876,853 shares issued and outstanding – June 30, 2025
        7,903,489 shares issued and outstanding – March 31, 2025
        7,953,431 shares issued and outstanding – June 30, 2024
    
27,226
      
28,028
      
30,681
  
Retained earnings
    
230,213
      
225,166
      
211,087
  
Accumulated other comprehensive loss
    
(775
)
    
(670
)
    
(545
)
Total shareholders’ equity
    
256,664
      
252,524
      
241,223
  
Total liabilities and shareholders’ equity
  
$
1,957,192
    
$
1,932,730
    
$
1,900,629
  


Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 12

 
Three Months Ended
  
PERFORMANCE RATIOS:
  
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
Return on average assets (a)
    
1.47
%
    
1.43
%
    
1.25
%
Return on average equity (a)
    
11.23
%
    
10.95
%
    
9.95
%
Net interest margin (a)
    
3.80
%
    
3.79
%
    
3.53
%
Efficiency ratio
    
54.48
%
    
56.25
%
    
58.97
%
                         
 
Nine Months Ended
  
   
June 30, 2025
            
June 30, 2024
  
Return on average assets (a)
    
1.44
%
            
1.27
%
Return on average equity (a)
    
11.07
%
            
10.10
%
Net interest margin (a)
    
3.74
%
            
3.53
%
Efficiency ratio
    
55.65
%
            
58.55
%
                         
 
Three Months Ended
  
ASSET QUALITY RATIOS AND DATA: ($ in thousands)
  
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
Non-accrual loans
  
$
3,843
    
$
2,327
    
$
4,120
  
Loans past due 90 days and still accruing
    
--
      
--
      
--
  
Non-performing investment securities
    
38
      
41
      
72
  
OREO and other repossessed assets
    
221
      
221
      
--
  
Total non-performing assets (b)
  
$
4,102
    
$
2,589
    
$
4,192
  
                         
Non-performing assets to total assets (b)
    
0.21
%
    
0.13
%
    
0.22
%
Net charge-offs (recoveries) during quarter
  
$
(1
)
  
$
--
    
$
36
  
Allowance for credit losses - loans to non-accrual loans
    
465
%
    
753
%
    
414
%
Allowance for credit losses - loans to loans receivable (c)
    
1.23
%
    
1.22
%
    
1.21
%
                         
                         
CAPITAL RATIOS:
                        
Tier 1 leverage capital
    
12.63
%
    
12.55
%
    
12.04
%
Tier 1 risk-based capital
    
19.29
%
    
19.04
%
    
17.97
%
Common equity Tier 1 risk-based capital
    
19.29
%
    
19.04
%
    
17.97
%
Total risk-based capital
    
20.54
%
    
20.29
%
    
19.22
%
Tangible common equity to tangible assets (non-GAAP)
    
12.42
%
    
12.36
%
    
11.97
%
                         
BOOK VALUES:
                        
Book value per common share
  
$
32.58
    
$
31.95
    
$
30.33
  
Tangible book value per common share (d)
    
30.62
      
29.99
      
28.36
  
________________________________________________
(a)  Annualized
(b)  Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets.
(c)  Does not include loans held for sale and is before the allowance for credit losses.
(d)  Tangible common equity divided by common shares outstanding (non-GAAP).
Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 13

AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY
($ in thousands)
(unaudited)

   
For the Three Months Ended
        
   
June 30, 2025
    
March 31, 2025
    
June 30, 2024
  
   
Amount
    
Rate
    
Amount
    
Rate
    
Amount
    
Rate
  
                                     
Assets
                                    
Loans receivable and loans held for sale
  
$
1,450,350
      
5.92
%
  
$
1,435,999
      
5.90
%
  
$
1,391,582
      
5.65
%
Investment securities and FHLB stock (1)
    
232,272
      
3.71
      
232,532
      
3.64
      
268,954
      
3.63
  
Interest-earning deposits in banks and CDs
    
178,887
      
4.45
      
172,175
      
4.44
      
161,421
      
5.41
  
     Total interest-earning assets
    
1,861,509
      
5.50
      
1,840,706
      
5.48
      
1,821,957
      
5.33
  
Other assets
    
79,715
              
77,563
              
82,008
          
     Total assets
  
$
1,941,224
            
$
1,918,269
            
$
1,903,965
          
                                                 
Liabilities and Shareholders’ Equity
                                                
NOW checking accounts
  
$
333,074
      
1.39
%
  
$
328,115
      
1.32
%
  
$
329,344
      
1.29
%
Money market accounts
    
304,526
      
3.16
      
306,137
      
3.18
      
326,023
      
3.56
  
Savings accounts
    
205,592
      
0.35
      
206,054
      
0.28
      
208,488
      
0.27
  
Certificates of deposit accounts
    
363,342
      
3.77
      
343,945
      
3.82
      
311,545
      
4.21
  
Brokered CDs
    
48,028
      
4.83
      
50,104
      
4.85
      
45,442
      
5.32
  
   Total interest-bearing deposits
    
1,254,562
      
2.47
      
1,234,355
      
2.45
      
1,220,842
      
2.62
  
Borrowings
    
20,002
      
4.03
      
20,000
      
4.04
      
20,001
      
4.42
  
   Total interest-bearing liabilities
    
1,274,564
      
2.49
      
1,254,355
      
2.47
      
1,240,843
      
2.64
  
                                                 
Non-interest-bearing demand deposits
    
402,717
              
403,738
              
413,494
          
Other liabilities
    
10,266
              
10,064
              
10,245
          
Shareholders’ equity
    
253,677
              
250,112
              
239,383
          
     Total liabilities and shareholders’ equity
  
$
1,941,224
            
$
1,918,269
            
$
1,903,965
          
                                                 
     Interest rate spread
            
3.01
%
            
3.01
%
            
2.69
%
     Net interest margin (2)
            
3.80
%
            
3.79
%
            
3.53
%
     Average interest-earning assets to
                                                
     average interest-bearing liabilities
    
146.05
%
            
146.75
%
            
146.83
%
        
          _____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
     average interest-earning assets




Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 14


AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands)
(unaudited)

   
For the Nine Months Ended
  
   
June 30, 2025
    
June 30, 2024
  
   
Amount
    
Rate
    
Amount
    
Rate
  
                         
Assets
                        
Loans receivable and loans held for sale
  
$
1,441,506
      
5.87
%
  
$
1,363,213
      
5.57
%
Investment securities and FHLB stock (1)
    
237,400
      
3.81
      
294,789
      
3.24
  
Interest-earning deposits in banks and CDs
    
172,591
      
4.55
      
143,537
      
5.39
  
     Total interest-earning assets
    
1,851,497
      
5.49
      
1,801,539
      
5.17
  
Other assets
    
77,595
              
81,650
          
     Total assets
  
$
1,929,092
            
$
1,883,189
          
                                 
Liabilities and Shareholders’ Equity
                                
NOW checking accounts
  
$
329,883
      
1.36
%
  
$
358,052
      
1.48
%
Money market accounts
    
311,762
      
3.26
      
273,683
      
3.09
  
Savings accounts
    
205,764
      
0.30
      
214,275
      
0.24
  
Certificates of deposit accounts
    
346,313
      
3.89
      
291,707
      
4.12
  
Brokered CDs
    
48,169
      
4.71
      
42,856
      
5.37
  
   Total interest-bearing deposits
    
1,241,891
      
2.50
      
1,180,573
      
2.42
  
Borrowings
    
20,001
      
4.02
      
22,457
      
4.68
  
   Total interest-bearing liabilities
    
1,261,892
      
2.53
      
1,203,030
      
2.46
  
                                 
Non-interest-bearing demand deposits
    
406,906
              
431,849
          
Other liabilities
    
10,159
              
11,273
          
Shareholders’ equity
    
250,135
              
237,037
          
     Total liabilities and shareholders’ equity
  
$
1,929,092
            
$
1,883,189
          
                                 
     Interest rate spread
            
2.96
%
            
2.71
%
     Net interest margin (2)
            
3.74
%
            
3.53
%
     Average interest-earning assets to
                                
     average interest-bearing liabilities
    
146.72
%
            
149.75
%
        
          _____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
     average interest-earning assets



Timberland Fiscal Q3 2025 Earnings
July 22, 2025
Page 15

Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures.  Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures.  To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure.  Tangible common equity is calculated as shareholders’ equity less goodwill and CDI.  In addition, tangible assets equal total assets less goodwill and CDI.

The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).

($ in thousands)
  
June 30, 2025
  
March 31, 2025
  
June 30, 2024
             
Shareholders’ equity
  
$                256,664
  
$                252,524
  
$                   241,223
Less goodwill and CDI
  
(15,447)
  
(15,492)
  
(15,639)
Tangible common equity
  
$                241,217
  
$                237,032
  
$                   225,584
             
Total assets
  
$             1,957,192
  
$             1,932,730
  
$               1,900,629
Less goodwill and CDI
  
(15,447)
  
(15,492)
  
(15,639)
Tangible assets
  
$             1,941,745
  
$             1,917,238
  
$               1,884,990