Timberland Bancorp Annual Meeting: Directors Re-Elected, Dividend Raised, Record Earnings Highlighted

Timberland Bancorp (NASDAQ:TSBK) held its virtual annual meeting of shareholders with Chairman Mike Stoney presiding and Corporate Secretary Jonathan Fischer serving as secretary of the meeting. The company said shareholders of record as of Dec. 2, 2025 were entitled to vote, with the notice of meeting and proxy materials mailed on Dec. 17, 2025.

According to the company, 7,880,773 shares of common stock were outstanding and entitled to vote as of the record date. Fischer reported that votes were received for 6,456,617 shares, representing 81.93% of shares entitled to vote. The company declared a quorum present and appointed David Smith, Marci Basich, and Fischer as inspectors of election.

Shareholders approve director slate and other proposals

Shareholders voted on three proposals: electing directors, an advisory vote on executive compensation, and the ratification of the company’s independent auditor.

• Director elections: Dean Brydon, Mike Stoney, and Kelly Suter were each re-elected to three-year terms. The company said each nominee received a significant majority of votes cast, with each receiving over 95% of the vote.
• Advisory vote on executive compensation: The non-binding “say-on-pay” proposal passed with 89.8% of votes in favor.
• Auditor ratification: Shareholders ratified the appointment of Aprio LLP, formerly Delap LLP, as the company’s independent registered public accounting firm for the fiscal year ending Sept. 30, 2026, with approval of more than 97% of votes cast.

Management highlights recent financial performance

CEO Dean Brydon discussed operating results and balance sheet trends, while noting that forward-looking statements may have been made during the presentation and are subject to risks and uncertainties.

Brydon framed the company’s performance against recent banking industry conditions, calling 2023 and 2024 challenging for banks due to major bank failures, deposit outflows, margin compression from an inverted yield curve, liquidity and funding challenges, and “some pockets of credit quality concerns.” He described 2025 as more encouraging as the yield curve gained slope and margins and profitability improved, adding that Timberland has produced “very strong and consistent financial results” across those cycles.

Among the metrics Brydon cited:

• Net income: Fiscal 2025 net income of $29.2 million, described as an all-time record and $4.9 million higher than fiscal 2024. He also referenced fiscal 2026 first-quarter net income of $8.2 million, up 20% from the comparable quarter a year earlier.
• Earnings per share: Fiscal 2025 EPS of $3.67, also described as an all-time record and 22% higher than fiscal 2024. First-quarter fiscal 2026 EPS was reported at $1.04, up 21% year over year.
• Profitability ratios: Return on assets of 1.5% and return on equity of 11.56% for fiscal 2025, which Brydon said compared favorably with peers.
• Asset growth: Total assets grew 5% in 2025 and surpassed $2 billion.
• Capital: Total capital was “a little over” $268 million at the end of the most recent quarter, and capital ratios remained above regulatory levels for “well capitalized” status.
• Tangible book value: Tangible book value per share increased 41% since 2021 to $32.11.
• Dividend: The company announced it is increasing the quarterly cash dividend to $0.29 per share, which it said will mark the 53rd consecutive quarter of paying a cash dividend.

Deposits, liquidity, and loan portfolio details

On funding, Brydon said deposit preservation has been a major industry challenge in recent years. Timberland’s deposits fell by about 4% in fiscal 2023, then rose 6% in 2024 and 5% in 2025, according to the presentation. He said core deposits remained strong, with checking accounts comprising nearly 45% of total deposits at the end of the most recent quarter, while customers have shifted some funds from transaction accounts into higher-rate certificates of deposit.

Brydon also discussed wholesale funding and liquidity, noting the company’s borrowings at Dec. 31 totaled $20 million. He added that the company had roughly $760 million in secured borrowing capacity available from the Federal Home Loan Bank and the Federal Reserve, describing that as a strong off-balance sheet liquidity position.

On lending, Brydon said the loan portfolio has increased 51% since 2021, though growth has been flatter in recent quarters due to increased loan payoffs. He described the portfolio as diversified, with commercial real estate loans the largest category at 39%, followed by single-family home loans and multifamily loans. Within commercial real estate, he highlighted industrial warehouses and medical/dental offices as the two largest collateral types and said the company does not have exposure to larger office building loans in large cities; he added that the average office building loan size was $811,000.

In construction lending, Brydon said custom construction and owner-builder loans make up about half of the construction portfolio. He said the owner-builder program has been offered for more than 40 years and has experienced minimal charge-offs over that period.

Brydon said overnight liquidity and investment levels represented about 22% of the balance sheet, with the securities portfolio primarily composed of mortgage-backed securities and Treasury securities.

Asset quality, margins, and stock performance

On credit quality, Brydon said non-performing assets were 23 basis points of total assets at the end of the most recent quarter. Net charge-offs were $240,000 for fiscal 2025, and the company reported net recoveries of $18,000 in the first quarter of fiscal 2026.

Brydon also discussed net interest margin trends, saying margins compressed through mid-2024 and then recovered. He said Timberland’s net interest margin bottomed out in the March 2024 quarter and has increased in each of the last seven quarters, reaching 3.85% in the most recent quarter.

He described the company’s major sources of non-interest income historically as gains on sale of loans from mortgage banking activity, debit card interchange fees, and service charges on deposits, and noted non-interest income in 2021 was elevated due to record refinance activity. He said non-interest expenses have risen in recent years primarily due to inflationary pressures, while the company’s efficiency ratio continued to compare favorably with peer groups.

Finally, Brydon said Timberland’s stock has outperformed the Nasdaq Bank Index and the KBW Regional Bank Index over the past five years. He cited a stock price of $29.52 one year earlier and said the stock closed at $37.42 on the day of the meeting.

Branch expansion and technology initiatives

Fischer provided an update on branding and branch initiatives, saying the bank refreshed its logo more than three years ago and has been updating branch signage and color palettes. He also announced that earlier in the month the company opened a new branch in University Place, Washington, located between the company’s Tacoma and Gig Harbor branches. Fischer said the branch opened to new customers on July 12 and is in a location that formerly operated as a Chase Bank. He said the company “still believe[s] in branching” as a way to connect with customers through locations, technology, and employees.

Fischer also discussed community support efforts, noting the company has given to local food banks and nonprofits for decades. In technology, he outlined initiatives to expand online banking through fintech partnerships and referenced added capabilities such as credit scoring, the ability for customers to give to local nonprofits, and “roundup” features. He said the bank hopes to add kid account opportunities through its app in the near future.

He also said the company is enhancing residential lending solutions, focusing on fraud controls, updating customer statements for customers who rely on paper statements, and adding digital debit cards and instant-issue debit card machines at several branches this year. On operational initiatives, he cited ongoing enhancements to the construction draw management system “Built,” implemented about a year ago, and efforts to leverage automation to improve back-office processes.

No shareholder questions were submitted during the meeting, and the company adjourned after announcing final voting results.

About Timberland Bancorp (NASDAQ:TSBK)

Timberland Bancorp, Inc is the bank holding company for Timberland Bank, a Washington-chartered commercial bank serving individuals and businesses in southwestern Washington. The company conducts its operations through Timberland Bank, offering a range of community banking services tailored to local market needs. As a publicly traded company on the NASDAQ under the symbol TSBK, Timberland Bancorp focuses on delivering personalized financial solutions while maintaining a community-oriented approach.

Timberland Bank’s core products include deposit accounts such as checking, savings and money market accounts, certificates of deposit and retirement accounts.