TSBK

Shares of Timberland Bancorp, Inc. TSBK have gained 1.9% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 index’s 1.5% growth over the same time frame. Over the past month, the stock has gained 1.9% compared with the S&P 500’s 1% increase. Timberland reported third-quarter fiscal 2026 earnings per share of 98 cents, which increased 9% year over year. Operating revenues (net interest income before the provision for credit losses plus non-interest income) rose 6% to $21.8 million, driven primarily by higher interest income on loans and growth in non-interest income. Net interest income climbed 7% year over year to $18.8 million, while non-interest income increased 4% to $3 million. The provision for credit losses on loans rose to $0.6 million from $0.4 million a year earlier, reflecting loan portfolio growth and changes in portfolio composition. Total operating expenses increased 4% to $11.6 million, while the efficiency ratio improved to 53.40% from 54.48% in the prior-year period. Net income was $7.7 million, up 9% from $7.1 million in the year-ago quarter. Timberland Bancorp, Inc. price-consensus-eps-surprise-chart | Timberland Bancorp, Inc. Quote Timberland continued to post balance-sheet growth during the quarter. Total assets increased 5% year over year to $2.1 billion. Net loans receivable rose 4% to $1.5 billion, supported by growth in commercial real estate and construction lending. Total deposits increased 6% to $1.8 billion, while shareholders’ equity advanced 6% to $273.2 million. Profitability metrics also improved. Return on average assets increased to 1.51%, return on average equity reached 11.42%, and net interest margin expanded to 3.85% from 3.80% in the year-ago quarter. Book value per share rose to $35.16. Asset quality remained generally stable. The ratio of non-perfor/ming assets to total assets stood at 0.43% compared with 0.21% a year earlier. The allowance for credit losses represented 1.27% of loans receivable, up slightly from 1.23% a year ago. Meanwhile, loans graded "Substandard" declined 73% year over year, reflecting improvement in criticized assets. Chief executive officer Dean Brydon said the company delivered another strong quarter, supported by expanding net interest margin, solid loan growth and favorable profitability ratios compared with both the prior quarter and the year-ago period. He noted that demand across lending categories remained healthy despite the evolving interest-rate environment and emphasized confidence in the quality of the loan portfolio and the company’s disciplined credit risk management. Chief financial officer Marci Basich described the quarter as relatively clean from an earnings perspective, with minimal non-recurring items affecting results. She said proactive deposit pricing strategies and balance-sheet positioning helped mitigate interest-rate pressures while supporting margin stability. President and chief operating officer Jonathan Fischer highlighted the company’s strong earnings and capital position as the basis for a 3% increase in the quarterly cash dividend to 30 cents per share, marking the 55th consecutive quarterly cash dividend. Higher interest income on loans remained the primary contributor to earnings growth. Net interest income benefited from higher average interest-earning assets, a higher yield on earning assets and a modest reduction in the average cost of interest-bearing liabilities. Operating revenue also received support from higher ATM and debit card interchange fees and increased bank-owned life insurance earnings. At the same time, earnings reflected a higher provision for credit losses associated with loan growth and portfolio mix changes. Liquidity remained strong, supported by $791 million of available secured borrowing capacity through the Federal Home Loan Bank and the Federal Reserve, with borrowings reduced to $10 million at quarter-end. During the quarter, Timberland repurchased 70,000 shares of common stock for approximately $2.8 million at an average price of $40.49 per share. The company also purchased $15 million of additional bank-owned life insurance policies, increasing its BOLI balance by 69% to $37.4 million. Management announced a 3% increase in the quarterly cash dividend to 30 cents per share, payable on Aug. 24, 2026, to shareholders of record as of Aug. 10, 2026. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Timberland Bancorp, Inc. (TSBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quarterly EPS Increases 9% to $0.98 from $0.90 for the Comparable Quarter One Year Ago Quarterly Return on Average Assets Increases to 1.51% Quarterly Return on Average Equity Increases to 11.42% Quarterly Net Interest Margin Increases to 3.85% Announces a 3% Increase in the Quarterly Cash Dividend HOQUIAM, Wash., July 28, 2026 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.72 million, or $0.98 per diluted common share for the quarter ended June 30, 2026. This compares to net income of $7.10 million, or $0.90 per diluted common share for the comparable quarter one year ago, and $7.13 million, or $0.90 per diluted common share, for the preceding quarter. For the first nine months of fiscal 2026, Timberland’s net income increased 11% to $23.07 million, or $2.92 per diluted common share, from $20.72 million, or $2.60 per diluted common share, for the first nine months of fiscal 2025. “Timberland delivered another strong quarter, with net income and earnings per share up 8% and 9%, respectively, from the prior quarter, and up 9% from the year ago quarter,” stated Dean Brydon, Chief Executive Officer. “Net interest margin expanded, loan growth was solid, and most of our income-related ratios compared favorably with both the linked-quarter and year-over-year. We remain encouraged by our business model and believe we are well positioned as we head into the end of our fiscal year.” “As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a 3% increase to the quarterly cash dividend to shareholders of $0.30 per share, payable on August 24, 2026, to shareholders of record on August 10, 2026,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 55th consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board’s continued confidence in our long-term outlook.” “Overall, this was a relatively clean quarter from an earnings standpoint, with minimal non-recurring items impacting results,” said Marci Basich, Chief Financial Officer. “Net interest margin improved this quarter, up four basis points after a modest decline last quarter and improved five basis points year-over-year. Our balance sheet positioning and proactive deposit pricing strategies continue to help mitigate the headwinds of the current interest rate environment. On the deposit side, total deposits grew 1% from the prior quarter and 6% year over year. Maintaining a disciplined funding mix and stable margin will remain a top priority going forward.” “Net loans were up 3% from the prior quarter and 4% year-over-year,” Brydon continued. “Even with a shifting rate environment, demand across our lending categories has remained healthy.   Credit quality held steady with modest improvements in non-performing asset levels, delinquency levels, and substandard loan levels. Our markets continue to offer solid growth opportunities, and we remain confident in the quality of our loan portfolio and our disciplined approach to credit risk management.” Earnings and Balance Sheet Highlights (at or for the periods ended June 30, 2026, compared to June 30, 2025, or March 31, 2026):       Earnings Highlights: Earnings per diluted common share (“EPS”) increased 9% to $0.98 for the current quarter from $0.90 for the comparable quarter one year ago and $0.90 for the preceding quarter; EPS increased 12% to $2.92 for the first nine months of fiscal 2026 from $2.60 for the first nine months of fiscal 2025; Net income increased 9% to $7.72 million for the current quarter from $7.10 million for the comparable quarter one year ago and increased 8% from $7.13 million for the preceding quarter; Net income increased 11% to $23.07 million for the first nine months of fiscal 2026 from $20.72 million for the first nine months of fiscal 2026; Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.42% and 1.51%, respectively; Net interest margin (“NIM”) for the current quarter increased to 3.85% from 3.80% for the comparable quarter one year ago and 3.81% for the preceding quarter; and The efficiency ratio for the current quarter improved to 53.40% from 54.48% for the comparable quarter one year ago and 55.37% for the preceding quarter. Balance Sheet Highlights: Total assets increased 1% from the prior quarter and increased 5% year-over-year; Net loans receivable increased 3% from the prior quarter and increased 4% year-over-year; Total deposits increased 1% from the prior quarter and increased 6% year-over-year; Total shareholders’ equity increased 1% from the prior quarter and increased 6% year-over-year; 70,000 shares of common stock were repurchased during the current quarter for $2.83 million; Non-performing assets to total assets ratio was 0.43% at June 30, 2026, compared to 0.47% at March 31, 2026, and 0.21% at March 31, 2025; Book and tangible book (non-GAAP) values per common share increased to $35.16 and $33.19 respectively, at June 30, 2026; and Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2026, with only $10 million in borrowings and additional secured borrowing line capacity of $791 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 4% to $21.79 million from $21.05 million for the preceding quarter and increased 6% from $20.50 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to an increase in interest income on loans receivable, and to a lesser extent, an increase in non-interest income, which was partially offset by an increase in interest expense on deposits. Operating revenue increased 7%, to $64.56 million for the first nine months of fiscal 2026 from $60.06 million for the first nine months of fiscal 2025, primarily due to increases in interest income on loans receivable, interest income on interest-bearing deposits in banks, and non-interest income which were partially offset by a decrease in interest income from investments securities. Net interest income increased $562,000, or 3%, to $18.81 million for the current quarter from $18.24 million for the preceding quarter and increased $1.18 million, or 7%, from $17.62 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $14.62 million increase in the average interest-earning assets, a five-basis point increase in the weighted average yield on interest-bearing assets and, to a lesser extent, a two-basis point decrease in the weighted average cost of interest-bearing liabilities. Net interest income for the first nine months of fiscal 2026 increased $4.19 million, or 8%, to $56.00 million from $51.81 million for the first nine months of fiscal 2025, primarily due to a $99.58 million increase in average interest-earning assets and a 15-basis point decrease in the weighted average cost of interest-bearing liabilities. Timberland’s NIM for the current quarter increased to 3.85% from 3.81% for the preceding quarter and from 3.80% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately two basis points due to the collection of $82,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value discount on acquired loans.   The NIM for the preceding quarter was increased by approximately one basis point due to the collection of $38,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $10,000 of the fair value discount on acquired loans.   The NIM for the comparable quarter one year ago 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. Timberland’s NIM expanded to 3.84% for the first nine months of fiscal 2026 from 3.74% for the first nine months of fiscal 2025. A $600,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2026. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $523,000 provision for credit losses on loans for the preceding quarter and a $351,000 provision for credit losses on loans for the comparable quarter one year ago. Non-interest income increased $181,000, or 6%, to $2.99 million for the current quarter from $2.81 million for the preceding quarter and increased $113,000, or 4%, from $2.88 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to a $91,000 increase in BOLI net earnings, a $62,000 increase in ATM and debit card interchange fees and smaller increases in several other categories. These increases were partially offset by an $86,000 decrease in net gain on sales of loans. Fiscal year-to-date non-interest income increased by 4%, to $8.56 from $8.26 million for the first nine months of fiscal 2025. Total operating (non-interest) expenses for the current quarter decreased $21,000, or less than 1%, to $11.64 million from $11.66 million for the preceding quarter and increased $471,000, or 4%, from $11.17 million for the comparable quarter one year ago.   The slight decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salary and employee benefits expense and technology and communications expense and smaller decreases and increases in several other expense categories. The efficiency ratio for the current quarter improved to 53.40% from 55.38% for the preceding quarter and 54.48% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 4% to $34.73 million from $33.43 million for the first nine months of fiscal 2025. The provision for income taxes for the current quarter increased $190,000, or 11%, to $1.93 million from $1.74 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.0% for the quarter ended June 30, 2026, compared to 19.6% for the quarter ended March 31, 2026, and 20.1% for the quarter ended June 30, 2025.   Timberland’s effective income tax rate was 20.0% for the first nine months of fiscal 2026 compared to 20.1% for the first nine months of fiscal 2025. Balance Sheet Management Total assets increased $14.44 million, or 1%, during the quarter to $2.06 billion at June 30, 2026, from $2.05 billion at March 31, 2026, and increased $103.63 million, or 5%, from $1.96 billion one year ago. The increase during the quarter was primarily due to increases in net loans receivable and bank owned life insurance, which were partially offset by a decrease in total cash and cash equivalents. 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 19.3% of total liabilities at June 30, 2026, compared to 22.1% at March 31, 2026, and 17.0% one year ago. Timberland also had secured borrowing line capacity of $791 million available through the FHLB and the Federal Reserve at June 30, 2026. With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2026. (Note: This calculation excludes public deposits that are fully collateralized.) Loans Net loans receivable increased $44.77 million, or 3%, during the quarter to $1.50 billion at June 30, 2026, from $1.45 billion at March 31, 2026, and increased $54.16 million, or 4%, from $1.44 billion at June 30, 2025.   The increase during the quarter was primarily due to a $35.26 million increase in commercial real estate loans, a $30.48 million increase in construction loans and smaller increases in several other loan categories. These increases were partially offset by an $11.58 million decrease in one- to four-family loans, a $9.70 million increase in the undisbursed portion of construction loans in process and smaller changes in several other loan categories. Loan Portfolio($ in thousands) _______________________(a)   Does not include one- to four-family loans held for sale totaling $2,774, $1,642, and $1,763 at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 30, 2026: Timberland originated $133.67 million in loans during the quarter ended June 30, 2026, compared to $71.12 million for the preceding quarter and $81.99 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 $7.83 million were sold compared to $11.36 million for the preceding quarter and $5.11 million for the comparable quarter one year ago. Investment Securities        Timberland’s investment securities and CDs held for investment increased $863,000 or less than 1%, to $216.89 million at June 30, 2026, from $216.03 million at March 31, 2026. The increase was primarily due to the purchase of additional CDs and U.S. government agency mortgage-backed investment securities, which were partially offset by maturities of U.S. Treasury Securities and scheduled amortization. Bank Owned Life Insurance (“BOLI”) BOLI increased $15.25 million, or 69%, to $37.39 million at June 30, 2026, from $22.14 million at March 31, 2026. The increase was primarily due to $15.00 million in additional BOLI policies purchased during the quarter. Deposits Total deposits increased $20.34 million, or 1%, during the quarter to $1.76 billion at June 30, 2026, from $1.74 billion at March 31, 2026, and increased $94.07 million, or 6%, from $1.67 billion at June 30, 2025. The quarter’s increase consisted of a $7.00 million increase in certificates of deposit account balances, a $5.56 million increase in money market account balances, a $4.09 million increase in NOW account balances, a $2.99 million increase in non-interest-bearing deposit account balances, and a $700,000 increase in savings account balances. Borrowings Total borrowings decreased $10.00 million, or 50%, to $10.00 million at June 30, 2026, from $20.00 million as March 31, 2026 and June 30, 2025. Shareholders’ Equity and Capital Ratios Total shareholders’ equity increased $2.12 million, or 1%, to $273.21 million at June 30, 2026, from $271.09 million at March 31, 2026, and increased $16.54 million, or 6%, from $256.66 million at June 30, 2025. The increase in shareholders’ equity during the quarter was primarily due to net income of $7.72 million and proceeds from stock option exercises of $140,000. These increases to shareholders’ equity were partially offset by the payment of $2.27 million in dividends to shareholders and the repurchase of 70,000 shares of common stock for $2.83 million (an average price of $40.49 per share), and a $817,000 increase of accumulated other comprehensive loss. At June 30, 2026, Timberland had 157,977 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan. Timberland remains well capitalized with a total risk-based capital ratio of 20.87%, a Tier 1 leverage capital ratio of 12.82%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.61%, and a shareholders’ equity to total assets ratio of 13.26% at June 30, 2026.   Timberland’s held to maturity investment securities were $117.59 million at June 30, 2026, with a net unrealized loss of $4.37 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 13.11%, compared to 13.26%, as reported. Asset Quality Timberland’s non-performing assets to total assets ratio was 0.43% at June 30, 2026, compared to 0.47% at March 31, 2026, and 0.21% at June 30, 2025.   Net recoveries were $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net recoveries of $1,000 for the comparable quarter one year ago. During the current quarter, a $600,000 provision for credit losses on loans was made, which was offset by a $91,000 recapture of credit losses on unfunded commitments and a $1,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.27% at June 30, 2026, compared to 1.27% at March 31, 2026, and 1.23% one year ago. Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $1.69 million, or 16%, to $8.71 million at June 30, 2026, from $10.40 million at March 31,2026, and increased $2.54 million, or 41%, from $6.17 million at June 30, 2025. Non-accrual loans decreased $849,000 or 9%, to $8.56 million at June 30, 2026 from $9.41 million at March 31, 2026, and increased $4.71 million, or 123%, from $3.84 million at June 30, 2025.   Loans graded “Substandard” decreased $874,000, or 9%, to $8.66 million at June 30, 2026 from $9.54 million at March 31, 2026 and decreased $23.71 million, or 73%, from $32.37 million at June 30, 2025. Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2026: 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 24 branches (including its main office in Hoquiam). DisclaimerCertain 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, 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 2026 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. ________________________________________________ (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).                             AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY ($ in thousands)(unaudited) _____________________________________(1) Includes other investments(2) Net interest margin = annualized net interest income /      average interest-earning assets AVERAGE BALANCES, YIELDS, AND RATES – YEAR TO DATE($ in thousands)(unaudited) _____________________________________(1) Includes other investments(2) Net interest margin = annualized net interest income /average interest-earning assets Non-GAAP Financial MeasuresIn 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).

EPS Increases 6% to $0.90 from $0.85 for the Comparable Quarter One Year Ago Quarterly Return on Average Assets of 1.43% Quarterly Return on Average Equity of 10.72% Quarterly Net Interest Margin of 3.81% HOQUIAM, Wash., April 28, 2026 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.13 million, or $0.90 per diluted common share for the quarter ended March 31, 2026. This compares to net income of $6.76 million, or $0.85 per diluted common share for the comparable quarter one year ago, and $8.22 million, or $1.04 per diluted common share, for the preceding quarter. For the first six months of fiscal 2026, Timberland’s net income increased 13% to $15.35 million, or $1.94 per diluted common share, from $13.62 million, or $1.71 per diluted common share, for the first six months of fiscal 2025. “Timberland delivered another strong quarter, with net income and earnings per share both growing 6% compared to the year ago quarter,” stated Dean Brydon, Chief Executive Officer. “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. Most of our key income-related metrics reflect year-over year improvement, and our fundamentals remain sound.” “As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a quarterly cash dividend to shareholders to $0.29 per share, payable on May 22, 2026, to shareholders of record on May 8, 2026,” stated Jonathan Fischer, President and Chief Operating Officer. “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.” “Our net interest margin remained relatively stable, declining four basis points from the prior quarter while improving two basis points year-over-year,” said Marci Basich, Chief Financial Officer. “After largely offsetting the impact of Federal Reserve rate cuts in the prior quarter, we are beginning to see those cuts have a more direct effect on our margin. Our balance sheet positioning and proactive deposit pricing strategies continue to help mitigate these headwinds. It is also worth noting that the comparison to the prior quarter is somewhat affected by one-time items — collected non-accrual interest and late fees added approximately one basis point to the margin during the current quarter, compared to a six basis point benefit from similar items in the prior quarter. On the deposit side, total deposits grew 2% from the prior quarter and 6% year-over-year. Discipline around our funding mix and margin stability will continue to be central to how we operate.” “Net loans were down slightly during the quarter, driven primarily by higher loan payoff activity,” Brydon continued. “Credit quality is an area we continue to monitor closely, and this quarter delinquent and non-accrual loans increased, driven primarily by an isolated participation loan that was moved to non-accrual status during the quarter. We remain confident in the overall strength of our loan portfolio and our disciplined approach to credit risk management.” “Our new full-service branch in University Place, which opened January 12, 2026, is gaining traction and expanding our ability to serve clients in the area between our Gig Harbor and Tacoma locations. Early momentum is encouraging, and we see strong opportunity to deepen commercial banking relationships with the businesses driving growth in this community,” added Fischer. Earnings and Balance Sheet Highlights (at or for the periods ended March 31, 2026, compared to March 31, 2025, or December 31, 2025): Earnings Highlights: Earnings per diluted common share (“EPS”) increased 6% to $0.90 for the current quarter from $0.85 for the comparable quarter one year ago and decreased 13% from $1.04 for the preceding quarter; EPS increased 13% to $1.94 for the first six months of fiscal 2026 from $1.71 for the first six months of fiscal 2025; Net income increased 6% to $7.13 million for the current quarter from $6.76 million for the comparable quarter one year ago and decreased 13% from $8.22 million for the preceding quarter; Net income increased 13% to $15.35 million for the first six months of fiscal 2026 from $13.62 million for the first six months of fiscal 2026; Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 10.72% and 1.43%, respectively; Net interest margin (“NIM”) for the current quarter increased to 3.81% from 3.79% for the comparable quarter one year ago and decreased from 3.85% for the preceding quarter; and The efficiency ratio for the current quarter was 55.38% compared to 56.25% for the comparable quarter one year ago and 52.65% for the preceding quarter. Balance Sheet Highlights: Total assets increased 2% from the prior quarter and increased 6% year-over-year; Net loans receivable decreased 1% from the prior quarter and increased 2% year-over-year; Total deposits increased 2% from the prior quarter and increased 6% year-over-year; Total shareholders’ equity increased 1% from the prior quarter and increased 7% year-over-year; 80,000 shares of common stock were repurchased during the current quarter for $3.09 million; Non-performing assets to total assets ratio was 0.47% at March 31, 2026, compared to 0.23% at December 31, 2025, and 0.19% at March 31, 2025; Book and tangible book (non-GAAP) values per common share increased to $34.61 and $32.65 respectively, at March 31, 2026; and Liquidity (both on-balance sheet and off-balance sheet) remained strong at March 31, 2026, with only $20 million in borrowings and additional secured borrowing line capacity of $778 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 decreased 3% to $21.05 million from $21.71 million for the preceding quarter and increased 6% from $19.90 million for the comparable quarter one year ago. The decrease in operating revenue compared to the preceding quarter was primarily due to a decrease in interest income on loans receivable, and to a lesser extent, a decrease in interest income from investment securities, which was partially offset by a decrease in interest expense on deposits. Operating revenue increased 8%, to $42.77 million for the first six months of fiscal 2026 from $39.57 million for the first six months of fiscal 2025, primarily due to increases in interest income on loans receivable and interest income on interest-bearing deposits in banks, which was partially offset by a decrease in interest income from investments securities. Net interest income decreased $705,000, or 4%, to $18.24 million for the current quarter from $18.95 million for the preceding quarter and increased $1.03 million, or 6%, from $17.21 million for the comparable quarter one year ago. The decrease in net interest income compared to the preceding quarter was primarily due to an $11.04 million decrease in the average balance of total interest-earning assets and a ten-basis point decrease in the weighted average yield of interest-bearing assets. These decreases were partially offset by an 11-basis point decrease in the weighted average cost of interest-bearing liabilities. Net interest income for the first six months of fiscal 2026 increased $3.01 million, or 9%, to $37.19 million from $34.18 million for the first six months of fiscal 2025, primarily due to a $101.58 million increase in average interest-earning assets and a 15-basis point decrease in the weighted average cost of interest-bearing liabilities. Timberland’s NIM for the current quarter decreased to 3.81% from 3.85% for the preceding quarter and improved from 3.79% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately one basis point due to the collection of $38,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $10,000 of the fair value discount on acquired loans. The NIM for the preceding quarter was increased by approximately six basis points due to the collection of $282,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $9,000 of the fair value discount on acquired loans. The NIM for the comparable quarter one year ago 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. Timberland’s NIM expanded to 3.83% for the first six months of fiscal 2026 from 3.71% for the first six months of fiscal 2025. A $523,000 provision for credit losses on loans was recorded for the quarter ended March 31, 2026. The provision was primarily due to changes in the composition of the loan portfolio and an increase in the level of non-accrual loans. This compares to a $16,000 provision for credit losses on loans for the preceding quarter and a $237,000 provision for credit losses on loans for the comparable quarter one year ago. Non-interest income increased $43,000, or 2%, to $2.81 million for the current quarter from $2.76 million for the preceding quarter and increased $120,000, or 4%, from $2.69 million for the comparable quarter one year ago. The increase in non-interest income was primarily due to a $158,000 increase in net gain on sales of loans and smaller increases in several other categories. These increases were partially offset by a $63,000 decrease in ATM and debit card interchange fees and a $55,000 decrease in service charges on deposits. Fiscal year-to-date non-interest income increased by 4%, to $5.57 million from $5.38 million for the first six months of fiscal 2025. Total operating (non-interest) expenses for the current quarter increased $228,000, or 2%, to $11.66 million from $11.43 million for the preceding quarter and increased $465,000, or 4%, from $11.19 million for the comparable quarter one year ago. The increase in operating expenses compared to the preceding quarter was primarily due to increases in technology and communications, loan administration and foreclosure, and smaller increases in several other categories. These increases were partially offset by a decrease in ATM and debit card processing expense and smaller decreases in several other categories. The efficiency ratio for the current quarter was 55.38% compared to 52.65% for the preceding quarter and 56.25% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 4% to $23.09 million from $22.26 million for the first six months of fiscal 2025. The provision for income taxes for the current quarter decreased $363,000, or 17%, to $1.74 million from $2.10 million for the preceding quarter, primarily due to lower taxable income. Timberland’s effective income tax rate was 19.6% for the quarter ended March 31, 2026, compared to 20.4% for the quarter ended December 31, 2025, and 20.2% for the quarter ended March 31, 2025. Timberland’s effective income tax rate was 20.0% for the first six months of fiscal 2026 compared to 20.1% for the first six months of fiscal 2025. Balance Sheet Management Total assets increased $40.26 million, or 2%, during the quarter to $2.05 billion at March 31, 2026, from $2.01 billion at December 31, 2025, and increased $113.66 million, or 6%, from $1.93 billion one year ago. 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 22.1% of total liabilities at March 31, 2026, compared to 18.9% at December 31, 2025, and 16.9% one year ago. Timberland also had secured borrowing line capacity of $778 million available through the FHLB and the Federal Reserve at March 31, 2026. With a strong and diversified deposit base, only 18% of Timberland’s deposits were uninsured or uncollateralized at March 31, 2026. (Note: This calculation excludes public deposits that are fully collateralized.) Loans Net loans receivable decreased $7.96 million, or 1%, during the quarter to $1.45 billion at March 31, 2026, from $1.46 billion at December 31, 2025, and increased $30.80 million, or 2%, from $1.42 billion at March 31, 2025. The decrease during the quarter was primarily due to a $14.22 million decrease in one- to four-family loans, a $3.33 million decrease in commercial business loans and smaller decreases in several other loan categories. These decreases were partially offset by a $10.33 million increase in construction loans and smaller increases in several other loan categories. _______________________ (a) Does not include one- to four-family loans held for sale totaling $1,642, $3,736, and $1,151 at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of March 31, 2026: Timberland originated $71.12 million in loans during the quarter ended March 31, 2026, compared to $73.06 million for the preceding quarter and $56.76 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 $11.36 million were sold compared to $3.66 million for the preceding quarter and $5.17 million for the comparable quarter one year ago. Investment Securities Timberland’s investment securities and CDs held for investment increased $191,000, or less than 1%, to $216.03 million at March 31, 2026, from $215.84 million at December 31, 2025. The increase was primarily due to the purchase of additional U.S. government agency mortgage-backed investment securities and was partially offset by maturities of U.S. Treasury Securities and scheduled amortization. Deposits Total deposits increased $38.73 million, or 2%, during the quarter to $1.74 billion at March 31, 2026, from $1.70 billion at December 31, 2025, and increased $92.38 million, or 6%, from $1.65 billion at March 31, 2025. The quarter’s increase consisted of a $21.50 million increase in money market account balances, a $10.13 million increase in certificate of deposits account balances, a $3.68 million increase in non-interest-bearing deposit account balances, a $3.11 million increase in NOW account balances, and a $315,000 increase in savings account balances. Borrowings Total borrowings were $20.00 million at both March 31, 2026, and December 31, 2025. At March 31, 2026, the weighted average rate on the borrowings was 4.03%. Shareholders’ Equity and Capital Ratios Total shareholders’ equity increased $2.68 million, or 1%, to $271.09 million at March 31, 2026, from $268.41 million at December 31, 2025, and increased $18.57 million, or 7%, from $252.52 million at March 31, 2025. The increase in shareholders’ equity during the quarter was primarily due to net income of $7.13 million and proceeds from stock option exercises of $877,000. These increases to shareholders’ equity were partially offset by the payment of $2.27 million in dividends to shareholders and the repurchase of 80,000 shares of common stock for $3.09 million (an average price of $38.63 per share), and a $117,000 increase of accumulated other comprehensive loss. At March 31, 2026, Timberland had 227,977 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan. Timberland remains well capitalized with a total risk-based capital ratio of 21.55%, a Tier 1 leverage capital ratio of 12.82%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.59%, and a shareholders’ equity to total assets ratio of 13.25% at March 31, 2026. Timberland’s held to maturity investment securities were $117.33 million at March 31, 2026, with a net unrealized loss of $4.07 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 13.09%, compared to 13.25%, as reported. Asset Quality Timberland’s non-performing assets to total assets ratio was 0.47% at March 31, 2026, compared to 0.23% at December 31, 2025, and 0.13% at March 31, 2025. Net charge-offs were less than $1,000 for the current quarter compared to net recoveries of $18,000 for the preceding quarter and net charge-offs of less than $1,000 for the comparable quarter one year ago. During the current quarter, a $523,000 provision for credit losses on loans and a $3,000 provision for credit losses on unfunded commitments was made, which was offset by a $3,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.27% at March 31, 2026, compared to 1.23% at December 31, 2025, and 1.22% one year ago. Total delinquent loans (past due 30 days or more) and non-accrual loans increased $4.34 million, or 72%, to $10.40 million at March 31, 2026, from $6.05 million at December 31, 2025, and increased $7.07 million, or 213%, from $3.32 million at March 31, 2025. Non-accrual loans increased $5.12 million or 120%, to $9.41 million at December 31, 2025 from $4.28 million at December 31, 2025, and increased $7.08 million, or 304%, from $2.33 million at March 31, 2025. The increase in delinquent and non-accrual loans during the quarter was primarily due to a $4.33 million participation loan secured by a hotel in Oregon that was put on non-accrual status. Timberland has a total of $7.11 million in participation loans purchased from other community banks and all other participation loans were performing according to their terms at March 31, 2026. Loans graded “Substandard” increased $926,000, or 11%, to $9.54 million at March 31, 2026 from $8.61 million at December 31, 2025 and decreased $13.97 million, or 59%, from $23.51 million at March 31, 2025. Timberland had two properties classified as other real estate owned (“OREO”) at March 31, 2026: 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 24 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, 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 2026 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. ________________________________________________ (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). AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY ($ in thousands) (unaudited) _____________________________________ (1) Includes other investments (2) Net interest margin = annualized net interest income / average interest-earning assets _____________________________________ (1) Includes other investments (2) Net interest margin = annualized net interest income / average interest-earning assets 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).

Governance and dividend: Shareholders re-elected Dean Brydon, Mike Stoney and Kelly Suter (each with >95% support), approved the non‑binding say‑on‑pay and ratified Aprio LLP as auditor, and the board raised the quarterly cash dividend to $0.29—the 53rd consecutive quarterly payout. Record financial results: Timberland reported fiscal 2025 net income of $29.2 million and EPS of $3.67 (both all‑time highs, up ~22% YoY), with Q1 fiscal 2026 net income of $8.2M and EPS $1.04; total assets topped $2 billion and tangible book value per share is up 41% since 2021. Balance sheet, liquidity and asset quality: Deposits stabilized and grew (up 5% in 2025), the loan portfolio is up 51% since 2021 with commercial real estate ~39% of loans, the bank has roughly $760 million in secured borrowing capacity, a net interest margin recovery to 3.85%, and low credit stress (non‑performing assets ~23 bps; minimal net charge‑offs). Interested in Timberland Bancorp, Inc.? Here are five stocks we like better. 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. → How Long Can Equal-Weighted ETFs Keep Outperforming the S&P 500? 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. 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. → Insiders Rang in the New Year Selling These Stocks, Buyers Beware 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. → Mag 7 Outlook: What Apple, Microsoft, Meta, and Tesla Just Told Us 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. 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. 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. 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. The article "Timberland Bancorp Annual Meeting: Directors Re-Elected, Dividend Raised, Record Earnings Highlighted" was originally published by MarketBeat.

EPS Increases 21% to $1.04 from $0.86 for the Comparable Quarter One Year Ago Quarterly Return on Average Assets of 1.60% Quarterly Return on Average Equity of 12.33% Quarterly Net Interest Margin Increases to 3.85% Announces a 4% Increase in the Quarterly Cash Dividend HOQUIAM, Wash., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $8.22 million, or $1.04 per diluted common share for the quarter ended December 31, 2025. This compares to net income of $6.86 million, or $0.86 per diluted common share for the comparable quarter one year ago, and $8.45 million, or $1.07 per diluted common share, for the preceding quarter. “Timberland delivered strong profitability this quarter, demonstrating the fundamental strength and resilience of our business model,” stated Dean Brydon, Chief Executive Officer. “In the first quarter, net income increased 20% from a year ago, with earnings per share up 21%, reflecting our disciplined approach to growth and operation efficiency. Compared to the prior quarter, net income was down 3%, largely due to a $1.04 million bank owned life insurance (“BOLI”) benefit claim realized during the prior quarter. However, when adjusted for the one-time BOLI impact, net income and earnings per share increased by approximately 11% over the prior quarter.” “As a result of Timberland’s strong earnings and capital position, our Board of Directors announced a 4% increase to the quarterly cash dividend to shareholders to $0.29 per share, payable on February 27, 2026, to shareholders of record on February 13, 2026,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 53rd consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board’s continued confidence in our long-term outlook.” “Our strong quarterly results reflect several positive trends across our business,” said Marci Basich, Chief Financial Officer. “We continued to see expansion in our net interest margin, which increased three basis points from the prior quarter and 21 basis points year-over-year. The current quarter included additional non-accrual interest and late fees collected, which increased the margin by approximately 6 basis points. Our balance sheet positioning and proactive deposit pricing strategies successfully offset the headwinds from recent Federal Reserve rate cuts and the resulting lower rate environment. Total deposits decreased 1% from the prior quarter and increased 5% year-over-year, with a portion of the quarterly decrease due to a reduction in brokered deposits. Going forward, our focus remains on preserving a diversified funding mix and sustaining stable margin performance.” “We're taking a disciplined approach to balance sheet expansion in the current environment, prioritizing quality and returns over volume,” Brydon continued. “Net loans decreased slightly during the quarter primarily due to an increase in loan payoffs. Credit quality remains an area we continue to monitor closely, though performance across the portfolio remains solid with net recoveries of $18,000 for the quarter. The non-performing assets (“NPA”) ratio remained flat at 0.23% at December 31, 2025, compared to the prior quarter end, and loans graded “Substandard” decreased significantly during the period. We remain confident in the overall health of our loan portfolio and our disciplined approach to credit risk management.” “We are pleased to announce that we officially opened our new full-service branch in University Place on January 12, 2026. University Place is near Tacoma, WA and the new branch is located between our Gig Harbor and Tacoma branches. This strategic expansion positions us to deepen our presence in a dynamic market and build stronger commercial banking relationships with the businesses driving growth in this community,” said Fischer. Earnings and Balance Sheet Highlights (at or for the periods ended December 31, 2025, compared to December 31, 2024, or September 30, 2025): Earnings Highlights: EPS increased 21% to $1.04 for the current quarter from $0.86 for the comparable quarter one year ago and decreased 3% from $1.07 for the preceding quarter; Net income increased 20% to $8.22 million for the current quarter from $6.86 million for the comparable quarter one year ago and decreased 3% from $8.45 million for the preceding quarter (which included a $1.04 million BOLI benefit claim); Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 12.33% and 1.60%, respectively; Net interest margin (“NIM”) for the current quarter increased to 3.85% from 3.82% for the preceding quarter and 3.64% for the comparable quarter one year ago; and The efficiency ratio for the current quarter improved to 52.65% from 53.18% for the preceding quarter and 56.27% for the comparable quarter one year ago. Balance Sheet Highlights: Total assets decreased slightly, less than 1%, from the prior quarter and increased 5% year-over-year; Net loans receivable decreased slightly, less than 1% from the prior quarter and increased 3% year-over-year; Total deposits decreased 1% from the prior quarter and increased 5% year-over-year; Total shareholders’ equity increased 2% from the prior quarter and increased 8% year-over-year; 29,303 shares of common stock were repurchased during the current quarter for $1.01 million; Non-performing assets to total assets ratio was 0.23% at December 31, 2025, compared to 0.23% at September 30, 2025, and 0.16% at December 31, 2024; Book and tangible book (non-GAAP) values per common share increased to $34.06 and $32.11 respectively, at December 31, 2025; and Liquidity (both on-balance sheet and off-balance sheet) remained strong at December 31, 2025, with only $20 million in borrowings and additional secured borrowing line capacity of $761 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 decreased 3% to $21.71 million from $22.49 million for the preceding quarter and increased 10% from $19.67 million for the comparable quarter one year ago. The decrease in operating revenue compared to the preceding quarter was primarily due to a decrease in non-interest income, and to a lesser extent, a decrease in interest income from investment securities, which was partially offset by an increase in interest income on loans receivable and on interest bearing deposits in banks. Non-interest income was higher in the quarter ended September 30, 2025, primarily due to a $1.04 million BOLI death benefit claim recorded during the quarter. Net interest income increased $554,000, or 3%, to $18.95 million for the current quarter from $18.40 million for the preceding quarter and increased $1.98 million, or 12%, from $16.97 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $43.49 million increase in the average balance of total interest-earning assets and a five-basis point decrease in the weighted average cost of interest-bearing liabilities. These increases were partially offset by a $36.02 million increase in the average balance of interest-bearing liabilities and a one-basis point decrease in the weighted average yield of interest-bearing assets. Timberland’s NIM for the current quarter improved to 3.85% from 3.82% for the preceding quarter and 3.64% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately six basis points due to the collection of $282,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $9,000 of the fair value discount on acquired loans. The NIM for the preceding quarter was increased by approximately two basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $11,000 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 $115,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $8,000 of the fair value discount on acquired loans. Non-interest income decreased $1.33 million, or 32%, to $2.76 million for the current quarter from $4.09 million for the preceding quarter and increased $67,000, or 2%, from $2.70 million for the comparable quarter one year ago. The decrease in non-interest income compared to the preceding quarter was primarily due to a decrease in BOLI net income (from a $1.04 million death benefit claim) and, to a lesser extent, smaller decreases in several other categories. Total operating (non-interest) expenses for the current quarter decreased $528,000, or 4%, to $11.43 million from $11.96 million for the preceding quarter and increased $364,000, or 3%, 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 professional fees, loan administration and foreclosure, technology and communications, premises and fixed assets, and several expense recoveries on items in the other, net category. These decreases were partially offset by an increase in salary and employee benefits expense and smaller increases in several other expense categories. The efficiency ratio for the current quarter improved to 52.65% from 53.18% for the preceding quarter and 56.27% for the comparable quarter one year ago. The provision for income taxes for the current quarter increased $240,000, or 13%, to $2.10 million from $1.86 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.4% for the quarter ended December 31, 2025, compared to 18.1% for the quarter ended September 30, 2025, and 20.0% for the quarter ended December 31, 2024. The lower effective income tax rate for the September 30, 2025 quarter was primarily due to a higher percentage of non-taxable income as a result of a BOLI benefit claim. Balance Sheet Management Total assets decreased $6.65 million, or less than 1%, during the quarter to $2.01 billion at December 31, 2025, from $2.01 billion at September 30, 2025, and increased $96.65 million, or 5%, from $1.91 billion one year ago. 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 18.9% of total liabilities at December 31, 2025, compared to 18.8% at September 30, 2025, and 15.0% one year ago. Timberland also had secured borrowing line capacity of $761 million available through the FHLB and the Federal Reserve at December 31, 2025. With a strong and diversified deposit base, only 18% of Timberland’s deposits were uninsured or uncollateralized at December 31, 2025. (Note: This calculation excludes public deposits that are fully collateralized.) Loans Net loans receivable decreased $4.76 million, or less than 1%, during the quarter to $1.46 billion at December 31, 2025, from $1.46 billion at September 30, 2025, and increased $47.01 million, or 3%, from $1.41 billion at December 31, 2024. The decrease during the quarter was primarily due to an $18.16 million decrease in construction loans, a $2.41 million decrease in land loans and smaller decreases in several other loan categories. These decreases were partially offset by an $8.03 million increase in one- to four-family loans, a $4.56 million increase in multi-family loans, a $2.09 million increase in home equity and second mortgage loans and smaller increases in several other loan categories. _______________________ (a) Does not include one- to four-family loans held for sale totaling $3,736, $1,127, and $411 at December 31, 2025, September 30, 2025, and December 31, 2024, respectively. The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of December 31, 2025: Timberland originated $73.06 million in loans during the quarter ended December 31, 2025, compared to $100.09 million for the preceding quarter and $72.07 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 $3.66 million were sold compared to $9.01 million for the preceding quarter and $2.31 million for the comparable quarter one year ago. Investment Securities Timberland’s investment securities and CDs held for investment decreased $7.34 million, or 3%, to $215.84 million at December 31, 2025, from $223.18 million at September 30, 2025. The decrease was primarily due to the maturities of U.S. Treasury Securities and scheduled amortization, and was partially offset by the purchase of additional U.S. government agency mortgaged-backed investment securities. Deposits Total deposits decreased $12.15 million, or 1%, during the quarter to $1.70 billion at December 31, 2025, from $1.72 billion at September 30, 2025, and increased $74.07 million, or 5%, from $1.63 billion at December 31, 2024. The quarter’s decrease consisted of a $26.39 million decrease in non-interest-bearing deposit account balances, a $11.42 million decrease in certificate of deposit account balances and a $4.19 million decrease in savings account balances. These decreases were partially offset by a $21.68 million increase in NOW account balances and an $8.16 million increase in money market account balances. Borrowings Total borrowings were $20.00 million at both December 31, 2025 and September 30, 2025. At December 31, 2025, the weighted average rate on the borrowings was 4.03%. Shareholders’ Equity and Capital Ratios Total shareholders’ equity increased $5.80 million, or 2%, to $268.41 million at December 31, 2025, from $262.61 million at September 30, 2025, and increased $19.21 million, or 8%, from $249.20 million at December 31, 2024. The increase in shareholders’ equity during the quarter was primarily due to net income of $8.22 million, proceeds from stock option exercises of $562,000, and a $65,000 recovery of accumulated other comprehensive loss. These increases to shareholders’ equity were partially offset by the payment of $2.21 million in dividends to shareholders and the repurchase of 29,303 shares of common stock for $1.01 million (an average price of $34.44 per share). At December 31, 2025, Timberland had 307,977 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan. Timberland remains well capitalized with a total risk-based capital ratio of 21.26%, a Tier 1 leverage capital ratio of 12.61%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.71%, and a shareholders’ equity to total assets ratio of 13.38% at December 31, 2025. Timberland’s held to maturity investment securities were $133.26 million at December 31, 2025, with a net unrealized loss of $3.89 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 13.25%, compared to 13.38%, as reported. Asset Quality Timberland’s non-performing assets to total assets ratio was 0.23% at December 31, 2025, compared to 0.23% at September 30, 2025, and 0.16% at December 31, 2024. Net recoveries totaled $18,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net charge-offs of $242,000 for the comparable quarter one year ago. During the current quarter, a $16,000 provision for credit losses on loans was made, which was offset by a $49,000 recapture of credit losses on unfunded commitments and a $2,000 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 December 31, 2025, compared to 1.22% at September 30, 2025, and 1.21% one year ago. Total delinquent loans (past due 30 days or more) and non-accrual loans increased $397,000 or 7%, to $6.05 million at December 31, 2025, from $5.66 million at September 30, 2025, and increased $2.03 million, or 51%, from $4.02 million at December 31, 2024. Non-accrual loans decreased $123,000 or 3%, to $4.28 million at December 31, 2025 from $4.41 million at September 30, 2025, and increased $1.55 million, or 57%, from $2.73 million at December 31, 2024. Loans graded “Substandard” decreased $24.40 million, or 74%, to $8.40 million at December 31, 2025 from $32.80 million at September 30, 2025 primarily due to loan payoffs and upgrades. Non-Accrual Loans ($ in thousands) Timberland had two properties classified as other real estate owned (“OREO”) at December 31, 2025: 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 24 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, 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 2026 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. ________________________________________________ (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). AVERAGE BALANCES, YIELDS, AND RATES - QUARTERLY ($ in thousands) (unaudited) _____________________________________ (1) Includes other investments (2) Net interest margin = annualized net interest income / average interest-earning assets 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). Contact: Dean J. Brydon, CEO Jonathan A. Fischer, President & COO Marci A. Basich, CFO (360) 533-4747 www.timberlandbank.com

Fiscal Year EPS Increases 22% to $3.67 Quarterly EPS Increases 19% to $1.07 from $0.90 for Preceding Quarter Quarterly Net Interest Margin Increases to 3.82% Quarterly Return on Average Assets Increases to 1.68% Quarterly Return on Average Equity Increases to 12.97% Announces an 8% Increase in the Quarterly Cash Dividend Announces Plans to Open a Branch in University Place HOQUIAM, Wash., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported that net income increased 20% to $29.16 million for the fiscal year ended September 30, 2025, from $24.28 million for the fiscal year ended September 30, 2024. Earnings per diluted common share (“EPS”) increased 22% to $3.67 for the 2025 fiscal year from $3.01 for the 2024 fiscal year. Timberland also reported net income of $8.45 million, or $1.07 per diluted common share for the quarter ended September 30, 2025. This compares to net income of $7.10 million, or $0.90 per diluted common share for the preceding quarter, and $6.36 million, or $0.79 per diluted common share, for the comparable quarter one year ago. “We closed our fiscal year with record results, reflecting the hard work and dedication of our employees in serving our customers, communities and shareholders,” stated Dean Brydon, Chief Executive Officer. “For the full year, net income and earnings per share reached new highs with year-over-year gains across every major profitability measure, while tangible book value per share continued its steady climb. In the fourth quarter, net income increased 33% from a year ago and 19% from the prior quarter, with earnings per share up 35% and 19%, respectively. We also recorded a $1.04 million bank owned life insurance benefit claim during the quarter, which contributed to net income; however, even excluding this item, all comparisons to prior periods remain favorable. These strong quarterly results were driven by continued expansion in our net interest margin, balance sheet growth, and higher non-interest income.” “As a result of Timberland’s strong earnings and capital position, our Board of Directors announced an 8% increase to the quarterly cash dividend to shareholders to $0.28 per share, payable on November 28, 2025, to shareholders of record on November 14, 2025,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 52nd consecutive quarter Timberland will have paid a cash dividend and demonstrates the Board’s continued confidence in our long-term outlook.” “Our net interest margin strengthened again in the fourth fiscal quarter, increasing to 3.82%,” said Marci Basich, Chief Financial Officer. “This marks a two-basis point increase from the prior quarter and a 24-basis point improvement year-over- year, underscoring the benefits of our disciplined asset-liability management and the improvement in earning asset yields. Total deposits increased by $47 million, or 3%, with more than half of that growth driven by higher non-interest-bearing balances. This continued deposit momentum reflects the depth of our customer relationships and the success of our funding strategies. We remain committed to maintaining a balanced funding profile and sustaining stable margin performance in the periods ahead.” “Timberland delivered solid balance sheet growth during the fourth fiscal quarter, highlighted by total assets increasing 3% and surpassing the $2 billion dollar mark for the first time in our Company’s history,” Brydon continued. “Credit quality remains an area we continue to monitor closely. Overall, performance across the portfolio remains solid, with no net charge-offs for the quarter. While our non-performing assets (“NPA”) ratio increased modestly to 0.23% at September 30, 2025 from 0.21% in the prior quarter, we also saw total delinquencies decline during the period. We remain confident in the overall health of our loan portfolio and our disciplined approach to credit risk management.” “We are excited to announce the opening of a new full-service branch in University Place later this quarter, marking an important milestone in our growth strategy,” said Fischer. “This expansion positions us to serve a growing market with strong business potential and deepen our commercial banking relationships in the area. We are enthusiastic about the opportunities ahead to welcome new clients, strengthen existing partnerships, and further advance our commitment to supporting the region’s economic growth,” stated Matt DeBord, Chief Lending Officer. Earnings and Balance Sheet Highlights (at or for the periods ended September 30, 2025, compared to September 30, 2024, or June 30, 2025): Earnings Highlights: EPS increased 19% to $1.07 for the current quarter from $0.90 for the preceding quarter and increased 35% from $0.79 for the comparable quarter one year ago; EPS for the 2025 fiscal year increased 22% to $3.67 from $3.01 for the 2024 fiscal year; Net income increased 19% to $8.45 million for the current quarter from $7.10 million for the preceding quarter and increased 33% from $6.36 million for the comparable quarter one year ago; Net income increased 20% to $29.16 million for the 2025 fiscal year from $24.28 million for the 2024 fiscal year; Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 12.97% and 1.68%, respectively; Net interest margin (“NIM”) for the current quarter increased to 3.82% from 3.80% for the preceding quarter and 3.58% for the comparable quarter one year ago; and The efficiency ratio for the current quarter improved to 53.18% from 54.48% for the preceding quarter and 56.79% for the comparable quarter one year ago. Balance Sheet Highlights: Total assets reached $2.0 billion with a 3% increase from the prior quarter and a 5% increase year-over-year; Net loans receivable increased 2% from the prior quarter and increased 3% year-over-year; Total deposits increased 3% from the prior quarter and increased 4% year-over-year; Total shareholders’ equity increased 2% from the prior quarter and increased 7% year-over-year; 56,562 shares of common stock were repurchased during the current quarter for $1.89 million; Non-performing assets to total assets ratio was 0.23% at September 30, 2025, compared to 0.21% at June 30, 2025, and 0.20% at September 30, 2024; Book and tangible book (non-GAAP) values per common share increased to $33.29 and $31.33 respectively, at September 30, 2025; and Liquidity (both on-balance sheet and off-balance sheet) remained strong at September 30, 2025, with only $20 million in borrowings and additional secured borrowing line capacity of $690 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 10% to $22.49 million from $20.50 million for the preceding quarter and increased 15% from $19.48 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increases in non-interest income and interest income from loans and interest-bearing deposits in banks, which were partially offset by an increase in total funding costs. The increase in non-interest income was primarily due to a $1.04 million bank owned life insurance (“BOLI”) death benefit claim. Operating revenue increased 10% to $82.55 million for the 2025 fiscal year from $75.30 million for the 2024 fiscal year, 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 $773,000, or 4%, to $18.40 million for the current quarter from $17.62 million for the preceding quarter and increased $1.85 million, or 11%, from $16.55 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $48.52 million increase in the average balance of total interest-earning assets and, to a lesser extent, a three-basis point increase in the weighted average yield on total interest-earning assets to 5.53% from 5.50%. These increases were partially offset by a $21.64 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 improved to 3.82% from 3.80% for the preceding quarter and 3.58% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately two basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $11,000 of the fair value discount on acquired loans. The NIM for the preceding 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 comparable quarter one year ago was increased by approximately one basis point due to the collection of $20,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $7,000 of the fair value discount on acquired loans. Net interest income for the 2025 fiscal year increased $6.03 million, or 9%, to $70.20 million from $64.17 million for the 2024 fiscal year, primarily due to a 24-basis point increase in the weighted average yield of total interest-earning assets to 5.48% from 5.24% and a $55.19 million increase in the average balance of total interest-earning assets. These increases to net interest income were partially offset by a $54.78 million increase in the average balance of total interest-bearing liabilities. Timberland’s NIM improved to 3.76% for the 2025 fiscal year from 3.54% for the 2024 fiscal year. A $213,000 provision for credit losses on loans was recorded for the quarter ended September 30, 2025. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $351,000 provision for credit losses on loans for the preceding quarter and a $444,000 provision for credit losses on loans for the comparable quarter one year ago. In addition, a $18,000 provision for credit losses on unfunded commitments and a $10,000 recapture of credit losses on investment securities were recorded for the current quarter. Non-interest income increased $1.22 million, or 42%, to $4.09 million for the current quarter from $2.88 million for the preceding quarter and increased $1.16 million, or 40%, from $2.93 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 BOLI net income (from a $1.04 million death benefit claim) and, to a lesser extent, smaller increases in several other categories. Non-interest income for the 2025 fiscal year increased $1.22 million, or 11%, to $12.35 million for the 2025 fiscal year from $11.14 for the 2024 fiscal year, primarily due to a $1.06 million increase in BOLI net earnings and smaller changes in several other categories. Total operating (non-interest) expenses for the current quarter increased $792,000, or 7%, to $11.96 million from $11.17 million for the preceding quarter and increased $897,000, or 8%, from $11.06 million for the comparable quarter one year ago. The increase in operating expenses compared to the preceding quarter was primarily due to increases in salaries and employee benefits, premises and equipment, technology and communications, professional fees, and smaller increases in several other expense categories. These increases were partially offset by decreases in state and local taxes and smaller decreases in several other expense categories. The efficiency ratio for the current quarter improved to 53.18% from 54.48% for the preceding quarter and 56.79% for the comparable quarter one year ago. For the 2025 fiscal year, operating expenses increased $1.64 million, or 4% to $45.39 million from $43.75 million for the 2024 fiscal year. The efficiency ratio for the 2025 fiscal year improved to 54.98% from 58.09% for the 2024 fiscal year. The provision for income taxes for the current quarter increased $71,000, or 4%, to $1.86 million from $1.79 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 18.1% for the quarter ended September 30, 2025, compared to 20.1% for the quarter ended June 30, 2025, and 19.8% for the quarter ended September 30, 2024. The lower effective income tax rate for the current quarter was primarily due to a higher percentage of non-taxable income as a result of the increase in BOLI net earnings. Timberland’s effective income tax rate was 19.5% for fiscal year 2025 compared to 20.1% for fiscal year 2024. Balance Sheet Management Total assets increased $55.58 million, or 3%, during the quarter to $2.01 billion at September 30, 2025, from $1.96 billion at June 30, 2025, and increased $89.30 million, or 5%, from $1.92 billion one year ago. The increase during the current quarter was primarily due to a $49.80 million increase in cash and cash equivalents and a $22.09 million increase in net loans receivable, which was partially offset by a $14.18 million decrease in investment securities and CDs held for investment. 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 18.8% of total liabilities at September 30, 2025, compared to 17.0% at June 30, 2025, and 14.7% one year ago. Timberland also had secured borrowing line capacity of $690 million available through the FHLB and the Federal Reserve at September 30, 2025. With a strong and diversified deposit base, only 20% of Timberland’s deposits were uninsured or uncollateralized at September 30, 2025. (Note: This calculation excludes public deposits that are fully collateralized.) Loans Net loans receivable increased $22.09 million, or 2%, during the quarter to $1.46 billion at September 30, 2025, from $1.44 billion at June 30, 2025. This increase was primarily due to a $21.21 million increase in construction loans, a $7.35 million increase in multi-family loans, a $2.99 million increase in home equity loans, a $2.77 million increase in commercial real estate loans and smaller increases in several other loan categories. These increases were partially offset by a $12.02 million increase in the undisbursed portion of construction loans and smaller decreases in several other loan categories. _______________________ (a) Does not include one- to four-family loans held for sale totaling $1,127, $1,763, and $0 at September 30, 2025, June 30, 2025, and September 30, 2024, respectively. The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of September 30, 2025: Timberland originated $100.09 million in loans during the quarter ended September 30, 2025, compared to $81.99 million for the preceding quarter and $48.82 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 $9.01 million were sold compared to $6.11 million for the preceding quarter and $5.62 million for the comparable quarter one year ago. Investment Securities Timberland’s investment securities and CDs held for investment decreased $14.18 million, or 6%, to $223.18 million at September 30, 2025, from $237.36 million at June 30, 2025. The decrease was primarily due to the maturities of U.S. Treasury Securities and scheduled amortization, and was partially offset by the purchase of additional U.S. government agency mortgaged-backed investment securities and U.S. Treasury investment securities. Deposits Total deposits increased $47.16 million, or 3%, during the quarter to $1.72 billion at September 30, 2025, from $1.67 billion at June 30, 2025. The quarter’s increase consisted of a $25.22 million increase in certificate of deposit account balances, a $24.46 million increase in non-interest deposit account balances and a $10.68 million increase in NOW checking account balances. These increases were partially offset by a $9.06 million decrease in money market account balances and a $4.15 million decrease in savings account balances. Borrowings Total borrowings were $20.00 million at both September 30, 2025 and June 30, 2025. At September 30, 2025, the weighted average rate on the borrowings was 3.97%. Shareholders’ Equity and Capital Ratios Total shareholders’ equity increased $5.95 million, or 2%, to $262.61 million at September 30, 2025, from $256.66 million at June 30, 2025, and increased $17.20 million, or 7%, from $245.41 million at September 30, 2024. The increase in shareholders’ equity during the quarter was primarily due to net income of $8.45 million, proceeds from stock option exercises of $847,000, and a $477,000 recovery of accumulated other comprehensive loss. These increases to shareholders’ equity were partially offset by the payment of $2.05 million in dividends to shareholders and the repurchase of 56,562 shares of common stock for $1.89 million (an average price of $33.34 per share). At September 30, 2025, Timberland had 337,280 shares available to be repurchased in accordance with the terms of its existing stock repurchase plan. Timberland remains well capitalized with a total risk-based capital ratio of 20.67%, a Tier 1 leverage capital ratio of 12.59%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.38%, and a shareholders’ equity to total assets ratio of 13.05% at September 30, 2025. Timberland’s held to maturity investment securities were $136.86 million at September 30, 2025, with a net unrealized loss of $4.56 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 12.89%, compared to 13.05%, as reported. Asset Quality Timberland’s non-performing assets to total assets ratio was 0.23% at September 30, 2025, compared to 0.21% at June 30, 2025, and 0.20% at September 30, 2024. Net charge-offs totaled less than $1,000 for the current quarter compared to net recoveries of $1,000 for the preceding quarter and net charge-offs of $12,000 for the comparable quarter one year ago. During the current quarter, provisions for credit losses of $213,000 on loans and $18,000 unfunded commitments were made, which was partially offset by a $10,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.22% at September 30, 2025, compared to 1.23% at June 30, 2025, and 1.21% one year ago. Total delinquent loans (past due 30 days or more) and non-accrual loans decreased $515,000 or 8%, to $5.66 million at September 30, 2025, from $6.18 million at June 30, 2025, and increased $1.18 million, or 26%, from $4.49 million at September 30, 2024. Non-accrual loans increased $564,000, or 15%, to $4.41 million at September 30, 2025 from $3.84 million at June 30, 2025, and increased $522,000, or 13%, from $3.89 million at September 30, 2024. The quarterly increase in non-accrual loans was primarily due to one single-family construction loan being placed on non-accrual status. Loans graded “Substandard” totaled $32.80 million (or 2% of total loans receivable) at September 30, 2025. (Note: Subsequent to September 30, 2025, the Bank’s largest “Substandard” loan, an $11.55 million land development loan, paid off in full.) Timberland had two properties classified as other real estate owned (“OREO”) at September 30, 2025: 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, 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 2026 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. ________________________________________________ (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). _____________________________________ (1) Includes other investments (2) Net interest margin = annualized net interest income / average interest-earning assets _____________________________________ (1) Includes other investments (2) Net interest margin = annualized net interest income / average interest-earning assets 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). Contact: Dean J. Brydon, CEO Jonathan A. Fischer, President & COO Marci A. Basich, CFO (360) 533-4747 www.timberlandbank.com