Timberland Bancorp’s First Fiscal Quarter Earnings Per Share Increases 18%

First Fiscal Quarter Net Income Increases 18% to $6.65 Million

Return on Average Equity Increases to 15.40%

Return on Average Assets Increases to 2.12%

Announces 33% Increase in the Quarterly Cash Dividend

HOQUIAM, Wash., Jan. 27, 2020 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”) today reported net income increased 18% to $6.65 million for the quarter ended December 31, 2019 from $5.62 million for the quarter one year ago and increased 5% from $6.33 million for the preceding quarter. Earnings per diluted common share (“EPS”) increased 18% to $0.78 for the current quarter from $0.66 for the quarter one year ago and increased 4% from $0.75 for the preceding quarter.

“We are pleased to report an exceptionally strong first fiscal quarter,” stated Michael Sand, President and CEO. “Increased operating revenue combined with reduced operating expenses resulted in record net income and earnings per diluted share. Loan originations increased 25% from last year’s comparable quarter and 37% from the linked quarter with growth particularly strong in the commercial real estate and commercial business loan segments. Year-over-year, net loans receivable increased 7% in spite of significant loan payoffs encouraged by a persistently low interest rate environment while deposits increased 5%.”

“Data processing expense was significantly lower for the quarter due to the completion of South Sound Bank’s core operating system conversion to Timberland’s Jack Henry platform during the prior quarter. We are pleased with the positive results brought to Timberland shareholders from the acquisition and full integration of South Sound into Timberland.”

“In consideration of Timberland’s strong and consistent profitability and robust capital position, Timberland’s Board of Directors announced a 33% increase in the quarterly cash dividend to shareholders to $0.20 per common share, payable on February 28, 2020, to shareholders of record on February 14, 2020.”

First Fiscal Quarter 2020 Earnings and Balance Sheet Highlights (at or for the period ended December 31, 2019, compared to December 31, 2018, or September 30, 2019):

Earnings Highlights:

Net income increased 18% to $6.65 million from $5.62 million for the comparable quarter one year ago and increased 5% from $6.33 million for the preceding quarter;

Quarterly EPS increased 18% to $0.78 from $0.66 for the comparable quarter one year ago and increased 4% from $0.75 for the preceding quarter;

Return on average equity and return on average assets for the current quarter increased to 15.40% and 2.12%, respectively;

Net interest margin was 4.43% for the current quarter compared to 4.47% for the comparable quarter one year ago and 4.54% for the preceding quarter; and

Efficiency ratio improved to 49.43%.

Balance Sheet Highlights:

Total assets increased 6% year-over-year and 2% from the prior quarter;

Total deposits increased 5% year-over-year and 2% from the prior quarter;

Net loans receivable increased 7% year-over-year and 3% from the prior quarter; and

Book and tangible book (non-GAAP) values per common share increased to $21.05 and $19.00, respectively, at December 31, 2019.

Operating Results