Timberland Bancorp, Inc. is a bank holding company that owns Timberland Bank, a community oriented bank offering a full range of lending and deposit services. The Bank opened for business in 1915 and today operates 23 offices across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties in Washington State. Its core activities include originating real estate secured loans such as residential construction, one to four family, multi family and commercial real estate loans, as well as commercial business and consumer loans. The Bank also gathers deposits through checking, savings, money market and certificate of deposit accounts and provides ancillary services such as ATM access, debit card processing and online banking. At December 31, 2025 the Company reported total assets of $2.01 billion, net loans receivable of $1.46 billion, total deposits of $1.70 billion and total shareholders’ equity of $268.41 million.

Revenue is generated primarily from net interest income, which is the difference between interest earned on loans and investment securities and interest paid on deposits and borrowings. For the quarter ended December 31, 2025 net interest income was $18.95 million, up 11.7% from $16.97 million in the prior year quarter. Additional revenue comes from non interest sources such as service charges on deposit accounts, gains on the sale of loans, ATM and debit card interchange fees, bank owned life insurance earnings, servicing income on loans sold, and escrow fees. Non interest income for the same quarter totaled $2.76 million, an increase of 2.5% from $2.70 million a year earlier. The Bank’s loan origination volume was $73.06 million during the quarter, while sales of fixed rate one to four family mortgage loans reached $3.66 million, providing a source of gain on sale income. Deposit gathering activities remain central to the business model, with the Bank maintaining a diverse mix of non interest bearing demand, NOW checking, savings, money market and certificate of deposit accounts.

Timberland Bancorp, Inc. competes with other regional banks and credit unions in the Pacific Northwest, leveraging its community focus and long history dating back to 1915. Its competitive advantages include a well capitalized balance sheet, a diversified loan portfolio that reduces reliance on any single loan type, and a strong liquidity position supported by a substantial base of core deposits. At December 31, 2025 the Bank’s leverage capital ratio stood at 12.67%, its common equity tier 1 ratio at 19.86% and its total capital ratio at 21.12%, all well above the thresholds for a well capitalized institution under FDIC guidelines. The Bank’s efficiency ratio for the quarter was 52.65%, reflecting an improving cost structure relative to revenue. Liquidity measures show a regulatory liquidity ratio of 16.90% and available borrowing capacity of $708.68 million with the Federal Home Loan Bank, of which $20.00 million was outstanding.

The Company serves individual consumers, households, and businesses ranging from sole proprietors to larger commercial entities. Its loan portfolio includes residential mortgages, home equity lines, commercial real estate, and commercial business loans, while its deposit base consists of checking, savings, money market and certificate of deposit accounts held by local residents and companies. The Bank’s geographic footprint covers six counties in western Washington, allowing it to deepen relationships with borrowers who finance home purchases, construction projects, and commercial property acquisitions. Deposit customers include individuals seeking everyday transaction accounts, savers looking for interest bearing products, and businesses requiring cash management services. This diversified customer base helps stabilize earnings across different economic cycles.