Monitor credit quality closely in coming quarters; the increase in non-performing assets and provision suggests potential further deterioration. The participation loan moving to non-accrual could be isolated, but watch for additional impairments. Dividend sustainability appears intact given strong capital ratios.
Price Chart
Executive Summary
Timberland Bancorp reported Q2 fiscal 2026 net income of $7.13M ($0.90 EPS), up 6% YoY from $6.76M ($0.85 EPS). However, credit quality deteriorated sharply: non-performing assets ratio doubled to 0.47% (from 0.23% last quarter and 0.13% a year ago), and the provision for credit losses surged to $523,000 from $237,000. The sequential earnings decline and weakening asset quality offset the YoY growth, making this a mixed result.
Key Financial Metrics
Key Facts
- Net income $7.13M vs $6.76M YoY (+6%), down from $8.22M in prior quarter (-13%)
- Diluted EPS $0.90 vs $0.85 YoY (+6%)
- Non-performing assets to total assets ratio 0.47% vs 0.13% a year ago
- Provision for credit losses on loans $523,000 vs $16,000 in prior quarter and $237,000 a year ago
- Non-accrual loans increased $5.12M to $9.41M, driven by a $4.33M participation loan
- Net interest margin 3.81% vs 3.79% YoY, but down from 3.85% prior quarter
- Dividend maintained at $0.29 per share; 80,000 shares repurchased for $3.09M
- Tangible book value per share increased to $32.65 from $29.99 a year ago
Financial Impact
EPS up 6% YoY but credit costs rose significantly. Sequential net income declined 13% due to higher provision.
Risk Factors
- Further credit deterioration requiring higher provisions
- Net interest margin compression from rate cuts
- Declining loan balances could pressure net interest income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000939057-26-000094 |
| Document: timb8k42826.htm | 0000939057-26-000094 |
| Document: 0000939057-26-000094-index-headers.html | 0000939057-26-000094 |
| Document: 0000939057-26-000094-index.html | 0000939057-26-000094 |
| Document: 0000939057-26-000094.txt | 0000939057-26-000094 |
| 8-K Data (Synthetic) | 0000939057-26-000094 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 12w ago | Insider Cluster | $45.07 | awaiting T+60 | — | $47.90 (+6.28%) |
Aug 3, 2026 12w ago | Insider Cluster | $45.47 $47.55 | ▲ +4.57% | ▲ +2.79% | $47.90 (+5.34%) |
Jul 29, 2026 12w ago | 8-K | $45.01 $46.94 | ▲ +4.29% | ▼ −0.44% | $47.90 (+6.42%) |
Jul 28, 2026 13w ago | Press Release | $45.01 $46.94 | ▲ +4.29% | ▼ −0.44% | $47.90 (+6.42%) |
Apr 30, 2026 25w ago | 8-K | $39.60 $44.00 | ▲ +11.11% | ▲ +8.00% | $47.90 (+20.96%) |
Apr 28, 2026 26w ago | Press Release | $40.31 $43.80 | ▲ +8.67% | ▲ +4.56% | $47.90 (+18.84%) |
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