Timberland Bancorp Inc (TSBK) Reports 15% Rise in Fiscal 2023 Net Income to $27.12 Million
Timberland Bancorp Inc (NASDAQ:TSBK) reported a 15% increase in net income to $27.12 million for the fiscal year ended September 30, 2023.
Earnings per diluted common share (EPS) increased 17% to $3.29 for the 2023 fiscal year.
Net loans receivable grew by nearly $42 million during the quarter.
Net interest margin remained strong at 3.85% for the quarter.
Timberland Bancorp Inc (NASDAQ:TSBK) announced on October 31, 2023, that its net income for the fiscal year ended September 30, 2023, increased 15% to $27.12 million, up from $23.60 million for the fiscal year ended September 30, 2022. The company's earnings per diluted common share (EPS) also saw a 17% increase to $3.29 for the 2023 fiscal year, up from $2.82 for the 2022 fiscal year.
Financial Highlights
For the quarter ended September 30, 2023, Timberland reported a quarterly net income of $6.64 million, or $0.81 per diluted common share. This compares to net income of $6.31 million, or $0.77 per diluted common share, for the preceding quarter and $7.05 million, or $0.85 per diluted common share, for the comparable quarter one year ago.
Timberland's CEO, Dean Brydon, stated,
For fiscal 2023, Timberland generated increases in both net income and earnings per share, which were up 15% and 17%, respectively, compared to fiscal 2022. Further, net income and EPS for the current quarter increased 5% compared to the prior quarter, driven by continued growth in the loan portfolio."
Income Statement Summary
Operating revenue for the current quarter increased 1% to $19.76 million from $19.51 million for the preceding quarter and increased 3% from $19.26 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increased interest income from loans and overnight funds, which were partially offset by an increase in total interest expense.
Non-interest income increased $49,000 or 2%, to $2.92 million for the current quarter from $2.88 million for the preceding quarter and decreased $72,000, or 2%, from $3.00 million for the comparable quarter one year ago.
Balance Sheet Summary
Total assets increased $32.19 million, or 2%, during the quarter to $1.84 billion at September 30, 2023 from $1.81 billion at June 30, 2023 and decreased $20.23 million, or 1%, from $1.86 billion one year ago. The increase during the current quarter was primarily due to a $41.66 million increase in net loans receivable which was partially offset by an $8.68 million decrease in investment securities and CDs held for investment.
Net loans receivable increased $41.66 million, or 3%, during the quarter to $1.30 billion at September 30, 2023 from $1.26 billion at June 30, 2023. This increase was primarily due to a $23.95 million increase in one- to four-family loans, a $15.40 million increase in multi-family loans, an $11.25 million increase in commercial real estate loans, and smaller increases in several other loan categories.
Outlook
Despite potential economic headwinds and an industry-wide negative credit cycle, Timberland remains optimistic regarding the overall strength of its loan portfolio and the markets that it operates in. The company anticipates additional margin compression going forward as funding costs continue to trend upward.
Explore the complete 8-K earnings release (here) from Timberland Bancorp Inc for further details.
This article first appeared on GuruFocus.
