Timberland Bancorp Inc (NASDAQ: TSBK) is a community bank holding company that operates through its subsidiary bank, offering savings products and real estate secured lending to retail and business customers. The company earns money primarily through net interest income, the spread between interest earned on loans and investments and interest paid on deposits and borrowings. As of September 30, 2025, total deposits were $1.72 billion and average interest-earning assets for FY2025 were $1.87 billion, generating $102.3 million in total interest and dividend income at a 5.48% yield. The Bank concentrates lending on real estate secured loans, including one- to four-family residential, multi-family, commercial real estate, and residential construction loans, supplemented by commercial business and consumer loans. Non-interest income sources include service charges on deposit accounts, ATM and debit card interchange fees, gain on sales of loans, BOLI cash surrender value, servicing income, and escrow fees. The company is subject to Washington State business and occupation tax at 1.8% of gross receipts as of September 30, 2025, and employs 271 full-time and 9 part-time employees as of that date.

Revenue model

Net interest income is the primary revenue driver, derived from the spread between interest earned on loans receivable (average balance $1.45B, yield 5.90% in FY2025) and investment securities, and interest paid on deposits and FHLB borrowings. Secondary revenue comes from non-interest income including service charges on deposits, ATM and debit card interchange transaction fees, gain on sales of loans, BOLI earnings, escrow fees, and loan servicing income.

Products and services

Savings products (non-interest bearing demand deposits, NOW accounts, savings accounts, money market accounts, certificates of deposit), real estate secured loans (one- to four-family residential, multi-family, commercial real estate, residential construction), commercial business loans, consumer loans, adjustable-rate residential mortgage loans, internet banking services, ATM and debit card services, escrow services, loan servicing.

Customers and end markets

Retail and business customers in Washington State. Deposit base as of September 30, 2025: non-interest bearing demand $430.7M (25.1%), NOW $345.6M (20.1%), savings $201.7M (11.8%), money market $296.2M (17.3%), certificates of deposit $442.5M (25.8%). Approximately 0.9% of total deposits as of September 30, 2025 were from legal cannabis-related businesses operating under Washington State law.

Value-chain role

Community bank holding company. The holding company is limited to passive investment activities and oversight of its subsidiary bank. The Bank originates and holds loans, accepts deposits, and provides transaction and internet banking services directly to retail and business customers in its market area.

Geographic exposure

Washington State. The Bank is subject to Washington State business and occupation tax at 1.8% of gross receipts as of September 30, 2025, and operates under Washington corporate law and Washington Liquor and Cannabis Board oversight for cannabis-related business customers.

Source: SEC 10-K, filed 2025-12-09

Industry: Savings Institutions, Not Federally Chartered Peers: ESSA Bancorp, Inc. FS Bancorp Inc Home Point Capital Inc. Northeast Community Bancorp Inc Pioneer Bancorp Inc Onity Group Inc Ponce Financial Group Inc Provident Bancorp, Inc. /MD/ Rocket Companies Inc Sterling Bancorp, Inc.