Updated April 2025
Timberland Bancorp, Inc. (TSBK) isn’t the kind of name that dominates financial news cycles, but that’s never been its game. Based in the Pacific Northwest, this small community bank has quietly built a reputation for steady performance, disciplined lending, and a strong commitment to returning capital to shareholders. It’s the kind of company that doesn’t need a spotlight—it just gets the job done, year after year.
With deep local roots and a conservative approach to banking, Timberland has carved out a niche for itself, far from the noise and drama of Wall Street. It doesn’t chase trends. It doesn’t stretch its balance sheet. Instead, it plays the long game—generating consistent profits and rewarding shareholders with a well-supported dividend that continues to grow, even in uncertain times.
For income-focused investors looking for a dependable source of yield with a touch of upside, Timberland may be worth keeping on the radar.
Recent Events
The last twelve months have tested a lot of regional banks, but Timberland came through with its head held high. While the sector faced pressure from rising interest rates and liquidity concerns, this bank managed to post solid growth without any major bumps in the road.
Revenue for the most recent quarter rose 6.4% year-over-year, and earnings followed suit with a 9% bump. That kind of performance isn’t flashy—but in the current environment, it’s impressive. Many of Timberland’s peers are still trying to regain their footing, and yet this bank continues to quietly execute its strategy.
Capital levels look strong. Cash on the books sits north of $170 million, while debt is practically negligible at just $21.5 million. Book value per share is hovering around $31.33, putting the current stock price right in line with its tangible worth. That alone tells you this stock isn’t bloated—it’s fairly valued, and in a market full of premiums, that’s a good place to be.
Shareholders have also enjoyed a quiet rally. Over the past year, the stock’s up more than 18%, comfortably outpacing the broader market. Institutions seem to like what they see too, with nearly 65% of the float held by professional investors. That kind of backing tends to provide a floor under the stock, especially for dividend-focused names.
Key Dividend Metrics 📊
💰 Dividend Yield: 3.31%
🔁 5-Year Average Yield: 3.24%
📈 Dividend Growth (TTM): 3.09%
🔒 Payout Ratio: 31.29%
📅 Dividend Frequency: Quarterly
🧾 Recent Dividend Paid: $1.00 annualized
🔨 Years of Consecutive Payouts: 20+
💵 Cash Per Share: $21.56
Dividend Overview
What makes Timberland stand out for dividend investors isn’t a sky-high yield or an aggressive payout—it’s the reliability. The current yield of 3.31% sits just above its five-year average, offering a respectable income stream that fits nicely in a portfolio designed for long-term cash flow.
With a payout ratio just a touch over 31%, this is a bank that clearly prioritizes sustainability. Management is careful not to overpromise, which is refreshing in an industry where some names are forced to slash payouts at the first sign of trouble. Instead, Timberland pays what it can afford and holds the rest back, giving it plenty of breathing room during tighter cycles.
This kind of discipline creates a dividend that investors can count on. There’s no high-wire act here—just a steady, measured approach to capital return. And with over $21 per share in cash, Timberland has more than enough resources to continue supporting that dividend without needing to stretch.
The last dividend was paid at the end of February, right on schedule. The bank’s payout calendar is as regular as clockwork—an underrated quality that matters when you’re building a dependable income stream.
Dividend Growth and Safety
Growth in the dividend has been gradual, but consistent. Timberland doesn’t rush its increases. Instead, the payout rises in tandem with earnings growth, staying well within the bounds of what the bank can comfortably support. Over the past year, the dividend rose modestly, reflecting that same conservative posture.
Behind the scenes, the fundamentals paint a picture of strength. Return on equity is running above 10%, and operating margins are pushing 45%. Those numbers tell a story of efficient operations and good decision-making at the management level. Meanwhile, a return on assets of 1.31% is solid for a community bank—another sign that the bank knows how to manage its capital effectively.
One more signal that shouldn’t be overlooked: the bank’s beta sits at just 0.57. That means the stock tends to move less than the broader market. For dividend investors looking to avoid stomach-churning volatility, that’s a reassuring feature.
Perhaps most importantly, Timberland has now maintained or increased its dividend for over two decades. That kind of track record is rare. It reflects not only financial health, but a real commitment to returning value to shareholders. No gimmicks, no unsustainable promises—just steady compounding.
The road ahead looks pretty familiar for Timberland: keep things simple, avoid unnecessary risks, and return capital when it makes sense. And for dividend investors, that’s a formula worth paying attention to.
Balance Sheet Analysis
Timberland Bancorp’s balance sheet has that rare quality many regional banks strive for but few nail down—stability without the snooze factor. Total assets have climbed to just over $1.92 billion as of September 2024, marking a respectable, consistent uptrend from the previous few years. Equity has steadily followed suit, now sitting at $245 million, up from $206 million back in 2021. That’s not a growth explosion, but it’s the kind of deliberate, disciplined progress that tells you this bank is being run with a long-term mindset, not chasing short-term glory.
Liabilities have also nudged upward but remain proportionate, with no red flags waving in the distance. Total debt actually dropped significantly from $36.8 million last year to just $21.6 million this year—clearly, someone in finance drank their fiscal responsibility smoothie. Share count continues its slow decline too, suggesting buybacks are quietly at work in the background, adding a little extra value for those holding on. And with net tangible assets at $228 million, Timberland is giving investors something very real behind the numbers.
Cash Flow Statement
Timberland Bancorp’s cash flow picture over the trailing twelve months shows a business that’s scaling back a bit, but still managing to stay comfortably in the black. Operating cash flow came in at just over $15 million—down from prior years, but still solid considering the broader economic backdrop and tightening credit conditions. Free cash flow followed a similar trend, landing at $13.6 million. It’s not peak performance, but the lights are very much on, and the bills are clearly being paid.
The real standout is on the investing side. After several years of heavy outflows—$170 million in 2023 and an eye-watering $335 million in 2022—this year saw a sharp pivot. Timberland actually booked a small positive number here, suggesting it’s either taking a breather from aggressive investments or harvesting some prior positions. Financing cash flow was negative by about $10 million, mostly reflecting ongoing share repurchases and dividend payouts. In short, the company is quietly returning capital to shareholders while keeping just enough powder dry. The ending cash position of $164 million suggests they’re still holding a strong cash cushion, which never goes out of style.
Analyst Ratings
📉 Timberland Bancorp (TSBK) has recently seen a shift in analyst sentiment. On February 21, 2025, one of the firms tracking the stock downgraded it from a “buy” to a “hold” rating. This move likely reflects a more cautious stance from the analyst community, potentially tied to concerns about the pace of loan growth or the broader operating environment for smaller regional banks. With interest rates remaining volatile and some uncertainty around net interest margins, a more measured outlook isn’t entirely surprising.
🎯 As for price targets, there’s a bit of a mismatch happening. One widely-cited target puts the consensus figure at $12.50, which is dramatically below the current share price hovering around $30. That kind of gap raises a few eyebrows. It’s possible the price target is outdated or based on an older valuation framework that no longer applies, especially given Timberland’s strong balance sheet and 18% stock appreciation over the past year.
🔍 TSBK doesn’t attract much in the way of heavy analyst coverage, which makes these ratings a bit less influential than they would be for larger financial names. Still, when shifts like this happen, it’s worth taking note—not necessarily to follow them blindly, but to understand what risks or concerns may be on the radar.
Earning Report Summary
A Strong Start to the Fiscal Year
Timberland Bancorp rolled into its fiscal year with momentum, posting net income of $6.86 million for the quarter ending December 31, 2024. That’s a solid 9% boost from the same quarter last year. Earnings per diluted share clocked in at $0.86, up from $0.77—modest, sure, but in this environment, it’s progress worth noting.
Profitability stayed in a healthy zone. Return on average assets hit 1.41%, while return on average equity came in at 11.03%. Those numbers might not turn heads on Wall Street, but they speak to the kind of consistency dividend investors appreciate. The bank isn’t swinging for the fences—it’s just getting on base, quarter after quarter.
Margins and Deposits Holding Up
Net interest margin ticked up slightly to 3.64%, thanks largely to a drop in funding costs. The average cost of interest-bearing liabilities fell by eight basis points, which helped offset some of the pressures seen across the banking sector.
Total deposits dipped by about $17 million, or roughly 1%, which management attributed to some large customers pulling back on year-end balances. It’s not exactly a red flag, but it’s something to keep an eye on if the trend continues. Borrowings, on the other hand, stayed flat at $20 million—no surprises there.
Credit Quality and Book Value Climb
Non-performing assets improved again, dropping to just 0.16% of total assets. That’s a strong showing and a testament to the bank’s conservative lending approach. Book value per share rose to $31.33, with tangible book value also moving up to $29.37. For investors tracking long-term value, that’s the kind of quiet progress you like to see.
On the liquidity front, the bank’s position remains rock solid. Cash, CDs, and investment securities made up 15% of total liabilities. And with $656 million in available borrowing capacity through the FHLB and the Fed, they’ve got plenty of dry powder if needed.
A Local Focus with Real Impact
One standout this quarter had nothing to do with numbers. Timberland joined forces with the FHLB of Des Moines on a grant program for local nonprofits. Every single one of the 43 organizations they backed got approved, with $772,000 in funding going straight into the communities they serve. For a regional bank, that kind of local investment isn’t just good PR—it’s part of the DNA.
Management Team
At the helm of Timberland Bancorp is a leadership team deeply rooted in the company’s history and culture. Dean J. Brydon, the Chief Executive Officer, has been with the bank since 1994. He stepped into the CEO role on February 1, 2023, after serving as President and Chief Financial Officer. His long tenure reflects a deep understanding of the bank’s operations and long-term strategy.
Supporting him is Jonathan A. Fischer, who serves as President, Chief Operating Officer, and Secretary. Fischer’s wide-ranging role underscores just how central he is to the company’s daily function and strategic execution.
The executive team also includes Matthew J. DeBord as Executive Vice President and Chief Lending Officer, and Marci A. Basich as Chief Financial Officer, Treasurer, and Executive Vice President. Their combined experience in lending, operations, and financial management plays a key role in Timberland’s conservative and effective approach to banking.
This leadership team brings a steady hand and long-term focus, having weathered a number of economic cycles without veering off course. Their deep ties to the institution and to the regions it serves are a major part of why the bank has managed to stay both grounded and profitable.
Valuation and Stock Performance
Timberland Bancorp’s stock performance has been quietly impressive. Over the past twelve months, the stock has climbed about 18%, comfortably ahead of the S&P 500 during the same period. That says a lot about market confidence, especially in a year that hasn’t exactly been a breeze for the banking sector.
The stock’s 52-week range spans from $23.93 to $33.98, and it currently trades near the middle of that range. That puts it in a healthy spot—not overbought, not under pressure—just steady and fairly valued.
Looking at the numbers, the price-to-earnings ratio stands at 9.75, and the price-to-book is around 0.97. These aren’t growth stock multiples, but that’s not the point here. They suggest the stock is priced reasonably relative to its earnings and tangible value, which should sit well with investors focused on fundamentals.
With a market cap just north of $240 million, Timberland falls squarely into small-cap territory. That size brings its own flavor of opportunity and risk. There’s less Wall Street attention, but also more room for underappreciated value—something this bank seems to quietly deliver.
Risks and Considerations
Every investment comes with its trade-offs, and Timberland Bancorp is no exception. One of the primary risks is geographic concentration. The bank primarily operates in the Pacific Northwest, and while that can provide stability through local knowledge, it also exposes the business to localized economic swings. If the regional economy were to slow down significantly, Timberland’s loan book and deposit base could feel it quickly.
Another point to keep in mind is the bank’s loan portfolio. A significant chunk of it is tied to commercial real estate and construction. These segments can be lucrative, but they’re also known for being cyclical and sometimes unpredictable. A dip in property values or rising delinquencies in these sectors could pose a challenge.
On top of that, there’s the ever-present regulatory environment. Banks live in a world of constant oversight, and any changes in the rules—or failure to comply—can bring fines, restrictions, or worse. Timberland has a strong history of staying within the lines, but that risk is always part of the picture.
Natural disasters are another wildcard, especially given the region. The Pacific Northwest isn’t immune to earthquakes, floods, or severe weather events, and these can hit both the bank and its customers. It’s a risk that’s hard to model, but it’s there nonetheless.
And finally, there’s market perception. With fewer analysts covering the stock, there’s a chance that valuation metrics don’t always catch up to the fundamentals right away. That can be a downside if you’re hoping for short-term price movement, but also an opportunity for long-term investors willing to wait for value to be recognized.
Final Thoughts
Timberland Bancorp checks a lot of boxes for investors who value consistency, strong management, and a solid dividend stream. This isn’t a flashy growth name, and it’s not trying to be. What it offers instead is reliability—a quiet, well-run bank with a steady hand at the wheel and a long history of getting the basics right.
The management team is experienced and tightly aligned with the company’s mission. They’ve seen the highs and lows of the banking world and continue to steer the institution with discipline and prudence. There’s a comfort in that kind of familiarity.
The valuation seems fair, the stock’s performance has been quietly strong, and the dividend is well-supported by cash flow and earnings. For investors with a long-term mindset, that combination can make all the difference.
Of course, no investment is without risks, and Timberland has a few that shouldn’t be overlooked. Its geographic footprint and loan mix bring some exposure to specific sectors and regions. Still, with its conservative lending standards and balance sheet strength, the bank appears well-positioned to manage those headwinds.
For income-focused investors or those simply looking for a steady performer that won’t demand constant monitoring, Timberland Bancorp might just be worth a closer look. It may not grab headlines, but it knows how to quietly deliver value over time.