Timberland Bancorp, Inc. · NASDAQ:TSBK
Timberland Bancorp — Q4 2024 Earnings Presentation
34 slides from Timberland Bancorp's earnings presentation, Nov 5, 2024
Slide 1: Timberland Bancorp Investor Presentation Q4 2024
LAN Timberland \S Banco: IWS = rp Timberland Bancorp NASDAQ: TSBK INVESTOR PRESENTATION Q4 2024
Slide 2: Disclaimer
DISCLAIMER niGdna (SS Bancorp Statements contained in this presentation which are not historical facts are forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could ca
Slide 3: Timberland Branch Locations
TIMBERLAND BRANCH LOCATIONS Silverdale Auburn Edgewood Puyallup Gig Harbor Aberdéen Mh. Tacoma ock (2 branches) Yelm Bethel Station Tumwater) \Toledo (Spanaway) Elma Lacey Montesano (2 branches) Olympia (2 branches) Chehalis NASDAQ; TSBK
Slide 4: Senior Management
SENIOR MANAGEMENT DEAN J. BRYDON Chief Executive Officer 30 Years of Service at Timberland Bank 30 Years in the Industry JONATHAN A. FISCHER President, Chief Operating Officer & Secretary 27 Years of Service at Timberland Bank 29 Years in the Industry MARCI A. BASICH EVP, Chief Financial Officer 25
Slide 5: Financial Highlights
tN ZS Timberland XS Bancorp FINANCIAL HIGHLIGHTS NASDAQ: TSBK &
Slide 6: Net Income
NET INCOM E $ in millions $30.00 $27.58 $27.12 $25.00 $24.02 $24.27 $23.60 $24.28 $20.00 $15.00 $10.00 $5.00 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NASDAQ; TSBK
Slide 7: Earnings Per Diluted Share
EARNINGS PER DILUTED SHARE nate Nina (Bancorp $3.50 $3.27 $3.29 $3.01 $3.00 $2.84 $2.88 $2.82 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 m1Q =2Q —3Q B4Q NASDAQ; TSBK
Slide 8: Return on Assets and Return on Equity
RETURN ON ASSETS AND RETURN ON EQUITY medna \S Bancorp ROA ROE 2.50% 16.00% 44 g4%% 14,00% 13.59% 900% 1.96% 2.00% 12.01% 1.75% , 2D 11.14% 16% sox 10.19% 825% 10.00% 1.27% 1.28% 8.00% 4.00% 6.00% 4.00% 0.50% 2.00% 0.00% 0.00% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2019 FY 2020 FY 2021 F
Slide 9: Balance Sheet
BALANCE SH EET $ in millions Total Assets $1,923 $1,792 $1,861 $1,840 $1,800 $1,600 $1,566 $1,400 $1,247 $1,200 $1,000 $800 $600 $400 $200 $- 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 NASDAQ; TSBK
Slide 10: Total Capital
TOTAL CAPITAL 5 in thousands - (Na WS Bencorp $250,000 $245,413 $233,073 $218,569 $206,899 $200,000 $187,630 $171,067 $150,000 $100,000 $50,000 $0 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 NASDAQ; TSBK
Slide 11: Capital Strength
CAPITAL STRENGTH NASDAQ; TSBK 24.00% 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 22.17% 21.3496 19.5796 19,4596 19.38% 19.39% 12.65% 12.10% 12.1296 11.2696 10.979 11.03% 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 —-9/30/2024 Total Risk Based Tier 1 Leverage
Slide 12: Book Value and Tangible Book Value Per Share
BOOK VALUE AND TANGIBLE BOOK VALUE PER SHARE ss _-aukhpertSnd $35.00 $30.00 $25.00 $30.83 $28.76 $28.87 $26.58 $26.81 $24.76 $24.63 $22.58 $22.80 $20.54 $20.56 $20.00 $18.48 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 -9/30/2024 $15.00 $10.00 $5.00 $0.00 NASDAQ; TSBK
Slide 13: Dividends Paid/Declared Per Common Share
DIVIDENDS PAID/DECLARED PER COMMON SHARE nna SBaprorP (Calendar Year) $1.20 $1.04 j 5 0.98 0.97 $1.00 $0.92 $080 $0.80 $0.80 $0.60 $0.40 $0.20 $0.00 2019 2020 2021 2022 2023 2024 mRegular_ = Special NASDAQ: TSBK
Slide 14: Deposit Levels
DEPOSIT LEVELS $ in millions $1,800 $1,648 $1,632 / $1,571 ss $1,600 Z $1,561 $1,400 $1,358 $1,200 $1,067 $1,000 $800 $600 $400 $200 S.. 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 -9/30/2024 HNon-Interest Bearing Demand INOW Checking li Money Market llSavings ll Certificates of Deposit NASDAQ
Slide 15: Deposit Composition
DEPOSIT COMPOSITION Total Deposits $1.65 Billion at September 30, 2024 = CDs Brokered CDs >$250,000 : = CDs <$250,000 = Money market ; = Savings = NOW checking = Non-interest-bearing demand NASDAQ; TSBK
Slide 16: Borrowings
BORROWINGS Sin thousands Total Borrowings $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $35,000 $30,000 $20,000 $20,000 $10,000 $10,000 $5,000 o Fe S$. = 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 NASDAQ; TSBK
Slide 17: Net Loans
NET LOANS Sin millions $1,400 $1,302 $1,200 $1,132 1,014 $1,000 sae SL $968 $800 $927 $600 $887 $400 $200 $- 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 Net Loans (excl. SBAPPP) = SBA PPP Loans NASDAQ; TSBK
Slide 18: Loan Production
LOAN PRODUCTION $ in millions $597 $602 $65 $572 $127 $356 $470 $537 $362 $300 $251, FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ™@ Net Loans (excl. SBA PPP) = SBA PPP Loans NASDAQ; TSBK
Slide 19: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Total Loans $1.42 billion at September 30, 2024 = Land Consumer = Multi-Family = Commercial business = 1-4 Family = Construction mCRE NASDAQ; TSBK
Slide 20: CRE Portfolio Breakdown by Collateral
CRE PORTFOLIO BREAKDOWN BY COLLATERAL nna at September 30, 2024 (S in thousands) \cBogcorp Collateral Type ectaictal ican Avg. Balance Per Loan Portfolio Industrial warehouse $125,852 Bs $1,246 $195, Medical/dental offices $83,276 5% $1,262 - Office buildings $68,526 5% $779 - Other retail buildings
Slide 21: Construction Loans
CONSTRUCTION LOANS Total Construction Loans $219 million at September 30, 2024 = Land Development = Spec. 1-4 Family = Commercial = Multi-Family = Custom Constructionf/Owner- Builder NASDAQ; TSBK
Slide 22: Interest Earning Cash & Investments
INTEREST EARNING CASH & INVESTMENTS Tithberland Interest Earning Cash & Investments: $391 million at September 30, 2024 2% 3% = Other Securities & Mutual Funds = CDs Held for Investment = U.S. Government Securities = Mortgage Backed Securities = Overnight Funds NASDAQ; TSBK
Slide 23: Asset Quality
ASSET QUALITY Non-performing Assets/Total Assets 0.45% 0.40% 0.40% 0.35% 0.30% 0.27% 0.25% 0.20% 0.20% 0.18% 0.15% 0.12% 0.10% 0.09% 0.00% 9/30/2019 _9f30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 NASDAQ; TSBK
Slide 24: Net Charge-offs (Recoveries)
NET CHARGE-OFFS (RECOVERIES) S in thousands = $100 $50 $36 a a Of $0 Pl |_| ($24) ($50) ($55) ($100) ($150) ($160) ($200) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NASDAQ; TSBK
Slide 25: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN S in thousands $70,000 5.00% 4.50% $60,000 4.00% $50,000 3.50% $0,000 3.00% 2.50% $30,000 2.00% $20,000 1.50% 1.00% $10,000 0.50% $0 0.00% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 M@Net Interest Income || —Net Interest Margin
Slide 26: Quarterly Net Interest Income and Net Interest Margin
QUARTERLY NET INTEREST INCOME AND NET INTEREST MARGIN S in thousands $18,000 4.20% $16,000 $14,000 4.00% $12,000 3.80% $10,000 $8,000 3.58% 5 oy $6,000 $4,000 3.40% $2,000 $0 3.20% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 M@Net Interest Income || —Net Interest Margin NASDAQ; TSBK
Slide 27: Non-Interest Income
NON-INTEREST INCOME S$ in thousands niGdna XS Bancorp $20,000 $18,000 $17,188 $17,161 $16,000 $14,341 $14,000 $12,624 $12,000 $11,140 $11,136 $10,000 $8,000 $6,000 $4,000 $2,000 $o FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NASDAQ; TSBK
Slide 28: Non-Interest Expense
NON-INTEREST EXPENSE S in thousands niGdna WS Bencorp $50,000 Bo $43,373 $43,746 $40,000 $38,626 $35,000 api $34,063 $34,591 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NASDAQ; TSBK
Slide 29: Efficiency Ratio
EFFICIENCY RATIO niGdna Bancorp 100.00% 90.00% 80.00% 70.00% 60.00% ga gage 56.42% 54868; 58.09% 50.04% 50.12% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 NASDAQ; TSBK
Slide 30: Titnberland
en Titnberland Xs Bancorp NASDAQ: TSBK 30
Slide 31: Technology Update
TECHNOLOGY UPDATE nna SBaprorP ENGAGING CUSTOMERS ¢ Enhance Online Banking ¢ — |mproving our residential lending solution * Customer feedback e Added fraud detection tools * Contactless debit cards — implementation completed OPTIMIZE OPERATIONS * Canstruction loan process improvement * Digitization
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company reports its results in accordance with United States generally accepted account principles (“GAAP”). Timberland believes that certain non-GAAP measures provide investors with information useful in understanding the Company’s financial performance; however, rea
Slide 33: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES mins Weep (Sin thousands) 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 Shareholders equity $ 171,067 $ 187,680 $ 206,899 218,569 238,073 245,418 Less goodwill and CDI (17,162) (16,756) (16,395) (16,073) (15,808) (15,582) Tangible common equity 153,905 170,8
Slide 34: Timberland Bancorp
Timberland Bancorp NASDAQ: TSBK * Strong Core Earnings * Well Capitalized © Geographically Diversified * Diversified Loan Portfolio * Strong Core Deposit Levels ¢ Actively Supporting Its Communities