Timberland Bancorp (TSBK) AI Stock Analysis

• Market Cap: $298.34M
• Dividend Yield: 2.91%
• Average Volume (3M): 15.23K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.68
• Revenue Growth: 8.17%
• EPS Growth: 21.95%
• Country: US
• Employees: 274
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 7,884,326
• 10 Day Avg. Volume: 22,084
• 30 Day Avg. Volume: 15,231
• PEG Ratio: 0.41
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.74
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 7.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $46.00 ▲(33.02% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by healthy financial fundamentals (strong margins, conservative leverage, and positive free cash flow) and supportive technicals (price above key moving averages with positive MACD). An attractive valuation (low P/E with a decent dividend) further boosts the score, while the main caution is the step-down in margins versus prior years and near-overbought momentum signals.

Positive Factors

High Profitability

Sustained high net and EBIT margins provide durable earnings power for a regional bank, supporting internal capital generation, dividend capacity and reinvestment into lending. Margin levels create a structural buffer against cyclical revenue swings and support long-term return on equity.

Conservative Leverage

A very low debt-to-equity ratio and steady equity growth indicate a well-capitalized balance sheet, reducing insolvency risk and providing capacity to absorb credit losses or fund modest organic growth without relying on external leverage, enhancing long-term stability.

Strong Cash Generation

Consistent positive operating and free cash flow that closely tracks net income supports sustainable capital allocation, dividend payments, and loan funding. Reliable cash conversion enhances earnings quality and funds strategic priorities without immediate external financing.

Negative Factors

Margin Moderation

The recent step-down in margins versus earlier peak years signals reduced profitability headroom, likely reflecting funding cost or rate-cycle pressure. Persistently lower margins would compress net income growth and reduce excess capital available for lending or shareholder returns over months.

Cash Flow Variability

While overall cash generation is positive, observed year-to-year volatility reduces predictability of free cash available for dividends and reinvestment. This variability complicates multi-period planning and can strain capital allocation during adverse credit or interest-rate conditions.

Chief Credit Officer Transition

A change in the chief credit officer is a material leadership shift affecting underwriting and portfolio oversight. Even with an experienced successor, transitions can produce short- to medium-term shifts in credit policy and risk appetite that materially affect asset quality and loan-loss provisioning over the coming quarters.

Timberland Bancorp Business Overview & Revenue Model

Company Description

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land development loans. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans, as well as commercial business loans. As of September 30, 2021, the company operated 24 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington; and operated 25 proprietary automated teller machines. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.

How the Company Makes Money

Timberland Bancorp generates revenue primarily through interest income from loans and investments. The company earns interest from a variety of loans, including residential mortgages, commercial real estate loans, and consumer loans. Additionally, Timberland receives fee income from various banking services, such as account maintenance fees, transaction fees, and mortgage origination fees. The bank's investment portfolio, which includes securities, also contributes to its interest income. Significant partnerships with local businesses and real estate developers enhance its lending capabilities and customer reach, further bolstering its revenue streams. Overall, the company's financial health is supported by its emphasis on community banking and personalized customer service.

Timberland Bancorp Financial Statement Overview

Summary

Fundamentals are solid: modest TTM revenue growth (~2.7%), strong profitability (net margin ~26.9%, EBIT margin ~33.5%), conservative leverage (debt-to-equity ~0.10), and positive operating/free cash flow with good earnings conversion (FCF ~0.96x net income). Offsetting this, margins have stepped down versus prior peak years and cash flow has shown some historical volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (about 2.7% growth), and profitability remains strong with healthy margins (net margin ~26.9% and EBIT margin ~33.5%). That said, profitability appears to have moderated versus earlier years (notably lower margins than 2021–2023), which suggests some pressure from the rate/credit cycle or funding costs even as revenue continues to grow.

Balance Sheet

Leverage looks conservative: TTM debt is low relative to equity (debt-to-equity ~0.10), and equity has steadily grown versus prior years. Returns on equity are solid for a regional bank (TTM ~11.7%), though not meaningfully higher than the last few years—indicating a stable, well-capitalized profile but not a rapidly improving return story.

Cash Flow

Cash generation is strong: TTM operating cash flow is positive (~$33.2M) and free cash flow is also positive (~$32.0M), with free cash flow growth up meaningfully in TTM (about 12.5%). Free cash flow tracks net income closely (TTM ~0.96x), supporting earnings quality; however, cash flow metrics show some year-to-year volatility (including weaker/free cash flow contraction in parts of the historical period), which is worth monitoring.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	113.47M	110.49M	101.55M	87.23M	67.33M	68.62M
Gross Profit	80.54M	77.46M	69.71M	73.51M	64.50M	65.63M
EBITDA	39.85M	38.73M	32.98M	36.66M	32.40M	37.46M
Net Income	30.52M	29.16M	24.28M	27.12M	23.60M	27.58M
Balance Sheet
Total Assets	2.01B	2.01B	1.92B	1.84B	1.86B	1.79B
Cash, Cash Equivalents and Short-Term Investments	156.44M	281.89M	247.19M	185.68M	381.06M	671.85M
Total Debt	26.03M	23.08M	21.57M	36.87M	2.07M	7.36M
Total Liabilities	1.74B	1.75B	1.68B	1.61B	1.64B	1.59B
Stockholders Equity	268.41M	262.61M	245.41M	233.07M	218.57M	206.90M
Cash Flow
Free Cash Flow	40.09M	28.42M	21.71M	29.89M	25.59M	28.74M
Operating Cash Flow	41.83M	30.16M	23.02M	31.00M	26.50M	29.64M
Investing Cash Flow	-20.68M	-8.25M	-45.80M	-170.22M	-335.16M	37.45M
Financing Cash Flow	61.65M	56.79M	58.78M	-48.81M	45.22M	198.66M

Timberland Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSBK, the sentiment is Positive. The current price of 34.58 is below the 20-day moving average (MA) of 38.64, below the 50-day MA of 37.16, and above the 200-day MA of 33.30, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSBK.

Timberland Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	82 Outperform	$298.34M	9.84	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$329.69M	9.80	13.09%	3.61%	15.66%	―
PKBK	76 Outperform	$325.84M	8.89	11.15%	2.84%	12.91%	21.72%
ISBA	68 Neutral	$370.20M	19.71	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COSO	63 Neutral	$341.24M	11.72	12.63%	―	―	―
FRST	58 Neutral	$327.03M	5.33	2.25%	3.06%	9.90%	―

Timberland Bancorp Corporate Events

Timberland Bancorp Shareholders Endorse Board and Governance Structure

At its virtual Annual Meeting of Shareholders held on January 27, 2026, Timberland Bancorp shareholders elected three directors — Dean J. Brydon, Michael J. Stoney and Kelly A. Suter — to three-year terms ending in 2029, with existing directors Parul Bhandari, Andrea M. Clinton, Robert A. Drugge, Kathy D. Leodler and David A. Smith continuing on the board. Investors also backed the company’s executive pay practices in a non-binding advisory vote and overwhelmingly ratified Aprio, LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2026, signaling broad shareholder support for the bank’s governance, leadership continuity and oversight framework.

The most recent analyst rating on (TSBK) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Timberland Bancorp stock, see the TSBK Stock Forecast page.

Timberland Bancorp Appoints New Chief Credit Officer

Timberland Bancorp, Inc. and its subsidiary, Timberland Bank, announced the mutual agreement to cancel the employment contract of Todd Van Cise, the Chief Credit Officer, effective December 11, 2025, to allow him to pursue other career opportunities. Following his departure, Kevin Sakamoto, with over 30 years of commercial banking experience, has been appointed as the new Chief Credit Officer, effective the same date.

The most recent analyst rating on (TSBK) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Timberland Bancorp stock, see the TSBK Stock Forecast page.