Timberland Bancorp, Inc. (TSBK) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TSBK

Timberland Bancorp's recent performance was driven by strong loan book quality, with minimal past due loans and robust balance sheet. The company's earnings retention has led to consistent tangible book value growth, while a well-covered dividend and ongoing share buybacks support per-share performance. Additionally, the recent Q3 net income increase to $7.10 million, or $0.90 per diluted common share, indicates strong financial health and stability. Strong loan coverage ratios, especially in commercial real estate, further contribute to the company's solid financial position.

1.c. Company Highlights

Last Price	34.6
Change Percentage	-0.12%
Open	34.87
Previous Close	34.64
Market Cap ( Millions)	273
Volume	7539
Year High	38.08
Year Low	27.51
M A 50	32.85
M A 200	31.82

FCF Yield	2.31%
Dividend Yield	3.03%
ROE	10.79%
Debt / Equity	8.32%
Net Debt / EBIDTA	-30.77%
Price To Book	1.06
Price Earnings Ratio	10.09
Price To FCF	43.21
Price To sales	2.54
EV / EBITDA	7.2

2. Transcript Summary

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3. NewsRoom

Connor Clark & Lunn Investment Management Ltd. Buys 1,529 Shares of Timberland Bancorp, Inc. $TSBK

Nov -21

Source: defenseworld.net

Financial Contrast: Northpointe Bancshares (NYSE:NPB) versus Timberland Bancorp (NASDAQ:TSBK)

Nov -17

Source: defenseworld.net

Timberland Bancorp 2025 Fiscal Year's Net Income Increases 20% to $29.16 Million

Oct -30

Source: globenewswire.com

Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million

Jul -22

Source: globenewswire.com

Timberland Bancorp: Strong Loan Book Means The Stock Is A Buy

Jul -09

Source: seekingalpha.com

4 Upcoming Dividend Increases

May -02

Source: seekingalpha.com

Timberland Bancorp Reports Second Fiscal Quarter Net Income of $6.76 Million

Apr -22

Source: globenewswire.com

Timberland Bancorp: Trading At TBV Makes The Stock A Buy

Jan -31

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Community Banking

Expected Growth: 5.5%

Growing demand for personalized banking services, increasing small business formations, and a strong Washington state economy drive growth in community banking. Timberland Bancorp's focus on customer relationships and community involvement also contributes to its growth.

7. Detailed Products

Personal Banking

Timberland Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and home loans.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, cash management, and merchant services.

Mortgage Lending

Timberland Bancorp, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, construction loans, and home equity loans.

Investment Services

The company provides investment services, including brokerage services, retirement accounts, and wealth management.

Treasury Management

Timberland Bancorp, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation.

Online Banking

The company provides online banking services, including bill pay, fund transfers, and account management.

8. Timberland Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Timberland Bancorp, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for Timberland Bancorp, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Timberland Bancorp, Inc. is medium due to the presence of multiple suppliers and the moderate level of concentration in the industry.

Threat Of New Entrants

The threat of new entrants for Timberland Bancorp, Inc. is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Timberland Bancorp, Inc. is high due to the presence of multiple competitors in the banking industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	13.97%
Debt Cost	7.84%
Equity Weight	86.03%
Equity Cost	7.84%
WACC	7.84%
Leverage	16.24%

11. Quality Control: Timberland Bancorp, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Timberland Bancorp

A-Score: 6.7/10

Value: 5.7

Growth: 5.9

Quality: 7.2

Yield: 7.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Midland States Bancorp

A-Score: 6.5/10

Value: 9.1

Growth: 5.6

Quality: 6.3

Yield: 10.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

Peoples Bancorp

A-Score: 6.4/10

Value: 6.7

Growth: 5.4

Quality: 6.0

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

CNB Financial

A-Score: 6.1/10

Value: 6.7

Growth: 4.9

Quality: 6.7

Yield: 6.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Premier Financial

A-Score: 5.4/10

Value: 5.1

Growth: 3.2

Quality: 5.5

Yield: 6.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

Evans Bancorp

A-Score: 5.0/10

Value: 4.7

Growth: 1.9

Quality: 6.0

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.84%

Timberland Bancorp, Inc. - US8870981011

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TSBK

1.c. Company Highlights

Better Quality

Average Yield

Medium Volatility

Fairly Valued

Weak Momentum

Stable Momentum

Average Growth

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Community Banking

Expected Growth: 5.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Investment Services

Treasury Management

Online Banking

8. Timberland Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Timberland Bancorp, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.6$

Current Price

34.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA