Timberland Bancorp recently reported quarterly net income of $4.42 million for the third fiscal quarter of the year, a record number for the company, according to a news release.
That figure equated to $0.59 per diluted common share, a rise from $4.27 million — $0.57 per diluted share — from the previous quarter. Those numbers are similar to those from the third quarter of 2017, which included an earnings per share increase due to loan loss recapture and interest collection.
“We are … looking forward to the benefit of a lower federal income tax rate effective upon the conclusion of our next fiscal quarter,” president and CEO Michael Sand said in a statement. The bank’s rate will decline to 21 percent beginning in October, “and the benefit will be impactful to net income. Had the lower tax rate been available to Timberland for the quarter just ended, EPS would have been higher by approximately $0.02.”
The Hoquiam-based bank reported a 17 percent net income increase in the first nine months of the fiscal year compared to a year ago, a total of $12.3 million. The corresponding $1.64 per diluted common share marked a 14 percent increase from the equivalent 2017 period.
Timberland’s Board of Directors announced a quarterly cash dividend of $0.13 per common share. Also in the recently completed quarter, operating revenue increased 4 percent from a year ago, and total assets rose 8 percent year-over-year to just over $1 billion.
The bank currently operates 22 locations in six western Washington counties, but its footprint is set to expand with the acquisition of South Sound Bank. The takeover, which was announced in May, will allow Timberland to assume its Olympia and Lacey locations, plus its $180 million in assets.
“The acquisition will enhance Timberland’s presence along Washington State’s economically important and rapidly growing I-5 corridor,” Sand said. “During the quarter just ended, Timberland incurred approximately $147,000 in merger related expenses, reducing the quarter’s EPS by approximately $0.01.”