NEW YORK, May 25, 2026, 11:12 EDT
- U.S. equity markets are closed for Memorial Day. Nasdaq will open again on Tuesday.
- Timberland Bancorp closed last week at $40.16, gaining around 2.6% over the five days.
- Investors move into the short week focused on bank margins, credit quality, and U.S. inflation data.
Timberland Bancorp didn’t trade Monday while U.S. markets stayed shut for Memorial Day. The Washington-based community bank held its small gain from last week as the new, shorter week started. Nasdaq’s holiday schedule showed no trading for Memorial Day, May 25, with usual hours set for 9:30 a.m. to 4 p.m. Eastern.
Timberland (TSBK) slipped 1.2% Friday to $40.16, even as it stayed above $39.16 from a week ago. The Nasdaq-listed stock ends a week where small-bank investors had little in the way of new headlines but a lot to sort through—deposit costs, loan demand, credit losses, and U.S. rates all in focus.
Timberland’s stock stayed close to its recent levels on light action. Market cap was around $318 million, and the price-to-earnings ratio was about 10.3, according to the latest data.
The stock gained 2.6% this week, but that was less than some other banks in the area. Heritage Financial finished at $27.18 on May 22, up from $26.03 a week earlier on May 15. FS Bancorp wrapped up the week at $41.00, moving from $39.60, according to market data.
Timberland hasn’t put out a new company update since its fiscal Q2 earnings in late April. The Hoquiam-based Timberland Bank parent posted net of $7.13 million, or 90 cents per diluted share, for the quarter ended March 31. That’s up from $6.76 million, or 85 cents, one year earlier, but lower than $8.22 million, or $1.04, in the previous quarter.
“Timberland delivered another strong quarter,” CEO Dean Brydon said in the earnings release. Profit and earnings per share each rose 6% from last year, Brydon said. He noted that earnings slipped from the previous quarter, citing a higher provision for credit losses and a slight drop in net interest income—the spread between income from loans and securities and costs for deposits and funding. GlobeNewswire
Timberland said in a filing it will pay a quarterly cash dividend of 29 cents a share, with the payout set for May 22 to holders on record May 8. President and COO Jonathan Fischer said this is the company’s 54th consecutive quarterly cash dividend.
Margin stayed the main focus. Timberland CFO Marci Basich said net interest margin slipped four basis points from last quarter but was up two basis points from last year; a basis point is one-hundredth of a percent. Basich said the effect of Federal Reserve rate cuts on margin was more apparent now, while deposit pricing offset some of that impact.
Credit trends look worse. Non-performing assets reached 0.47% of total assets as of March 31, up from 0.23% at Dec. 31. Timberland blamed a participation loan tied to a hotel in Oregon, which went on non-accrual status. That means the bank isn’t recording interest income there because it’s not sure it will collect.
Timberland’s balance sheet is helping the stock. The company said total deposits rose 2% for the quarter and are up 6% year-over-year. As of March 31, just 18% of deposits were either uninsured or uncollateralized. Timberland also listed $778 million in secured borrowing available through the Federal Home Loan Bank and the Federal Reserve.
Timberland stays focused on its local market. Timberland Bank runs 24 branches in western Washington and goes back to Hoquiam in 1915, according to its investor site. The stock ends up tied to local real estate and construction, plus small-business lending. It doesn’t lean on Wall Street trading or national banking scale.
Timberland isn’t the whole story this week. Traders are looking at U.S. inflation numbers, with personal consumption expenditures data on deck—one of the Federal Reserve’s key price gauges. Markets come back from the holiday watching energy prices and rate risks as well.
Risks are straightforward. If credit issues move past the Oregon hotel loan, if deposit costs don’t ease, or if rate shifts hit asset yields before funding costs drop, Timberland’s margin and earnings could get hit. That’s more important with shares over tangible book value—the company showed tangible book at $32.65 per share on March 31, with the stock most recently at $40.16.
