Timberland Bancorp, Inc. (TSBK): Business Model Canvas [Dec-2025 Updated]

You're trying to map the actual engine behind Timberland Bancorp, Inc. (TSBK), and honestly, it's a textbook, high-performing community bank model firmly rooted in Western Washington. Forget the noise; this institution runs on gathering a stable $1.72 billion deposit base and deploying it into local real estate, yielding a solid 3.76% Net Interest Margin for Fiscal Year 2025, all while managing assets over $2.01 billion. The Business Model Canvas below breaks down exactly how their 23 branches, local decision-making, and key partnerships with entities like the Federal Home Loan Bank translate into that performance, so you can see the blueprint for their success.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships that power Timberland Bancorp, Inc.'s operations as of late 2025. These are the entities that provide critical funding, technology backbone, and community support.

Federal Home Loan Bank for liquidity and borrowing capacity

The relationship with the Federal Home Loan Bank (FHLB) is key for maintaining robust liquidity. As of September 30, 2025, Timberland Bancorp, Inc. reported only $20 million in borrowings outstanding against a substantial secured borrowing line capacity of $690 million available through the FHLB and the Federal Reserve. Separately, a Q3 2025 report noted $674 million in secured borrowing capacity, supporting funding resiliency. This capacity acts as a significant off-balance sheet liquidity buffer for Timberland Bancorp, Inc.

Core technology vendors for digital banking platforms

Timberland Bancorp, Inc. relies on external vendors to deliver its online and mobile banking platforms, remote deposit capture, and cash management solutions to its clients. While specific vendor names aren't public in the latest filings, the operational reliance on these core systems is clear for delivering services to its customer base across Western Washington.

Institutional shareholders like BlackRock and Vanguard

Institutional investors maintain a significant stake in Timberland Bancorp, Inc., holding approximately 66.28% of the shares outstanding, totaling about 5.23 million shares. As of September 30, 2025, the largest holders included BlackRock, Inc., Dimensional Fund Advisors Lp, and Vanguard Group Inc.

Here are the reported share counts for some of the top institutional holders on that date:

Local non-profits for community grant programs

Giving back is formalized through charitable support, including the Community Grants Program. For the 2025 program, Timberland Bank donated $41,000 specifically to local food banks in Grays Harbor County. The average award amount for the Community Grants program is typically between $5,000 and $7,000, with a maximum award of $10,000, and approximately $300,000 was available through the program. Applications for the 2026 Community Grants Program are due by March 23, 2026.

The bank supports community enrichment through various channels:

• Supporting local food banks with direct donations.
• Partnering with Habitat for Humanity organizations.
• Utilizing an online giving platform where customers can donate.

Correspondent banks for larger transaction processing

Timberland Bancorp, Inc. provides treasury management services, which inherently require correspondent banking relationships for clearing and settling larger or inter-bank transactions outside its immediate operational footprint in Western Washington. While specific correspondent bank partners and their associated transaction volumes are not publicly itemized in the latest financial summaries, these relationships are essential for supporting the commercial and business banking deposit and merchant services solutions offered by Timberland Bank.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Key Activities

You're looking at the core engine of Timberland Bancorp, Inc. as of late 2025. The Key Activities are where the bank puts its effort to generate that record net income of $29.16 million for the fiscal year ended September 30, 2025. It's all about disciplined execution across lending, funding, and risk control.

Originating commercial real estate and construction loans

Timberland Bank concentrates its lending activities primarily on real estate secured loans. This includes commercial real estate loans, one- to four-family residential loans, multi-family loans, and residential construction loans. The volume of this activity shows up clearly in the quarterly originations.

• Originated $100.09 million in total loans during the quarter ended September 30, 2025.
• Originated $48.82 million in loans for the comparable quarter one year prior (Q4 2024).
• Sold $9.01 million in fixed-rate one- to four-family mortgage loans into the secondary market in Q4 2025 for asset-liability management.

Gathering low-cost, stable retail and business deposits

A major activity is securing funding, and Timberland Bancorp, Inc. strengthened its funding mix in the fourth quarter. They focus on attracting stable retail and business deposits to fund loan growth and maintain a healthy Net Interest Margin (NIM), which reached 3.82% in Q4 2025.

• Total deposits stood at $1.72 billion as of Q4 2025, representing a 3% quarter-over-quarter increase.
• More than half of the quarterly deposit growth (over $24 million) came from non-interest-bearing balances.
• Uninsured/un-collateralized deposits were only approximately 20% of total deposits at the end of Q4 2025.

Managing credit risk and maintaining strong asset quality

Prudent credit risk management is non-negotiable for a community bank. While loan portfolio growth required a provision for credit losses on loans of $213,000 in Q4 2025, the overall asset quality metrics remained relatively tight, though they saw some minor movement.

The bank monitors asset quality closely, as evidenced by the following metrics as of September 30, 2025:

It's worth noting that subsequent to September 30, 2025, the largest Substandard loan, a $11.55 million land development loan, paid off in full. That's a concrete risk reduction action.

Operating and expanding the 23 branch network

Timberland Bank supports its community-focused model by operating a physical footprint across Western Washington. This network is key for relationship banking and deposit gathering.

• Operates 23 branch locations across Grays Harbor, Thurston, Pierce, King, Kitsap, and Lewis counties, Washington.
• Announced plans to open a new branch in University Place to enhance market presence.

Maintaining regulatory compliance and reporting

This activity underpins all others, ensuring the bank operates within the required legal and regulatory structure. While specific compliance costs aren't detailed here, the successful financial outcomes reflect effective management of these requirements, leading to strong capital ratios.

Key capital ratios as of September 30, 2025, show the result of this operational discipline:

The bank also increased its quarterly cash dividend by 8% to $0.28 per share, marking the 52nd consecutive quarter of paying a cash dividend.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Key Resources

You're looking at the tangible assets that power Timberland Bancorp, Inc.'s community banking model in Western Washington. These aren't abstract concepts; they are the concrete items management relies on every day to serve customers and generate revenue.

The foundation is definitely the balance sheet strength. As of the fourth quarter of fiscal year 2025, Timberland Bancorp, Inc. crossed a significant threshold.

The physical footprint remains a core resource for a community bank. Timberland Bank maintains a focused, localized presence.

• Network of 23 physical branches across Western Washington.
• Geographic focus in Clark, Cowlitz, Grays Harbor, Thurston, Pierce, King, and Lewis counties.
• Planned opening of a new branch in University Place supports the growth platform.

The stability of the funding base is critical, especially given the reported deposit growth.

The stable deposit base totaled $1.72 billion as of Q4 2025. Deposits grew by 3% quarter-over-quarter, with more than half of that growth coming from non-interest-bearing balances. This mix helps support the strong Net Interest Margin (NIM) performance.

Human capital is another key asset. You see a leadership team with deep roots in the institution and the region.

• CEO Dean Brydon has been affiliated with the Bank since 1994.
• Average tenure for the management team is 8.6 years.
• Average tenure for the board of directors is 6.8 years.
• CFO Marci Basich has been with the Bank since 1999.

Finally, the operational backbone relies on technology to deliver modern services alongside the physical branches. Timberland Bancorp, Inc. supports its operations with necessary technology infrastructure.

The digital banking platforms and core processing technology enable the delivery of services like:

• Online and mobile banking platforms.
• Remote deposit capture.
• Treasury management services and cash management solutions.

Finance: draft 13-week cash view by Friday.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Timberland Bancorp, Inc. over other regional players. It boils down to a commitment to the local community and solid financial footing. The value proposition here isn't just about the products; it's about the delivery and the stability behind it.

Community-focused banking with local decision-making is a cornerstone. Timberland Bank operates with 23 branch locations throughout Western Washington, rooted in Hoquiam, WA since 1915. This structure supports the promise of local decision-making, meaning loan applications and customer issues are handled closer to home, not by a distant corporate office.

This is paired with personalized, high-touch service for businesses and individuals. They offer a comprehensive range of retail checking and savings products, alongside business banking deposit and merchant services solutions. For you, this translates to a relationship-based approach rather than a purely transactional one.

The stability backing these services is strong. Timberland Bancorp, Inc. reported record results for the fiscal year ended September 30, 2025. The company's total assets surpassed the $2 billion dollar mark for the first time in its history. This financial strength underpins the entire value proposition.

Here are the key financial metrics that demonstrate that stability as of September 30, 2025:

The diverse loan portfolio is tailored to the regional economy, focusing on real estate and business needs. While the full 2025 breakdown isn't public yet, the trend shows a continued focus on real estate lending, which is central to their business. The loan portfolio composition as of September 30, 2024, gives you a clear picture of their asset mix:

Finally, the bank competes on competitive deposit and lending rates in the regional market. They actively market special promotional Certificates of Deposit (CDs) to lock in customer funds at attractive rates. For instance, as of October 31, 2025, you could find:

• 3 Month CD APY: 3.80%
• 7 Month CD APY: 3.60%
• Offering Insured Cash Sweep (ICS) accounts for full FDIC insurance up to $100 million per customer through a network.

The bank also offers various checking accounts, including one that can earn up to 3% Cash Back on debit card purchases when requirements are met. Finance: draft 13-week cash view by Friday.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Customer Relationships

You're looking at how Timberland Bancorp, Inc. (TSBK) keeps its customers close, which is key for a community bank with 23 branch locations across Western Washington. Their whole approach centers on being a neighbor, not just a transaction point. This focus helped drive net income up 20% to $29.16 million for the fiscal year ended September 30, 2025.

Dedicated relationship managers for commercial clients

For commercial clients, Timberland Bancorp leans heavily on direct, dedicated support. While I don't have the exact ratio of relationship managers to commercial clients for 2025, the structure implies a high-touch model for business banking services like treasury management and commercial lending. This personalized approach supports their balance sheet growth, which saw total assets surpass the $2 billion dollar mark for the first time in company history in the fourth quarter of 2025.

High-touch, in-person service at branch locations

The physical footprint remains central to their relationship strategy. Timberland Bank operates 23 branch locations, and they are actively planning to expand this, announcing plans to open a new branch in University Place. This commitment to local presence, supported by 288 total employees, allows for the in-person service that builds deep community trust. It's about being there when a complex loan decision or a sensitive financial matter arises.

Self-service options via online and mobile banking

Even with a strong branch network, Timberland Bancorp ensures customers have modern digital access. They offer robust online and mobile banking platforms, including remote deposit capture and bill pay. To put that in perspective, nationally as of 2025, 73% of U.S. adults actively use online banking, and 64% of U.S. adults now prefer mobile banking, showing the necessity of these tools. Timberland Bancorp's deposit base reflects this engagement, with deposits up 3% quarter-over-quarter to $1.72 billion in Q4 2025, with over half of that growth coming from non-interest-bearing balances, which often signals strong transactional ties.

Here's a quick look at some of the quantitative aspects supporting their customer focus:

Community involvement and local sponsorship

Community support is integrated directly into their operations, which reinforces the local relationship. For example, in 2025, Timberland Bank donated $41,000 specifically to local food banks in Grays Harbor County. This is part of a broader commitment; in 2024, they helped present $772,000 to 43 different nonprofits across Western Washington through a matching grant program. They were also recognized by Raymond James for the fourth consecutive year for financial performance that placed them in the top ten percent of community banks nationally, which speaks to the stability they provide their communities.

Personalized financial advice from experienced staff

The bank offers more than just basic accounts; they provide integrated solutions. This includes wealth management services through Timberland Wealth Management, covering financial planning and investment management. The emphasis on experienced professionals is clear, as the bank's leadership is committed to prudent risk management alongside high customer service levels. This dedication to quality service is what helped them achieve a sequential Net Interest Margin of 3.82% for the fiscal year 2025.

You can see the tangible results of this relationship focus in their service offerings:

• Offers specialized treasury management solutions.
• Provides comprehensive financial planning services.
• Maintains a local footprint for quick decision-making.
• Supports local economic growth via responsive credit policies.
• Has a dedicated team processing PPP forgiveness requests for customers.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Channels

You're looking at how Timberland Bancorp, Inc. gets its services-from basic cash access to complex commercial loans-out to its customers in Western Washington. The physical footprint is still important, but the digital side is definitely growing alongside it.

The core physical channel is the network of 23 full-service branch locations. These branches are strategically placed across counties like Grays Harbor, Thurston, Pierce, King, Kitsap, and Lewis, giving them a strong local presence for relationship banking. For the fiscal year ended September 30, 2025, Timberland Bancorp, Inc. reported net income of $29.16 million, showing the effectiveness of this combined channel strategy.

Digital access is handled through a dedicated online banking portal, which serves both retail and business clients. This is paired with a mobile banking application. A key feature of the mobile offering is the inclusion of remote deposit capture, letting customers deposit checks without visiting a branch. The bank also provides treasury management services and online bill pay to its business clients.

For immediate cash needs, Timberland Bancorp, Inc. supports an ATM network for basic transactions, though the exact number of machines isn't always published in the same reports as the branch count. The bank was managing $1.67B in total deposits as of the third fiscal quarter of 2025, a significant portion of which is supported by these various access points.

Origination of the bank's primary products-loans-relies heavily on direct interaction. Timberland Bank utilizes direct loan officers to handle commercial and mortgage origination. Their lending activities concentrate on loans secured by real estate, including residential construction, multi-family, and commercial real estate loans, alongside commercial business loans. This personal touch helps support their balance sheet growth, which saw net loans reach $1.44B in Q3 2025.

Here's a quick look at the scale of these channels relative to the bank's overall size as of late 2025:

The bank's strategy blends this physical presence with digital convenience. They also have local Mortgage Lenders and Business Bankers available to serve clients directly. The bank employed approximately 288 people to manage these operations.

The services offered through these channels include:

• Retail checking and savings products
• Business banking deposit solutions
• Home loans and consumer loans
• Cash management services
• Merchant services solutions

The continued focus on margin expansion, evidenced by a Net Interest Margin of 3.76% for the 2025 fiscal year, shows that the efficiency derived from these channels is translating to the bottom line.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Customer Segments

You're looking at the core groups Timberland Bancorp, Inc. serves across its Western Washington footprint. Honestly, the business model is built around deep local ties, which you can see reflected in their asset base as of late 2025.

The overall scale of the operation, which supports these segments, shows total assets reaching about $1.96 billion at June 30, 2025, with total deposits standing at $1.67 billion. This funding base supports the lending to the customer segments we're detailing here.

Timberland Bank maintains a physical presence supporting these segments with 23 branch locations throughout Western Washington. This local network is key to serving:

• Retail customers and families in Western Washington counties.
• Small to medium-sized businesses (SMBs) needing day-to-day banking and credit.
• Local real estate developers and construction firms.
• Commercial real estate investors.
• Agricultural and industrial businesses within their defined footprint.

The lending activities clearly map to these segments. For instance, looking at the loan portfolio composition from late 2023, one- to four-family mortgage loans represented 17.75% of the portfolio, which was $253,227 thousand at that time. While the exact Q3 2025 breakdown isn't fully public, the net loan balance grew to $1.44 billion by June 30, 2025, indicating continued focus across their stated lending categories like commercial, construction, and residential.

The deposit side shows the mix of funds coming from these retail and business customers. Even though the most detailed breakdown available is from Q1 2024, it gives you a sense of the product mix they offer to capture these segments' funds:

To support these clients, Timberland Bank offers a comprehensive suite of products. You see this in the services they advertise, which directly target the needs of families and businesses:

• Retail checking accounts like Cash Back Checking (offering up to 3% Cash Back on purchases).
• Specialized checking for seniors (50+ Interest Checking) and youth (Sapling Checking).
• Business Checking with 550 free monthly items before per-item fees apply.
• Liquidity management tools like the Insured Cash Sweep (ICS) accounts, allowing coverage up to $100 million per customer through the network.

The bank's focus on community banking is underscored by its strong capital position; the tangible book value per common share reached $30.62 at June 30, 2025. That stability is what allows Timberland Bancorp, Inc. to maintain its focus on these specific Western Washington customer groups.

Finance: draft 13-week cash view by Friday.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Cost Structure

The cost structure for Timberland Bancorp, Inc. centers heavily on funding costs, which directly impact the net interest margin, and the expenses associated with maintaining its physical and digital presence across Western Washington.

Interest expense on deposits, a critical component, saw the weighted average cost of interest-bearing liabilities fall to 2.62% for the first fiscal quarter of 2025 (Q1 2025). This reduction in funding costs helped the net interest margin (NIM) expand to 3.64% in Q1 2025. Net interest income for that quarter was $16.97 million. For the full fiscal year 2025, net interest income reached $70.20 million.

Non-interest expenses, which capture personnel, operating, technology, and administrative costs, showed an increase in Q1 2025. Non-interest expenses rose by $443,000, representing a 4.2% increase for the quarter. This rise was mainly attributed to higher salaries, technology expenses, and professional fees.

The physical footprint cost is tied to the 23 branches Timberland Bank operates across its service area. Premises and associated operating costs form a significant portion of the non-interest expense base.

You're looking at a cost structure where managing the cost of funds is paramount, especially when compared to the growth in operational overhead. Here's a quick look at the most concrete cost-related figures from the Q1 2025 report:

Personnel costs, which include salaries and employee benefits, are a primary driver within the non-interest expense category, as indicated by the mention of higher salaries contributing to the Q1 2025 increase. Technology and communication expenses are also explicitly noted as a factor in that quarterly rise, reflecting the ongoing investment needed to support digital platforms for the customer base. General administrative and regulatory compliance costs are embedded within the overall non-interest expense figure, though specific dollar amounts for these elements separate from the aggregate increase aren't detailed in the immediate reports.

The efficiency ratio for Timberland Bancorp, Inc. improved to 56.27% in Q1 2025, showing that while costs are rising, revenue growth is keeping pace, which is a positive sign for managing operating leverage.

Finance: draft a projected Q2 2026 non-interest expense budget based on the Q1 2025 increase rate by next Tuesday.

Timberland Bancorp, Inc. (TSBK) - Canvas Business Model: Revenue Streams

You're looking at the core ways Timberland Bancorp, Inc. brings in money, which is pretty standard for a community bank, but the numbers for late 2025 show some nice momentum.

The primary driver remains the interest earned on the assets they hold, like loans, which is what Net Interest Income reflects. For the full fiscal year 2025, Timberland Bancorp, Inc. reported a Net Interest Income of $70.20 million. This was achieved with a Fiscal Year 2025 Net Interest Margin (NIM) of 3.76%.

The other major category is Non-Interest Income. Based on the reported Fiscal Year 2025 Operating Revenue of $82.55 million and the Net Interest Income of $70.20 million, the total Non-Interest Income for the year is inferred to be $12.35 million.

Here's a look at the major components making up the revenue picture for Timberland Bancorp, Inc. as of the end of Fiscal Year 2025:

You can see the composition of that Non-Interest Income through these specific items:

• Non-interest income from Bank Owned Life Insurance (BOLI) claims included a benefit of $1.04 million recognized in the fourth quarter of Fiscal Year 2025.
• Interest income from investment securities for the full year is a component of the total.
• Non-interest income from service charges and fees is another component.
• Loan origination and servicing fees contribute to the total.

To be fair, the search results didn't break out the exact dollar amounts for investment securities income or the specific fee income lines for the full fiscal year 2025, so we use the total Non-Interest Income figure derived from the reported Operating Revenue and NII. That total non-interest income figure of $12.35 million is the sum of the specific fee/service charges, BOLI, securities income, and any gains/losses on sales.