tsbk-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _____ to _____.

Commission file number 000-23333

TIMBERLAND BANCORP, INC.

(Exact name of registrant as specified in its charter)


Washington			91-1863696
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)


624 Simpson Avenue, Hoquiam, Washington			98550
(Address of principal executive offices)			(Zip Code)

(360) 533-4747

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $.01 par value	TSBK	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ___

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes _☒_ No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ___ No _☒_

As of August 3, 2026, there were 7,775,668 shares of the registrant's common stock, $.01 par value per share outstanding.

INDEX


PART I.	FINANCIAL INFORMATION	Page

Item 1.	Financial Statements (unaudited)

	Consolidated Balance Sheets	3

	Consolidated Statements of Income	5

	Consolidated Statements of Comprehensive Income	7

	Consolidated Statements of Shareholders’ Equity	8

	Consolidated Statements of Cash Flows	9

	Notes to Unaudited Consolidated Financial Statements	11

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	55

Item 4.	Controls and Procedures	55

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	56

Item 1A.	Risk Factors	56

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56

Item 3.	Defaults Upon Senior Securities	57

Item 4.	Mine Safety Disclosures	57

Item 5.	Other Information	57

Item 6.	Exhibits	57

SIGNATURES
Certifications
	Exhibit 31.1
	Exhibit 31.2
	Exhibit 32
	Exhibit 101
	Exhibit 104

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

June 30, 2026 and September 30, 2025

(Dollars in thousands, except per share amounts)


	June 30, 2026		September 30, 2025
	(Unaudited)		*
Assets
Cash and cash equivalents:
Cash and due from financial institutions	$	32,800	$	23,649
Interest-bearing deposits in banks	213,282		219,779
Total cash and cash equivalents	246,082		243,428

Certificates of deposit (“CDs”) held for investment, at cost	7,964		7,217
Investment securities held to maturity, at amortized cost (net of allowance for credit losses ("ACL") of $30 and $36), (estimated fair value of $113,243 and $132,334)	117,587		136,861
Investment securities available for sale, at fair value	90,484		78,240
Investments in equity securities, at fair value	858		864
Federal Home Loan Bank of Des Moines (“FHLB”) stock, at cost	1,653		2,045
Other investments, at cost	3,000		3,000
Loans held for sale	2,774		1,127


Loans receivable, net of ACL of $19,249 and $18,091	1,495,651		1,463,590

Premises and equipment, net	22,149		21,684
Other real estate owned (“OREO”) and other repossessed assets, net	221		221
Accrued interest receivable	7,321		7,393
Bank owned life insurance (“BOLI”)	37,389		21,830
Goodwill	15,131		15,131
Core deposit intangible (“CDI”), net	169		271
Loan servicing rights, net	608		815


Operating lease right-of-use ("ROU") assets	4,122		2,949
Other assets	7,663		6,113
Total assets	$	2,060,826	$	2,012,779

Liabilities and shareholders’ equity
Liabilities
Deposits:
Non-interest-bearing demand	$	410,967	$	430,685
Interest-bearing	1,352,582		1,285,950
Total deposits	1,763,549		1,716,635

Operating lease liabilities	4,323		3,077
FHLB borrowings	10,000		20,000
Other liabilities and accrued expenses	9,748		10,453
Total liabilities	$	1,787,620	$	1,750,165

* Derived from audited consolidated financial statements.

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS (continued)

June 30, 2026 and September 30, 2025

(Dollars in thousands, except per share amounts)


	June 30, 2026		September 30, 2025
	(Unaudited)		*
Commitments and contingencies (see Note 12)
Shareholders’ equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued	$	—	$	—
Common stock, $0.01 par value; 50,000,000 shares authorized; 7,769,668 shares issued and outstanding - June 30, 2026 7,889,571 shares issued and outstanding - September 30, 2025	21,465		26,305

Retained earnings	252,908		236,607
Accumulated other comprehensive loss	(1,167)		(298)
Total shareholders’ equity	273,206		262,614
Total liabilities and shareholders’ equity	$	2,060,826	$	2,012,779

* Derived from audited consolidated financial statements.

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

For the three and nine months ended June 30, 2026 and 2025

(Dollars in thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
Interest and dividend income
Loans receivable and loans held for sale	$	22,457	$	21,411	$	66,924	$	63,339
Investment securities	1,800		2,064		5,413		6,205
Dividends from mutual funds, FHLB stock and other investments	71		83		229		252
Interest-bearing deposits in banks and CDs	2,343		1,986		7,255		5,870
Total interest and dividend income	26,671		25,544		79,821		75,666

Interest expense
Deposits	7,728		7,721		23,284		23,259
FHLB borrowings	137		201		538		602
Total interest expense	7,865		7,922		23,822		23,861

Net interest income	18,806		17,622		55,999		51,805

Provision for (recapture of) credit losses
Provision for credit losses - loans	600		351		1,140		640
Recapture of credit losses - investment securities	(1)		(4)		(6)		(14)
Provision for (recapture of) credit losses - unfunded commitments	(91)		93		(137)		87
Total provision for (recapture of) credit losses - net	508		440		997		713

Net interest income after provision for (recapture of) credit losses	18,298		17,182		55,002		51,092

Non-interest income


Net recoveries on investment securities	23		2		39		9
Gain on sale of investment securities available for sale, net	—		24		—		24
Service charges on deposits	956		966		2,879		2,924
ATM and debit card interchange transaction fees	1,193		1,262		3,518		3,706
BOLI net earnings	246		171		559		502
Gain on sales of loans, net	150		138		464		303
Escrow fees	42		32		94		66

Servicing income on loans sold	112		39		237		101


Other, net	266		241		770		624
Total non-interest income, net	2,988		2,875		8,560		8,259

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME (continued)

For the three and nine months ended June 30, 2026 and 2025

(Dollars in thousands, except per share amounts)

(Unaudited)


	Three Months Ended June 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
Non-interest expense
Salaries and employee benefits	$	6,383	$	5,825	$	19,305	$	17,893
Premises and equipment	1,082		973		3,273		2,998

Advertising	202		182		576		552
OREO and other repossessed assets, net	3		8		11		17
ATM and debit card interchange transaction fees	532		658		1,584		1,700
Postage and courier	145		137		443		401
State and local taxes	453		570		1,338		1,251
Professional fees	361		341		1,003		1,118
Federal Deposit Insurance Corporation ("FDIC") insurance	222		211		671		640
Loan administration and foreclosure	155		99		376		383
Technology and communications	1,109		993		3,340		3,253

Deposit operations	348		345		1,058		997
Amortization of CDI	34		45		102		135
Other	609		780		1,647		2,090
Total non-interest expense, net	11,638		11,167		34,727		33,428

Income before income taxes	9,648		8,890		28,835		25,923

Provision for income taxes	1,928		1,790		5,767		5,208

Net income	$	7,720	$	7,100	$	23,068	$	20,715

Net income per common share
Basic	$	0.99	$	0.90	$	2.94	$	2.61
Diluted	$	0.98	$	0.90	$	2.92	$	2.60

Weighted average common shares outstanding
Basic	7,805,218		7,893,308		7,855,474		7,929,626
Diluted	7,855,407		7,921,762		7,900,228		7,963,412

Dividends paid per common share	$	0.29	$	0.26	$	0.86	$	0.76

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three and nine months ended June 30, 2026 and 2025

(Dollars in thousands)

(Unaudited)


	Three Months Ended June 30				Nine Months Ended June 30
	2026		2025		2026		2025
Comprehensive income
Net income	$	7,720	$	7,100	$	23,068	$	20,715
Other comprehensive loss
Unrealized holding loss on investment securities available for sale, net of income taxes of $(216), $(28), $(231), and $(212) respectively	(817)		(105)		(869)		(795)





Total other comprehensive loss, net of income taxes	(817)		(105)		(869)		(795)

Total comprehensive income	$	6,903	$	6,995	$	22,199	$	19,920

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the three and nine months ended June 30, 2026 and 2025

(Dollars in thousands, except per share amounts)

(Unaudited)


	Common Stock						Accumulated Other Compre-hensive Loss
	Number of Shares	Amount		Retained Earnings					Total
Balance, March 31, 2025	7,903,489	$	28,028		$	225,166	$	(670)		$	252,524

Net income	—	—			7,100		—			7,100
Other comprehensive loss	—	—			—		(105)			(105)
Repurchase of common stock, net of tax	(34,236)	(1,053)			—		—			(1,053)




Exercise of stock options	7,600	130			—		—			130


Common stock dividends ($0.26 per common share)	—	—			(2,053)		—			(2,053)


Stock-based compensation expense	—	121			—		—			121


Balance, June 30, 2025	7,876,853	$	27,226		$	230,213	$	(775)		$	256,664

Balance, March 31, 2026	7,833,643	$	23,982		$	247,457	$	(350)		$	271,089


Net income	—	—			7,720		—			7,720
Other comprehensive loss	—	—			—		(817)			(817)
Repurchase of common stock, net of tax	(70,000)	(2,861)			—		—			(2,861)



Restricted stock grant forfeitures	(200)	—			—		—			—
Exercise of stock options	6,225	155			—		—			155


Common stock dividends ($0.29 per common share)	—	—			(2,269)		—			(2,269)


Stock-based compensation expense	—	189			—		—			189


Balance, June 30, 2026	7,769,668	$	21,465		$	252,908	$	(1,167)		$	273,206


	Common Stock				Accumulated Other Compre-hensive Loss
	Number of Shares	Amount		Retained Earnings					Total
Balance, September 30, 2024	7,960,127	$	29,862		$	215,531	$	20		$	245,413
Net income	—	—			20,715		—			20,715
Other comprehensive loss	—	—			—		(795)			(795)
Repurchase of common stock, net of tax	(123,404)	(3,846)			—		—			(3,846)
Restricted stock grant forfeitures	(1,830)	(11)			—		—			(11)




Exercise of stock options	41,960	817			—		—			817



Common stock dividends ($0.76 per common share)	—	—			(6,033)		—			(6,033)


Stock-based compensation expense	—	404			—		—			404

Balance, June 30, 2025	7,876,853	$	27,226		$	230,213	$	(775)		$	256,664


Balance, September 30, 2025	7,889,571	$	26,305		$	236,607	$	(298)		$	262,614

Net income	—	—			23,068		—			23,068
Other comprehensive loss	—	—			—		(869)			(869)
Repurchase of common stock, net of tax	(179,303)	(6,968)			—		—			(6,968)


Restricted stock grant forfeitures	(2,280)	—			—		—			—
Exercise of stock options	61,680	1,594			—		—			1,594


Common stock dividends ($0.86 per common share)	—	—			(6,767)		—			(6,767)


Stock-based compensation expense	—	534			—		—			534

Balance, June 30, 2026	7,769,668	$	21,465		$	252,908	$	(1,167)		$	273,206

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended June 30, 2026 and 2025

(Dollars in thousands)

(Unaudited)


	Nine Months Ended June 30,
	2026		2025
Cash flows from operating activities
Net income	$	23,068	$	20,715
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	997		713
Depreciation	1,100		1,131
Deferred income taxes	(82)		(73)
Accretion of discount on purchased loans	(27)		(92)
Amortization of CDI	102		135

Stock-based compensation expense	534		393
Gain on sale of investment securities available for sale, net	—		(24)

Net recoveries on investment securities	(39)		(9)
Change in fair value of investments in equity securities	6		11

Accretion of discounts and premiums on securities	(728)		(866)


Gain on sales of loans, net	(464)		(303)

Loans originated for sale	(24,034)		(14,059)
Proceeds from sales of loans	22,851		12,599
Amortization of loan servicing rights	432		582

BOLI net earnings	(559)		(502)

Change in deferred loan origination fees	(129)		2
Net change in accrued interest receivable and other assets, and other liabilities and accrued expenses	(1,868)		(277)
Net cash provided by operating activities	21,160		20,076

Cash flows from investing activities
Net (increase) decrease in CDs held for investment	(747)		1,747
Proceeds from sale of investment securities available for sale	—		13,494

Purchase of investment securities held to maturity	(3,935)		(5,413)
Purchase of investment securities available for sale	(27,881)		(40,576)
Proceeds from maturities and prepayments of investment securities held to maturity	23,633		36,324
Proceeds from maturities and prepayments of investment securities available for sale	14,869		12,387
Redemption (purchase) of FHLB stock	392		(8)


Increase in loans receivable, net	(33,045)		(20,744)
Purchase of premises and equipment	(1,565)		(1,135)



Purchase of BOLI policies	(15,000)		—


Net cash used in investing activities	(43,279)		(3,924)

See notes to unaudited consolidated financial statements

TIMBERLAND BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

For the nine months ended June 30, 2026 and 2025

(Dollars in thousands)

(Unaudited)


	Nine Months Ended June 30,
	2026		2025
Cash flows from financing activities
Net increase in deposits	$	46,914	$	21,809

Repayment of FHLB borrowings	(10,000)		—
Proceeds from exercise of stock options	1,594		817


Repurchase of common stock, net of tax	(6,968)		(3,846)
Payment of dividends	(6,767)		(6,033)
Net cash provided by financing activities	24,773		12,747

Net increase in cash and cash equivalents	2,654		28,899
Cash and cash equivalents
Beginning of period	243,428		164,728
End of period	$	246,082	$	193,627

Supplemental disclosure of cash flow information
Income taxes paid	$	6,084	$	5,650
Interest paid	$	23,995	$	24,253

Supplemental disclosure of non-cash investing activities

Other comprehensive loss related to investment securities	$	(869)	$	(795)
Loans transferred to OREO and other repossessed assets	$	—	$	221

Operating lease liabilities arising from recording of ROU assets	$	1,487	$	—

See notes to unaudited consolidated financial statements

Timberland Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation: The accompanying unaudited consolidated financial statements of Timberland Bancorp, Inc. and its wholly-owned subsidiary, Timberland Bank (the "Bank") (collectively, "the Company") were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of consolidated financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments which are, in the opinion of management, necessary for a fair presentation of the interim consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (“2025 Form 10-K”). The unaudited consolidated results of operations for the nine months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year ending September 30, 2026.

(b) Principles of Consolidation: The unaudited consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary, the Bank, and the Bank's wholly owned subsidiary, Timberland Service Corp. All significant inter-company transactions and balances have been eliminated in consolidation.

(c) Operating Segment: The Company's revenue is primarily derived from the business of banking. Management has assigned certain responsibilities by business-line and evaluates financial performance on a Company-wide basis. The Company's financial performance is monitored on a consolidated basis by the Company's Chief Executive Officer, President and Chief Financial Officer, which are considered the Company's chief operating decision makers ("CODMs") for financial oversight. The primary measure of performance is consolidated net income. Financial performance is reviewed monthly by the CODMs. The presentation of financial performance is consistent with amounts and financial statement line items shown in the Company's consolidated balance sheets and consolidated statements of income. All of the Company's operations are considered by management to be aggregated in one reportable operating segment.

(d) The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, as of the date of the consolidated balance sheets, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

(e) Certain prior period amounts have been reclassified to conform to the June 30, 2026 presentation with no change to previously reported net income or total shareholders’ equity.

Timberland Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(2) INVESTMENT SECURITIES

Held to maturity and available for sale investment securities have been classified according to management’s intent and were as follows as of June 30, 2026 and September 30, 2025 (dollars in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
June 30, 2026
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	56,844	$	—	$	(2,168)	$	54,676	$	—
Mortgage-backed securities ("MBS"):
U.S. government agencies	47,025		39		(1,553)		45,511		—
Private label residential	13,718		174		(836)		13,056		30


Total	$	117,587	$	213	$	(4,557)	$	113,243	$	30


June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available for Sale

MBS: U.S. government agencies	$	91,961	$	106	$	(1,583)	$	90,484

Total	$	91,961	$	106	$	(1,583)	$	90,484


September 30, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	69,646	$	15	$	(2,760)	$	66,901	$	—
MBS:
U.S. government agencies	48,735		199		(1,357)		47,577		—
Private label residential	17,376		196		(822)		16,750		35
Municipal securities	605		6		—		611		—
Bank issued trust preferred securities	499		—		(4)		495		1
Total	$	136,861	$	416	$	(4,943)	$	132,334	$	36


September 30, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available for Sale
U.S. government securities	$	4,968	$	—	$	—	$	4,968
MBS: U.S. government agencies	73,649		382		(759)		73,272

Total	$	78,617	$	382	$	(759)	$	78,240

Held to maturity and available for sale investment securities with unrealized losses were as follows as of June 30, 2026 (dollars in thousands):


	Less Than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Losses		Quantity	Estimated Fair Value		Gross Unrealized Losses		Quantity	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
U.S. Treasury and U.S. government agency securities	$	—	$	—	—	$	54,676	$	(2,168)	13	$	54,676	$	(2,168)
MBS:
U.S. government agencies	14,217		(78)		9	23,269		(1,475)		36	37,486		(1,553)
Private label residential	1,712		(39)		3	11,155		(797)		13	12,867		(836)


Total	$	15,929	$	(117)	12	$	89,100	$	(4,440)	62	$	105,029	$	(4,557)

Available for sale

MBS:
U.S. government agencies	$	33,993	$	(866)	12	$	24,943	$	(717)	22	$	58,936	$	(1,583)
Total	$	33,993	$	(866)	12	$	24,943	$	(717)	22	$	58,936	$	(1,583)

Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2025 (dollars in thousands):


	Less Than 12 Months					12 Months or Longer					Total
	Estimated Fair Value		Gross Unrealized Losses		Quantity	Estimated Fair Value		Gross Unrealized Losses		Quantity	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
U.S. Treasury and U.S. government agency securities	$	—	$	—	—	$	56,960	$	(2,760)	14	$	56,960	$	(2,760)
MBS:
U.S. government agencies	7		—		1	27,776		(1,357)		42	27,783		(1,357)
Private label residential	341		(2)		3	14,646		(820)		14	14,987		(822)

Bank issued trust preferred securities	495		(4)		1	—		—		—	495		(4)
Total	$	843	$	(6)	5	$	99,382	$	(4,937)	70	$	100,225	$	(4,943)

Available for sale
U.S. government securities	$	3,977	$	—	1	$	—	$	—	—	$	3,977	$	—
MBS:
U.S. government agencies	11,922		(67)		3	28,947		(692)		24	40,869		(759)

Total	$	15,899	$	(67)	4	$	28,947	$	(692)	24	$	44,846	$	(759)

During the nine months ended June 30, 2026, the Company recorded a $22,000 net realized gain on 15 held to maturity investment securities, all of which had been recognized previously as a credit loss. During the nine months ended June 30, 2025, the Company recorded a $3,000 net realized loss on 13 held to maturity investment securities all of which had been recognized previously as credit losses.

The recorded amount of investment securities pledged as collateral for public fund deposits, federal treasury tax and loan deposits, FHLB collateral and other non-profit organization deposits totaled $197.68 million and $195.93 million at June 30, 2026 and September 30, 2025, respectively.

The contractual maturities of investment securities at June 30, 2026 were as follows (dollars in thousands). Expected maturities may differ from scheduled maturities due to the prepayment of principal or call provisions.


	Held to Maturity				Available for Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	25,746	$	25,488	$	—	$	—
Due after one year to five years	39,886		37,913		3,130		3,124
Due after five years to ten years	31		140		177		176
Due after ten years	51,924		49,702		88,654		87,184
Total	$	117,587	$	113,243	$	91,961	$	90,484

Credit Quality Indicators and Allowance for Credit Losses

Available for Sale Investment Securities

The Company assesses each available for sale investment security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale investment securities at June 30, 2026 or September 30, 2025. As of both dates, the Company considered the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. The Company expects the fair value of these securities to recover as the securities approach their maturity dates or sooner if market yields decline. The Company does not believe that the unrealized losses are attributed to credit deterioration or issuer or industry specific events. The Company has the ability and intent to hold the investments until their fair value recovers.

Held to Maturity Investment Securities

The Company measures expected credit losses on held to maturity investment securities, which are comprised of U.S. government agency and U.S. government mortgage-backed securities, private label mortgage-backed securities, municipal securities, and other bonds. The Company’s agency and mortgage-backed securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by the major rating agencies, and have a long history of no credit losses. As such, no ACL has been established for these securities. The ACL on the private label mortgage-backed securities, municipal securities, and other bonds within the held to maturity securities portfolio is calculated using the probability of default/loss given default ("PD/LGD") method. The calculation is completed on a quarterly basis using the default studies provided by an industry leading source. At June 30, 2026 and September 30, 2025, the ACL on the held to maturity securities portfolio totaled $30,000 and $36,000, respectively.

The following tables set forth information for the three and nine months ended June 30, 2026 and 2025 regarding activity in the ACL by portfolio segment (dollars in thousands):


	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
	Beginning Allowance		Recapture of Credit Losses		Ending Allowance		Beginning Allowance		Recapture of Credit Losses		Ending Allowance
Held to Maturity

MBS:

Private label residential	$	31	$	(1)	$	30	$	48	$	(3)	$	45

Bank issued trust preferred securities	—		—		—		2		(1)		1
Total	$	31	$	(1)	$	30	$	50	$	(4)	$	46


	Nine Months Ended June 30, 2026								Nine Months Ended June 30, 2025
	Beginning Allowance				Recapture of Credit Losses		Ending Allowance			Beginning Allowance		Recapture of Credit Losses		Ending Allowance
Held to Maturity

MBS:

Private label residential	$	35			$	(5)	$	30		$	55	$	(10)	$	45
Bank issued trust preferred securities	1				(1)		—			5		(4)		1
Total	$	36	$	—	$	(6)	$	30		$	60	$	(14)	$	46

The ACL on held to maturity securities is included within investment securities held to maturity on the consolidated balance sheets. Changes in the ACL are recorded through the provision for (recapture of) credit losses on the consolidated income statement.

Accrued interest receivable on held to maturity investment securities totaled $321,000 at June 30, 2026 and is included in accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Held to maturity investment securities are typically classified as non-accrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held to maturity investment securities are placed on non-accrual status, unpaid interest credited to income is reversed. The Company had $29,000 of private label mortgage-backed held to maturity investment securities in non-accrual status at June 30, 2026.

The Company monitors the credit quality of investment securities held to maturity using credit ratings from Moody's, S&P and Fitch. The Company monitors the credit ratings on a quarterly basis.

The following tables set forth the Company's held to maturity investment securities at June 30, 2026 and September 30, 2025, by credit quality indicator (dollars in thousands):


	Credit Ratings
As of June 30, 2026	AAA/AA/A		BBB/BB/B		Unrated		Total
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	56,844	$	—	$	—	$	56,844
MBS:
U.S. government agencies	47,025		—		—		47,025
Private label residential	9,615		—		4,103		13,718


Total held to maturity	$	113,484	$	—	$	4,103	$	117,587


	Credit Ratings
As of September 30, 2025	AAA/AA/A		BBB/BB/B		Unrated		Total
Held to Maturity
U.S. Treasury and U.S. government agency securities	$	69,646	$	—	$	—	$	69,646
MBS:
U.S. government agencies	48,735		—		—		48,735
Private label residential	12,455		—		4,921		17,376
Municipal securities	605		—		—		605
Bank issued trust preferred securities	—		—		499		499
Total held to maturity	$	131,441	$	—	$	5,420	$	136,861

Prior to adopting ASU 2016-13 during the year ended September 30, 2024, the Company bifurcated other-than-temporary impairment ("OTTI") into (1) amounts related to credit losses which are recognized through earnings and (2) amounts related to all other factors which are recognized as a component of other comprehensive income (loss). To determine the component of the gross OTTI related to credit losses, the Company compared the amortized cost basis of the OTTI security to the present value of its revised expected cash flows, discounted using its pre-impairment yield. The revised expected cash flow estimates for individual securities are based primarily on an analysis of default rates, prepayment speeds and third-party analytic reports. Significant judgment by management was required in this analysis that included, but not limited to, assumptions regarding the collectability of principal and interest, net of related expenses, on the underlying loans. The amounts written off due to credit loss remain and continue to be recovered on a cash basis.

The following table presents a roll forward of the credit loss component of held to maturity investment securities that have been written down for OTTI with the credit loss component recognized in earnings for the nine months ended June 30, 2026 and 2025 (dollars in thousands):


	Nine Months Ended June 30,
	2026		2025
Beginning balance of credit loss	$	788	$	803



Subtractions:
Net realized loss previously recorded as credit losses	(3)		(3)
Recovery of prior credit loss	(19)		(6)
Ending balance of credit loss	$	766	$	794

(3) GOODWILL AND CDI

Goodwill is initially recorded when the purchase price paid in a business combination exceeds the estimated fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is presumed to have an indefinite useful life and is analyzed annually for impairment. The Company performs an annual review during the third quarter of each fiscal year, or more frequently if indicators of potential impairment exist, to determine if goodwill is impaired. For purposes of goodwill impairment testing, the services offered through the Bank and its subsidiary are managed as one strategic unit and represent the Company's only reporting unit.

An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test is completed. The quantitative goodwill impairment test is used to identify the existence of impairment and the amount of impairment loss and compares the reporting unit’s estimated fair value, including goodwill, to its carrying amount. If the fair value exceeds the carrying amount, goodwill is not considered impaired. If the carrying amount exceeds its fair value, an impairment loss is recognized equal to the amount of the excess, limited to the amount of goodwill allocated to that reporting unit.

The Company performed its fiscal year 2026 goodwill impairment test during the quarter ended June 30, 2026 with the assistance of an independent third-party firm specializing in goodwill impairment valuations for financial institutions. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's reporting unit's fair value is less than its carrying amount, and, therefore, goodwill was determined not to be impaired at May 31, 2026.

As of June 30, 2026, management believes that there have been no events or changes in the circumstances since May 31, 2026 that would indicate a potential impairment of goodwill. No assurance can be given, however, that the Company will not record an impairment loss on goodwill in the future. If adverse economic conditions or decreases in the Company's stock price and market capitalization were deemed to be other than temporary, they may significantly affect the fair value of the Company's reporting unit and may trigger impairment charges. Any impairment charge could have a material adverse effect on the Company's results of operations and financial condition.

CDI represents the future economic benefit of the potential cost savings from acquiring core deposits as part of a business combination compared to the cost of alternative funding sources. CDI is amortized to non-interest expense using an accelerated method based on the estimated runoff of related deposits over a period of ten years. CDI is evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. As of June 30, 2026, management believes that there have been no events or changes in circumstances that would indicate a potential impairment of CDI.

(4) LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Loans receivable by portfolio segment consisted of the following at June 30, 2026 and September 30, 2025 (dollars in thousands):


	June 30, 2026				September 30, 2025
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	299,921	18.5	%	$	317,691	20.1	%
Multi-family	214,583		13.2		207,767		13.2
Commercial real estate	646,376		39.9		610,692		38.7
Construction - custom and owner/builder	113,303		7.0		130,341		8.3
Construction - speculative one- to four-family	28,445		1.8		10,745		0.7
Construction - commercial	12,991		0.8		21,818		1.4
Construction - multi-family	91,271		5.6		45,660		2.9
Construction - land development	530		—		15,324		1.0
Land	37,416		2.3		35,952		2.3
Total mortgage loans	1,444,836		89.1		1,395,990		88.6

Consumer loans:
Home equity and second mortgage	54,971		3.4		50,479		3.2
Other	1,915		0.1		2,034		0.1
Total consumer loans	56,886		3.5		52,513		3.3

Commercial loans:
Commercial business	118,852		7.4		126,937		8.1
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	—		—		58		—
Total commercial loans	118,852		7.4		126,995		8.1

Total loans receivable	1,620,574		100.0	%	1,575,498		100.0	%
Less:
Undisbursed portion of construction loans in process ("LIP")	100,275				88,289
Deferred loan origination fees, net	5,399				5,528
ACL	19,249				18,091
Subtotal	124,923				111,908
Loans receivable, net	$	1,495,651			$	1,463,590

__________________

(1) Does not include one- to four-family loans held for sale totaling $2.77 million and $1.13 million at June 30, 2026 and September 30, 2025, respectively.

Loans receivable at June 30, 2026 and September 30, 2025, are reported net of unamortized discounts totaling $25,000 and $51,000, respectively.

Credit Quality Indicators

The Company uses credit risk grades that reflect the Company’s assessment of a loan’s risk or loss potential. The Company categorizes loans into risk grade categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors such as the estimated fair value of the collateral. The Company uses the following definitions for credit risk ratings as part of the ongoing monitoring of the credit quality of its loan portfolio:

Pass: Pass loans are defined as loans that meet acceptable quality underwriting standards.

Watch: Watch loans are defined as loans that still exhibit acceptable quality, but have some concerns that justify greater attention. If these concerns are not corrected, a potential for further adverse categorization exists. These concerns could relate to a specific condition peculiar to the borrower, its industry segment or the general economic environment.

Special Mention: Special mention loans are defined as loans deemed by management to have some potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the loan.

Substandard: Substandard loans are defined as loans that are inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. If the weakness or weaknesses are not corrected, there is a distinct possibility that some loss will be sustained.

Doubtful: Loans in this classification have the weaknesses of substandard loans with the additional characteristic that the weaknesses make the collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. At June 30, 2026, no loans were classified as doubtful. At September 30, 2025, there was one loan classified as doubtful which was supported by an SBA guarantee of the remaining balance.

Loss: Loans in this classification are considered uncollectible and of such little value that continuance as an asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though partial recovery may be realized in the future. At June 30, 2026 and September 30, 2025, there were no loans classified as loss.

The following table sets forth the Company's loan portfolio at June 30, 2026 by risk attribute and year of origination as well as current period gross charge-offs (dollars in thousands):


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2026		2025		2024		2023		2022		Prior		Revolving Loans		Total Loans Receivable
One-to four-family
Risk Rating
Pass	$	2,993	$	15,596	$	30,008	$	63,822	$	92,151	$	86,139	$	—	$	290,709
Watch	—		—		—		545		1,681		268		—		2,494
Special Mention	—		—		—		—		4,788		—		—		4,788
Substandard	—		—		—		1,731		199		—		—		1,930
Total one- to four-family	$	2,993	$	15,596	$	30,008	$	66,098	$	98,819	$	86,407	$	—	$	299,921


Multi-family
Risk Rating
Pass	$	17,238	$	16,165	$	13,088	$	34,845	$	38,583	$	81,953	$	1,708	$	203,580
Watch	—		—		—		—		—		11,003		—		11,003


Total multi-family	$	17,238	$	16,165	$	13,088	$	34,845	$	38,583	$	92,956	$	1,708	$	214,583


Commercial real estate
Risk Rating
Pass	$	54,836	$	53,455	$	24,130	$	77,555	$	121,322	$	289,790	$	7,783	$	628,871
Watch	—		—		767		—		—		12,204		—		12,971

Substandard	—		—		—		—		224		4,310		—		4,534
Total commercial real estate	$	54,836	$	53,455	$	24,897	$	77,555	$	121,546	$	306,304	$	7,783	$	646,376


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2026		2025		2024		2023		2022		Prior		Revolving Loans		Total Loans Receivable
Construction-custom & owner/builder (1)
Risk Rating
Pass	$	18,681	$	36,182	$	—	$	—	$	—	$	—	$	—	$	54,863
Watch	—		2,860		5,244		4,060		1,719		—		—		13,883


Total construction-custom & owner/builder	$	18,681	$	39,042	$	5,244	$	4,060	$	1,719	$	—	$	—	$	68,746


Construction-speculative one-to four-family (1)
Risk Rating
Pass	$	11,284	$	1,617	$	—	$	—	$	—	$	—	$	—	$	12,901



Total construction-speculative one-to four-family	$	11,284	$	1,617	$	—	$	—	$	—	$	—	$	—	$	12,901


Construction-commercial (1)
Risk Rating
Pass	$	1,773	$	7,033	$	3,100	$	—	$	—	$	—	$	—	$	11,906



Total construction-commercial	$	1,773	$	7,033	$	3,100	$	—	$	—	$	—	$	—	$	11,906


Construction-multi-family (1)
Risk Rating
Pass	$	14,558	$	29,942	$	7,800	$	—	$	—	$	—	$	—	$	52,300



Total construction-multi-family	$	14,558	$	29,942	$	7,800	$	—	$	—	$	—	$	—	$	52,300


Construction-land development (1)
Risk Rating
Pass	$	412	$	—	$	—	$	—	$	—	$	—	$	—	$	412



Total construction-land development	$	412	$	—	$	—	$	—	$	—	$	—	$	—	$	412


Land
Risk Rating
Pass	$	9,731	$	7,562	$	8,202	$	2,214	$	4,556	$	3,690	$	379	$	36,334
Watch	—		—		248		—		294		432		—		974

Substandard	—		—		108		—		—		—		—		108
Total land	$	9,731	$	7,562	$	8,558	$	2,214	$	4,850	$	4,122	$	379	$	37,416


Home equity and second mortgage
Risk Rating
Pass	$	1,484	$	1,911	$	3,904	$	2,636	$	1,270	$	2,451	$	40,667	$	54,323
Watch	—		184		—		—		—		12		—		196

Substandard	—		—		—		132		—		54		266		452
Total home equity and second mortgage	$	1,484	$	2,095	$	3,904	$	2,768	$	1,270	$	2,517	$	40,933	$	54,971


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2026		2025		2024		2023		2022		Prior		Revolving Loans		Total Loans Receivable
Other consumer
Risk Rating
Pass	$	732	$	35	$	431	$	358	$	67	$	241	$	31	$	1,895


Substandard	—		—		—		—		—		—		20		20
Total other consumer	$	732	$	35	$	431	$	358	$	67	$	241	$	51	$	1,915


Commercial business
Risk Rating
Pass	$	7,211	$	12,060	$	11,458	$	12,486	$	22,526	$	11,092	$	38,741	$	115,574
Watch	—		—		—		—		—		269		1,389		1,658

Substandard	—		—		—		159		134		383		944		1,620

Total commercial business	$	7,211	$	12,060	$	11,458	$	12,645	$	22,660	$	11,744	$	41,074	$	118,852











Total loans receivable, gross (1)
Risk Rating
Pass	$	140,933	$	181,558	$	102,121	$	193,916	$	280,475	$	475,356	$	89,309	$	1,463,668
Watch	—		3,044		6,259		4,605		3,694		24,188		1,389		43,179
Special Mention	—		—		—		—		4,788		—		—		4,788
Substandard	—		—		108		2,022		557		4,747		1,230		8,664

Total loans receivable	$	140,933	$	184,602	$	108,488	$	200,543	$	289,514	$	504,291	$	91,928	$	1,520,299
Current period gross charge-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

_____________________

(1) Net of construction LIP

The following table sets forth the Company's loan portfolio at September 30, 2025, by risk attribute and year of origination as well as gross charges offs in the year ending September 30, 2025:


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable
One-to four-family
Risk Rating
Pass	$	10,885	$	25,692	$	79,193	$	102,942	$	45,274	$	47,078	$	—	$	311,064

Special Mention	—		—		—		4,846		—		—		—		4,846
Substandard	—		—		1,781		—		—		—		—		1,781
Total one- to four-family	$	10,885	$	25,692	$	80,974	$	107,788	$	45,274	$	47,078	$	—	$	317,691


Multi-family
Risk Rating
Pass	$	16,305	$	13,129	$	40,004	$	39,064	$	22,489	$	62,516	$	1,334	$	194,841
Watch	—		—		—		—		—		3,264		—		3,264

Substandard	—		—		—		—		9,662		—		—		9,662
Total multi-family	$	16,305	$	13,129	$	40,004	$	39,064	$	32,151	$	65,780	$	1,334	$	207,767


Commercial real estate
Risk Rating
Pass	$	47,145	$	25,419	$	79,692	$	123,631	$	82,507	$	225,019	$	10,212	$	593,625
Watch	—		—		—		238		—		9,307		—		9,545
Special Mention	—		—		—		—		—		32		—		32
Substandard	—		—		—		—		—		7,490		—		7,490
Total commercial real estate	$	47,145	$	25,419	$	79,692	$	123,869	$	82,507	$	241,848	$	10,212	$	610,692


Construction-custom & owner/builder (1)
Risk Rating
Pass	$	32,733	$	33,785	$	560	$	—	$	758	$	—	$	—	$	67,836
Watch	—		3,875		5,367		1,855		1,232		—		—		12,329

Substandard	—		—		—		553		—		—		—		553
Total construction-custom & owner/builder	$	32,733	$	37,660	$	5,927	$	2,408	$	1,990	$	—	$	—	$	80,718


Construction-speculative one-to four-family (1)
Risk Rating
Pass	$	6,375	$	16	$	44	$	—	$	—	$	—	$	—	$	6,435
Watch	—		—		488		—		—		—		—		488


Total construction-speculative one-to four-family	$	6,375	$	16	$	532	$	—	$	—	$	—	$	—	$	6,923


Construction-commercial (1)
Risk Rating
Pass	$	10,284	$	2,725	$	2,725	$	—	$	—	$	—	$	—	$	15,734



Total construction-commercial	$	10,284	$	2,725	$	2,725	$	—	$	—	$	—	$	—	$	15,734






	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable
Construction-multi-family (1)
Risk Rating
Pass	$	11,084	$	7,604	$	—	$	—	$	—	$	—	$	—	$	18,688



Total construction-multi-family	$	11,084	$	7,604	$	—	$	—	$	—	$	—	$	—	$	18,688


Construction-land development (1)
Risk Rating
Pass	$	—	$	358	$	1,629	$	—	$	—	$	—	$	—	$	1,987


Substandard	—		—		—		11,549		—		—		—		11,549
Total construction-land development	$	—	$	358	$	1,629	$	11,549	$	—	$	—	$	—	$	13,536



Land
Risk Rating
Pass	$	11,667	$	9,393	$	3,741	$	5,805	$	1,951	$	2,339	$	303	$	35,199
Watch	—		—		—		298		—		455		—		753


Total land	$	11,667	$	9,393	$	3,741	$	6,103	$	1,951	$	2,794	$	303	$	35,952


Home equity and second mortgage
Risk Rating
Pass	$	2,528	$	5,154	$	3,574	$	1,556	$	237	$	2,112	$	34,649	$	49,810
Watch	—		—		—		—		—		10		—		10

Substandard	—		—		—		—		—		57		602		659
Total home equity and second mortgage	$	2,528	$	5,154	$	3,574	$	1,556	$	237	$	2,179	$	35,251	$	50,479


Other consumer
Risk Rating
Pass	$	565	$	459	$	390	$	82	$	48	$	423	$	38	$	2,005
Watch	—		—		—		—		—		7		—		7

Substandard	—		—		—		—		—		—		22		22
Total other consumer	$	565	$	459	$	390	$	82	$	48	$	430	$	60	$	2,034
Current period gross write-offs	$	4	$	1	$	—	$	—	$	—	$	—	$	1	$	6
Commercial business
Risk Rating
Pass	$	10,686	$	12,875	$	17,674	$	27,359	$	5,793	$	9,870	$	40,048	$	124,305
Watch	—		—		—		—		649		—		—		649
Special Mention	—		—		—		187		304		201		—		692
Substandard	—		—		159		140		—		790		—		1,089
Doubtful	—		—		202		—		—		—		—		202
Total commercial business	$	10,686	$	12,875	$	18,035	$	27,686	$	6,746	$	10,861	$	40,048	$	126,937
Current period gross write-offs	$	—	$	—	$	—	$	241	$	—	$	—	$	—	$	241


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable
SBA PPP
Risk Rating
Pass	$	—	$	—	$	—	$	—	$	58	$	—	$	—	$	58



Total SBA PPP	$	—	$	—	$	—	$	—	$	58	$	—	$	—	$	58


Total loans receivable, gross (1)
Risk Rating
Pass	$	160,257	$	136,609	$	229,226	$	300,439	$	159,115	$	349,357	$	86,584	$	1,421,587
Watch	—		3,875		5,855		2,391		1,881		13,043		—		27,045
Special Mention	—		—		—		5,033		304		233		—		5,570
Substandard	—		—		1,940		12,242		9,662		8,337		624		32,805
Doubtful	—		—		202		—		—		—		—		202
Total loans receivable	$	160,257	$	140,484	$	237,223	$	320,105	$	170,962	$	370,970	$	87,208	$	1,487,209
Current period gross charge-off	$	4	$	1	$	—	$	241	$	—	$	—	$	1	$	247

_____________________

(1) Net of construction LIP

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost. The ACL is evaluated and calculated on a collective basis for loans that share similar risk characteristics. For loans that do not share similar risk characteristics and cannot be evaluated on a collective basis, the Company evaluates the loan individually. The Company estimates expected credit losses over the loans' contractual terms, adjusted for expected prepayments. The ACL is calculated for loan segments utilizing loan level information and relevant information from internal and external sources related to past events and current conditions. Management has adopted the discounted cash flow ("DCF") methodology for all segments. The Company incorporates a reasonable and supportable forecast using current period national gross domestic product ("GDP") and national unemployment figures. All loan segments are impacted by those factors. Prepayment rates are established for each segment based on historical averages, which management believes is representative of future prepayment activity. Loans that are evaluated individually are not included in the collective analysis. The ACL on loans that are evaluated individually may be estimated based on their expected cash flows, or in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, is measured based on the fair value of the collateral less estimated selling costs.

When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the ACL. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not demonstrated the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; and/or the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement.

Management's evaluation of the ACL is based on ongoing, quarterly assessments of the known and inherent risks in the loan portfolio. Loss factors are based on the Company's historical loss experience with additional consideration and adjustments made for changes in economic conditions, changes in the amount and composition of the loan portfolio, delinquency rates, changes in collateral values, seasoning of the loan portfolio, duration of the current business cycle, a detailed analysis of individually evaluated loans and other factors deemed appropriate by management. Management also assesses the risk related to the reasonable and supportable forecasts. These factors are evaluated on a quarterly basis. Loss rates used by the Company are affected by changes in these factors from quarter to quarter. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's ACL and may require the Company to make adjustments to the ACL based on their judgment about information available to them at the time of their examinations.

The following tables set forth information for the three and nine months ended June 30, 2026 and 2025 regarding activity in the ACL by portfolio segment (dollars in thousands):


	Three Months Ended June 30, 2026
	Beginning Allowance		Provision for (Recapture of) Credit Losses		Charge- Offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	2,821	$	(285)	$	—	$	—	$	2,536
Multi-family	1,639		(86)		—		—		1,553
Commercial real estate	7,479		409		—		—		7,888
Construction – custom and owner/builder	1,175		324		—		—		1,499
Construction – speculative one- to four-family	181		111		—		—		292
Construction – commercial	257		81		—		—		338
Construction – multi-family	969		484		—		—		1,453
Construction – land development	80		(68)		—		—		12
Land	684		(112)		—		—		572
Consumer loans:
Home equity and second mortgage	452		(88)		—		—		364
Other	51		1		—		1		53
Commercial business loans	2,860		(171)		—		—		2,689

Total	$	18,648	$	600	$	—	$	1	$	19,249


	Three Months Ended June 30, 2025
	Beginning Allowance		Provision for (Recapture of) Credit Losses		Charge- Offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	2,800	$	93	$	—	$	—	$	2,893
Multi-family	1,315		265		—		—		1,580
Commercial real estate	6,983		180		—		—		7,163
Construction – custom and owner/builder	1,217		25		—		—		1,242
Construction – speculative one- to four-family	89		8		—		—		97
Construction – commercial	358		(101)		—		—		257
Construction – multi-family	543		(165)		—		—		378
Construction – land development	375		38		—		—		413
Land	852		(39)		—		—		813
Consumer loans:
Home equity and second mortgage	345		66		—		—		411
Other	33		4		—		1		38
Commercial business loans	2,615		(23)		—		1		2,593

Total	$	17,525	$	351	$	—	$	2	$	17,878


	Nine Months Ended June 30, 2026
	Beginning Allowance		Provision for (Recapture of) Credit Losses		Charge- Offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	2,892	$	(356)	$	—	$	—	$	2,536
Multi-family	1,625		(72)		—		—		1,553
Commercial real estate	7,147		741		—		—		7,888
Construction – custom and owner/builder	1,268		231		—		—		1,499
Construction – speculative one- to four-family	112		180		—		—		292
Construction – commercial	348		(10)		—		—		338
Construction – multi-family	400		1,053		—		—		1,453
Construction – land development	412		(400)		—		—		12
Land	797		(225)		—		—		572
Consumer loans:
Home equity and second mortgage	435		(71)		—		—		364
Other	58		(6)		—		1		53
Commercial business loans	2,597		75		—		17		2,689

Total	$	18,091	$	1,140	$	—	$	18	$	19,249


	Nine Months Ended June 30, 2025
	Beginning Allowance		Provision for (Recapture of) Credit Losses		Charge- Offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	2,632	$	261	$	—	$	—	$	2,893
Multi-family	1,308		272		—		—		1,580
Commercial real estate	6,934		229		—		—		7,163
Construction – custom and owner/builder	1,328		(86)		—		—		1,242
Construction – speculative one-to four-family	128		(31)		—		—		97
Construction – commercial	537		(280)		—		—		257
Construction – multi-family	456		(78)		—		—		378
Construction – land development	335		78		—		—		413
Land	793		20		—		—		813
Consumer loans:
Home equity and second mortgage	348		63		—		—		411
Other	39		2		(4)		1		38
Commercial business loans	2,640		190		(241)		4		2,593

Total	$	17,478	$	640	$	(245)	$	5	$	17,878

Non-Accrual Loans

When a loan is 90 days delinquent the accrual of interest is generally discontinued and the loan is placed on non-accrual. All interest accrued but not collected for loans placed on non-accrual is reversed out of interest income. Generally, payments received on non-accrual loans are applied to reduce the outstanding principal balance of the loan. At times interest may be accounted for on a cash basis, depending on the collateral value and the borrower's payment history. A loan is generally not removed from non-accrual until all delinquent principal, interest and late fees have been brought current and the borrower demonstrates repayment ability over a period of not less than six months and all taxes are current.

The following tables present an analysis of loans by aging category and portfolio segment at June 30, 2026 and September 30, 2025 (dollars in thousands):


	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual (1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
June 30, 2026
Mortgage loans:
One- to four-family	$	—	$	—	$	1,930	$	—	$	1,930	$	297,991	$	299,921
Multi-family	18		—		—		—		18		214,565		214,583
Commercial real estate	—		—		4,534		—		4,534		641,842		646,376
Construction – custom and owner/builder (2)	—		—		—		—		—		68,746		68,746
Construction – speculative one- to four-family (2)	—		—		—		—		—		12,901		12,901
Construction – commercial (2)	—		—		—		—		—		11,906		11,906
Construction – multi-family (2)	—		—		—		—		—		52,300		52,300
Construction – land development (2)	—		—		—		—		—		412		412
Land	—		—		—		—		—		37,416		37,416
Consumer loans:
Home equity and second mortgage	—		—		452		—		452		54,519		54,971
Other	—		—		20		—		20		1,895		1,915
Commercial business loans	—		134		1,620		—		1,754		117,098		118,852

Total	$	18	$	134	$	8,556	$	—	$	8,708	$	1,511,591	$	1,520,299

(1) Includes loans past due 90 days or more and other loans classified as non-accrual.

(2) Net of construction LIP.


	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual (1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
September 30, 2025
Mortgage loans:
One- to four-family	$	—	$	210	$	1,781	$	—	$	1,991	$	315,700	$	317,691
Multi-family	—		—		—		—		—		207,767		207,767
Commercial real estate	—		255		159		—		414		610,278		610,692
Construction – custom and owner/builder (2)	—		—		553		—		553		80,165		80,718
Construction – speculative one- to four-family (2)	—		—		—		—		—		6,923		6,923
Construction – commercial (2)	—		—		—		—		—		15,734		15,734
Construction – multi-family (2)	—		—		—		—		—		18,688		18,688
Construction – land development (2)	—		—		—		—		—		13,536		13,536
Land	—		—		—		—		—		35,952		35,952
Consumer loans:
Home equity and second mortgage	—		411		602		—		1,013		49,466		50,479
Other	—		—		22		—		22		2,012		2,034
Commercial business loans	374		—		1,290		—		1,664		125,273		126,937
SBA PPP loans	—		—		—		—		—		58		58
Total	$	374	$	876	$	4,407	$	—	$	5,657	$	1,481,552	$	1,487,209

(1) Includes loans past due 90 days or more and other loans classified as non-accrual.

(2) Net of construction LIP.

At June 30, 2026, the Company had $5.53 million of non-accrual loans with an ACL of $1.03 million and $3.03 million of non-accrual loans with no ACL. The following table is a summary of the amortized cost of collateral dependent non-accrual loans as of June 30, 2026 (in thousands):


	Recorded Investment		Related ACL
Mortgage loans:
One- to four-family	$	1,930	$	—
Commercial real estate	4,534		480

Consumer loans:
Home equity and second mortgage	452		—
Other	20		20
Commercial business loans	1,620		530
Total	$	8,556	$	1,030

At September 30, 2025, the Company had $1.31 million of non-accrual loans with an ACL of $360,000 and $3.10 million of non-accrual loans with no ACL. The following table is a summary of the amortized cost of collateral dependent non-accrual loans as of September 30, 2025 (in thousands):


	Recorded Investment		Related ACL
Mortgage loans:
One- to four-family	$	1,781	$	—
Commercial real estate	159		—
Construction - custom and owner/builder	553		—
Consumer loans:
Home equity and second mortgage	602		—
Other	22		22
Commercial business loans	1,290		338
Total	$	4,407	$	360

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or any combination of these. When principal forgiveness is provided, the amount of the forgiveness is charged-off against the ACL for loans. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL for loans is adjusted by the same amount. The ACL on modified loans is measured using the same credit loss estimation methods used to determine the ACL for all other loans held for investment. These methods incorporate the post-modification of loan terms, as well as defaults and charge-offs associated with historical modified loans.

The following tables present the amortized cost basis of loans that were experiencing financial difficulty and modified during the nine months ended June 30, 2026, by loan class and modification type (dollars in thousands):

Term Extension

June 30, 2026

Amortized Cost Basis

% of Total Loan Type

Financial Effect

Home Equity and Second Mortgage

0.10

Loan extended five years.

Combination - Term Extension and Interest and Payment Modification

June 30, 2026

Amortized Cost Basis

% of Total Loan Type

Financial Effect

Commercial Business Loan

—

Loan extended 18 months, interest rate increased and loan payment decreased.

All loans modified during the past twelve months are performing according to modified terms.

The following tables present the amortized cost basis of loans that were experiencing financial difficulty and modified during the nine months ended June 30, 2025, by loan class and modification type (dollars in thousands):

Combination - Term Extension and Collateral Addition

June 30, 2025

Amortized Cost Basis

% of Total Loan Type

Financial Effect

Commercial Business Loan

256

0.20

Loan extended three months and secured a deed of trust on a land parcel

Combination - Term Extension and Payment Modification

June 30, 2025

Amortized Cost Basis

% of Total Loan Type

Financial Effect

Commercial Business Loan

—

Loan extended seven months, monthly payment reduced with principal payments due at time of change in terms and 1.5 months after signing.

(5) LEASES

At June 30, 2026, the Company had operating leases for three retail bank branch offices and an administrative office. The Company's leases have remaining terms ranging from three to 24 years, and include options to extend the leases for up to a total of fifteen years. Lease extensions are not certain, and the Company evaluates each lease based on the specific circumstances for the location to determine the probability of exercising the extension in the calculation of ROU assets and lease liabilities.

The components of lease cost (included in the premises and equipment expense category in the consolidated statements of income) for the three and nine months ended June 30, 2026 and 2025 were as follows (dollars in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
Lease cost:	2026		2025		2026		2025
Operating lease cost	$	147	$	87	$	404	$	284
Short-term lease cost	—		—		—		—
Total lease cost	$	147	$	87	$	404	$	284

The following table provides supplemental information related to operating leases at or for the three and nine months ended June 30, 2026 and 2025 (dollars in thousands):


	At or For the Three Months Ended June 30, 2026			At or For the Nine Months Ended June 30, 2026
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	117		$	306
Weighted average remaining lease term-operating leases	14.5 years			14.5 years
Weighted average discount rate-operating leases	4.22		%	4.22		%


	At or For the Three Months Ended June 30, 2025			At or For the Nine Months Ended June 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	84		$	252
Weighted average lease term-operating leases	5.5 years			5.5 years
Weighted average discount rate-operating leases	2.35		%	2.35		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the weighted average discount rate used to estimate the present value of future lease payments in calculating the value of the ROU asset and lease liability was determined by utilizing the FHLB fixed-rate credit advance borrowing rate for the term correlating to the remaining term of each lease.

Maturities of operating lease liabilities at June 30, 2026 for future fiscal years are as follows (dollars in thousands):


Remainder of Fiscal 2026	$	123
Fiscal 2027	494
Fiscal 2028	504
Fiscal 2029	505
Fiscal 2030	499
Thereafter	4,235
Total lease payments	6,360
Less imputed interest	2,037
Total	$	4,323

(6) NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and participates in non-forfeitable dividends during the vesting period. Diluted net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares and common stock equivalents outstanding for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options.

Information regarding the calculation of basic and diluted net income per common share for the three and nine months ended June 30, 2026 and 2025, is as follows (dollars in thousands, except per share amounts):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
Basic net income per common share computation
Numerator – net income	$	7,720	$	7,100	$	23,068	$	20,715





Denominator – weighted average common shares outstanding	7,805,218		7,893,308		7,855,474		7,929,626

Basic net income per common share	$	0.99	$	0.90	$	2.94	$	2.61

Diluted net income per common share computation
Numerator – net income	$	7,720	$	7,100	$	23,068	$	20,715





Denominator – weighted average common shares outstanding	7,805,218		7,893,308		7,855,474		7,929,626
Effect of dilutive stock options (1)	50,189		28,454		44,754		33,786

Weighted average common shares outstanding - assuming dilution	7,855,407		7,921,762		7,900,228		7,963,412

Diluted net income per common share	$	0.98	$	0.90	$	2.92	$	2.60

____________________________________________

(1) For the three months ended June 30, 2026, all outstanding options were included in the computation of diluted earnings per common share. For the nine months ended June 30, 2026, average options to purchase 273 shares of common stock were outstanding but were not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive. For the three and nine months ended June 30, 2025, average options to purchase 137,720 and 120,049 shares of common stock, respectively, were outstanding but were not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive.

(7) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) ("AOCI") by component during the three and nine months ended June 30, 2026 and 2025, are as follows (dollars in thousands):


	Three Months Ended					Nine Months Ended
	June 30, 2026		June 30, 2025				June 30, 2026			June 30, 2025
	Changes in fair value of available for sale securities (1)			Changes in fair value of available for sale securities (1)				Changes in fair value of available for sale securities (1)			Changes in fair value of available for sale securities (1)
Balance of AOCI at the beginning of period	$	(350)		$	(670)			$	(298)		$	20
Other comprehensive (loss)	(817)			(105)				(869)			(795)
Balance of AOCI at the end of period	$	(1,167)		$	(775)			$	(1,167)		$	(775)

__________________

(1) All amounts are net of income taxes.

(8) STOCK COMPENSATION PLANS

The Company maintains one active stock compensation plan, the 2019 Equity Incentive Plan (the "2019 Plan"). Under the 2019 Plan, the Company may grant options and awards of restricted stock (with or without performance measures) for up to 350,000 shares of common stock, of which 300,000 shares are reserved for issuance to employees and officers, and 50,000 shares are reserved for issuance to directors and directors emeriti. Shares issued under the 2019 Plan may be purchased in the open market or issued from the Company's authorized and unissued shares. The exercise price of each stock option equals the fair market value of the Company’s common stock on the date of grant. Stock options generally vest in equal annual installments over five years beginning on the first anniversary of the grant date and have a maximum contractual term of ten years. Restricted stock awards typically vest in equal annual installments over a three- or five-year period beginning on the first anniversary of the grant date. At June 30, 2026, 133,135 shares of common stock remained available for further issuance under the 2019 Plan, either as stock options or restricted stock awards.

The Company's 2014 Equity Incentive Plan (the "2014 Plan") expired on January 27, 2025; therefore, no further awards may be granted under the plan. As of June 30, 2026, there were 85,750 options outstanding to purchase shares of common stock that had been previously granted under the 2014 Plan, of which 74,150 were vested and 11,600 were unvested.

Stock option activity for the nine months ended June 30, 2026 and 2025, is summarized as follows:


	Nine Months Ended June 30, 2026			Nine Months Ended June 30, 2025
	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
Options outstanding, beginning of period	215,530	$	26.22	306,240	$	25.21
Exercised	(61,680)	25.84		(41,960)	19.47

Forfeited	(1,800)	27.68		(11,300)	28.41
Options outstanding, end of period	152,050	$	26.35	252,980	$	26.02

The fair value of stock options is determined using the Black-Scholes valuation model.

There were no stock options granted during the nine months ended June 30, 2026 and 2025.

The aggregate intrinsic value of options exercised during the nine months ended June 30, 2026 and 2025 was $747,000 and $487,000, respectively.

At June 30, 2026, there were 33,200 unvested options with an aggregate grant date fair value of $221,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at June 30, 2026 was $567,000. There were 300 options that vested during the nine months ended June 30, 2026 with a total fair value of $2,056.

At June 30, 2025, there were 69,430 unvested options with an aggregate grant date fair value of $421,000. There were 2,500 options that vested during the nine months ended June 30, 2025 with a total fair value of $16,000.

Additional information regarding options outstanding at June 30, 2026, is as follows:


			Options Outstanding				Options Exercisable
Range of Exercise Prices ($)			Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)


15.67	-	19.13	27,150	$	16.60	3.3	27,150	$	16.60	3.3
26.50	-	27.40	57,525	27.34		5.6	35,325	27.30		5.1
28.23	-	29.69	50,850	28.64		4.1	40,250	28.75		3.8
31.80	-	33.40	16,525	31.90		2.5	16,125	31.86		2.4
			152,050	$	26.35	4.4	118,850	$	25.96	3.9

The aggregate intrinsic value of options outstanding at June 30, 2026 and 2025, was $2.81 million and $1.33 million, respectively.

As of June 30, 2026, unrecognized compensation cost related to unvested stock options was $127,000, which is expected to be recognized over a weighted average period of 0.92 years.

There were no restricted stock awards granted during the nine months ended June 30, 2026 and 2025.

The following table presents the activity related to restricted stock for the nine months ended June 30, 2026 and 2025:


	Nine Months Ended June 30, 2026			Nine Months Ended June 30, 2025
	Number of Unvested Shares	Weighted Average Grant Date Fair Value		Number of Unvested Shares	Weighted Average Grant Date Fair Value
Restricted stock outstanding beginning of period	70,450	$	31.94	49,015	$	29.28

Forfeited	(2,280)	29.93		(1,830)	28.70
Vested	—	—		(200)	27.37
Restricted stock outstanding end of period	68,170	$	32.00	46,985	$	29.31

The fair value of restricted stock awards is equal to the fair value of the Company's stock on the date of the grant. The related stock-based compensation expense is recorded over the requisite service period. At June 30, 2026, unrecognized compensation cost related to unvested restricted stock awards was $1.71 million, which is expected to be recognized over a weighted average period of 2.25 years.

(9) FAIR VALUE MEASUREMENTS

Fair value is defined under GAAP as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels. These levels are:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2: Significant observable inputs other than quoted prices included within Level 1, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions market participants would use in pricing an asset or liability based on the best information available in the circumstances.

The Company's assets measured at fair value on a recurring basis consist of investment securities available for sale and investments in equity securities. The estimated fair values of available for sale investment securities are based upon quoted market prices (Level 1) and market prices of similar securities or observable inputs (Level 2). The estimated fair values of mutual funds are based upon quoted market prices (Level 1).

The Company had no liabilities measured at fair value on a recurring basis at June 30, 2026 and September 30, 2025. The Company's assets measured at estimated fair value on a recurring basis at June 30, 2026 and September 30, 2025, were as follows (dollars in thousands):


June 30, 2026	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Available for sale investment securities

MBS: U.S. government agencies	$	—	$	90,484	$	—	$	90,484
Investments in equity securities
Mutual funds	858		—		—		858
Total	$	858	$	90,484	$	—	$	91,342



September 30, 2025	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Available for sale investment securities
U.S. government securities	$	4,968	$	—	$	—	$	4,968
MBS: U.S. government agencies	—		73,272		—		73,272
Investments in equity securities

Mutual funds	864		—		—		864
Total	$	5,832	$	73,272	$	—	$	79,104

There were no transfers among Level 1, Level 2 and Level 3 during the nine months ended June 30, 2026 and the year ended September 30, 2025.

The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period.

The Company uses the following methods and significant assumptions to estimate fair value on a non-recurring basis:

Individually Evaluated Collateral-Dependent Loans: Loans for which repayment is substantially expected to be provided through the operation or sale of collateral are considered collateral dependent, and are valued based on the estimated fair value of the collateral, less estimated costs to sell, where applicable. Accordingly, collateral dependent loans are classified within level 3 of the fair value hierarchy.

OREO and Other Repossessed Assets, net: OREO and other repossessed assets are recorded at estimated fair value less estimated costs to sell. Estimated fair value is generally determined by management based on a number of factors, including

third-party appraisals of estimated fair value in an orderly sale. Estimated costs to sell are based on standard market factors. The valuation of OREO and other repossessed assets is subject to significant external and internal judgment (Level 3).

The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at June 30, 2026 and September 30, 2025 (dollars in thousands):


	Estimated Fair Value						Total Estimated
June 30, 2026	Level 1		Level 2		Level 3		Fair Value
Individually evaluated collateral-dependent loans:
Mortgage loans:


Commercial real estate	$	—	$	—	$	3,830	$	3,830





Commercial business loans	—		—		667		667
Total loans	—		—		4,497		4,497


OREO and other repossessed assets	—		—		221		221
Total	$	—	$	—	$	4,718	$	4,718


	Estimated Fair Value						Total Estimated
September 30, 2025	Level 1		Level 2		Level 3		Fair Value
Individually evaluated collateral-dependent loans:









Commercial business loans	$	—	$	—	$	177	$	177
Total loans	—		—		177		177


OREO and other repossessed assets	—		—		221		221
Total	$	—	$	—	$	398	$	398

The following table presents quantitative information about Level 3 inputs for financial instruments measured at fair value on a non-recurring basis as of June 30, 2026 and September 30, 2025:

Valuation
Technique(s)

Significant Unobservable Input(s)

Range

Individually evaluated collateral-dependent loans

Market approach

Appraised value less estimated selling costs

OREO and other repossessed assets

Market approach

Lower of appraised value or listing price less estimated selling costs

GAAP requires disclosure of estimated fair values for certain financial instruments. Such estimates are subjective in nature, and significant judgment is required regarding the risk characteristics of various financial instruments at a discrete point in time. Therefore, such estimates could vary significantly if assumptions regarding uncertain factors were to change. In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for certain items that are not defined as financial instruments but which may have significant value. The Company does not believe that it would be practicable to estimate a fair value for these types of items as of June 30, 2026 and September 30, 2025. Because GAAP excludes certain items from fair value disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company. Additionally, the Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis.

The recorded amounts and estimated fair values of financial instruments were as follows as of June 30, 2026 and September 30, 2025 (dollars in thousands):


	June 30, 2026
					Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	246,082	$	246,082	$	246,082	$	—	$	—
CDs held for investment	7,964		7,964		7,964		—		—
Investment securities	208,071		203,727		54,676		149,051		—
Investments in equity securities	858		858		858		—		—
FHLB stock	1,653		1,653		1,653		—		—
Other investments	3,000		3,000		3,000		—		—
Loans held for sale	2,774		2,820		2,820		—		—
Loans receivable, net	1,495,651		1,485,508		—		—		1,485,508
Accrued interest receivable	7,321		7,321		7,321		—		—

Financial liabilities
Certificates of deposit	448,226		447,554		—		—		447,554
FHLB borrowings	10,000		9,997		—		—		9,997
Accrued interest payable	1,790		1,790		1,790		—		—


	September 30, 2025
					Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	243,428	$	243,428	$	243,428	$	—	$	—
CDs held for investment	7,217		7,217		7,217		—		—
Investment securities	215,101		210,574		71,870		138,704		—
Investments in equity securities	864		864		864		—		—
FHLB stock	2,045		2,045		2,045		—		—
Other investments	3,000		3,000		3,000		—		—
Loans held for sale	1,127		1,159		1,159		—		—
Loans receivable, net	1,463,590		1,441,850		—		—		1,441,850
Accrued interest receivable	7,393		7,393		7,393		—		—

Financial liabilities
Certificates of deposit	442,521		442,024		—		—		442,024
FHLB borrowings	20,000		20,009		—		—		20,009
Accrued interest payable	1,963		1,963		1,963		—		—

(10) RECENT ACCOUNTING PRONOUNCEMENTS

In December 2023, the Financial Accounting Standards Board ("FASB") issued accounting standard update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate

reconciliation and income tax paid information. The ASU requires disclosure in the rate reconciliation of specific categories as well as additional information for reconciling items that meet a quantitative threshold. The amendment requires on an annual basis a reconciliation broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. The new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity should apply the amendments in this ASU on a prospective basis. The Company will adopt ASU 2023-09 in its annual consolidated financial statements for the fiscal year ending September 30, 2026. The adoption of this ASU is expected to affect disclosure requirements only.

In November 2024, the FASB issued ASU 2024-03, Income Statement (Topic 220): Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses. In conjunction with recent standards that enhanced the disaggregation of revenue and income tax information, the disaggregated expense information will enable investors to better understand the major components of an entity's income statement. The new standard is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company expects this ASU to only impact its disclosure requirements and does not expect the adoption of the ASU to have a material impact on its business operations or the Company's consolidated financial statements.

In January 2025, the FASB issued ASU 2025-01, Income Statement (Subtopic 220-40): Income Statement-Reporting Comprehensive Income-Expense Disaggregations Disclosures: Clarifying the Effective Date. The amendments in this ASU amend the effective date for ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2025-01 is permitted.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326) Purchased Loans. The ASU expands the use of the gross-up method for accounting for certain acquired loans, specifically purchased seasoned loans ("PSLs"). This method allows entities to recognize an allowance for credit losses at the acquisition date, which results in the asset's amortized cost basis. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company does not expect this ASU to impact the Company's consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements. The ASU adds additional interim disclosures from various Codification Topics to ASC 270. It requires entities to disclose events that occurred since the end of the last annual reporting period that materially affect the entity. The ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company expects this ASU to only impact its disclosure requirements and does not expect the adoption of the ASU to have a material impact on its business operations or the Company's consolidated financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company's financial position, results of operations or cash flows.

(11) REVENUE FROM CONTRACTS WITH CUSTOMERS

ASU 2014-09 Revenue from Contracts with Customers ("ASC 606") applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. The majority of the Company's revenues are composed of interest income, deferred loan fee accretion, premium/discount accretion, gains on sales of loans and investments, BOLI net earnings, servicing income on loans sold and other loan fee income, which are not within the scope of ASC 606. Revenue reported as service charges on deposits, ATM and debit card interchange transaction fees, non-deposit investment fees and escrow fees are within the scope of ASC 606. All of the Company's revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income with the exception of gains on sales of OREO and gains on sales/disposition of premises and equipment, which are included in non-interest expense. For the three months ended June 30, 2026, the Company recognized $956,000 in service charges on deposits, $1.19 million in ATM and debit card interchange transaction fees, $42,000 in escrow fees, and $17,000 in fee income from non-deposit investment sales included in "Other, net" in non-interest income on the consolidated statement of income, all considered within the scope of ASC 606. For the nine months ended June 30, 2026, the Company recognized $2.88 million in service charges on deposits, $3.52 million in ATM and debit card interchange transaction fees, $94,000 in escrow fees, and $53,000 in fee income from non-

deposit investment sales included in "Other, net" in non-interest income on the consolidated statement of income, all considered within the scope of ASC 606. For the three months ended June 30, 2025, the Company recognized $966,000 in service charges on deposits, $1.26 million in ATM and debit card interchange transaction fees, $32,000 in escrow fees, and $9,000 in fee income from non-deposit investment sales. For the nine months ended June 30, 2025, the Company recognized $2.92 million in service charges on deposits, $3.71 million in ATM and debit card interchange transaction fees, $66,000 in escrow fees, and $12,000 in fee income from non-deposit investment sales.

If a contract is determined to be within the scope of ASC 606, the Company recognizes revenue when it satisfies its performance obligation. Descriptions of the Company's revenue-generating activities that are within the scope of ASC 606 are as follows:

•Service Charges on Deposits: The Company earns fees from its deposit customers from a variety of deposit products and services. Non-transaction based fees such as account maintenance fees and monthly statement fees are considered to be provided to the customer under a day-to-day contract with ongoing renewals. Revenue for these non-transaction fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Transaction-based fees such as non-sufficient fund charges, stop payment charges and wire fees are recognized at the time the transaction is executed, as the contract duration does not extend beyond the service performed.

•ATM and Debit Card Interchange Transaction Fees: The Company earns fees from cardholder transactions conducted through third-party payment network providers which consist of interchange fees earned from the payment networks as a debit card issuer. These fees are recognized when the transaction occurs, but may settle on a daily or monthly basis.

•Escrow Fees: The Company earns fees from real estate escrow contracts with customers. The Company receives and disburses money and/or property according to the customer's contract. Fees are recognized when the escrow contract closes.

•Fee Income from Non-deposit Investment Sales: The Company earns fees from contracts with customers for investment activities. Revenues are generally recognized monthly and are generally based on a percentage of the customer's assets under management or based on investment solutions that are implemented for the customer.

(12) COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk not recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. However, such loan to value ratios will subsequently change, based on increases and decreases in the supporting collateral values. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, land and income-producing commercial properties.

A summary of the Company's commitments at June 30, 2026 and 2025, are listed below (in thousands):


	June 30, 2026		June 30, 2025
Undisbursed portion of construction loans in process (see Note 4)	$	100,275	$	76,272
Undisbursed lines of credit	123,495		125,623
Commitments to extend credit	41,303		35,233
	$	265,073	$	237,128

The Company maintains a separate ACL related to unfunded loan commitments. Management estimates the amount of expected losses related to unfunded, off-balance sheet commitments over the contractual period in which there is exposure to credit risk from a contractual obligation to extend credit, unless the Company has determined that obligation is unconditionally cancellable. The methodology for calculating the ACL on unfunded loan commitments is similar to the methodology for calculating the ACL on loans but also includes an estimate of the future utilization of the commitment as determined by historical utilization. Credit risk associated with the unfunded commitments is consistent with the loss ratio for each loan segment within the ACL for loans. The ACL on unfunded commitments is recognized in other liabilities and accrued expenses in the consolidated balance sheets and is adjusted as a provision for (recapture of) credit losses on the consolidated income statements. The ACL on unfunded loan commitments totaled $295,000 and $413,000 at June 30, 2026 and 2025, respectively

The following table sets forth information for the three and nine months ended June 30, 2026 and 2025, regarding activity in the ACL on unfunded loan commitments (dollars in thousands):


	Three Months Ended June 30, 2026		Three Months Ended June 30, 2025
Beginning ACL	$	386	$	320

Provision for (recapture of) credit losses	(91)		93
Ending ACL	$	295	$	413



ACL	Nine Months Ended June 30, 2026		Nine Months Ended June 30, 2025
Beginning ACL	$	432	$	327

Provision for (recapture of) credit losses	(137)		86		*
Ending ACL	$	295	$	413

*Amount differs from Income Statement due to rounding.

The Bank has an employee severance compensation plan which expires in 2027 that provides severance pay benefits to eligible employees in the event of a change in control of Timberland Bancorp or the Bank (as defined in the plan). In general, all employees with two or more years of service are eligible to participate in the plan. Under the plan, in the event of a change in control of Timberland Bancorp or the Bank, eligible employees who are terminated or who terminate employment (but only upon the occurrence of events specified in the plan) within 12 months of the effective date of a change in control would be entitled to a payment based on years of service or officer rank with the Bank. The maximum payment for any eligible employee would be equal to 18 months of the employee’s current compensation.

Timberland Bancorp has employment agreements with its Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Lending Officer and Chief Technology Officer which provide for severance payments and other benefits if the officers are involuntarily terminated following a change in control of Timberland Bancorp or the Bank. The maximum value of the severance benefits under these agreements is equal to 2.99 times the officer's average annual compensation during the five-year period preceding the effective date of the change in control.

Because of the nature of its activities, the Company is subject to various pending and threatened legal actions which arise in the ordinary course of business. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on the future consolidated financial position of the Company.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used in this Form 10-Q, the terms “we,” “us,” “our” and the “Company” refer to Timberland Bancorp, Inc. and its consolidated subsidiaries, unless the context indicates otherwise. References to the “Bank” in this Form 10-Q, refer to Timberland Bank, a wholly-owned subsidiary of Timberland Bancorp, Inc., and the Bank’s wholly-owned subsidiary, Timberland Service Corporation.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the consolidated financial statements and accompanying notes to the consolidated financial statements contained in Item 1 of this Form 10-Q. The following analysis discusses the material changes in the consolidated financial condition and results of operations of the Company at and for the three and nine months ended June 30, 2026.

Special Note Regarding Forward-Looking Statements

Certain matters discussed in this Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed or implied by our forward-looking statements, including, but not limited to:

•adverse economic conditions in our local markets or other markets where we have lending relationships;

•changes in employment levels, labor shortages inflation, a recession or slowed economic growth;

•changes in interest rate levels and the duration volatility, and the timing and pace of such changes, including actions by the Board of Governors of the Federal Reserve System (“Federal Reserve”), which could materially affect our net interest margin, funding costs, asset values, access to capital and liquidity;

•the impact of inflation, including and related monetary and fiscal policy responses thereto, and the impact their effect on consumer and business behavior;

•geopolitical developments and international conflicts, including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, could disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors;

•the effects of a Federal government shutdown, a debt ceiling standoff, or other fiscal policy uncertainty;

•credit risks associated with lending activities, including loan delinquencies, write-offs, changes in our allowance for credit losses ("ACL"), and provision for credit losses;

•fluctuations in the demand for loans, the number of unsold homes, land and other properties, and real estate values in our market areas;

•secondary market conditions for loans and our ability to sell loans in the secondary market;

•results of examinations of us by regulatory authorities, including the possibility that such regulatory authorities may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings;

•the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment;

•legislative or regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules;

•our ability to attract and retain deposits;

•our ability to control operating costs and expenses;

•the ability to adapt to rapid technological changes, including advancements related to artificial intelligence (“AI”), the use of AI models in credit decisioning, customer service, and operations, including risks of model error, bias, regulatory scrutiny under fair lending laws, and third-party AI dependencies, digital banking platforms, and cybersecurity;

•risk associated with the evolving regulatory and market environment for digital assets and cryptocurrency, including potential impacts on customer behavior, deposit flows, and our ability to offer or support related products or services;

•the use of estimates in determining the fair value of assets, which may prove inaccurate;

•staffing fluctuations in response to changes in product demand or corporate implementation strategies;

•vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks;

•our ability to retain key members of our senior management team;

•costs and effects of litigation, including settlements and judgments;

•our ability to implement our business strategies, including expectations regarding key growth initiatives and strategic priorities;

•increased competitive pressures among financial services companies;

•changes in consumer spending, borrowing and savings habits;

•the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions;

•our ability to pay dividends on our common stock;

•quality and composition of our securities portfolio and the impact of adverse changes in the securities markets;

•inability of key third-party providers to perform their obligations;

•changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Public Company Accounting Oversight Board or the FASB;

•environmental, social and governance matters;

•effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest, and other external events;

•other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and

•other risks described elsewhere in this Form 10-Q and our other reports filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (the "2025 Form 10-K").

Any of the forward-looking statements that we make in this Form 10-Q and in the other public statements we make are based upon management's beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this quarterly report to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except as may be required by law. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2026 and beyond to differ materially from those expressed or implied in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's consolidated financial condition and results of operations as well as its stock price performance.

Overview

Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank. The Bank opened for business in 1915 and serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 24 offices (including its main office in Hoquiam). At June 30, 2026, the Company had total assets of $2.06 billion, net loans receivable of $1.50 billion, total deposits of $1.76 billion and total shareholders’ equity of $273.21 million. The Company's business activities generally are limited to passive investment activities and oversight of its investment in the Bank. Accordingly, the information set forth in this report, including the unaudited consolidated financial statements and related data, relates primarily to the Bank's operations.

The Bank is a community-oriented bank which has traditionally offered a variety of savings products to its retail and business customers while concentrating its lending activities on real estate secured loans. Lending activities have been focused primarily on the origination of loans secured by real estate, including residential construction loans, one- to four-family residential loans, multi-family loans and commercial real estate loans. The Bank also originates commercial business loans and other consumer loans.

The profitability of the Company’s operations depends primarily on its net interest income after provision for (recapture of) credit losses. Net interest income is the difference between interest income, which is the income that the Company earns on interest-earning assets, which are primarily loans and investments, and interest expense, the amount that the Company pays on its interest-bearing liabilities, which are primarily deposits and borrowings (as needed). Net interest income is affected by changes in the volume and mix of interest-earning assets, the interest earned on those assets, the volume and mix of interest-bearing liabilities and the interest paid on those interest-bearing liabilities.

Our net interest income, net interest margin, ("NIM"), and net interest spread are primarily influenced by changes in market interest rates, the shape of the yield curve, and the interest rates we earn on interest-earning assets or pay on interest-bearing liabilities. These components of net interest income are also affected by the volume and composition of our interest-earning assets, interest-bearing and non-interest-bearing liabilities, and shareholders’ equity.

During the nine months ended June 30, 2026, interest rate trends were influenced by monetary policy actions taken by the Federal Open Market Committee (“FOMC”) of the Federal Reserve. In the second half of calendar year 2025, the FOMC reduced the target range for the federal funds rate three times, most recently to a range of 3.50% to 3.75% in December 2025. Despite the decline in market rates, net interest income improved for both the three and nine months ended June 30, 2026 compared to the prior year periods, primarily due to higher loan yields, growth in average loan balances, and lower funding costs. The decline in interest-bearing liability costs more than offset the impact of lower yields on certain interest-earning assets

during the three months ended June 30, 2026, while asset yields remained relatively stable during the nine months ended June 30, 2026. As a result, NIM increased modestly for the three months ended June 30, 2026 and improved more significantly for the nine months then ended, reflecting improved funding costs and continued growth in the average balance of the loan portfolio.

The provision for (recapture of) credit losses on loans is dependent on changes in the loan portfolio and management’s assessment of the collectability of the loan portfolio as well as prevailing economic and market conditions. The ACL on loans reflects the amount that management has determined is adequate to cover expected credit losses in the loan portfolio. As the loan portfolio increases, or due to an increase in expected credit losses inherent in the loan portfolio, the ACL may increase, resulting in an increase in the provision for credit losses and a decrease to net income. Improvement in loan risk ratings, increases in collateral values, or receipts of recoveries of amounts previously charged off may partially or fully offset any required increases to the ACL on loans due to loan growth or an increase in the probable expected credit losses. The Company recorded a provision for credit losses on loans of $600,000 and $1.14 million for the three and nine months ended June 30, 2026 compared to a provision for credit losses on loans of $351,000 and $640,000 for the three and nine months ended June 30, 2025.

Net income is also impacted by levels of non-interest income and non-interest expense. For the three and nine months ended June 30, 2026, non-interest income consisted primarily of service charges on deposit accounts, gain on sales of loans, ATM and debit card interchange transaction fees, BOLI net earnings, servicing income on loans sold, escrow fees and other operating income. Non-interest income may also be affected by net recoveries on investment securities and the reversal of previously recognized OTTI losses, if applicable. Additionally, it is reduced by valuation allowances on loan servicing rights and increased by recoveries of such allowances, when recognized. Non-interest expense for the same periods primarily included salaries and employee benefits, premises and equipment costs, advertising, ATM and debit card interchange transaction expense, postage and courier expenses, state and local taxes, professional fees, FDIC insurance premiums, loan administration and foreclosure-related expenses, technology and communications expenses, deposit operation expenses, amortization of CDI, and other general operating expenses. In certain periods, non-interest expense may be offset by gains on the sale of premises and equipment or OREO. Both non-interest income and non-interest expense are influenced by the Company’s overall growth, business activities, and operating environment.

Results of operations may also be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

Critical Accounting Estimates

Management's discussion and analysis of the Company’s financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.

The Company's critical accounting estimates are described in the Company’s 2025 Form 10-K under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Critical Accounting Estimates.” That discussion highlights estimates that the Company makes that involve uncertainty or potential for substantial change. There have been no material changes in the Company’s critical accounting policies and estimates as previously disclosed in the Company’s 2025 Form 10-K.

Comparison of Financial Condition at June 30, 2026 and September 30, 2025

General: Total assets increased by $48.05 million, or 2.4%, to $2.06 billion at June 30, 2026 from $2.01 billion at September 30, 2025. The increase was primarily due to increases in net loans receivable and BOLI, funded mainly by increased deposits. This increase was partially offset by decreases in investment securities.

Net loans receivable increased by $32.06 million, or 2.2%, to $1.50 billion at June 30, 2026 from $1.46 billion at September 30, 2025, primarily due to increases in the multi-family construction, commercial real estate and speculative one- to four-family construction loan categories. These increases were partially offset by decreases in the one- to four-family, owner/builder and custom construction, land development, commercial construction and commercial business loan categories.

Total deposits increased by $46.91 million, or 2.7%, to $1.76 billion at June 30, 2026 from $1.72 billion at September 30, 2025, primarily due to increases in money market and NOW checking account balances. These increases were partially offset by decreases in non-interest bearing deposit and savings account balances.

Shareholders’ equity increased by $10.59 million, or 4.0%, to $273.21 million at June 30, 2026 from $262.61 million at September 30, 2025. The increase was primarily due to net income earned during the current period, partially offset by the payment of dividends to common shareholders, and repurchases of common stock during the nine months ended June 30, 2026.

A more detailed explanation of the changes in significant balance sheet categories follows:

Cash and Cash Equivalents and CDs Held for Investment: Cash and cash equivalents and CDs held for investment increased by $3.40 million, or 1.4%, to $254.05 million at June 30, 2026 from $250.64 million at September 30, 2025. The increase was due to a $2.65 million increase in cash and cash equivalents, resulting primarily from maturities, prepayments and scheduled amortizations of investment securities, loan payoffs and net deposit inflows during the period and a $747,000 increase in CDs held for investment.

Investment Securities: Investment securities (including investments in equity securities) decreased by $7.04 million, or 3.3%, to $208.93 million at June 30, 2026 from $215.97 million at September 30, 2025. This decrease was primarily due to maturities, prepayments and scheduled amortizations which was partially offset by the purchase of $31.82 million of new securities. For additional information on investment securities, see Note 2 of the Notes to Unaudited Consolidated Financial Statements contained in “Item 1, Financial Statements.”

FHLB Stock: FHLB stock decreased to $1.65 million at June 30, 2026 from $2.05 million at September 30, 2025. The decrease was due to a decrease in the amount of activity based stock required as outstanding advances have paid off. This decrease was partially offset by an increase due to FHLB's required annual share assessment, which is based on total assets.

Other Investments: Other investments, consisting solely of the Company's investment in the Solomon Hess SBA Loan Fund LLC, remained unchanged at $3.00 million at both June 30, 2026 and September 30, 2025. This investment is utilized to help satisfy compliance with the Bank's Community Reinvestment Act investment test requirements.

Loans: Net loans receivable increased by $32.06 million, or 2.2%, to $1.50 billion at June 30, 2026 from $1.46 billion at September 30, 2025. The increase was primarily due to a $45.61 million increase in multi-family construction, a $35.68 million increase in commercial real estate, a $17.70 million increase in speculative one- to four- family construction and a $6.82 million increase in multi-family loans. These increases were partially offset by a $17.77 million decrease in one- to four- family, a $17.04 million decrease in owner/builder and custom construction, a $14.79 million decrease in land development, an $8.83 million decrease in commercial construction, an $8.09 million decrease in commercial business and smaller net changes in other loan categories.

Loan originations increased by $67.04 million, or 31.80%, to $277.85 million for the nine months ended June 30, 2026 from $210.81 million for the nine months ended June 30, 2025. The increase was primarily due to increases in originations of construction, commercial real estate, multi-family, consumer, commercial business and one- to four-family loans. These increases were partially offset by decreases in land loan originations.

The Company generally sells longer-term fixed-rate one- to four-family mortgage loans for asset liability management purposes and to generate non-interest income. Sales of fixed-rate one- to four-family loans increased by $9.25 million, or 68.0%, to $22.85 million for the nine months ended June 30, 2026 from $13.60 million for the nine months ended June 30, 2025, primarily due to an increase in one- to four-family construction loans refinancing to permanent loans and being sold into the secondary market.

For additional information on loans, see Note 4 of the Notes to Unaudited Consolidated Financial Statements contained in “Item 1, Financial Statements.”

Premises and Equipment: Premises and equipment increased by $465,000, or 2.1%, to $22.15 million at June 30, 2026 from $21.68 million at September 30, 2025. The increase reflects capitalized additions related to the University Place branch which opened in January 2026 and facility improvements and equipment purchases for other locations during the period, which were offset by scheduled depreciation expense.

OREO (Other Real Estate Owned): At June 30, 2026 and September 30, 2025, total OREO and other repossessed assets consisted of one commercial real estate property with a value of $221,000 and one land parcel with no recorded value.

BOLI (Bank Owned Life Insurance): BOLI increased by $15.56 million, or 71.3%, to $37.39 million at June 30, 2026 from $21.83 million at September 30, 2025. The increase was primarily due to $15.00 million in additional BOLI policies purchased and to a lesser extent net BOLI earnings, representing the increase in the cash surrender value of the BOLI policies.

Goodwill and CDI: The recorded amount of goodwill remained unchanged at $15.13 million at both June 30, 2026 and September 30, 2025. CDI decreased by $102,000, or 37.6%, to $169,000 at June 30, 2026 from $271,000 at September 30, 2025 due to scheduled amortization. For additional information on goodwill and CDI, see Note 3 of the Notes to Unaudited Consolidated Financial Statements contained in “Item 1, Financial Statements.”

Loan Servicing Rights, Net: Loan servicing rights, net decreased by $207,000, or 25.4%, to $608,000 at June 30, 2026 from $815,000 at September 30, 2025 primarily due to the amortization of servicing rights, which exceeded additions from new loan sale activity during the period. The principal amount of loans serviced for Freddie Mac and the U.S. Small Business Administration decreased by $8.40 million to $348.61 million at June 30, 2026 from $357.01 million at September 30, 2025.

Operating Lease Right-of-Use Assets: Operating lease ROU assets increased by $1.17 million, or 39.8% to $4.12 million at June 30, 2026. The increase was primarily due to the addition of an operating lease for the University Place branch that opened in January 2026 and extensions of the Downtown Lacey branch and the Puyallup credit administration leases.

Other Assets: Other assets increased $1.55 million, or 25.4% to $7.66 million at June 30, 2026 from $6.11 million at September 30, 2025. This was mainly due to a $788,000 increase in total prepaid expenses and a $297,000 increase in the debit card processing prefund amount, as well as increases in other miscellaneous asset balances.

Deposits: Deposits increased by $46.91 million, or 2.7%, to $1.76 billion at June 30, 2026 from $1.72 billion at September 30, 2025. The increase was primarily due to a $35.22 million increase in money market account balances and a $28.88 million increase in NOW checking account balances, and a $7.07 million increase in certificate of deposits under $250,000. These increases were partially offset by a $19.72 million decrease in non-interest bearing demand account balances. The change in deposit balances and mix reflects continued competitive pricing pressures in the current interest rate environment.

At June 30, 2026, the loan-to-deposit ratio was approximately 84.81%, compared to 85.26% at September 30, 2025, reflecting continued disciplined loan growth largely funded by core deposit activity. Management continues to monitor deposit pricing and mix in the context of liquidity management and efforts to support net interest income and profitability.

Deposits consisted of the following at June 30, 2026 and September 30, 2025 (dollars in thousands):


	June 30, 2026				September 30, 2025
	Amount		Percent		Amount		Percent
Non-interest-bearing demand	$	410,967	23.3	%	$	430,685	25.1	%
NOW checking	374,476		21.2		345,599		20.1

Savings	198,505		11.3		201,678		11.7
Money market	331,375		18.8		296,152		17.3

Certificates of deposit under $250	263,668		14.9		256,597		14.9
Certificates of deposit $250 and over	144,209		8.2		142,813		8.3
Certificates of deposit - brokered	40,349		2.3		43,111		2.6
Total	$	1,763,549	100.0	%	$	1,716,635	100.0	%

FHLB Borrowings: The Company has short- and long-term borrowing lines with the FHLB with total credit available on the lines equal to 45% of the Bank's total assets, limited by available collateral. FHLB borrowings were $10.00 million at June 30, 2026 and $20.00 million at September 30, 2025. The borrowings at June 30, 2026 consist of one $5.00 million borrowing maturing in August 2026 with an interest rate of 4.03% and one $5.00 million borrowing maturing in November 2026 with an interest rate of 3.87%. The borrowings at September 30, 2025 consisted of three borrowings: two totaling $15.00 million with scheduled maturities in May 2026, both bearing interest at 3.95%, and one $5.00 million borrowing maturing in August 2026 with an interest rate of 4.03%.

Operating Lease Liabilities: Operating lease liabilities increased $1.25 million or 40.5% to $4.32 million at June 30, 2026, primarily due to the addition of an operating lease for the University Place branch that opened in January 2026 and extensions of the Downtown Lacey branch and Puyallup credit administration leases.

Shareholders’ Equity: Total shareholders’ equity increased by $10.59 million, or 4.0%, to $273.21 million at June 30, 2026 from $262.61 million at September 30, 2025. The increase was primarily due to net income of $23.07 million and $2.13 million related to stock-based compensation and equity award activity. This increase was partially offset by dividend payments to common shareholders of $6.77 million and the repurchase of 179,303 shares of the Company's common stock for $6.97 million, net of tax and an increase in accumulated other comprehensive loss of $869,000.

Asset Quality and Commercial Real Estate Portfolio Breakdown:

Non-performing assets to total assets were 0.43% and 0.23% at June 30, 2026 and September 30, 2025, respectively. Non-performing assets increased by $4.14 million, or 88.8%, to $8.81 million at June 30, 2026 from $4.66 million at September 30, 2025. The increase was primarily due to a $4.15 million increase in non-accrual loans. The increase in non-accrual loans was primarily driven by a $4.37 million increase in the commercial real estate portfolio, reflecting the addition of a $4.31 million hotel/motel relationship placed on non-accrual status during the period, along with a $330,000 increase in commercial business and a $149,000 increase in one- to four- family loans. These increases were partially offset by a $553,000 decrease in custom and owner/builder construction and a $150,000 decrease in the home equity and second mortgage portfolio.

Substandard loans decreased $24.14 million to $8.66 million at June 30, 2026 from $32.81 million at September 30, 2025. As of June 30, 2026, substandard loans represented 0.58% of net loans receivable. The decrease is primarily the result of the largest substandard loan that was secured by a land development project paying off during the period and the second largest substandard loan that was secured by an apartment property being upgraded.

The following table sets forth information with respect to the Company’s non-performing assets at June 30, 2026 and September 30, 2025 (dollars in thousands):


	June 30, 2026			September 30, 2025
Loans accounted for on a non-accrual basis:
Mortgage loans:
One- to four-family (1)	$	1,930		$	1,781

Commercial real estate	4,534			159
Construction – custom and owner/builder	—			553


Consumer loans:
Home equity and second mortgage	452			602
Other	20			22
Commercial business loans	1,620			1,290
Total loans accounted for on a non-accrual basis	8,556			4,407

Accruing loans which are contractually past due 90 days or more	—			—

Total of non-accrual and 90 days or more past due loans	8,556			4,407

Non-accrual investment securities	29			35

OREO and other repossessed assets, net	221			221
Total non-performing assets	$	8,806		$	4,663


Non-accrual and 90 days or more past due loans as a percentage of loans receivable	0.56		%	0.30		%

Non-accrual and 90 days or more past due loans as a percentage of total assets	0.42		%	0.22		%

Non-performing assets as a percentage of total assets	0.43		%	0.23		%

Loans receivable (2)	$	1,514,900		$	1,481,681

Total assets	$	2,060,826		$	2,012,779

___________________________________

(1) At both June 30, 2026 and September 30, 2025 there was a single one- to four-family property in the process of foreclosure.

(2) Does not include loans held for sale. Loan balances are before any reduction of the ACL.

The CRE portfolio increased $35.68 million, or 5.84% from September 30, 2025, primarily due to increases in industrial warehouse, office building, and hotel/motel loans. At June 30, 2026, CRE loans represented 39.9% of the total loan portfolio compared to 38.7% at September 30, 2025.

The following tables provide a breakdown of commercial real estate ("CRE") loans by collateral types as of June 30, 2026 and September 30, 2025:


CRE Loan Portfolio Breakdown by Collateral at June 30, 2026
($ in thousands)
Collateral Type	Balance		Percent of CRE Portfolio		Percent of Total Loan Portfolio		Average Balance per Loan		Non-Accrual
Industrial warehouse	$	146,809	22.7	%	9.1	%	$	1,425	$	—
Medical/dental offices	82,696		12.8		5.1		1,216		224
Office buildings	74,252		11.5		4.6		863		—
Other retail buildings	55,677		8.6		3.4		619		—
Hotel/motel	41,450		6.4		2.6		2,763		4,310
Mini-storage	38,190		5.9		2.3		1,469		—
Gas stations/convenience stores	27,769		4.3		1.7		1,028		—
Restaurants	27,660		4.3		1.7		576		—
Nursing homes	13,746		2.2		0.9		1,963		—
Churches	13,710		2.1		0.9		979		—
Shopping centers	10,216		1.6		0.6		1,703		—
Mobile home parks	9,255		1.4		0.6		441		—
Other	104,946		16.2		6.4		795		—
Total CRE	$	646,376	100.0	%	39.9	%	$	1,005	$	4,534


CRE Loan Portfolio Breakdown by Collateral at September 30, 2025
($ in thousands)
Collateral Type	Balance		Percent of CRE Portfolio		Percent of Total Loan Portfolio		Average Balance per Loan		Non-Accrual
Industrial warehouse	$	129,815	21.3	%	8.2	%	$	1,311	$	159
Medical/dental offices	81,831		13.4		5.2		1,240		—
Office buildings	67,840		11.1		4.3		817		—
Other retail buildings	54,497		8.9		3.5		599		—
Mini-storage	38,291		6.3		2.4		1,532		—
Hotel/motel	31,345		5.1		2.0		2,612		—
Restaurants	28,703		4.7		1.8		586		—
Gas stations/convenience stores	25,597		4.2		1.6		1,024		—
Churches	14,410		2.4		0.9		901		—
Nursing homes	13,456		2.2		0.9		2,243		—
Shopping centers	10,436		1.7		0.7		1,739		—
Mobile home parks	9,174		1.5		0.6		417		—
Other	105,297		17.2		6.6		774		—
Total CRE	$	610,692	100.0	%	38.7	%	$	960	$	159

Comparison of Operating Results for the Three and Nine Months Ended June 30, 2026 and 2025

Net income increased by $620,000, or 8.7%, to $7.72 million for the quarter ended June 30, 2026 from $7.10 million for the quarter ended June 30, 2025. Net income per diluted common share increased by $0.08, or 8.9%, to $0.98 for the quarter ended June 30, 2026 from $0.90 for the quarter ended June 30, 2025. The increases in net income and diluted earnings per share for the three months ended June 30, 2026, were primarily due to a $1.18 million increase in net interest income and a $113,000 increase in non-interest income. These increases were partially offset by a $471,000 increase in non-interest expense, a $138,000 increase in provision for income taxes and a $68,000 increase in provision for credit losses.

Net income increased by $2.35 million, or 11.4%, to $23.07 million for the nine months ended June 30, 2026 from $20.72 million for the nine months ended June 30, 2025. Net earnings per diluted common share increased by $0.32, or 12.3%, to $2.92 for the nine months ended June 30, 2026 from $2.60 for the nine months ended June 30, 2025. The increases in net income and net earnings per diluted common share were due to a $4.19 million increase in net interest income and a $301,000 increase in non-interest income. These increases were partially offset by a $1.30 million increase in non-interest expense, a $559,000 increase in provision for income taxes and a $284,000 increase in provision for credit losses.

Net Interest Income: Net interest income increased by $1.18 million, or 6.7%, to $18.81 million for the quarter ended June 30, 2026 from $17.62 million for the quarter ended June 30, 2025. This increase was primarily due to a $95.60 million increase in average interest-earning assets and a 16 basis point decrease in the average cost of interest bearing liabilities to 2.33% for the quarter ended June 30, 2026 from 2.49% for the quarter ended June 30, 2025. These benefits were partially offset by a three basis point decrease in yield on interest-earning assets to 5.47% for the quarter ended June 30, 2026 from 5.50% for the quarter ended June 30, 2025, and a $79.69 million increase in average interest-bearing liabilities.

Total interest and dividend income increased by $1.13 million, or 4.4%, to $26.67 million for the quarter ended June 30, 2026 from $25.54 million for the quarter ended June 30, 2025. The increase was primarily due to a $39.56 million increase in average loan balances and a 12 basis point improvement in loan yields. The improvement on loan yields reflects continued asset repricing, partially offset by a $19.11 million decrease in the average balance of investment securities. Prepayment penalties, non-accrual interest and late fees totaled $84,000 for the quarter ended June 30, 2026 compared to $102,000 in the prior year quarter. Interest income on deposits in banks and CDs increased $357,000 due to an $75.15 million increase in average balances, partially offset by a 75 basis point decline in yields reflecting lower short-term interest rates. These increases were partially offset by a $276,000 decrease in investment securities income driven by both a $19.11 million decrease in average balance and a 18 basis point decline in yields.

Total interest expense decreased by $57,000, or 0.7%, to $7.87 million for the quarter ended June 30, 2026 from $7.92 million for the quarter ended June 30, 2025. The decrease was primarily due to a 16 basis point decrease in average cost of interest-bearing liabilities to 2.33% for the quarter ended June 30, 2026 from 2.49% for the quarter ended June 30, 2025. This was partially offset by a $7.69 million increase in the average balance of interest-bearing liabilities. The lower funding costs reflect repricing of money market accounts and certificates of deposit in response to changes in market interest rates, partially offset by higher rates on NOW checking accounts. Average balances of CDs, NOW checking accounts and money market accounts increased, while brokered CD and savings account balances declined, reducing higher-cost wholesale funding and reflecting a continued shift toward core deposit funding.

As a result of changes above, NIM increased five basis points to 3.85% for the quarter ended June 30, 2026 from 3.80% for the quarter ended June 30, 2025. The improvement reflects the impact of Federal Reserve rate reductions, which drove a 16 basis point decline in funding costs, more than offsetting a three basis point decrease in asset yields as the effect of lower market rates outpaced the benefit from the increase in average loan balances and repricing of adjustable-rate loans.

Net interest income increased by $4.19 million, or 8.1%, to $56.00 million for the nine months ended June 30, 2026 from $51.81 million for the nine months ended June 30, 2025. This increase was primarily due to a $99.58 million increase in average interest-earning assets. These increases were partially offset by a $77.73 million increase in average interest-bearing liabilities, and a 15 basis point decrease in the average cost of interest-bearing liabilities to 2.38% for the nine months ended June 30, 2026 from 2.53% for the nine months ended June 30, 2025 largely offsetting the impact of the increased liability balances.

Total interest and dividend income increased $4.16 million, or 5.5%, to $79.82 million for the nine months ended June 30, 2026 from $75.67 million for the nine months ended June 30, 2025. The increase was primarily due to a $39.37 million increase in average loan balances and a 17 basis point improvement in loan yields to 6.04% for the nine months ended June 30, 2026. The improvement in loan yields reflects continued asset repricing of adjustable-rate loans, supported by $431,000 in prepayment

penalties, non-accrual interest and late fees compared to $510,000 in the prior year period. Interest income on deposits in banks and CDs increased $1.39 million due to an $82.65 million increase in average balances, partially offset by a 75 basis point decline in yields to 3.80% for the nine months ended June 30, 2026 from 4.55% for the nine months ended June 30, 2025, reflecting lower short-term interest rates. These increases were partially offset by a $792,000 decrease in interest income earned on investment securities due to a $22.38 million decrease in average balances and a 12 basis point decrease in yield.

Total interest expense decreased by $39,000, or 0.2%, to $23.82 million for the nine months ended June 30, 2026 from $23.86 million for the nine months ended June 30, 2025. The decrease was primarily due to a 15 basis point decrease in the average cost of liabilities to 2.38% for the nine months ended June 30, 2026 from 2.53% for the nine months ended June 30, 2025. This decrease was partially offset by a $77.73 million increase in the average balance of interest-bearing liabilities. The lower funding costs reflect repricing of money market accounts and certificates of deposit in response to Federal Reserve rate reductions during the period, partially offset by higher rates on NOW checking accounts. Average balances of retail CDs, NOW checking accounts and money market accounts increased, while brokered CD and savings account balances declined, reducing higher-cost wholesale funding and reflecting a continued shift toward core deposit funding.

Net interest margin expanded 10 basis points to 3.84% for the nine months ended June 30, 2026 from 3.74% for the nine months ended June 30, 2025. The improvement reflects a 15 basis point decline in funding costs driven primarily by repricing of money market accounts and CDs following changes in market interest rates (including three reductions in the target federal funds rate by the FOMC in the second half of calendar year 2025, to a range of 3.50% to 3.75% in December 2025) partially offset by higher rates on NOW checking accounts. The improvement also reflects higher loan yields and growth in average loan balances.

Average Balances, Interest and Average Yields/Cost

The following tables set forth, for the periods indicated, information regarding average balances of assets and liabilities as well as the total dollar amounts of interest income from average interest-earning assets and interest expense on average interest-bearing liabilities and average yields and costs. Such yields and costs for the periods indicated are derived by dividing income or expense by the average daily balance of assets or liabilities, respectively, for the periods presented (dollars in thousands).


	Three Months Ended June 30,
	2026						2025
	Average Balance		Interest and Dividends		Yield/ Cost		Average Balance		Interest and Dividends		Yield/ Cost
Interest-earning assets:
Loans receivable (1)(2)	$	1,489,910	$	22,457	6.04	%	$	1,450,350	$	21,411	5.92	%
Investment securities (2)	207,484		1,800		3.48		226,375		2,064		3.66
Dividends from mutual funds, FHLB stock and other investments	5,677		71		5.02		5,897		83		5.65
Interest-bearing deposits in banks and CDs	254,034		2,343		3.70		178,887		1,986		4.45
Total interest-earning assets	1,957,105		26,671		5.47		1,861,509		25,544		5.50
Non-interest-earning assets	86,893						79,715
Total assets	$	2,043,998					$	1,941,224

Interest-bearing liabilities:
NOW checking	$	360,166	1,312		1.46		$	333,074	1,151		1.39
Money market	337,150		2,318		2.76		304,526		2,398		3.16
Savings	197,959		133		0.27		205,592		177		0.35
Certificates of deposit	405,958		3,556		3.51		363,342		3,417		3.77
Brokered CDs	39,389		409		4.16		48,028		578		4.83
Short-term borrowings	13,629		137		4.02		8,794		102		4.65
Long-term borrowings	—		—		—		11,209		99		3.54
Total interest-bearing liabilities	1,354,251		7,865		2.33		1,274,565		7,922		2.49
Non-interest-bearing deposits	406,444						402,717
Other liabilities	12,113						10,265
Total liabilities	1,772,808						1,687,547
Shareholders' equity	271,190						253,677
Total liabilities and
shareholders' equity	$	2,043,998					$	1,941,224

Net interest income			$	18,806					$	17,622

Interest rate spread					3.14	%					3.01	%
Net interest margin (3)					3.85	%					3.80	%
Ratio of average interest-earning assets to average interest- bearing liabilities					144.52	%					146.05	%

_______________

(1)Does not include interest on loans on non-accrual status. Includes loans held for sale. Amortized net deferred loan fees, late fees, extension fees, prepayment penalties, and the accretion of the fair value discount on loans are included with interest and dividends.

(2)Average balances include loans and investment securities on non-accrual status.

(3)Net interest income divided by total average interest-earning assets, annualized.


	Nine Months Ended June 30,
	2026						2025
	Average Balance		Interest and Dividends		Yield/ Cost		Average Balance		Interest and Dividends		Yield/ Cost
Interest-earning assets:
Loans receivable (1)(2)	$	1,480,873	$	66,924	6.04	%	$	1,441,506	$	63,339	5.87	%
Investment securities (2)	209,129		5,413		3.46		231,510		6,205		3.58
Dividends from mutual funds, FHLB stock and other investments	5,836		229		5.25		5,890		252		5.70
Interest-bearing deposits in banks and CDs	255,243		7,255		3.80		172,591		5,870		4.55
Total interest-earning assets	1,951,081		79,821		5.47		1,851,497		75,666		5.46
Non-interest-earning assets	81,696						77,595
Total assets	$	2,032,777					$	1,929,092

Interest-bearing liabilities:
NOW checking	$	364,563	4,184		1.53		$	329,883	3,364		1.36
Money market	317,944		6,597		2.77		311,762		7,597		3.26
Savings	197,796		420		0.28		205,764		461		0.30
Certificates of deposit	402,415		10,843		3.60		346,313		10,077		3.89
Brokered CDs	39,028		1,240		4.25		48,169		1,760		4.89
Short-term borrowings	17,876		538		4.02		2,932		102		4.65
Long-term borrowings	—		—		—		17,070		500		3.92
Total interest-bearing liabilities	1,339,622		23,822		2.38		1,261,893		23,861		2.53
Non-interest-bearing deposits	412,354						406,906
Other liabilities	12,384						10,158
Total liabilities	1,764,360						1,678,957
Shareholders' equity	268,417						250,135
Total liabilities and
shareholders' equity	$	2,032,777					$	1,929,092

Net interest income			$	55,999					$	51,805

Interest rate spread					3.09	%					2.93	%
Net interest margin (3)					3.84	%					3.74	%
Ratio of average interest-earning assets to average interest- bearing liabilities					145.64	%					146.72	%

_______________

(2)Average balances include loans and investment securities on non-accrual status.

(3)Net interest income divided by total average interest-earning assets, annualized.

Rate Volume Analysis

The following table sets forth the effects of changing rates and volumes on the net interest income of the Company. Information is provided with respect to the (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate), (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) the net change (sum of the prior columns). Changes in rate/volume have been allocated to rate and volume variances based on the absolute values of each (dollars in thousands).


	Three months ended June 30, 2026 compared to three months ended June 30, 2025 increase (decrease) due to						Nine months ended June 30, 2026 compared to nine months ended June 30, 2025 increase (decrease) due to
	Rate		Volume		Net Change		Rate		Volume		Net Change
Interest-earning assets:
Loans receivable and loans held for sale	$	455	$	591	$	1,046	$	1,831	$	1,754	$	3,585
Investment securities	(97)		(167)		(264)		(207)		(585)		(792)
Dividends from mutual funds, FHLB stock and other investments	(9)		(3)		(12)		(21)		(2)		(23)
Interest-bearing deposits in banks and CDs	(377)		734		357		(29,181)		30,566		1,385
Total net increase (decrease) in income on interest-earning assets	(28)		1,155		1,127		(27,578)		31,733		4,155

Interest-bearing liabilities:
NOW checking	65		96		161		748		72		820
Money market	(323)		243		(80)		(1,078)		78		(1,000)
Savings	(38)		(6)		(44)		(39)		(2)		(41)
Certificates of deposit	(348)		318		(30)		(296)		542		246
Short-term FHLB borrowings	(15)		50		35		3		433		436
Long-term borrowings	(50)		(49)		(99)		(250)		(250)		(500)
Total net increase (decrease) in expense on interest-bearing liabilities	(709)		652		(57)		(912)		873		(39)

Net increase (decrease) in net interest income	$	681	$	503	$	1,184	$	(26,666)	$	30,860	$	4,194

Provision for Credit Losses: A $508,000 provision for credit losses was recorded for the quarter ended June 30, 2026, consisting of a $600,000 provision for credit losses on loans, a $1,000 recapture of credit losses on investment securities and a $91,000 recapture of credit losses on unfunded commitments. The provision for credit losses on loans was primarily due to loan growth during the quarter and changes in the risk profile of the loan portfolio. A $440,000 provision for credit losses was recorded for the quarter ended June 30, 2025, consisting of a $351,000 provision for credit losses on loans, a $4,000 recapture of credit losses on investment securities and a $93,000 provision for credit losses on unfunded commitments.

We recorded a $997,000 provision for credit losses for the nine months ended June 30, 2026, consisting of a $1.14 million provision for credit losses on loans primarily due to loan growth and changes in the risk profile of the loan porfolio, a $6,000 recapture of credit losses on investment securities which was primarily due to maturities and principal repayments, and a $137,000 recapture of credit losses on unfunded loan commitments which was primarily due to a decrease in the amounts of unfunded loans. A $713,000 provision for credit losses was recorded for the nine months ended June 30, 2025, consisting of a $640,000 provision for credit losses on loans, a $14,000 recapture of credit losses on investment securities, and an $87,000 provision for credit losses on unfunded loan commitments.

For the quarter ended June 30, 2026, there were net recoveries of $1,000 compared to net recoveries of $2,000 for the quarter ended June 30, 2025. For the nine months ended June 30, 2026, there were net recoveries of $18,000 compared to net charge-offs of $240,000 for the nine months ended June 30, 2025. Non-accrual loans increased by $4.15 million, or 94.1%, to $8.56 million at June 30, 2026 from $4.41 million at September 30, 2025, and increased by $4.71 million, or 122.6%, from $3.84 million at June 30, 2025. Total delinquent loans (past due 30 days or more) and non-accrual loans increased by $3.05 million,

or 53.9%, to $8.71 million at June 30, 2026, from $5.66 million at September 30, 2025 and increased by $2.54 million, or 41.1%, from $6.17 million one year ago.

While management believes the estimates and assumptions used in its determination of the adequacy of the ACL are reasonable, there can be no assurance that such estimates and assumptions will not be proven incorrect in the future, or that the actual amount of future provisions will not exceed the amount of past provisions or that any increased provisions will not have a material adverse impact on our financial condition and results of operations. A further decline in national and local economic conditions, as a result of the effects of inflation, changes in interest rates, uncertainty related to trade policy, a potential recession or slowed economic growth, among other factors, could result in a material increase in the ACL and may have a material adverse impact on our financial condition and results of operations. In addition, the determination of the amount of the ACL is also subject to review by bank regulators as part of the routine examination process, which may result in the adjustment of reserves based upon their judgment of information available to them at the time of their examination and have a material adverse impact on our financial condition and results of operations.

For additional information, see Note 4 of the Notes to Unaudited Consolidated Financial Statements contained in “Item 1, Financial Statements.”

Non-interest Income: Total non-interest income increased by $113,000, or 3.9%, to $2.99 million for the quarter ended June 30, 2026 from $2.88 million for the quarter ended June 30, 2025. This increase was primarily due to a $75,000 increase in BOLI net earnings, a $73,000 increase in servicing income on loans sold and smaller increases in several other categories. These increases were partially offset by a $69,000 decrease in ATM and debit card interchange fees, primarily due to lower transaction volume and smaller decreases in several other categories.

Total non-interest income for the nine months ended June 30, 2026 increased $301,000, or 3.6%, to $8.56 million from $8.26 million for the nine months ended June 30, 2025. This increase was primarily due to a $161,000 increase in gain on sale of loans, a $136,000 increase in servicing income on loans sold and smaller increases in several other categories. These increases were partially offset by a $188,000 decrease in ATM and debit card interchange fees, a $45,000 decrease in service charges on deposits and smaller decreases in several other categories.

Non-interest Expense: Total non-interest expense increased by $471,000, or 4.2%, to $11.64 million for the quarter ended June 30, 2026 from $11.17 million for the quarter ended June 30, 2025. This increase was mainly due to a $558,000 increase in salaries and employee benefits due to compensation increases and the filling of open lending positions, a $116,000 increase in technology and communications expense and a $109,000 increase in premises and equipment expense. These increases were partially offset by a $126,000 decrease in ATM and debit card interchange expense, a $117,000 decrease in state and local taxes expense and smaller changes in several other expense categories.

The efficiency ratio for the current quarter improved to 53.40% compared to 54.48% for the comparable quarter one year ago. The improvement in the efficiency ratio was due to a $1.30 million increase in total revenue driven primarily by higher net interest income, which more than offset a $471,000 increase in non-interest expense.

Total non-interest expense increased $1.30 million, or 3.9%, to $34.73 million for the nine months ended June 30, 2026 from $33.43 million for the nine months ended June 30, 2025. The increase was primarily due to a $1.41 million increase in salaries and employee benefits, due to annual compensation increases and the filling of open lending positions and a $275,000 increase in premises and equipment expense due to the opening of the University Place branch in January 2026. These increases were partially offset by a $116,000 decrease in ATM and debit card processing expense and a $115,000 decrease in professional fees.

The efficiency ratio improved to 53.79% for the nine months ended June 30, 2026 from 55.65% for the nine months ended June 30, 2025, reflecting growth in net interest income that outpaced the increase in non-interest expense.

Provision for Income Taxes: The provision for income taxes increased by $138,000, or 7.7%, to $1.93 million for the quarter ended June 30, 2026 from $1.79 million for the quarter ended June 30, 2025. The increase in the provision for income taxes was primarily due to higher pre-tax income. The Company's effective income tax rate was 20.0% for the quarter ended June 30, 2026 and 20.1% for the quarter ended June 30, 2025. The provision for income taxes increased by $559,000, or 10.7%, to $5.77 million for the nine months ended June 30, 2026 from $5.21 million for the nine months ended June 30, 2025. The increase was primarily due to higher pre-tax income. The Company's effective tax rate was 20.0% for the nine months ended June 30, 2026 compared to 20.1% for the nine months ended June 30, 2025.

Liquidity

The Company's primary sources of funds are customer deposits, proceeds from principal and interest payments on loans, the sale of loans, maturing investment securities, maturing CDs held for investment and borrowings, if needed, from the FHLB and FRB. While the maturities and the scheduled amortization of loans are a predictable source of funds, deposit flows and mortgage prepayments are influenced by general interest rates, economic conditions, and competitive factors.

The Bank maintains an adequate level of liquidity to ensure that sufficient funds are available to fund its operations. It generally holds sufficient cash and short-term investments to meet short-term liquidity needs. At June 30, 2026, the Bank's regulatory liquidity ratio (net cash, and short-term and marketable assets, as a percentage of net deposits and short-term liabilities) was 16.36%. The Bank maintains a credit facility with the FHLB providing immediately available borrowings of up to 45% of total assets, limited by available collateral. At June 30, 2026, the Bank had a total of $713.60 million available for borrowings with the FHLB of which $10.00 million was outstanding. Additionally, the Bank maintains a short-term borrowing line with the FRB, with total credit based on eligible collateral, under the Borrower-in-Custody program with $87.40 million available and no outstanding balance at June 30, 2026. The Bank also maintains a $50.00 million overnight borrowing line with Pacific Coast Bankers' Bank ("PCBB") and a $25.00 million overnight borrowing line with Zions Bank with no outstanding balance on either borrowing line at June 30, 2026. Subject to market conditions, the Bank may utilize these borrowing facilities to fund loan originations and deposits withdrawals, satisfy other financial commitments, repay maturing debt and to pursue investment opportunities as appropriate.

Liquidity management is both a short and long-term responsibility of the Bank's management. The Bank adjusts its investments in liquid assets based upon management's assessment of (i) expected loan demand, (ii) projected loan sales, (iii) expected deposit flows, and (iv) yields available on interest-bearing deposits. Excess liquidity is invested generally in interest-bearing overnight deposits, CDs held for investment and short-term government and agency obligations. If the Bank requires funds beyond its ability to generate them internally, it has additional borrowing capacity with the FHLB, the FRB and PCBB.

The Bank's primary investing activity is the origination of loans and, to a lesser extent, the purchase of investment securities. During the nine months ended June 30, 2026 and 2025, the Bank originated $277.85 million and $210.81 million of loans, respectively. At June 30, 2026, the Bank had undisbursed lines of credit and commitments to extend credit totaling $164.80 million and undisbursed construction loans in process totaling $100.28 million. Investment securities purchased during the nine months ended June 30, 2026 and 2025 totaled $31.82 million and $45.99 million, respectively.

The Bank’s liquidity is also affected by the volume of loans sold and loan principal payments. During the nine months ended June 30, 2026 and 2025, the Bank sold $31.59 million and $13.60 million, respectively, in loans and loan participation interests. During the nine months ended June 30, 2026 and 2025, the Bank received $262.72 million and $170.45 million in principal repayments, respectively.

The Bank's liquid assets in the form of cash and cash equivalents, CDs held for investment, and investment securities available for sale (including equity securities) increased to $345.39 million at June 30, 2026 from $328.89 million at September 30, 2025. CDs that are scheduled to mature in less than one year from June 30, 2026 totaled $436.41 million. Historically, the Bank has been able to retain a significant amount of its deposits as they mature.

Capital expenditures are incurred on an ongoing basis to expand and improve the Bank's product offerings, enhance and modernize technology infrastructure, and to introduce new technology-based products to compete effectively in the various markets. Capital expenditure projects are evaluated based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and customer retention) and the expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations.

For the remainder of the 2026 fiscal year, the Bank projects that fixed commitments will include approximately $123,000 of operating lease payments. At June 30, 2026, one $5.00 million FHLB borrowing is scheduled to mature during fiscal year 2026. In addition, at June 30, 2026, the Bank had other future obligations and accrued expenses totaling $9.75 million.

The Bank's management believes that the liquid assets combined with the available lines of credit provide adequate liquidity to meet current financial obligations for at least the next 12 months.

Timberland Bancorp is a separate legal entity from the Bank and must provide for its own liquidity and pay its own operating expenses. In addition to is operating expenses, Timberland Bancorp is responsible for paying dividends declared on its common stock, if any, and funding stock repurchases. Sources of capital and liquidity for Timberland Bancorp include distributions from the Bank and the issuance of debt or equity securities. However, the Bank’s ability to pay dividends is subject to regulatory limitations, including capital adequacy requirements and supervisory approval under certain circumstances. The Bank maintains strong capital levels and earnings capacity, which support its ability to upstream dividends to Timberland Bancorp, subject to applicable regulatory constraints. At June 30, 2026, Timberland Bancorp (on an unconsolidated basis) had liquid assets of $958,000.

The Company currently expects to continue its practice of paying quarterly cash dividends on its common stock, subject to the discretion of the Board of Directors, which may modify or discontinue this practice at any time and for any reason without prior notice. The cash dividend rate announced on July 28, 2026 and payable on August 24, 2026 is $0.30 per share, a level the Company believes appropriately balances the objectives of investing in the Bank and returning capital to shareholders. Based on the number of shares outstanding as of June 30, 2026, continued payment at this rate would result in an average total quarterly dividend of approximately $2.33 million.

In addition, from time to time, our Board of Directors has authorized stock repurchase plans. In general, stock repurchase plans allow us to proactively manage our capital position and return excess capital to shareholders. Shares purchased under such plans may also provide us with shares of common stock necessary to satisfy obligations related to stock compensation awards. On July 22, 2025, the Company announced the adoption of a new stock repurchase program pursuant to which the Company may repurchase up to 5% of the outstanding shares, or 393,842 shares. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to purchase any particular number of shares.

Capital Resources

The Bank, as a state-chartered, federally insured savings bank, is subject to the capital requirements established by the FDIC. Under the FDIC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors.

Consistent with the Bank's goals to operate a sound and profitable organization, it is the Bank's policy to maintain a "well-capitalized" status under the regulatory capital categories of the FDIC. Based on capital levels at June 30, 2026, the Bank was considered to be "well-capitalized" under applicable regulatory requirements. Management monitors the capital levels to provide for current and future business opportunities and to maintain the Bank's "well-capitalized" status.

The following table compares the Bank’s actual capital amounts at June 30, 2026, to its minimum regulatory capital requirements at that date (dollars in thousands):


	Actual			Regulatory Minimum To Be “Adequately Capitalized”			To Be “Well Capitalized” Under Prompt Corrective Action Provisions
	Amount	Ratio		Amount	Ratio		Amount	Ratio
Leverage Capital Ratio:
Tier 1 capital	$259,451	12.85	%	$80,747	4.00	%	$100,933	5.00	%
Risk-based Capital Ratios:
Common equity Tier 1 capital	259,451	19.55		59,724	4.50		86,267	6.50
Tier 1 capital	259,451	19.55		79,632	6.00		106,175	8.00
Total capital	276,078	20.80		106,175	8.00		132,719	10.00

In addition to the minimum common equity Tier 1 ("CET1"), Tier 1 and total capital ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum capital levels. Failure to maintain the required buffer could result in limitations on the Bank’s ability to pay

dividends, repurchase shares, and pay discretionary bonuses, based on specified percentages of eligible retained income. At June 30, 2026, the Bank’s capital exceeded the conservation buffer.

Timberland Bancorp, Inc. is a bank holding company registered with the Federal Reserve and is subject to capital adequacy requirements under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For bank holding companies with less than $3.0 billion in consolidated assets (as of June 30th of the preceding year), the Federal Reserve capital guidelines are generally applied on a bank only basis. In such cases, the Federal Reserve expects the subsidiary bank to be well capitalized under the prompt corrective action regulations. If Timberland Bancorp, Inc. were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, at June 30, 2026, Timberland Bancorp, Inc. would have exceeded all regulatory requirements. The following table presents for informational purposes the regulatory capital ratios for Timberland Bancorp, Inc. as of June 30, 2026 (dollars in thousands):


	Actual
	Amount	Ratio
Leverage Capital Ratio:
Tier 1 capital	$260,316	12.82	%
Risk-based Capital Ratios:
Common equity Tier 1 capital	260,316	19.61
Tier 1 capital	260,316	19.61
Total capital	276,944	20.87

Key Financial Ratios and Data


	Three Months Ended June 30,				Nine Months Ended June 30,
	2026		2025		2026		2025
PERFORMANCE RATIOS:
Return on average assets	1.51	%	1.47	%	1.52	%	1.44	%
Return on average equity	11.42	%	11.23	%	11.49	%	11.07	%
Net interest margin	3.85	%	3.80	%	3.84	%	3.74	%
Efficiency ratio	53.40	%	54.48	%	53.79	%	55.65	%

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in information concerning market risk from the information provided in the Company’s 2025 Form 10-K.

Item 4. Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures: An evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) was carried out under the supervision and with the participation of the Company’s Chief Executive Officer (principal executive officer), Chief Financial Officer (principal financial officer) and other members of the Company’s senior management as of the end of the period covered by this report. The Company’s Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2026, the Company’s disclosure controls and procedures were effective in ensuring that the information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is (i) accumulated and communicated to the Company’s management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner to allow timely decisions regarding required disclosure, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

(b)Changes in Internal Controls: There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The Company does not expect that its disclosure controls and procedures and internal control over financial reporting will prevent all errors and fraud. A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met. Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns in controls or procedures can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any control procedure is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; as over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Neither the Company nor the Bank is a party to any material legal proceedings at this time. From time to time, the Bank is involved in various claims and legal actions arising in the ordinary course of business.

Item 1A. Risk Factors

There have been no material changes in the Risk Factors previously disclosed in Item 1A of the Company's 2025 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable

(b) Not applicable

The following table sets forth the shares repurchased by the Company during the quarter ended June 30, 2026:



Period	Total No. of Shares Repurchased	Average Price Paid Per Share		Total No. of Shares Purchased as Part of Publicly Announced Plan	Maximum No. of Shares that May Yet Be Purchased Under the Plan (1)
04/01/2026 - 04/30/2026	—	$	—	—	227,977
05/01/2026 - 05/31/2026	52,288	40.29		52,288	175,689
06/01/2026 - 06/30/2026	17,712	41.11		17,712	157,977
Total	70,000	$	40.49	70,000	157,977

(1) On July 22, 2025, the Company announced a stock repurchase program to purchase up to 393,842 shares of the Company's common stock, which replaced the Company's then existing repurchase plan which had 31,762 shares available to be repurchased prior to termination. The July 2025 repurchase program does not have a set expiration date and will expire upon repurchase of the full amount of authorized shares. Shares may be repurchased from time to time in the open market or in privately negotiated transactions based upon market conditions and available liquidity.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

a.None to be reported.

b.None to be reported.

c.During the quarter ended June 30, 2026, no director or officer (as defined in Rule 16a-1(f) under the Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

(a) Exhibits


			3.1			Articles of Incorporation of the Registrant (1)
			3.2			Amended and Restated Bylaws of the Registrant (2)
			4.1			Form of Certificate of Timberland Bancorp, Inc. Common Stock (1)
			10.1			Employee Severance Compensation Plan, as revised (3)
			10.2			Employee Stock Ownership Plan (4)
			10.3			Form of Incentive Stock Option Agreement (5)
			10.4			Form of Non-qualified Stock Option Agreement (5)
			10.5			Employment Agreement with Dean J. Brydon, as amended (6)
			10.6			Employment Agreement with Jonathan A. Fischer, as amended (6)
			10.7			Employment Agreement with Marci A. Basich (6)
			10.8			Employment Agreement with Matthew J. DeBord (6)
			10.9			Employment Agreement with Breanne Antich (7)
			10.10			Timberland Bancorp, Inc. 2019 Equity Incentive Plan (9)
			10.11			Form of Restricted Stock Grant Agreement (10)
			31.1			Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act
			31.2			Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act
			32			Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act
			101			The following materials from Timberland Bancorp Inc's Quarterly Report 10-Q for the quarter ended June 30, 2026 formatted on Extensible Business Reporting Language (XBRL) (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Shareholders' Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Unaudited Consolidated Financial Statements
			104			Cover Page Interactive Data File, formatted in Inline XBRL and included in Exhibit 101

_________________

(1)Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (333-35817).

(2)Incorporated by reference to the Registrant's Current Report on Form 8-K filed on August 23, 2023.

(3)Incorporated by reference to the Registrant's Current Report on Form 8-K filed on April 16, 2007.

(4)Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 1997.

(5)Incorporated by reference to the Exhibits included in the Registrant's Registration Statement on Form S-8 (333-240040).

(6)Incorporated by reference to Registrant's Current Report on Form 8-K filed on December 22, 2023.

(7)Filed as an exhibit to the Registrant's Annual Report on Form 10-K for the year ended September 30, 2023 and incorporated herein by reference.

(8)Attached as Appendix A to the Registrant's Annual Meeting Proxy Statement filed on December 19, 2014.

(9)Attached as Appendix A to the Registrant's Annual Meeting Proxy Statement filed on December 18, 2019.

(10)Filed as exhibits to the Registrant's Registration Statement on Form S-8 (333-240040) and incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Timberland Bancorp, Inc.


Date: August 7, 2026			By: /s/ Dean J. Brydon
			Dean J. Brydon
			Chief Executive Officer
			(Duly Authorized Officer)

Date: August 7, 2026			By: /s/Marci A. Basich
			Marci A. Basich
			Chief Financial Officer
			(Principal Financial Officer)