10-Q 1 tsbk-20230630.htm 10-Q tsbk-20230630
0001046050--09-302023Q1falseP2YP5YP2Y00010460502022-10-012023-06-3000010460502023-08-01xbrli:shares00010460502023-06-30iso4217:USD00010460502022-09-30iso4217:USDxbrli:shares00010460502023-04-012023-06-3000010460502022-04-012022-06-3000010460502021-10-012022-06-300001046050us-gaap:DepositAccountMember2023-04-012023-06-300001046050us-gaap:DepositAccountMember2022-04-012022-06-300001046050us-gaap:DepositAccountMember2022-10-012023-06-300001046050us-gaap:DepositAccountMember2021-10-012022-06-300001046050us-gaap:CreditAndDebitCardMember2023-04-012023-06-300001046050us-gaap:CreditAndDebitCardMember2022-04-012022-06-300001046050us-gaap:CreditAndDebitCardMember2022-10-012023-06-300001046050us-gaap:CreditAndDebitCardMember2021-10-012022-06-300001046050us-gaap:AssetManagement1Member2023-04-012023-06-300001046050us-gaap:AssetManagement1Member2022-04-012022-06-300001046050us-gaap:AssetManagement1Member2022-10-012023-06-300001046050us-gaap:AssetManagement1Member2021-10-012022-06-300001046050us-gaap:CommonStockMember2023-04-012023-06-300001046050us-gaap:CommonStockMember2022-04-012022-06-300001046050us-gaap:CommonStockMember2022-10-012023-06-300001046050us-gaap:CommonStockMember2021-10-012022-06-300001046050us-gaap:CommonStockMember2022-03-310001046050us-gaap:RetainedEarningsMember2022-03-310001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100010460502022-03-310001046050us-gaap:RetainedEarningsMember2022-04-012022-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001046050us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2022-04-012022-06-300001046050us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001046050us-gaap:CommonStockMember2022-06-300001046050us-gaap:RetainedEarningsMember2022-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000010460502022-06-300001046050us-gaap:CommonStockMember2023-03-310001046050us-gaap:RetainedEarningsMember2023-03-310001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100010460502023-03-310001046050us-gaap:RetainedEarningsMember2023-04-012023-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001046050us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2023-04-012023-06-300001046050us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001046050us-gaap:CommonStockMember2023-06-300001046050us-gaap:RetainedEarningsMember2023-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001046050us-gaap:CommonStockMember2021-09-300001046050us-gaap:RetainedEarningsMember2021-09-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000010460502021-09-300001046050us-gaap:RetainedEarningsMember2021-10-012022-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012022-06-300001046050us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2021-10-012022-06-300001046050us-gaap:EmployeeStockOptionMember2021-10-012022-06-300001046050us-gaap:CommonStockMember2022-09-300001046050us-gaap:RetainedEarningsMember2022-09-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001046050us-gaap:RetainedEarningsMember2022-10-012023-06-300001046050us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-012023-06-300001046050us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050us-gaap:EmployeeStockOptionMember2022-10-012023-06-30tsbk:segment0001046050us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-06-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-06-300001046050us-gaap:ResidentialMortgageBackedSecuritiesMember2023-06-300001046050us-gaap:TaxableMunicipalNotesMember2023-06-300001046050us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2023-06-300001046050us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-09-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-09-300001046050us-gaap:ResidentialMortgageBackedSecuritiesMember2022-09-300001046050us-gaap:TaxableMunicipalNotesMember2022-09-300001046050us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2022-09-30tsbk:security0001046050srt:MinimumMember2023-06-30xbrli:pure0001046050srt:MaximumMember2023-06-300001046050srt:WeightedAverageMember2023-06-300001046050srt:MinimumMember2022-06-300001046050srt:MaximumMember2022-06-300001046050srt:WeightedAverageMember2022-06-300001046050us-gaap:AssetPledgedAsCollateralMember2023-06-300001046050us-gaap:AssetPledgedAsCollateralMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMember2022-09-300001046050tsbk:MortgageLoansMultiFamilyMember2023-06-300001046050tsbk:MortgageLoansMultiFamilyMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2022-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050tsbk:ConstructionCommercialMember2023-06-300001046050tsbk:ConstructionCommercialMember2022-09-300001046050tsbk:ConstructionMultiFamilyMember2023-06-300001046050tsbk:ConstructionMultiFamilyMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMember2022-09-300001046050tsbk:MortgageLoansLandMember2023-06-300001046050tsbk:MortgageLoansLandMember2022-09-300001046050us-gaap:MortgagesMember2023-06-300001046050us-gaap:MortgagesMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2022-09-300001046050us-gaap:ConsumerLoanMember2023-06-300001046050us-gaap:ConsumerLoanMember2022-09-300001046050us-gaap:CommercialLoanMember2023-06-300001046050us-gaap:CommercialLoanMember2022-09-300001046050tsbk:SBAPPPLoansMember2023-06-300001046050tsbk:SBAPPPLoansMember2022-09-300001046050tsbk:CommercialAndPPPLoansMember2023-06-300001046050tsbk:CommercialAndPPPLoansMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMember2023-03-310001046050tsbk:MortgageLoansOneToFourFamilyMember2023-04-012023-06-300001046050tsbk:MortgageLoansMultiFamilyMember2023-03-310001046050tsbk:MortgageLoansMultiFamilyMember2023-04-012023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2023-03-310001046050us-gaap:CommercialMortgageBackedSecuritiesMember2023-04-012023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2023-03-310001046050tsbk:ConstructionCustomAndOwnerbuilderMember2023-04-012023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2023-03-310001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2023-04-012023-06-300001046050tsbk:ConstructionCommercialMember2023-03-310001046050tsbk:ConstructionCommercialMember2023-04-012023-06-300001046050tsbk:ConstructionMultiFamilyMember2023-03-310001046050tsbk:ConstructionMultiFamilyMember2023-04-012023-06-300001046050tsbk:ConstructionLandDevelopmentMember2023-03-310001046050tsbk:ConstructionLandDevelopmentMember2023-04-012023-06-300001046050tsbk:MortgageLoansLandMember2023-03-310001046050tsbk:MortgageLoansLandMember2023-04-012023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2023-03-310001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2023-04-012023-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2023-03-310001046050us-gaap:ConsumerPortfolioSegmentMember2023-04-012023-06-300001046050us-gaap:CommercialLoanMember2023-03-310001046050us-gaap:CommercialLoanMember2023-04-012023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMember2022-10-012023-06-300001046050tsbk:MortgageLoansMultiFamilyMember2022-10-012023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2022-10-012023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2022-10-012023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2022-10-012023-06-300001046050tsbk:ConstructionCommercialMember2022-10-012023-06-300001046050tsbk:ConstructionMultiFamilyMember2022-10-012023-06-300001046050tsbk:ConstructionLandDevelopmentMember2022-10-012023-06-300001046050tsbk:MortgageLoansLandMember2022-10-012023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-10-012023-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2022-10-012023-06-300001046050us-gaap:CommercialLoanMember2022-10-012023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMember2022-03-310001046050tsbk:MortgageLoansOneToFourFamilyMember2022-04-012022-06-300001046050tsbk:MortgageLoansOneToFourFamilyMember2022-06-300001046050tsbk:MortgageLoansMultiFamilyMember2022-03-310001046050tsbk:MortgageLoansMultiFamilyMember2022-04-012022-06-300001046050tsbk:MortgageLoansMultiFamilyMember2022-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2022-03-310001046050us-gaap:CommercialMortgageBackedSecuritiesMember2022-04-012022-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2022-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2022-03-310001046050tsbk:ConstructionCustomAndOwnerbuilderMember2022-04-012022-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2022-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2022-03-310001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2022-04-012022-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2022-06-300001046050tsbk:ConstructionCommercialMember2022-03-310001046050tsbk:ConstructionCommercialMember2022-04-012022-06-300001046050tsbk:ConstructionCommercialMember2022-06-300001046050tsbk:ConstructionMultiFamilyMember2022-03-310001046050tsbk:ConstructionMultiFamilyMember2022-04-012022-06-300001046050tsbk:ConstructionMultiFamilyMember2022-06-300001046050tsbk:ConstructionLandDevelopmentMember2022-03-310001046050tsbk:ConstructionLandDevelopmentMember2022-04-012022-06-300001046050tsbk:ConstructionLandDevelopmentMember2022-06-300001046050tsbk:MortgageLoansLandMember2022-03-310001046050tsbk:MortgageLoansLandMember2022-04-012022-06-300001046050tsbk:MortgageLoansLandMember2022-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-03-310001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-04-012022-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2022-03-310001046050us-gaap:ConsumerPortfolioSegmentMember2022-04-012022-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2022-06-300001046050us-gaap:CommercialLoanMember2022-03-310001046050us-gaap:CommercialLoanMember2022-04-012022-06-300001046050us-gaap:CommercialLoanMember2022-06-300001046050tsbk:MortgageLoansOneToFourFamilyMember2021-09-300001046050tsbk:MortgageLoansOneToFourFamilyMember2021-10-012022-06-300001046050tsbk:MortgageLoansMultiFamilyMember2021-09-300001046050tsbk:MortgageLoansMultiFamilyMember2021-10-012022-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2021-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2021-10-012022-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2021-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMember2021-10-012022-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2021-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMember2021-10-012022-06-300001046050tsbk:ConstructionCommercialMember2021-09-300001046050tsbk:ConstructionCommercialMember2021-10-012022-06-300001046050tsbk:ConstructionMultiFamilyMember2021-09-300001046050tsbk:ConstructionMultiFamilyMember2021-10-012022-06-300001046050tsbk:ConstructionLandDevelopmentMember2021-09-300001046050tsbk:ConstructionLandDevelopmentMember2021-10-012022-06-300001046050tsbk:MortgageLoansLandMember2021-09-300001046050tsbk:MortgageLoansLandMember2021-10-012022-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2021-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2021-10-012022-06-300001046050us-gaap:ConsumerPortfolioSegmentMember2021-09-300001046050us-gaap:ConsumerPortfolioSegmentMember2021-10-012022-06-300001046050us-gaap:CommercialLoanMember2021-09-300001046050us-gaap:CommercialLoanMember2021-10-012022-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:MortgageLoansMultiFamilyMember2023-06-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:MortgageLoansMultiFamilyMember2023-06-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionCustomAndOwnerbuilderMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionCommercialMember2023-06-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:ConstructionCommercialMember2023-06-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:MortgageLoansLandMember2023-06-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMembertsbk:MortgageLoansLandMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:MortgageLoansLandMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:FinancialAssetNotPastDueMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancialAssetNotPastDueMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:SBAPPPLoansMember2023-06-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMembertsbk:SBAPPPLoansMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:SBAPPPLoansMember2023-06-300001046050tsbk:SBAPPPLoansMemberus-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:FinancialAssetNotPastDueMembertsbk:SBAPPPLoansMember2023-06-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMember2023-06-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMember2023-06-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-06-300001046050us-gaap:FinancialAssetPastDueMember2023-06-300001046050us-gaap:FinancialAssetNotPastDueMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:MortgageLoansMultiFamilyMember2022-09-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:MortgageLoansMultiFamilyMember2022-09-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionCustomAndOwnerbuilderMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:ConstructionCommercialMember2022-09-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:ConstructionCommercialMember2022-09-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConstructionCommercialMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:MortgageLoansLandMember2022-09-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMembertsbk:MortgageLoansLandMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:MortgageLoansLandMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:FinancialAssetNotPastDueMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FinancialAssetNotPastDueMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMembertsbk:SBAPPPLoansMember2022-09-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMembertsbk:SBAPPPLoansMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembertsbk:SBAPPPLoansMember2022-09-300001046050tsbk:SBAPPPLoansMemberus-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:FinancialAssetNotPastDueMembertsbk:SBAPPPLoansMember2022-09-300001046050us-gaap:FinancingReceivables30To59DaysPastDueMember2022-09-300001046050us-gaap:FinancingReceivables60To89DaysPastDueMember2022-09-300001046050us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-09-300001046050us-gaap:FinancialAssetPastDueMember2022-09-300001046050us-gaap:FinancialAssetNotPastDueMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:PassMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMembertsbk:WatchMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:SpecialMentionMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:SubstandardMember2023-06-300001046050us-gaap:PassMembertsbk:MortgageLoansMultiFamilyMember2023-06-300001046050tsbk:WatchMembertsbk:MortgageLoansMultiFamilyMember2023-06-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:MortgageLoansMultiFamilyMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMembertsbk:ConstructionCustomAndOwnerbuilderMember2023-06-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConstructionCustomAndOwnerbuilderMember2023-06-300001046050us-gaap:PassMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050tsbk:WatchMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2023-06-300001046050us-gaap:PassMembertsbk:ConstructionCommercialMember2023-06-300001046050tsbk:WatchMembertsbk:ConstructionCommercialMember2023-06-300001046050tsbk:ConstructionCommercialMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConstructionCommercialMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMembertsbk:ConstructionMultiFamilyMember2023-06-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConstructionMultiFamilyMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMembertsbk:ConstructionLandDevelopmentMember2023-06-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConstructionLandDevelopmentMember2023-06-300001046050us-gaap:PassMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:WatchMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:MortgageLoansLandMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMembertsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMemberus-gaap:ConsumerPortfolioSegmentMember2023-06-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:PassMember2023-06-300001046050tsbk:WatchMemberus-gaap:CommercialLoanMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMemberus-gaap:CommercialLoanMember2023-06-300001046050us-gaap:PassMembertsbk:SBAPPPLoansMember2023-06-300001046050tsbk:WatchMembertsbk:SBAPPPLoansMember2023-06-300001046050tsbk:SBAPPPLoansMemberus-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMembertsbk:SBAPPPLoansMember2023-06-300001046050us-gaap:PassMember2023-06-300001046050tsbk:WatchMember2023-06-300001046050us-gaap:SpecialMentionMember2023-06-300001046050us-gaap:SubstandardMember2023-06-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:PassMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMembertsbk:WatchMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:SpecialMentionMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMemberus-gaap:SubstandardMember2022-09-300001046050us-gaap:PassMembertsbk:MortgageLoansMultiFamilyMember2022-09-300001046050tsbk:WatchMembertsbk:MortgageLoansMultiFamilyMember2022-09-300001046050tsbk:MortgageLoansMultiFamilyMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:MortgageLoansMultiFamilyMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMembertsbk:ConstructionCustomAndOwnerbuilderMember2022-09-300001046050tsbk:ConstructionCustomAndOwnerbuilderMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConstructionCustomAndOwnerbuilderMember2022-09-300001046050us-gaap:PassMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050tsbk:WatchMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050tsbk:ConstructionSpeculativeOneToFourFamilyMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConstructionSpeculativeOneToFourFamilyMember2022-09-300001046050us-gaap:PassMembertsbk:ConstructionCommercialMember2022-09-300001046050tsbk:WatchMembertsbk:ConstructionCommercialMember2022-09-300001046050tsbk:ConstructionCommercialMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConstructionCommercialMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMembertsbk:ConstructionMultiFamilyMember2022-09-300001046050tsbk:ConstructionMultiFamilyMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConstructionMultiFamilyMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMembertsbk:ConstructionLandDevelopmentMember2022-09-300001046050tsbk:ConstructionLandDevelopmentMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConstructionLandDevelopmentMember2022-09-300001046050us-gaap:PassMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:WatchMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:MortgageLoansLandMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMembertsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMemberus-gaap:ConsumerPortfolioSegmentMember2022-09-300001046050us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:PassMember2022-09-300001046050tsbk:WatchMemberus-gaap:CommercialLoanMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMemberus-gaap:CommercialLoanMember2022-09-300001046050us-gaap:PassMembertsbk:SBAPPPLoansMember2022-09-300001046050tsbk:WatchMembertsbk:SBAPPPLoansMember2022-09-300001046050tsbk:SBAPPPLoansMemberus-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMembertsbk:SBAPPPLoansMember2022-09-300001046050us-gaap:PassMember2022-09-300001046050tsbk:WatchMember2022-09-300001046050us-gaap:SpecialMentionMember2022-09-300001046050us-gaap:SubstandardMember2022-09-300001046050tsbk:MortgageLoansOneToFourFamilyMember2021-10-012022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMember2021-10-012022-09-300001046050tsbk:MortgageLoansLandMember2021-10-012022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMember2021-10-012022-09-300001046050us-gaap:ConsumerPortfolioSegmentMember2021-10-012022-09-300001046050us-gaap:CommercialLoanMember2021-10-012022-09-3000010460502021-10-012022-09-300001046050us-gaap:CommercialMortgageBackedSecuritiesMembertsbk:AccrualMember2023-06-300001046050tsbk:NonAccrualMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-06-300001046050tsbk:AccrualMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:NonAccrualMembertsbk:MortgageLoansLandMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMembertsbk:AccrualMember2023-06-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMembertsbk:NonAccrualMember2023-06-300001046050tsbk:AccrualMember2023-06-300001046050tsbk:NonAccrualMember2023-06-300001046050us-gaap:CommercialMortgageBackedSecuritiesMembertsbk:AccrualMember2022-09-300001046050tsbk:NonAccrualMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-09-300001046050tsbk:AccrualMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:NonAccrualMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMembertsbk:AccrualMember2022-09-300001046050tsbk:ConsumerLoansHomeEquityAndSecondMortgageMembertsbk:NonAccrualMember2022-09-300001046050tsbk:AccrualMember2022-09-300001046050tsbk:NonAccrualMember2022-09-300001046050tsbk:PortfolioSegmentMembertsbk:MortgageLoansLandMember2021-10-012022-09-30tsbk:contract0001046050tsbk:PortfolioSegmentMembertsbk:MortgageLoansLandMember2022-09-300001046050tsbk:PortfolioSegmentMember2021-10-012022-09-300001046050tsbk:PortfolioSegmentMember2022-09-300001046050srt:MinimumMember2019-10-010001046050srt:MaximumMember2019-10-0100010460502022-10-012023-03-310001046050us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001046050us-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001046050us-gaap:EmployeeStockOptionMember2021-10-012022-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-04-012023-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-04-012023-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-10-012023-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-10-012023-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001046050us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-012022-06-300001046050us-gaap:HeldtomaturitySecuritiesMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-012022-06-300001046050us-gaap:EmployeeStockOptionMember2023-06-300001046050tsbk:EquityIncentivePlan2014Member2015-01-270001046050tsbk:EquityIncentivePlan2019Member2020-01-280001046050tsbk:EquityIncentivePlan2019Membertsbk:EmployeeMember2020-01-280001046050tsbk:EquityIncentivePlan2019Membertsbk:DirectorsMember2020-01-280001046050us-gaap:RestrictedStockMember2022-10-012023-06-300001046050tsbk:EquityIncentivePlan2014Member2023-06-300001046050tsbk:EquityIncentivePlan2019Member2023-06-300001046050us-gaap:EmployeeStockOptionMembertsbk:A9.00Member2022-10-012023-06-300001046050us-gaap:EmployeeStockOptionMembertsbk:A9.00Member2023-06-300001046050tsbk:A10261071Memberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050tsbk:A10261071Memberus-gaap:EmployeeStockOptionMember2023-06-300001046050tsbk:ExercisePriceRange15.67Memberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050tsbk:ExercisePriceRange15.67Memberus-gaap:EmployeeStockOptionMember2023-06-300001046050tsbk:ExercisePriceRange26502725Memberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050tsbk:ExercisePriceRange26502725Memberus-gaap:EmployeeStockOptionMember2023-06-300001046050tsbk:ExercisePriceRange28232969Memberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050tsbk:ExercisePriceRange28232969Memberus-gaap:EmployeeStockOptionMember2023-06-300001046050tsbk:ExercisePriceRange31803340Memberus-gaap:EmployeeStockOptionMember2022-10-012023-06-300001046050tsbk:ExercisePriceRange31803340Memberus-gaap:EmployeeStockOptionMember2023-06-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050tsbk:MutualFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel1Member2023-06-300001046050us-gaap:FairValueInputsLevel2Member2023-06-300001046050us-gaap:FairValueInputsLevel3Member2023-06-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050tsbk:MutualFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050tsbk:MutualFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel1Member2022-09-300001046050us-gaap:FairValueInputsLevel2Member2022-09-300001046050us-gaap:FairValueInputsLevel3Member2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialLoanMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:FairValueInputsLevel3Membertsbk:TotalImpairedLoansMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-06-300001046050us-gaap:CommercialLoanMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:CommercialLoanMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialLoanMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:FairValueInputsLevel3Membertsbk:TotalImpairedLoansMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001046050us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-06-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2023-06-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-06-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001046050us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2022-09-300001046050us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2022-09-300001046050us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001046050us-gaap:InvestmentAdviceMember2023-04-012023-06-300001046050us-gaap:InvestmentAdviceMember2022-10-012023-06-300001046050us-gaap:InvestmentAdviceMember2022-04-012022-06-300001046050us-gaap:InvestmentAdviceMember2021-10-012022-06-30

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, 2023

OR

            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 classTrading Symbol(s)Name of each exchange on which registered
Common stock, $.01 par valueTSBKThe 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 1, 2023, there were 8,095,174 shares of the registrant's common stock, $.01 par value per share outstanding.



INDEX

 
Page
   
  Item 1.    
 
   
 
   
 
   
 
   
 
   
 
   
 
   
  Item 2.     
   
  Item 3.    
   
  Item 4.     
   
 
   
  Item 1.     
    
  Item 1A.     
   
  Item 2.     
   
  Item 3.     
   
  Item 4.
   
  Item 5.     
54 
   
  Item 6.     
   
 
Certifications  
 Exhibit 31.1 
 Exhibit 31.2 
 Exhibit 32 
Exhibit 101
Exhibit 104

2


PART I.    FINANCIAL INFORMATION
Item 1.    Financial Statements (unaudited)

TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
June 30, 2023 and September 30, 2022
(Dollars in thousands, except per share amounts)
June 30,
2023
September 30,
2022
(Unaudited)*
Assets  
Cash and cash equivalents:  
Cash and due from financial institutions$28,308 $24,808 
Interest-bearing deposits in banks101,645 291,947 
Total cash and cash equivalents129,953 316,755 
Certificates of deposit (“CDs”) held for investment (at cost, which
     approximates fair value)
16,931 22,894 
Investment securities held to maturity, at amortized cost (estimated fair value of $260,471 and $249,783)
275,053 266,608 
Investment securities available for sale, at fair value43,842 41,415 
Investments in equity securities, at fair value837 835 
Federal Home Loan Bank of Des Moines (“FHLB”) stock, at cost2,802 2,194 
Other investments, at cost3,000 3,000 
Loans held for sale 748 
Loans receivable, net of allowance for loan losses of $15,307 and $13,703
1,260,647 1,132,426 
Premises and equipment, net21,574 21,898 
Accrued interest receivable5,451 4,483 
Bank owned life insurance (“BOLI”)23,276 22,806 
Goodwill15,131 15,131 
Core deposit intangible (“CDI”), net745 948 
Loan servicing rights, net2,321 3,023 
Operating lease right-of-use ("ROU") assets1,845 1,980 
Other assets4,305 3,364 
Total assets$1,807,713 $1,860,508 
Liabilities and shareholders’ equity  
Liabilities  
Deposits:
     Non-interest-bearing demand$452,729 $530,058 
     Interest-bearing1,100,001 1,102,118 
Total deposits1,552,730 1,632,176 
FHLB borrowings15,000  
Operating lease liabilities1,939 2,066 
Other liabilities and accrued expenses8,781 7,697 
Total liabilities$1,578,450 $1,641,939 
* Derived from audited consolidated financial statements.
See notes to unaudited consolidated financial statements
3


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (continued)
June 30, 2023 and September 30, 2022
(Dollars in thousands, except per share amounts)
 
June 30,
2023
September 30,
2022
(Unaudited)*
Commitments and contingent liabilities (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;
8,094,174 shares issued and outstanding - June 30, 2023 8,221,952 shares issued and outstanding - September 30, 2022
35,401 38,751 
Retained earnings194,606 180,535 
Accumulated other comprehensive loss(744)(717)
Total shareholders’ equity229,263 218,569 
Total liabilities and shareholders’ equity$1,807,713 $1,860,508 
* Derived from audited consolidated financial statements.


See notes to unaudited consolidated financial statements

4


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended June 30, 2023 and 2022
(Dollars in thousands, except per share amounts)
(Unaudited)

 Three Months Ended June 30,Nine Months Ended
June 30,
 2023202220232022
Interest and dividend income  
Loans receivable and loans held for sale$16,215 $12,628 $45,622 $37,870 
Investment securities2,384 1,016 7,058 2,012 
Dividends from mutual funds, FHLB stock and other investments70 25 185 80 
Interest-bearing deposits in banks and CDs1,220 958 5,524 1,528 
Total interest and dividend income19,889 14,627 58,389 41,490 
Interest expense  
Deposits3,123 645 6,729 1,902 
FHLB borrowings132  132 17 
Total interest expense3,255 645 6,861 1,919 
Net interest income16,634 13,982 51,528 39,571 
Provision for loan losses610  1,610  
Net interest income after provision for loan losses16,024 13,982 49,918 39,571 
Non-interest income  
Net recoveries on investment securities2 5 7 16 
Gain on sale of investment securities available for sale, net95  95  
Service charges on deposits970 1,052 2,810 2,979 
ATM and debit card interchange transaction fees1,335 1,345 3,861 3,868 
BOLI net earnings157 151 470 457 
Gain on sales of loans, net80 258 147 1,337 
Escrow fees27 41 85 164 
Valuation recovery on MSRs   119 
Other, net209 250 741 687 
Total non-interest income, net2,875 3,102 8,216 9,627 


 See notes to unaudited consolidated financial statements
5


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (continued)
For the three and nine months ended June 30, 2023 and 2022
(Dollars in thousands, except per share amounts)
(Unaudited)
 Three Months Ended June 30,Nine Months Ended
June 30,
 2023202220232022
Non-interest expense  
Salaries and employee benefits$5,860 $5,243 $17,806 $15,606 
Premises and equipment1,010 904 2,935 2,814 
Gain on sales/dispositions of premises and equipment, net(32)(6)(32) 
Advertising179 187 551 513 
OREO and other repossessed assets, net (2)1 (18)
ATM and debit card interchange transaction fees491 515 1,463 1,429 
Postage and courier128 140 397 440 
State and local taxes297 265 894 754 
Professional fees577 580 1,479 1,173 
Federal Deposit Insurance Corporation ("FDIC") insurance191 123 517 377 
Loan administration and foreclosure126 180 385 380 
Data processing and telecommunications944 698 2,612 1,980 
Deposit operations430 316 1,022 878 
Amortization of CDI68 79 203 237 
Other658 652 2,173 1,909 
Total non-interest expense, net10,927 9,874 32,406 28,472 
Income before income taxes7,972 7,210 25,728 20,726 
Provision for income taxes1,666 1,472 5,252 4,176 
     Net income
$6,306 $5,738 $20,476 $16,550 
Net income per common share  
Basic$0.77 $0.69 $2.50 $1.99 
Diluted$0.77 $0.69 $2.47 $1.97 
Weighted average common shares outstanding  
Basic8,156,831 8,279,436 8,203,255 8,324,371 
Diluted8,213,975 8,349,859 8,279,079 8,406,977 
Dividends paid per common share$0.23 $0.22 $0.78 $0.65 

See notes to unaudited consolidated financial statements
6


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended June 30, 2023 and 2022
(Dollars in thousands)
(Unaudited) 
 Three Months Ended 
June 30,
Nine Months Ended 
June 30,
 2023202220232022
Comprehensive income
Net income$6,306 $5,738 $20,476 $16,550 
Other comprehensive loss
Unrealized holding loss on investment securities available for sale, net of income taxes of $(66), $(122), $(8) and $(167), respectively
(249)(459)(29)(629)
Change in other than temporary impairment ("OTTI") on investment securities held to maturity, net of income taxes:  
Accretion of OTTI on investment securities held to maturity, net of income taxes of $0, $0, $1 and $1, respectively
 1 2 5 
Total other comprehensive loss, net of income taxes(249)(458)(27)(624)
Total comprehensive income$6,057 $5,280 $20,449 $15,926 



See notes to unaudited consolidated financial statements
7


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the three and nine months ended June 30, 2023 and 2022
(Dollars in thousands, except per share amounts)
(Unaudited)
 Number of SharesAmount Accumulated
Other
Compre-hensive
Income (Loss)
 
 Common
Stock
Common
Stock
Retained
Earnings
Total
Balance, March 31, 20228,305,826$40,988$171,388$(107)212,269 
Net income5,7385,738
Other comprehensive loss(458)(458)
Repurchase of common stock(58,678)(1,502)(1,502)
Exercise of stock options2,3002727
Common stock dividends ($0.22 per common share)
(1,827)(1,827)
Stock option compensation expense7272
Balance, June 30, 20228,249,448$39,585$175,299$(565)$214,319
Balance, March 31, 20238,203,174$37,979$190,177$(495)$227,661
Net income6,3066,306
Other comprehensive loss(249)(249)
Repurchase of common stock(110,000)(2,674)(2,674)
Exercise of stock options 1,0001717
Common stock dividends ($0.23 per common share)
(1,877)(1,877)
Stock option compensation expense7979
Balance, June 30, 20238,094,174$35,401$194,606$(744)$229,263
 Common Stock Accumulated
Other
Compre-hensive
Income (Loss)
 
 Number of SharesAmountRetained
Earnings
Total
Balance, September 30, 20218,355,469 $42,673 $164,167 $59 $206,899 
Net income— — 16,550 — 16,550 
Other comprehensive loss— — — (624)(624)
Repurchase of common stock(135,791)(3,651)— — (3,651)
Exercise of stock options29,770 359 — — 359 
Common stock dividends ($0.65 per common share)
— — (5,418)— (5,418)
Stock option compensation expense— 204 — — 204 
Balance, June 30, 20228,249,448 $39,585 $175,299 $(565)$214,319 
Balance, September 30, 20228,221,952 $38,751 $180,535 $(717)$218,569 
Net income— — 20,476 — 20,476 
Other comprehensive loss— — — (27)(27)
Repurchase of common stock(154,833)(4,119)— — (4,119)
Exercise of stock options 27,055 534 — — 534 
Common stock dividends ($0.78 per common share)
— — (6,405)— (6,405)
Stock option compensation expense— 235 — — 235 
Balance, June 30, 20238,094,174 $35,401 $194,606 $(744)$229,263 

See notes to unaudited consolidated financial statements
8


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended June 30, 2023 and 2022
(Dollars in thousands)
(Unaudited)
 Nine Months Ended June 30,
 20232022
Cash flows from operating activities  
Net income$20,476 $16,550 
Adjustments to reconcile net income to net cash provided by operating activities:  
Provision for loan losses1,610  
Depreciation1,022 1,035 
Deferred income taxes/(benefits)(77)223 
Accretion of discount on purchased loans(64)(154)
Amortization of CDI203 237 
Stock option compensation expense235 204 
Gain on sale of investment securities available for sale, net(95) 
Net recoveries on investment securities(7)(16)
Change in fair value of investments in equity securities(2)83 
Amortization (accretion) of discounts and premiums on securities(922)123 
Gain on sales of OREO and other repossessed assets, net (1)
Gain on sales of loans, net(147)(1,337)
Gain on sales/disposition of premises and equipment, net(32) 
Loans originated for sale(6,062)(47,199)
Proceeds from sales of loans6,957 51,053 
Amortization of loan servicing rights769 879 
Valuation recovery on loan servicing rights, net (119)
BOLI net earnings(470)(457)
Increase (decrease) in deferred loan origination fees636 (1,192)
Net change in accrued interest receivable and other assets, and other liabilities and accrued expenses(800)(1,521)
Net cash provided by operating activities23,230 18,391 
Cash flows from investing activities  
Net decrease in CDs held for investment5,963 4,594 
Proceeds from sale of investment securities available for sale8,929  
Purchase of investment securities held to maturity(15,601)(167,671)
Purchase of investment securities available for sale(16,994) 
Proceeds from maturities and prepayments of investment securities held to maturity8,000 8,737 
Proceeds from maturities and prepayments of investment securities available for sale5,784 16,977 
Purchase of FHLB stock(608)(91)
Increase in loans receivable, net(130,403)(118,167)
Purchases of premises and equipment(711)(822)
Proceeds from sales of premises and equipment45  
Proceeds from sales of OREO and other repossessed assets 158 
Net cash used in investing activities(135,596)(256,285)

See notes to unaudited consolidated financial statements
9


TIMBERLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
For the nine months ended June 30, 2023 and 2022
(Dollars in thousands)
(Unaudited)
 Nine Months Ended June 30,
 20232022
Cash flows from financing activities  
Net increase (decrease) in deposits$(79,446)$93,559 
Proceeds from (repayments of) FHLB borrowings15,000 (5,000)
Proceeds from exercise of stock options534 359 
Repurchase of common stock(4,119)(3,651)
Payment of dividends(6,405)(5,418)
Net cash provided by (used in) financing activities(74,436)79,849 
  
Net decrease in cash and cash equivalents(186,802)(158,045)
Cash and cash equivalents  
Beginning of period316,755 580,196 
End of period$129,953 $422,151 
Supplemental disclosure of cash flow information  
Income taxes paid$6,268 $3,642 
Interest paid$6,088 $1,955 
Supplemental disclosure of non-cash investing activities  
Other comprehensive loss related to investment securities$(27)$(624)
Operating lease liabilities arising from recording of ROU assets$71 $ 

See notes to unaudited consolidated financial statements
10


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 year ended September 30, 2022 (“2022 Form 10-K”).  The unaudited consolidated results of operations for the nine months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the entire fiscal year ending September 30, 2023.

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

(c)  Operating Segment:  The Company has one reportable operating segment which is defined as community banking in western Washington under the operating name, "Timberland Bank."

(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, 2023 presentation with no change to previously reported net income or total shareholders’ equity.

11


(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, 2023 and September 30, 2022 (dollars in thousands):
 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
June 30, 2023    
Held to maturity    
U.S. Treasury and U.S. government agency securities$171,385 $ $(9,927)$161,458 
Mortgage-backed securities ("MBS"):
U.S. government agencies53,347 10 (2,529)50,828 
Private label residential48,025 258 (2,295)45,988 
Taxable municipal securities1,796  (47)1,749 
Bank issued trust preferred securities500  (52)448 
Total$275,053 $268 $(14,850)$260,471 
Available for sale    
MBS: U.S. government agencies$44,772 $ $(930)$43,842 
Total$44,772 $ $(930)$43,842 
September 30, 2022
Held to maturity    
U.S. Treasury and U.S. government agency securities$170,676 $11 $(12,109)$158,578 
MBS:
U.S. government agencies43,995 4 (2,486)41,513 
Private label residential49,335 245 (2,392)47,188 
Taxable municipal securities2,102  (67)2,035 
Bank issued trust preferred securities500  (31)469 
Total$266,608 $260 $(17,085)$249,783 
Available for sale    
MBS: U.S. government agencies$42,309 $ $(894)$41,415 
Total$42,309 $ $(894)$41,415 

12


Held to maturity and available for sale investment securities with unrealized losses were as follows as of June 30, 2023 (dollars in thousands):
 Less Than 12 Months12 Months or LongerTotal
 Estimated
 Fair
 Value
Gross
Unrealized
Losses
QuantityEstimated
 Fair
 Value
Gross
Unrealized
Losses
QuantityEstimated
 Fair
 Value
Gross
Unrealized
Losses
Held to maturity
U.S. Treasury and U.S. government agency securities$19,045 $(207)2 $142,413 $(9,720)25 $161,458 $(9,927)
MBS:
U.S. government agencies26,124 (474)18 19,498 (2,055)42 45,622 (2,529)
Private label residential10,461 (265)7 32,351 (2,030)27 42,812 (2,295)
Taxable municipal securities   1,749 (47)1 1,749 (47)
Bank issued trust
  preferred securities
   448 (52)1 448 (52)
     Total
$55,630 $(946)27 $196,459 $(13,904)96 $252,089 $(14,850)
Available for sale
MBS: U.S. government agencies$22,328 $(188)10 $21,213 $(742)21 $43,541 $(930)
     Total
$22,328 $(188)10 $21,213 $(742)21 $43,541 $(930)

Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2022 (dollars in thousands):
 Less Than 12 Months12 Months or LongerTotal
 Estimated
 Fair
 Value
Gross
Unrealized Losses
QuantityEstimated
 Fair
 Value
Gross
Unrealized Losses
QuantityEstimated
 Fair
 Value
Gross
Unrealized Losses
Held to maturity        
U.S. Treasury and U.S. government agency securities$115,504 $(7,224)17 $33,638 $(4,885)9 $149,142 $(12,109)
MBS:
U.S. government agencies35,896 (1,449)54 5,306 (1,037)5 41,202 (2,486)
 Private label
    residential
35,447 (2,166)27 8,708 (226)6 44,155 (2,392)
Taxable municipal securities2,035 (67)1    2,035 (67)
Bank issued trust preferred securities469 (31)1    469 (31)
     Total
$189,351 $(10,937)100 $47,652 $(6,148)20 $237,003 $(17,085)
Available for sale
MBS: U.S. government agencies$25,170 $(292)16 $15,705 $(602)13 $40,875 $(894)
     Total
$25,170 $(292)16 $15,705