Timberland Bancorp Inc. (NASDAQ: TSBK) last weeky reported record quarterly net income of $4.42 million, or $0.59 per diluted common share, for the quarter ended June 30. This compares to net income of $4.27 million, or $0.57 per diluted common share, for the preceding quarter and net income of $4.28 million, or $0.58 per diluted common share, for the quarter ended June 30, 2017 which quarter’s earnings per share was increased by approximately $0.13 due to a significant loan loss reserve recapture and the collection of non-accrual interest partially offset by the cost of prepaying two FHLB borrowings.

For the first nine months of fiscal 2018, Timberland earned $12.30 million, or $1.64 per diluted common share, an increase in net income of 17 percent and an increase in earnings per diluted common share of 14 percent from $10.55 million, or $1.44 per diluted common share, for the first nine months of fiscal 2017.

Timberland’s board of directors declared a quarterly cash dividend to shareholders of $0.13 per common share payable on August 24 to shareholders of record on August 10, 2018.

“We continue to expect the acquisition of South Sound Bank to occur in the fourth calendar quarter of this year subject to regulatory approvals, the approval of South Sound Bank’s shareholders and other customary closing conditions,” said Michael Sand, president and CEO. “The first of these approvals was obtained on July 10, when the State of Washington’s Department of Financial Institutions, Division of Banks granted its approval for the merger. The acquisition will enhance Timberland’s presence along Washington State’s economically important and rapidly growing I-5 corridor. During the quarter just ended, Timberland incurred approximately $147,000 in merger related expenses reducing the quarter’s EPS by approximately $0.01.”

“We also are looking forward to the benefit of a lower federal income tax rate effective upon the conclusion of our next fiscal quarter,” Sand also stated. “Since the enactment of the Tax Cuts and Jobs Act legislation, Timberland has employed a blended federal income tax rate of 24.5 percent. This tax rate will decline to 21.0 pecent beginning October 1 and the benefit will be impactful to net income. Had the lower tax rate been available to Timberland for the quarter just ended, EPS would have been higher by approximately $0.02.”