Timberland Bancorp, Inc. on Tuesday reported net income of $6.11 million, or 72 cents per diluted common share for the quarter ended March 31, 2019, boosted by a one-time $1 million tax exempt benefit, that was partially offset by $616,000 in pre-tax net costs associated with its system conversion. This compares to net income of $4.27 million, or 57 cents per diluted share for the quarter ended a year ago, and net income of $5.62 million, or 66 cents per diluted common share, for the preceding quarter.
Timberland’s Board of Directors declared a quarterly cash dividend to shareholders of 15 cents per common share and a special one-time cash dividend of 10 cents per common share payable on May 29, 2019, to shareholders of record on May 15, 2019.
“During the quarter we converted the Bank’s core operating software to the Jack Henry Silverlake operating system and incurred conversion costs as forecast in the Company’s prior earnings release,” said Michael Sand, President and CEO. “Direct conversion costs of $456,000 were expensed during the quarter comparing favorably to our forecasted $450,000 expense. In addition, indirect employee costs of approximately $160,000 associated with the conversion were incurred bringing quarterly conversion related expenses to $616,000 ($487,000 after tax). With the completion of this conversion we are now focused on the migration of South Sound’s core operating system to the Silverlake platform. This conversion is scheduled for July 12, 2019, and, during the next two quarters, we expect to incur conversion related expenses of approximately $700,000 ($553,000 after tax).”