Timberland Bancorp, Inc.
File No. 000-23333
Attachment to letter filed September 14, 2005

The following analysis was performed to determine if the acquisition on
October 9, 2004 of seven branches and related deposits from Venture Bank
("acquisition") was considered significant under the guidelines of Regulation
S-X Section 210.11-01.

Regulation S-X Section 210.11-01(b)(1) states:
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A comparison of the most recent annual financial statements of the business
acquired or to be acquired and the registrant's most recent annual
consolidated financial statements filed at or prior to the date of acquisition
indicates that business would be a significant subsidiary pursuant to the
conditions specified in 210.1-02(w), substituting 20 percent for 10 percent in
each place it appears therein.

Regulation S-X Section 210.1-02(w) (substituting 20 percent for 10 percent in
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each place it appears)
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(1) The registrant and its other subsidiaries' investments in and advances to
the subsidiary exceed 20 percent of the total assets of the registrant and its
subsidiaries consolidated as of the end of the most recently completed fiscal
year.

ANALYSIS: Timberland Bancorp, Inc. and its subsidiaries did not have any
investments in or advances to the acquired entity at its fiscal year ended
September 30, 2004.  Therefore the threshold for Regulation S-X Section
210.1-02(w)(1) was not met.


(2) The registrant's and its other subsidiaries' proportionate share of the
total assets of the subsidiary exceeds 20% of the total assets of the
registrant and its subsidiaries consolidated as of the end of the most
recently completed fiscal year.

ANALYSIS:  Timberland Bancorp, Inc.'s total assets at September 30, 2004 were
$460,419,000.  The assets acquired in the acquisition totaled $88,118,000.
This equates to 19.14% of the total assets as of the end of the most recently
completed fiscal year.  Therefore the threshold for Regulation S-X Section
210.1-02(w)(2) was not met.


(3) The registrant's and its other subsidiaries' equity in the income from
continuing operations before income taxes, extraordinary items and cumulative
effect of a change in accounting principle of the subsidiary exceeds 20% of
such income of the registrant and its subsidiaries consolidated for the most
recently completed fiscal year.

ANALYSIS:  Timberland Bancorp, Inc.'s net income from continuing operations
before income taxes and extraordinary items was $8,080,000 for the fiscal year
ended September 30, 2004.  In order to meet the threshold for this condition,
net income before taxes of $1,616,000 would need to be generated on an annual
basis from the acquisition.  Since the acquisition did not involve the





purchase of loans, the only continuing historical income stream acquired was
service charge and fee income that will be generated from the acquired deposit
relationships.  Timberland will also generate income from investing the net
proceeds acquired in connection with the deposits and will incur the
operational expenses of running the branch locations.  Based on an analysis
prepared by Timberland's consultant Keefe, Bruyette and Woods a five year
pro-forma statement was prepared during the negotiations to project the net
income that would result from the acquisition.  Based on the pro-forma
statements, the projected net income before taxes did not reach the $1,616,000
threshold in any of the five years.  The highest projected net income before
tax number was $987,000 in year five.  Therefore the threshold for Regulation
S-X Section 210.1.02(w)(3) was not met.

OVERALL CONCLUSION:  Since none of the conditions pursuant to Regulation S-X
Section 210.11-01 and Regulation S-X Section 210.1-02(w) were met, the
acquisition does not meet the criteria to be considered significant.