TIMBERLAND BANCORP INC — Director's Dealing 2006

May 11, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: TIMBERLAND BANCORP INC (TSBK)
CIK: 0001046050
Period of Report: 2006-05-10

Reporting Person: Bailey Kathie M (Senior VP & COO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-05-10	Common Stock, $.01 par value per share	M	3000	$12	Acquired	15500	Direct
2006-05-10	Common Stock, $.01 par value per share	S	3000	$29	Disposed	12500	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-05-10	Stock Options (right to buy)	$12	M	3000	Disposed	2009-01-29	Common Stock (3000)	Direct

Footnotes

F1: Does not reflect beneficial ownership of stock options reportable on Table II.