Their next album, "Rose Of Cimarron, was released in the spring of 1976. The album made it to #89 on the charts. Timothy had 2 songs on the album, "Just Like Me" and "Starin' At The Sky". He also did some of the lead vocals on "Rose of Cimarron" and "Stealaway". Following is a short review from an industry magazine:
"A set of good country rock from the veteran group, with a bit more life to it than on the last several sets. Title cut is an excellent long piece allowing the band to show off its patented harmonies as well as giving the musicians a chance to move through some enjoyable instrumental segments. Other cuts feature mandolins, dobros, banjos and steel, providing an interesting mix of country, rock and folk. Several potential singles here, as well as FM oriented material."
The next album was "Indian Summer", released in 1977. The album made it to #57 on the charts. Timothy had 3 songs on the album, "Me and You", "Stay(Night Until Noon)" and "Find Out In Time". Here is a short industry magazine review of the album:
"An all-around pleasing set from this polished, durable quartet and again an extension of its unique blend of country, folk and rock. This time, however, the set has a more neo-California Eagles-like feel to its harmonies. The instrumentationn and writing is superb with plenty of pedal steel guitar and even some strings and horns added here and there. A gold mine of single possibilities for FM, pop and country audiences."
This review was from Rock Magazine: "Poco fans are a devoted (aging) lot, and this brand new album, entitled "Indian Summer", should make them very happy. The album might win Poco some brand new fans too, as the band has created a commercially accessible recording, without sacrificing their countrified-rock sound. In fact, "Indian Summer" is a rather good "Hotel California" with tidbits of Crosby, Stills and Nash vocal arrangements, making the tunes instantly recognizable: hum-alongs begin after just one listen. Some critics aren't going to like that one bit, but the record buyers of America will make up the difference.
Poco captures their "live" sound well, a rather low-keyed and very consistent set of tunes filled with fiddles, twangs and precise harmonies. More experimental songs, like the trilogy "The Dance", are fun, even though they represent "no-risk" musical concepts that do not require studious reflection to realize their meaning or complexities. In other words, Poco remains Poco: basic, good-natured and upbeat. They fall squarely into the squarish-country-rock commerciality that claims hold on a good percentage of the record charts. Consequently, you'll be hearing a fair amount from the new "old" Poco this Indian summer."
"Indian Summer" was the last album Timothy did with Poco. He left in the fall of 1977 to join the Eagles. This is what Rusty Young had to say about Timothy's leaving in Goldmine magazine: "They came to him and made him a financial proposition that, there was just no getting around it, he'd be totally stupid to pass on", Young said. Schmit seemed to be offered a full partnership in the multi-million-selling group. "Paul and I gave him our total support. We said, Tim, you've got to do this. There's no way that we can rationalize you staying with us, when they've made you an offer that's just a once-in-a-lifetime deal. So, the parting of ways was an amicable one. We supported Tim in doing that all the way."