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Exhibit 99.1 Timberland Bancorp , Inc. Contact : Michael R. Sand , President & CEO Dean J. Brydon , CFO ( 360 ) 533-4747 www.timberlandbank.com Timberland Bancorp's First Fiscal Quarter Earnings Per Share Increases 12 % to $ 0.87 Announces a 5 % Increase in the Quarterly Cash Dividend and a $ 0.10 Special Dividend • First Fiscal Quarter Net Income Increases 10 % to $ 7.29 Million Quarterly Return on Average Assets of 1.84 % Quarterly Return on Average Equity of 15.39 % HOQUIAM , WA - January 25 , 2021 - Timberland Bancorp , Inc. ( NASDAQ : TSBK ) ( “ Timberland ” or “ the Company " ) today reported net income increased 10 % to $ 7.29 million for the quarter ended December 31 , 2020 from $ 6.65 million for the comparable quarter one year ago and increased 15 % from $ 6.36 million for the preceding quarter . Earnings per diluted common share ( " EPS ” ) increased 12 % to $ 0.87 for the current quarter from $ 0.78 for the comparable quarter one year ago and increased 14 % from $ 0.76 for the preceding quarter . Timberland's Board of Directors announced a $ 0.01 increase ( 5 % ) in the quarterly cash dividend to shareholders to $ 0.21 per common share and a special cash dividend of $ 0.10 per common share . Both dividends are payable on February 26 , 2021 , to shareholders of record on February 12 , 2021 . " We are pleased to report record quarterly income and continued strong financial metrics for our first fiscal quarter , " stated Michael Sand , President and CEO . " We are encouraged the vast majority of our borrowers are effectively managing through a difficult economy over which COVID - 19 continues to cast a shadow . We are also encouraged by the possibility of vaccine availability during the next several months and the potential for hard hit individuals and businesses to begin recovering financially from very challenging circumstances . " " In support of businesses and their employees in our communities , staff members have worked diligently to process and file Paycheck Protection Program ( " PPP " ) applications for forgiveness , " said Sand . During the quarter , PPP loan balances decreased $ 23.4 million with nearly all forgiveness applicants obtaining full forgiveness from the Small Business Administration ( " SBA " ) . We continue to actively submit forgiveness requests in support of our clients and have begun accepting applications from businesses seeking support from the newly authorized round of PPP financing . This new round of funding offers assistance to companies that did not receive PPP funding last calendar year and also makes available additional loans targeted at hard hit businesses that previously obtained a PPP loan and need further assistance . We will actively participate in this extended program in order to provide needed support to businesses in our communities . ” “ During the quarter we continued to work with COVID - 19 affected borrowers to appropriately defer loans to provide them with economic relief . We have found the number of deferral requests to be modest . At December 31 , 2020 we had 12 loans remaining in a deferred payment status representing approximately 1.43 % of net loans outstanding . Borrowers were paying interest monthly on 8 of these 12 deferred loans . ” First Fiscal Quarter 2021 Earnings and Balance Sheet Highlights ( at or for the period ended December 31 , 2020 , compared to December 31 , 2019 or September 30 , 2020 ) : Earnings Highlights : • Net income increased to $ 7.29 million for the current quarter from $ 6.36 million for the preceding quarter and $ 6.65 million for the comparable quarter one year ago ; EPS increased to $ 0.87 for the current quarter from $ 0.76 for the preceding quarter and $ 0.78 for the comparable quarter one year ago ; Return on average equity ( " ROE ” ) and return on average assets ( " ROA " ) for the current quarter were 15.39 % and 1.84 % , respectively ; Net interest margin was 3.48 % for the current quarter compared to 3.44 % for the preceding quarter and 4.43 % for the comparable quarter one year ago ; and