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Timberland Bancorp , Inc. Contact : Michael R. Sand , President & CEO Dean J. Brydon , CFO ( 360 ) 533-4747 www.timberlandbank.com Exhibit 99.1 Timberland Bancorp's Second Fiscal Quarter Earnings Per Diluted Share Increases 43 % to $ 0.86 Second Fiscal Quarter Net Income Increases 44 % to $ 7.25 Million Quarterly Return on Average Assets of 1.75 % Quarterly Return on Average Equity of 14.89 % Announces $ 0.21 Quarterly Cash Dividend HOQUIAM , WA – April 27 , 2021 – Timberland Bancorp , Inc. ( NASDAQ : TSBK ) ( “ Timberland ” or “ the Company " ) today reported that net income increased 44 % to $ 7.25 million for the quarter ended March 31 , 2021 from $ 5.05 million for the comparable quarter one year ago , which quarter was affected by a $ 2.00 million ( $ 1.58 million after income taxes ) provision to the loan loss reserves , and decreased slightly from $ 7.29 million for the preceding quarter . Earnings per diluted common share ( " EPS " ) increased 43 % to $ 0.86 for the current quarter from $ 0.60 for the comparable quarter one year ago and decreased 1 % from $ 0.87 for the preceding quarter . For the first six months of fiscal 2021 , Timberland earned a record $ 14.54 million , or $ 1.73 per diluted common share , a 24 % increase in net income and a 25 % increase in EPS from $ 11.70 million , or $ 1.38 per diluted common share for the first six months of fiscal 2020 , which six month period was affected by a $ 2.20 million ( $ 1.74 million after income taxes ) to the loan loss reserves . Timberland's Board of Directors declared a quarterly cash dividend to shareholders of $ 0.21 per common share payable on May 28 , 2021 , to shareholders of record on May 14 , 2021 . " We are pleased to report strong financial metrics for the recently concluded quarter and , for the first six months of fiscal 2021 , record Company profitability , " stated Michael Sand , President and CEO . " Paycheck Protection Program ( “ PPP ” ) loan proceeds and federal stimulus payments contributed to strong deposit growth of $ 106.7 million for the quarter and $ 356.2 million during the past twelve months . The 32 % increase in deposits year - over - year has increased the Bank's liquidity significantly beyond the level we would normally hold . While loan originations have been strong we have chosen to sell most fixed - rate conforming mortgage loans in this extended low - rate interest environment and have been subject to prepayment activity typically expected during a period of lower interest rates . Given Federal Reserve Chairman Powell's recent assertion that tapering would begin well before the Fed raises the overnight rate , we anticipate generally rising interest rates , a slowing of prepayment activity and fixed income investment opportunities more palatable than have been available during the past year . We are encouraged by the level of increased business activity in our markets and the increased activity we are seeing in our loan pipeline . " " Our focus since the onslaught of the pandemic has been to support the businesses and their employees in our communities . To this end , staff has worked diligently throughout these difficult times to originate new PPP loans and to also file applications for PPP loan forgiveness , ” said Sand . “ During the quarter , we originated $ 58.70 million in PPP loans under the new round of PPP . 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 continue to actively submit forgiveness requests in support of our clients that received PPP loans in 2020 , with nearly all forgiveness applicants obtaining full forgiveness from the Small Business Administration ( " SBA " ) . With state mandated phased COVID guidelines allowing businesses in Washington State to move towards more normal operations and a robust vaccine rollout , we are encouraged by the potential for hard hit individuals and businesses to begin recovering financially during the remainder of the year . " " To provide needed support to businesses in our communities , we continue to work with COVID affected borrowers to appropriately defer loans and provide them with the much - needed economic relief , ” added Sand . " At March 31 , 2021 , we had eight loans remaining in a deferred payment status representing approximately 1.3 % of net loans outstanding . " Five of the remaining deferred loans are receiving interest payments monthly . "