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Timberland Bancorp , Inc. Contact : Michael R. Sand , President & CEO Dean J. Brydon , CFO ( 360 ) 533-4747 www.timberlandbank.com Timberland Bancorp's Third Fiscal Quarter Earnings Per Diluted Share Increases 12 % to $ 0.83 • Year - to - Date Net Income Increases 20 % to $ 21.57 Million Quarterly Return on Average Assets of 1.63 % • Quarterly Return on Average Equity of 14.02 % • Announces $ 0.21 Quarterly Cash Dividend and a $ 0.10 Special Dividend Exhibit 99.1 HOQUIAM , WA - July 27 , 2021 - Timberland Bancorp , Inc. ( NASDAQ : TSBK ) ( “ Timberland ” or “ the Company " ) , the holding company for Timberland Bank ( the " Bank " ) , today reported that net income increased 13 % to $ 7.02 million for the quarter ended June 30 , 2021 from $ 6.21 million for the comparable quarter one year ago , which quarter was affected by a $ 1.00 million ( $ 790,000 after income taxes ) provision to the loan loss reserves , and decreased $ 227,000 , or 3 % , from $ 7.25 million for the preceding quarter . Earnings per diluted common share ( " EPS " ) increased 12 % to $ 0.83 for the current quarter from $ 0.74 for the comparable quarter one year ago and decreased 3 % from $ 0.86 for the preceding quarter . For the first nine months of fiscal 2021 , Timberland earned a record $ 21.57 million , or $ 2.55 per diluted common share , a 20 % increase in net income and EPS from $ 17.91 million , or $ 2.12 per diluted common share for the first nine months of fiscal 2020 , which nine month period was affected by a $ 3.20 million ( $ 2.53 million after income taxes ) provision to the loan loss reserves . Timberland's Board of Directors declared a quarterly cash dividend to shareholders of $ 0.21 per common share and a special cash dividend of $ 0.10 per common share . Both dividends are payable on August 27 , 2021 , to shareholders of record on August 13 , 2021 . " We are pleased to report strong quarterly net income and record profitability for the first nine months of fiscal 2021 , " stated Michael Sand , President and CEO . " Paycheck Protection Program ( " PPP " ) loan proceeds and federal stimulus payments contributed to strong deposit growth of $ 204.11 million during the past twelve months including $ 40.79 million during the quarter just ended . The 15 % increase in deposits year - over - year has increased the Bank's liquidity significantly above normal levels . Net loans outstanding , net of PPP loans , increased this quarter at an annualized rate of 6 % and we continue to be encouraged by the increased business activity we are seeing in our markets . " " Staff continues to be diligently and successfully engaged in the task of filing SBA loan forgiveness applications for businesses in our communities that obtained PPP financing through Timberland Bank . During the quarter ended June 30 , 2021 , PPP loans were reduced by $ 42.54 million and $ 95.63 million of PPP loans remained on the Bank's balance sheet at quarter end . Timberland participated in the origination of PPP loans during every phase of the program and originated $ 192.43 million of PPP loans for existing as well as new clients . " " Timberland's Board is also pleased to have announced today the appointment of Parul Bhandari to Timberland's Board of Directors . During the past few years Timberland has sought to acquire directors with strong technology backgrounds and Ms. Bhandari is the third Director with significant experience and expertise in the technology sector to join Timberland's Board . She brings to Timberland 20 plus years of experience scaling businesses through data , cloud and AI powered digital transformation . Ms. Bhandari leads the Partner Strategy for the Worldwide Media and Communications Industry group at Microsoft . Additional background information is included in a separate press release published today . With Ms. Bhandari's appointment , Timberland now has eight independent directors , equally balanced between men and women . We look forward to Ms. Bhandari's participation and counsel as a member of Timberland's Board of Directors . "