WSBF

Shares of Waterstone Financial, Inc. WSBF have gained 5.3% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 index’s 1.1% decline over the same time frame. Over the past month, the stock has declined 1.6% compared with the S&P 500’s 1.4% decrease. Waterstone Financial reported net income of 49 cents per share for the second quarter of 2026, up 14% from 43 cents per share recorded in the year-ago quarter. The company’s net income of $8.5 million indicated a 10.4% rise from $7.7 million in the year-ago quarter. Net interest income increased 16.8% year over year to $16 million, as total interest income edged up 3.1% to $29.6 million while interest expense declined 9.4% to $13.6 million. The improvement reflected stronger loan yields and lower funding costs, which helped drive net interest margin higher. Waterstone Financial, Inc. price-consensus-eps-surprise-chart | Waterstone Financial, Inc. Quote Waterstone Financial’s Community Banking segment remained the primary contributor to quarterly results, benefiting from stronger margins and deposit growth. Segment pre-tax income increased to $9 million in the second quarter of 2026 from $7.6 million in the prior-year period, representing an 18.2% increase. Net interest income reached a record quarterly level of $15.8 million, up 16.1% from $13.6 million a year earlier. Net interest margin expanded to 3.03% from 2.60% in the prior-year quarter, an increase of 43 basis points. Management attributed the improvement to higher loan yields, lower borrowing costs and reduced deposit costs. Average loans held for investment totaled $1.7 billion during the quarter, slightly above year-ago period's number. Growth in multi-family mortgages offset a decline in single-family mortgages. Average core retail deposits increased 2% year over year to $1.3 billion, supported by growth in money market and demand deposit balances. The Mortgage Banking segment delivered higher loan origination volumes but experienced lower profitability due to weaker sales margins. Segment pre-tax income declined to $1.6 million from $2 million in the second quarter of 2025, a decrease of 20%. Loan originations increased 5.6% year over year to $621.8 million from $588.8 million. However, mortgage banking non-interest income declined slightly to $22.4 million from $22.6 million, while gross margin on loans sold fell to 3.60% from 3.84%. The company noted that secondary market investors remained cautious due to elevated long-term interest rates, pressuring sales margins. CEO William Bruss highlighted the company’s strong quarterly performance, pointing to the highest quarterly net interest margin since the quarter ended Dec. 31, 2022. He also noted that the company increased book value per share by 51 cents during the quarter through continued earnings generation and share repurchases. Waterstone Financial reported improving profitability ratios during the quarter. Annualized return on average assets increased to 1.52% from 1.39% in the second quarter of 2025, while annualized return on average equity improved to 9.65% from 9.04%. Book value per share increased to $19.53 as of June 30, 2026, from $19.03 at Dec. 31, 2025. Asset quality remained stable. Nonperforming assets as a percentage of total assets improved to 0.30% from 0.37% a year earlier, while past-due loans as a percentage of total loans stood at 0.63% compared with 0.69% in the prior-year period. Waterstone continued returning capital to shareholders during the quarter. The company declared a quarterly dividend of 17 cents per common share and repurchased approximately 200,000 shares at a total cost of $3.7 million, including federal excise tax. Overall, the company returned $6.5 million to shareholders through dividends and share buybacks during the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waterstone Financial, Inc. (WSBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WAUWATOSA, Wis., July 23, 2026 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $8.5 million, or $0.49 per diluted share, for the quarter ended June 30, 2026 compared to $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025. Net income totaled $14.5 million for the six months ended June 30, 2026 compared to net income of $10.8 million for the six months ended June 30, 2025. Net income per diluted share was $0.84 for the six months ended June 30, 2026 compared to net income per diluted share of $0.59 for the six months ended June 30, 2025. “We achieved another quarter of strong financial results, as quarterly net interest margin hit 3.03%, its highest level since the quarter ended December 31, 2022,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking segment realized a record quarterly net interest income of $15.8 million, which represented a $2.2 million, or 16.1%, increase compared to the quarter ended June 30, 2025. The increases were primarily due to continued growth in yields on our loans held for investment and a reduction of our cost of funds, driven in part by continued growth in average transaction deposits. The Mortgage Banking segment generated pre-tax income of $1.6 million which represents a decrease of $403,000, or 20.2%, compared to the quarter ended June 30, 2025. The Mortgage Banking segment achieved solid growth in loan origination volumes compared to the prior year, but this growth was offset by softer sales margins. We increased our book value per share $0.51 during the quarter with continued strong earnings and the share repurchase program, prior to declaring our quarterly dividend of $0.17 per share. In total, $6.5 million was returned to shareholders through buybacks and dividends during the quarter.” Highlights of the Quarter Ended June 30, 2026 Waterstone Financial, Inc. (Consolidated) Consolidated net income of Waterstone Financial, Inc. totaled $8.5 million for the quarter ended June 30, 2026 compared to net income of $7.7 million for the quarter ended June 30, 2025. Consolidated return on average assets (annualized) was 1.52% for the quarter ended June 30, 2026 and 1.39% for the quarter ended June 30, 2025. Consolidated return on average equity (annualized) was 9.65% for the quarter ended June 30, 2026 and 9.04% for the quarter ended June 30, 2025. Dividends declared during the quarter ended June 30, 2026 totaled $0.17 per common share. During the quarter ended June 30, 2026, we repurchased approximately 200,000 shares at a cost (including the federal excise tax) of $3.7 million, or $18.40 per share. Nonperforming assets as a percentage of total assets was 0.30% at June 30, 2026, 0.35% at March 31, 2026, and 0.37% at June 30, 2025. Past due loans as a percentage of total loans was 0.63% at June 30, 2026, 0.58% at March 31, 2026, and 0.69% at June 30, 2025. Book value per share was $19.53 at June 30, 2026 and $19.03 at December 31, 2025. Community Banking Segment Pre-tax income totaled $9.0 million for the quarter ended June 30, 2026, which represents a $1.4 million, or 18.2%, increase compared to $7.6 million for the quarter ended June 30, 2025. Net interest income totaled $15.8 million for the quarter ended June 30, 2026, which represents a $2.2 million, or 16.1%, increase compared to $13.6 million for the quarter ended June 30, 2025. Average loans held for investment totaled $1.68 billion during the quarter ended June 30, 2026, which represents an increase of $9.7 million, or 0.6%, compared to $1.67 billion for the quarter ended June 30, 2025. The increase was primarily due to increases in multi-family mortgages offset by a decrease in single-family mortgages. Average loans held for investment decreased $2.1 million compared to $1.68 billion for the quarter ended March 31, 2026. The decrease was primarily due to a decrease in single-family real estate mortgages offset by an increase in multi-family mortgages. See details on average loans by category in the table below. Net interest margin increased 43 basis points to 3.03% for the quarter ended June 30, 2026 compared to 2.60% for the quarter ended June 30, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased six basis points compared to 2.97% for the quarter ended March 31, 2026, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the weighted average cost of deposits. Past due loans at the community banking segment totaled $8.5 million at June 30, 2026, $6.9 million at March 31, 2026, and $8.9 million at June 30, 2025. The segment had a provision for credit losses related to funded loans of $171,000 for the quarter ended June 30, 2026 compared to a negative provision for credit losses related to funded loans of $125,000 for the quarter ended June 30, 2025. The current quarter increase was primarily due to increases in commercial real estate external qualitative factors. The provision for credit losses related to unfunded loan commitments was $77,000 for the quarter ended June 30, 2026 compared to a provision for credit losses related to unfunded loan commitments of $106,000 for the quarter ended June 30, 2025. The provision for credit losses related to unfunded loan commitments for the quarter ended June 30, 2026 was due primarily to an increase of business and commercial real estate loans in the loan pipeline balance at quarter end. The efficiency ratio, a non-GAAP ratio, was 48.16% for the quarter ended June 30, 2026, compared to 50.40% for the quarter ended June 30, 2025. Average core retail deposits (excluding brokered and escrow accounts) totaled $1.34 billion during the quarter ended June 30, 2026, an increase of $26.3 million, or 2.0%, compared to $1.31 billion during the quarter ended June 30, 2025 due primarily to increases in money market and demand deposits balances. Average core retail deposits increased $4.4 million, or 1.3% annualized, compared to $1.33 billion for the quarter ended March 31, 2026. The segment had an average of $86.4 million in brokered certificates of deposit during the quarter ended June 30, 2026 compared to $72.5 million during the quarter ended June 30, 2025. Total compensation, payroll taxes, and other employee benefits increased $585,000 or 11.6%, to $5.6 million during the quarter ended June 30, 2026 compared to $5.0 million during the quarter ended June 30, 2025. The increase primarily related to increased health insurance expense and ESOP expense as the average market price per share increased compared to the prior year. Mortgage Banking Segment Pre-tax income totaled $1.6 million for the quarter ended June 30, 2026, compared to a pre-tax income of $2.0 million for the quarter ended June 30, 2025. Loan originations increased $33.0 million, or 5.6%, to $621.8 million during the quarter ended June 30, 2026, compared to $588.8 million during the quarter ended June 30, 2025. Origination volume relative to purchase activity accounted for 88.6% of originations for the quarter ended June 30, 2026 compared to 91.7% of total originations for the quarter ended June 30, 2025. Mortgage banking non-interest income decreased $280,000, or 1.2%, to $22.4 million for the quarter ended June 30, 2026, compared to $22.6 million for the quarter ended June 30, 2025. Gross margin on loans sold totaled 3.60% for the quarter ended June 30, 2026, compared to 3.84% for the quarter ended June 30, 2025. This decrease was driven by lower sales margins, as secondary market investors remained concerned about elevated long-term rates. Total compensation, payroll taxes, and other employee benefits increased $253,000 or 1.6%, to $16.6 million during the quarter ended June 30, 2026 compared to $16.3 million during the quarter ended June 30, 2025. The increase primarily related to increased commission expense, manager pay expense, production incentive expense, and salary expense offset by a decrease in health insurance expense. About Waterstone Financial, Inc.Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states. With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide. For more information about WaterStone Bank, go to wsbonline.com. Forward-Looking StatementsThis press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release. Non-GAAP Financial Measures Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhances comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. Contact: Mark R. GerkeChief Financial [email protected]

Shares of Waterstone Financial, Inc. WSBF have gained 1.3% since the company reported its earnings for the quarter ended March 31, 2026, modestly outperforming the S&P 500 index’s 0.6% increase over the same period. However, the stock has lagged significantly over a longer horizon, rising just 0.2% in the past month compared with the S&P 500’s 13.8% advance. Waterstone Financial reported net income of 34 cents per share for the first quarter of 2026, doubling from 17 cents per share in the year-ago period. The improvement was supported by higher net interest income, which rose to $15.5 million from $12.6 million a year earlier, reflecting an increase of roughly 23%. Total noninterest income also grew to $20.2 million from $17.1 million, driven largely by stronger mortgage banking income. Waterstone Financial reported net income of $6 million, which doubled from $3 million in the year-ago period. Overall, the results point to a broad-based improvement in both core banking and mortgage operations compared with the prior year. Waterstone Financial, Inc. price-consensus-eps-surprise-chart | Waterstone Financial, Inc. Quote The company’s community banking segment delivered solid growth, with pre-tax income rising 23.7% year over year to $7.5 million. Net interest income in this segment climbed 22.8% to $15.2 million, supported by a 50-basis-point expansion in net interest margin to 2.97%. Average loans held for investment were relatively stable at $1.7 billion, while core retail deposits increased 4.3% year over year to $1.3 billion, reflecting strength in funding growth. Efficiency improved notably, with the efficiency ratio declining to 52.48% from 59.66% a year earlier. In the mortgage banking segment, performance rebounded sharply. The segment posted a modest pre-tax profit of $0.02 million compared with a $2.2 million loss in the prior-year quarter. Loan originations increased 31.1% to $508.3 million, and mortgage banking noninterest income rose 21.5% to $19.1 million. However, margins on loans sold compressed to 3.65% from 3.98%, indicating some pressure on profitability despite higher volumes. Management attributed the quarter’s performance to net interest margin expansion and stronger mortgage origination volumes. According to CEO William Bruss, higher loan yields and reduced funding costs were key contributors to margin improvement. Periodic declines in interest rates during the quarter also supported mortgage activity, boosting origination volumes and segment profitability. At the same time, the company increased its allowance for credit losses due to external qualitative factors, even as asset quality metrics remained stable. Nonperforming assets were 0.35% of total assets, unchanged from a year earlier, while past-due loans improved to 0.58% of total loans from 0.67%. These metrics suggest steady credit quality despite a more cautious provisioning stance. Waterstone Financial’s total assets stood at $2.3 billion as of March 31, 2026. Book value per share increased to $19.19 from $19.03 at the end of 2025, reflecting retained earnings and capital management efforts. The company continued to return capital to shareholders through dividends and share repurchases. During the quarter, it repurchased approximately 246,000 shares for $4.4 million and declared a quarterly dividend of 17 cents per share, contributing to a total capital return of $7.3 million. Subsequent to the quarter, Waterstone Financial announced an expansion of its share repurchase program, authorizing the buyback of up to an additional 2 million shares. Combined with remaining authorization, this represents approximately 11.9% of outstanding shares, signaling continued emphasis on shareholder returns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waterstone Financial, Inc. (WSBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WAUWATOSA, Wis., April 23, 2026 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $6.0 million, or $0.34 per diluted share, for the quarter ended March 31, 2026, compared to $3.0 million, or $0.17 per diluted share, for the quarter ended March 31, 2025. Net income totaled $7.7 million, or $0.44 per diluted share, for the quarter ended December 31, 2025. “We started 2026 on a strong note due to continued net interest margin expansion and increased loan origination volumes at the mortgage banking segment,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The community banking segment had a record first quarter net interest income of $15.2 million, which represented a $2.8 million, or 22.8%, increase compared to the quarter ended March 31, 2025, as net interest margin grew to 2.97% for the quarter. The increases were primarily due to continued growth in yield on our loans held for investment and reduction of our cost of funds. We did increase our allowance for credit losses due to certain external qualitative factors even though asset quality metrics continue to stay strong. The mortgage banking segment increased pre-tax income $2.2 million due to an increase in loan origination activity as rates decreased periodically throughout the quarter. We increased our book value per share $0.33 during the quarter with continued strong earnings and the share repurchase program, prior to declaring an increased quarterly dividend of $0.17 per share. In total, $7.3 million was returned to shareholders through buybacks and dividends in the quarter.” Highlights of the Quarter Ended March 31, 2026 Waterstone Financial, Inc. (Consolidated) Consolidated net income of Waterstone Financial, Inc. totaled $6.0 million for the quarter ended March 31, 2026 compared to net income of $3.0 million for the quarter ended December 31, 2025. Consolidated return on average assets (annualized) was 1.10% for the quarter ended March 31, 2026 and 0.57% for the quarter ended March 31, 2025. Consolidated return on average equity (annualized) was 6.88% for the quarter ended March 31, 2026 and 3.61% for the quarter ended March 31, 2025. Dividends declared during the quarter ended March 31, 2026 totaled $0.17 per common share. During the quarter ended March 31, 2026, we repurchased approximately 246,000 shares at a cost (including the federal excise tax) of $4.4 million, or $17.89 per share. Nonperforming assets as a percentage of total assets was 0.35% at March 31, 2026, 0.29% at December 31, 2025, and 0.35% at March 31, 2025. Past due loans as a percentage of total loans was 0.58% at March 31, 2026, 0.86% at December 31, 2025, and 0.67% at March 31, 2025. Book value per share was $19.19 at March 31, 2026 and $19.03 at December 31, 2025. Community Banking Segment Pre-tax income totaled $7.5 million for the quarter ended March 31, 2026, which represents a $1.4 million, or 23.7%, increase compared to $6.1 million for the quarter ended March 31, 2025. Net interest income totaled $15.2 million for the quarter ended March 31, 2026, which represents a $2.8 million, or 22.8%, increase compared to $12.4 million for the quarter ended March 31, 2025. Average loans held for investment totaled $1.68 billion during the quarter ended March 31, 2026, which represents an increase of $3.8 million, or 0.2%, compared to $1.67 billion for the quarter ended March 31, 2025. The increase was primarily due to increases in multi-family, construction, and commercial real estate mortgages offset by a decrease in single-family mortgages. Average loans held for investment decreased $33.3 million compared to $1.71 billion for the quarter ended December 31, 2025. The decrease was primarily due to a decrease in single-family real estate mortgages. Net interest margin increased 50 basis points to 2.97% for the quarter ended March 31, 2026 compared to 2.47% for the quarter ended March 31, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased eight basis points compared to 2.89% for the quarter ended December 31, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Past due loans at the community banking segment totaled $6.9 million at March 31, 2026, $10.4 million at December 31, 2025, and $7.6 million at March 31, 2025. The segment had a provision for credit losses related to funded loans of $240,000 for the quarter ended March 31, 2026 compared to a negative provision for credit losses related to funded loans of $314,000 for the quarter ended March 31, 2025. The current quarter increase was primarily due to increases in multi-family and construction loan balances along with an increase in multi-family external qualitative factors. The provision for credit losses related to unfunded loan commitments was $44,000 for the quarter ended March 31, 2026 compared to a negative provision for credit losses related to unfunded loan commitments of $204,000 for the quarter ended March 31, 2025. The provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2026 was due primarily to an increase of the loan pipeline balance at quarter end. The efficiency ratio, a non-GAAP ratio, was 52.48% for the quarter ended March 31, 2026, compared to 59.66% for the quarter ended March 31, 2025. Average core retail deposits (excluding brokered and escrow accounts) totaled $1.33 billion during the quarter ended March 31, 2026, an increase of $54.8 million, or 4.3%, compared to $1.28 billion during the quarter ended March 31, 2025 due primarily to increases in money market and demand deposits balances. Average core retail deposits increased $8.7 million, or 2.6% annualized, compared to $1.32 billion for the quarter ended December 31, 2025. The segment had an average of $110.2 million in brokered certificate of deposits during the quarter ended March 31, 2026 compared to $97.1 million during the quarter ended March 31, 2025. Mortgage Banking Segment Pre-tax income totaled $22,000 for the quarter ended March 31, 2026, compared to a pre-tax loss of $2.2 million for the quarter ended March 31, 2025. Loan originations increased $120.6 million, or 31.1%, to $508.3 million during the quarter ended March 31, 2026, compared to $387.7 million during the quarter ended March 31, 2025. Origination volume relative to purchase activity accounted for 73.9% of originations for the quarter ended March 31, 2026 compared to 87.5% of total originations for the quarter ended March 31, 2025. Mortgage banking non-interest income increased $3.4 million, or 21.5%, to $19.1 million for the quarter ended March 31, 2026, compared to $15.7 million for the quarter ended March 31, 2025. Gross margin on loans sold totaled 3.65% for the quarter ended March 31, 2026, compared to 3.98% for the quarter ended March 31, 2025. Total compensation, payroll taxes and other employee benefits increased $2.4 million or 20.1%, to $14.5 million during the quarter ended March 31, 2026 compared to $12.1 million during the quarter ended March 31, 2025. The increase primarily related to increased commission expense, manager pay expense, production incentive expense, and salary expense. Professional fees decreased $1.2 million, or 88.9%, to $152,000 for the quarter ended March 31, 2026, compared to $1.4 million for the quarter ended March 31, 2025. The decrease was primarily related to legal services and the finalization of a settlement during the three months ended March 31, 2025. About Waterstone Financial, Inc. Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states. With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide. For more information about WaterStone Bank, go to wsbonline.com. Forward-Looking Statements This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release. Non-GAAP Financial Measures Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. (1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations. Contact: Mark R. Gerke Chief Financial Officer 414-459-4012 [email protected]

This article first appeared on GuruFocus. Release Date: April 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Waterstone Financial Inc (NASDAQ:WSBF) reported a net income of $12.6 million for Q1 2026, indicating a solid financial performance. The company completed a digital banking conversion for personal accounts, enhancing security and customer experience. Net interest income increased by 11% year-over-year, showcasing strong core banking business performance. The institutional banking team added in January is showing strong momentum, positioning the company for loan and deposit growth. Waterstone Financial Inc (NASDAQ:WSBF) plans to open a new branch in Pawtucket, Rhode Island, expanding its presence in the northern part of the state. Net income decreased from $16 million in the previous quarter to $12.6 million in Q1 2026. Non-interest income was down by 6% compared to Q4, indicating challenges in generating revenue outside of interest income. Total loans decreased by 2% from December 31, reflecting a contraction in the loan portfolio. Non-accruing loans increased by $27.5 million due to two commercial real estate office loans, impacting credit quality. The company recognized a $4 million provision for credit losses, largely due to increased reserves on the two CRE office loans. Warning! GuruFocus has detected 8 Warning Signs with WSBF. Is WSBF fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the two office loans that were moved to non-accrual status, including their geography and specifics on what led to the downgrades? A: Both loans were current until March when triggering events led to their non-accrual status. They have strong sponsors, and we are engaged with them on next steps. One loan matured, while the other matures next year. We have put reserves in place to reflect potential losses, but we expect resolution within the next few quarters. - Bill Ray, Senior Executive Vice President and Chief Risk Officer. Q: Were there any general reserves allocated to office, or were they specific to these two loans? How do you view the risk in the rest of the office portfolio? A: Our office exposure has decreased from $300 million to $230 million with minimal charge-offs. We use qualitative factors within the CECL methodology to address office issues. We are cautious but believe the scale of problems is manageable from an earnings and reserving standpoint. - Bill Ray, Senior Executive Vice President and Chief Risk Officer. Q: With the contraction in loan growth this quarter, can you update us on your growth expectations? A: We are sticking with our mid-single-digit growth projection for the year. Most growth will come from our core C&I business and institutional banking, with high single-digit growth expected from C&I. The institutional banking group is expected to contribute significantly to loan and deposit growth. - Ned Handy, Chairman and Chief Executive Officer. Q: What are your thoughts on margin expansion for the rest of the year? A: The swap termination will add 9 basis points in Q2 and another 4 basis points in Q3. We expect modest expansion by quarter, with the fourth quarter margin projected between $275 million to $280 million. - Ron Osberg, Senior Executive Vice President, Chief Financial Officer and Treasurer. Q: Can you provide insights into your approach to buybacks given your strong capital levels? A: We consider buybacks regularly. While our dividend payout ratio is high, we maintain a buyback program but are not currently planning to repurchase shares. - Ron Osberg, Senior Executive Vice President, Chief Financial Officer and Treasurer. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Shares of Waterstone Financial, Inc. WSBF have gained 7.2% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 0.4% decline over the same time frame. Over the past month, the stock has gained 12.4% compared with the S&P 500’s 0.8% growth. Waterstone Financial reported net income of 44 cents per share for the fourth quarter of 2025, up 57.1% from 28 cents per share in the year-ago period. The company also posted 22.4% year-over-year growth in net interest income, reaching $15.7 million. Total noninterest income rose to $21.5 million from $19 million in the prior-year quarter. A negative provision for credit losses of $0.6 million, compared to an expense of $0.4 million a year earlier, further bolstered the bottom line. Waterstone Financial reported net income of $7.7 million for the fourth quarter, up from $5.2 million in the year-ago period. Waterstone Financial, Inc. price-consensus-eps-surprise-chart | Waterstone Financial, Inc. Quote The Community Banking segment was a primary driver of the improved performance. Pre-tax income in this segment surged to $9.1 million, a 35.5% increase from the same quarter in 2024. Net interest income rose 20.4% to $15.5 million, as the segment benefited from a widening net interest margin, which grew to 2.89% from 2.42% a year earlier. The improvement was primarily driven by increased loan yields and reduced borrowing and deposit costs. Loan growth was relatively modest, with average loans held for investment increasing 1.8% to $1.7 billion. However, year-end balances fell $39.3 million due to several significant construction loan payoffs. Asset quality metrics remained stable, with past due loans representing 0.86% of total loans, slightly below the 0.90% figure a year ago. The efficiency ratio improved to 49.2% from 51.5% in the fourth quarter of 2024, reflecting greater cost efficiency. Core retail deposits rose 3.8% year over year to $1.3 billion, driven by higher balances in money market and certificate of deposit accounts. The Mortgage Banking segment recorded a pre-tax income of $0.9 million in the fourth quarter, reversing a loss of $0.6 million in the same quarter of the previous year. Loan originations increased 13.6% year over year to $534.6 million, supported by periodic declines in mortgage rates that spurred refinancing activity. Refinances accounted for 21.1% of total originations during the quarter, up from 17.9% in the same period in 2024. Mortgage Banking income rose to $20.2 million, up 15.6% from $17.5 million a year ago. The gross margin on loans sold improved modestly to 3.8% compared to 3.7% in the fourth quarter of 2024. Compensation and employee benefit expenses increased 12.4% to $15.5 million, mainly due to higher commission payments and health insurance costs. Chief executive officer William Bruss emphasized the company’s strong finish to 2025, highlighting the quarter as the best for pre-tax income since June 2022. He credited the performance to improvements in net interest margin, deposit growth and asset quality. Bruss noted that the company experienced net recoveries during the quarter, which supported a release from the allowance for credit losses. The CEO also commented on the positive momentum in the Mortgage Banking segment, which returned to profitability for the third consecutive quarter. Furthermore, he noted that book value per share increased by 53 cents during the quarter to $19.03, aided by strong earnings, a share repurchase program and improved investment security valuations. Several interrelated factors contributed to the favorable quarterly results. A key driver was the reduction in funding costs, including lower interest rates on deposits and borrowings, which supported margin expansion. Simultaneously, the company benefited from increased yields on its loan portfolio, particularly in multi-family and commercial real estate mortgages. Asset quality remained strong, with the company reporting another quarter of net recoveries. The improved credit environment allowed for a release of loan loss reserves, which further boosted earnings. The company also maintained tight control over operating expenses, especially in its community banking operations, contributing to improved efficiency metrics. Waterstone Financial reported net income of $26.4 million in 2025, or $1.48 per share, up from $18.7 million, or $1.01 per share, in 2024, a 46.5% increase in earnings per share. Net interest income for the year rose 22.9% to $56.7 million from $46.2 million, while noninterest income totaled $85.2 million, slightly down from $89.3 million in the prior year. Management’s tone suggested cautious optimism heading into 2026, particularly regarding continued margin strength and stable credit conditions. The company’s capital return strategy, including dividends and share repurchases, is expected to continue, given the ongoing generation of solid earnings. In the fourth quarter, Waterstone Financial returned $5.3 million to shareholders through a combination of dividends and stock buybacks. The company repurchased approximately 174,000 shares at an average price of $15.62, totaling $2.7 million. Additionally, it declared a quarterly dividend of 15 cents per share, consistent with prior quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waterstone Financial, Inc. (WSBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Waterstone Financial (NASDAQ:WSBF). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That makes EPS growth an attractive quality for any company. Waterstone Financial managed to grow EPS by 16% per year, over three years. That's a pretty good rate, if the company can sustain it. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It's noted that Waterstone Financial's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. EBIT margins for Waterstone Financial remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 5.7% to US$143m. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. View our latest analysis for Waterstone Financial While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Waterstone Financial's balance sheet strength, before getting too excited. It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Waterstone Financial followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at US$19m. That's a lot of money, and no small incentive to work hard. That amounts to 6.0% of the company, demonstrating a degree of high-level alignment with shareholders. While it's always good to see some strong conviction in the company from insiders through heavy investment, it's also important for shareholders to ask if management compensation policies are reasonable. A brief analysis of the CEO compensation suggests they are. The median total compensation for CEOs of companies similar in size to Waterstone Financial, with market caps between US$200m and US$800m, is around US$2.3m. The Waterstone Financial CEO received total compensation of just US$715k in the year to December 2024. That's clearly well below average, so at a glance that arrangement seems generous to shareholders and points to a modest remuneration culture. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, Waterstone Financial is a growing business, which is encouraging. Earnings growth might be the main attraction for Waterstone Financial, but the fun does not stop there. With company insiders aligning themselves considerably with the company's success and modest CEO compensation, there's no arguments that this is a stock worth looking into. It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Waterstone Financial (at least 1 which is potentially serious) , and understanding these should be part of your investment process. Although Waterstone Financial certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

WAUWATOSA, Wisc., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.7 million, or $0.44 per diluted share, for the quarter ended December 31, 2025 compared to $5.2 million, or $0.28 per diluted share, for the quarter ended December 31, 2024. Net income totaled $7.9 million, or $0.45 per diluted share, for the quarter ended September 30, 2025. Net income per diluted share was $1.48 for the twelve months ended December 31, 2025 compared to net income per diluted share of $1.01 for the twelve months ended December 31, 2024. “We ended 2025 on a high note as net interest margin, deposit growth, and strong asset quality metrics resulted in our best quarterly pretax income since June 2022,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking segment achieved growth in net interest income of $2.6 million, or 20.4%, compared to the quarter ended December 31, 2024 as net interest margin grew to 2.89% for the quarter. The increases were primarily due to growth in yield on our loans held for investment and a reduction of our cost of funds. Strong asset quality and another quarter of net recoveries resulted in a release from our allowance for credit losses. The Mortgage Banking segment recorded a third straight quarter of pre-tax income due to an increase in refinance activity as rates decreased periodically throughout the quarter. We increased our book value per share $0.53 during the quarter with continued strong earnings, share repurchase program, and improving valuations on our investment security portfolio, prior to declaring a quarterly dividend of $0.15 per share. In total, $5.3 million was returned to shareholders through buybacks and dividends in the quarter.” Highlights of the Quarter Ended December 31, 2025 Waterstone Financial, Inc. (Consolidated) Consolidated net income of Waterstone Financial, Inc. totaled $7.7 million for the quarter ended December 31, 2025 compared to net income of $5.2 million for the quarter ended December 31, 2024. Consolidated return on average assets (annualized) was 1.35% for the quarter ended December 31, 2025 and 0.94% for the quarter ended December 31, 2024. Consolidated return on average equity (annualized) was 8.74% for the quarter ended December 31, 2025 and 6.05% for the quarter ended December 31, 2024. Dividends declared during the quarter ended December 31, 2025 totaled $0.15 per common share. During the quarter ended December 31, 2025, we repurchased approximately 174,000 shares at a cost (including the federal excise tax) of $2.7 million, or $15.62 per share. Nonperforming assets as a percentage of total assets was 0.29% at December 31, 2025, 0.27% at September 30, 2025, and 0.28% at December 31, 2024. Past due loans as a percentage of total loans was 0.86% at December 31, 2025, 0.50% at September 30, 2025, and 0.90% at December 31, 2024. Book value per share was $19.03 at December 31, 2025 and $17.53 at December 31, 2024. Community Banking Segment Pre-tax income totaled $9.1 million for the quarter ended December 31, 2025, which represents a $2.4 million, or 35.5%, increase compared to $6.7 million for the quarter ended December 31, 2024. Net interest income totaled $15.5 million for the quarter ended December 31, 2025, which represents a $2.6 million, or 20.4%, increase compared to $12.9 million for the quarter ended December 31, 2024. Average loans held for investment totaled $1.71 billion during the quarter ended December 31, 2025, which represents an increase of $30.3 million, or 1.8%, compared to the quarter ended December 31, 2024. The increase was primarily due to increases in multi-family and commercial real estate mortgages offset by a decrease in single-family mortgages. Average loans held for investment increased $30.1 million compared to $1.68 billion for the quarter ended September 30, 2025. The increase was primarily due to increases in multi-family and commercial real estate mortgages. The ending loan balance decreased $39.3 million from September 30, 2025 due to a few significant construction loan payoffs at year end. Net interest margin increased 47 basis points to 2.89% for the quarter ended December 31, 2025 compared to 2.42% for the quarter ended December 31, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased 13 basis points compared to 2.76% for the quarter ended September 30, 2025, which was primarily driven by decreases in cost of borrowings and weighted average cost of deposits. Past due loans at the community banking segment totaled $10.4 million at December 31, 2025, $6.8 million at September 30, 2025, and $12.8 million at December 31, 2024. The segment had a negative provision for credit losses related to funded loans of $252,000 for the quarter ended December 31, 2025 compared to a provision for credit losses related to funded loans of $61,000 for the quarter ended December 31, 2024. The current quarter decrease was primarily due to decreases in multi-family and construction loan balances. The negative provision for credit losses related to unfunded loan commitments was $266,000 for the quarter ended December 31, 2025 compared to a provision for credit losses related to unfunded loan commitments of $270,000 for the quarter ended December 31, 2024. The negative provision for credit losses related to unfunded loan commitments for the quarter ended December 31, 2025 was due primarily to decreases in the construction loans waiting to be funded and the loan pipeline compared to the prior quarter end. The efficiency ratio, a non-GAAP ratio, was 49.23% for the quarter ended December 31, 2025, compared to 51.54% for the quarter ended December 31, 2024. Average core retail deposits (excluding brokered and escrow accounts) totaled $1.32 billion during the quarter ended December 31, 2025, an increase of $49.0 million, or 3.8%, compared to $1.27 billion during the quarter ended December 31, 2024 due primarily to increases in money market and certificate of deposits balances. Average deposits increased $11.9 million, or 3.6% annualized, compared to $1.31 billion for the quarter ended September 30, 2025. The segment had an average of $105.5 million in brokered certificate of deposits during the quarter ended December 31, 2025 compared to $59.3 million during the quarter ended December 31, 2024. Mortgage Banking Segment Pre-tax income totaled $900,000 for the quarter ended December 31, 2025, compared to a pretax loss of $625,000 for the quarter ended December 31, 2024. Loan originations increased $64.0 million, or 13.6%, to $534.6 million during the quarter ended December 31, 2025, compared to $470.7 million during the quarter ended December 31, 2024. Origination volume relative to purchase activity accounted for 78.9% of originations for the quarter ended December 31, 2025 compared to 82.1% of total originations for the quarter ended December 31, 2024. Mortgage banking non-interest income increased $2.7 million, or 15.6%, to $20.2 million for the quarter ended December 31, 2025, compared to $17.5 million for the quarter ended December 31, 2024. Gross margin on loans sold totaled 3.80% for the quarter ended December 31, 2025, compared to 3.74% for the quarter ended December 31, 2024. Total compensation, payroll taxes and other employee benefits increased $1.7 million or 12.4%, to $15.5 million during the quarter ended December 31, 2025 compared to $13.8 million during the quarter ended December 31, 2024. The increase primarily related to increased commission expense, manager pay expense, bonus expense, and health insurance expense. About Waterstone Financial, Inc. Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states. With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide. For more information about WaterStone Bank, go to wsbonline.com. Forward-Looking Statements This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release. Non-GAAP Financial Measures Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. (1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations. Contact: Mark R. Gerke Chief Financial Officer 414-459-4012 [email protected]