Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Twelve Months Ended December 31, 2025

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Waterstone Financial (NASDAQ: WSBF) reported Q4 2025 net income of $7.7 million ($0.44 diluted EPS) and FY 2025 diluted EPS of $1.48. Quarterly return on average assets was 1.35% and return on average equity was 8.74%. Net interest margin rose to 2.89%. The company repurchased ~174,000 shares for $2.7 million and declared a $0.15 quarterly dividend, returning $5.3 million to shareholders in the quarter. Book value per share was $19.03 at December 31, 2025.

Positive

Net income rose to $7.7M in Q4 2025 (up from $5.2M, +48%)
Net interest income +20.4% YoY to $15.5M in Q4 2025
Net interest margin increased 47 bps to 2.89% in Q4 2025
Shareholder returns of $5.3M in Q4 via buybacks and dividends
Mortgage originations +13.6% YoY to $534.6M in Q4 2025

Negative

Past due loans rose to 0.86% of total loans at 12/31/25 (up from 0.50% at 9/30/25)
Ending loan balance declined $39.3M from 9/30/25 due to construction loan payoffs
Employee costs increased 12.4% YoY, raising compensation-related expense pressure

News Market Reaction

-2.69%

5 alerts

-2.69% News Effect

+3.9% Peak in 5 hr 47 min

-$9M Valuation Impact

$341M Market Cap

1.0x Rel. Volume

On the day this news was published, WSBF declined 2.69%, reflecting a moderate negative market reaction. Argus tracked a peak move of +3.9% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $9M from the company's valuation, bringing the market cap to $341M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $7.7 million Q4 2025 EPS (diluted): $0.44 per share FY 2025 EPS (diluted): $1.48 per share +5 more

8 metrics

Q4 2025 net income $7.7 million Quarter ended December 31, 2025

Q4 2025 EPS (diluted) $0.44 per share Quarter ended December 31, 2025

FY 2025 EPS (diluted) $1.48 per share Twelve months ended December 31, 2025 vs $1.01 in 2024

Net interest margin 2.89% Quarter ended December 31, 2025; up from 2.42% a year ago

Capital returned $5.3 million Returned to shareholders via buybacks and dividends in Q4 2025

Book value per share $19.03 At December 31, 2025; up from $17.53 at December 31, 2024

Community Banking pre-tax income $9.1 million Q4 2025; up 35.5% from $6.7 million in Q4 2024

Mortgage loan originations $534.6 million Q4 2025; up $64.0 million or 13.6% vs Q4 2024

Market Reality Check

Price: $18.09 Vol: Volume 26,535 vs 20-day a...

low vol

$18.09 Last Close

Volume Volume 26,535 vs 20-day average 43,522 (relative volume 0.61x) shows muted trading ahead of/around the release. low

Technical Price $17.50 trades above 200-day MA at $14.59 and about 5.96% below the 52-week high of $18.61.

Peers on Argus

WSBF edged down 0.28% while close peers were mixed: TSBK up 2.66%, CHMG up 2.54%...

WSBF edged down 0.28% while close peers were mixed: TSBK up 2.66%, CHMG up 2.54%, FDBC down 1.0%, FRST slightly down 0.07%, AVBH up 0.22%. Moves do not point to a unified sector trend.

Common Catalyst One peer, FDBC, also reported 2025 financial results, indicating regional banks are in earnings-reporting season.

Historical Context

3 past events · Latest: Dec 18 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	Dividend declaration	Positive	-2.8%	Announced regular quarterly cash dividend of $0.15 per common share.
Oct 23	Earnings release	Positive	+3.4%	Reported stronger Q3 2025 earnings, higher EPS, and improved net interest margin.
Sep 23	Dividend declaration	Positive	-0.6%	Declared regular quarterly dividend of $0.15 per common share.

Pattern Detected

Recent dividend announcements saw small negative price reactions, while the last earnings release was followed by a positive move.

Recent Company History

Over the past few months, Waterstone Financial has focused on returning capital and delivering improving earnings. A Q3 2025 results release on Oct 23, 2025 showed higher net income, EPS, and net interest margin, and the stock rose 3.44%. Routine quarterly dividend declarations on Sep 23, 2025 and Dec 18, 2025 at $0.15 per share coincided with modest share price declines of -0.62% and -2.79%. Today’s full-year and Q4 2025 results continue that earnings-focused narrative with ongoing capital returns.

Market Pulse Summary

This announcement details improved profitability and capital returns for 2025. Q4 net income of $7.7...

Analysis

This announcement details improved profitability and capital returns for 2025. Q4 net income of $7.7 million, diluted EPS of $0.44, and full-year EPS of $1.48 highlight earnings momentum, supported by a higher net interest margin of 2.89%. Book value per share rose to $19.03 while $5.3 million was returned to shareholders via dividends and buybacks. Investors may watch future loan growth, credit quality metrics, and mortgage banking volumes as key drivers of sustainability.

Key Terms

net interest margin, allowance for credit losses, efficiency ratio, nonperforming assets, +1 more

5 terms

net interest margin financial

"net interest margin grew to 2.89% for the quarter."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

"resulted in a release from our allowance for credit losses."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

efficiency ratio financial

"The efficiency ratio, a non-GAAP ratio, was 49.23% for the quarter"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

nonperforming assets financial

"Nonperforming assets as a percentage of total assets was 0.29%"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

gross margin financial

"Gross margin on loans sold totaled 3.80% for the quarter"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

AI-generated analysis. Not financial advice.

01/28/2026 - 04:15 PM

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.


WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	For The Three Months Ended December 31,					For The Twelve Months Ended December 31,
	2025			2024		2025			2024
	(In Thousands, except per share amounts)
Interest income:
Loans	$	27,175		$	26,391	$	104,753		$	103,066
Mortgage-related securities		1,406			1,136		5,215			4,496
Debt securities, federal funds sold and short-term investments		1,531			1,525		6,140			5,606
Total interest income		30,112			29,052		116,108			113,168
Interest expense:
Deposits		10,693			11,410		43,519			40,573
Borrowings		3,708			4,807		15,855			26,427
Total interest expense		14,401			16,217		59,374			67,000
Net interest income		15,711			12,835		56,734			46,168
Provision (credit) for credit losses		(558	)		367		(1,394	)		(168	)
Net interest income after provision (credit) for loan losses		16,269			12,468		58,128			46,336
Noninterest income:
Service charges on loans and deposits		461			626		2,085			2,060
Increase in cash surrender value of life insurance		540			407		2,561			1,969
Mortgage banking income		20,063			17,365		79,225			83,565
Other		395			607		1,316			1,708
Total noninterest income		21,459			19,005		85,187			89,302
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		20,917			18,423		79,619			81,078
Occupancy, office furniture, and equipment		1,824			1,579		7,194			7,573
Advertising		696			727		2,877			3,554
Data processing		1,206			1,233		4,941			4,978
Communications		232			224		973			922
Professional fees		219			1,114		2,835			3,184
Real estate owned		(298	)		12		(312	)		26
Loan processing expense		571			486		2,996			3,090
Other		2,310			1,469		8,747			7,231
Total noninterest expenses		27,677			25,267		109,870			111,636
Income before income taxes		10,051			6,206		33,445			24,002
Income tax expense		2,338			996		7,043			5,314
Net income	$	7,713		$	5,210	$	26,402		$	18,688
Income per share:
Basic	$	0.44		$	0.28	$	1.48		$	1.01
Diluted	$	0.44		$	0.28	$	1.48		$	1.01
Weighted average shares outstanding:
Basic		17,466			18,335		17,837			18,556
Diluted		17,507			18,396		17,867			18,589


WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31,			December 31,
	2025			2024
	(Unaudited)
Assets	(In Thousands, except per share amounts)
Cash	$	63,560		$	35,182
Federal funds sold		7,255			4,302
Interest-earning deposits in other financial institutions and other short-term investments		292			277
Cash and cash equivalents		71,107			39,761
Securities available for sale (at fair value)		230,848			208,549
Loans held for sale (at fair value)		145,057			135,909
Loans receivable		1,675,552			1,680,576
Less: Allowance for credit losses ("ACL") - loans		17,478			18,247
Loans receivable, net		1,658,074			1,662,329

Office properties and equipment, net		18,855			19,389
Federal Home Loan Bank stock (at cost)		19,804			20,295
Cash surrender value of life insurance		77,353			74,612
Real estate owned, net		424			505
Prepaid expenses and other assets		37,985			48,259
Total assets	$	2,259,507		$	2,209,608

Liabilities and Shareholders' Equity
Liabilities:
Demand deposits	$	175,595		$	171,115
Money market and savings deposits		329,031			283,243
Time deposits		932,646			905,539
Total deposits		1,437,272			1,359,897

Borrowings		412,258			446,519
Advance payments by borrowers for taxes		2,996			5,630
Other liabilities		57,589			58,427
Total liabilities		1,910,115			1,870,473

Shareholders' equity:
Preferred stock		-			-
Common stock		184			193
Additional paid-in capital		78,014			91,214
Retained earnings		292,957			277,196
Unearned ESOP shares		(9,496	)		(10,682	)
Accumulated other comprehensive loss, net of taxes		(12,267	)		(18,786	)
Total shareholders' equity		349,392			339,135
Total liabilities and shareholders' equity	$	2,259,507		$	2,209,608

Share Information
Shares outstanding		18,360			19,343
Book value per share	$	19.03		$	17.53


WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
	(Dollars in Thousands, except per share amounts)
Condensed Results of Operations:
Net interest income	$	15,711		$	14,739		$	13,708		$	12,576		$	12,835
Provision (credit) for credit losses		(558	)		(269	)		(9	)		(558	)		367
Total noninterest income		21,459			22,302			24,329			17,097			19,005
Total noninterest expense		27,677			27,466			28,377			26,350			25,267
Income before income taxes		10,051			9,844			9,669			3,881			6,206
Income tax expense		2,338			1,918			1,942			845			996
Net income	$	7,713		$	7,926		$	7,727		$	3,036		$	5,210
Income per share – basic	$	0.44		$	0.45		$	0.43		$	0.17		$	0.28
Income per share – diluted	$	0.44		$	0.45		$	0.43		$	0.17		$	0.28
Dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15

Performance Ratios (annualized):
Return on average assets - QTD		1.35	%		1.42	%		1.39	%		0.57	%		0.94	%
Return on average equity - QTD		8.74	%		9.14	%		9.04	%		3.61	%		6.05	%
Net interest margin - QTD		2.89	%		2.76	%		2.60	%		2.47	%		2.42	%

Return on average assets - YTD		1.19	%		1.13	%		0.99	%		0.57	%		0.84	%
Return on average equity - YTD		7.62	%		7.23	%		6.32	%		3.61	%		5.48	%
Net interest margin - YTD		2.68	%		2.61	%		2.54	%		2.47	%		2.17	%

Asset Quality Ratios:
Past due loans to total loans		0.86	%		0.50	%		0.69	%		0.67	%		0.90	%
Nonaccrual loans to total loans		0.37	%		0.35	%		0.49	%		0.45	%		0.34	%
Nonperforming assets to total assets		0.29	%		0.27	%		0.37	%		0.35	%		0.28	%
Allowance for credit losses - loans to loans receivable		1.04	%		1.03	%		1.07	%		1.08	%		1.09	%


WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
Average balances	(Dollars in Thousands)
Interest-earning assets
Loans receivable and held for sale	$	1,842,908		$	1,809,600		$	1,812,065		$	1,768,617		$	1,819,574
Mortgage related securities		180,434			178,063			173,220			170,947			168,521
Debt securities, federal funds sold and short-term investments		133,781			131,165			131,710			123,004			124,658
Total interest-earning assets		2,157,123			2,118,828			2,116,995			2,062,568			2,112,753
Noninterest-earning assets		107,462			103,434			105,382			105,030			100,627
Total assets	$	2,264,585		$	2,222,262		$	2,222,377		$	2,167,598		$	2,213,380

Interest-bearing liabilities
Demand accounts	$	92,292		$	90,015		$	89,548		$	87,393		$	92,247
Money market, savings, and escrow accounts		339,368			334,300			320,908			300,686			306,478
Certificates of deposit - retail		823,586			823,274			830,550			818,612			810,340
Certificates of deposit - brokered		105,496			61,814			72,533			97,101			59,254
Total interest-bearing deposits		1,360,742			1,309,403			1,313,539			1,303,792			1,268,319
Borrowings		419,541			440,968			437,784			397,053			464,964
Total interest-bearing liabilities		1,780,283			1,750,371			1,751,323			1,700,845			1,733,283
Noninterest-bearing demand deposits		89,673			88,799			85,665			80,372			87,889
Noninterest-bearing liabilities		44,688			39,136			42,669			44,905			49,645
Total liabilities		1,914,644			1,878,306			1,879,657			1,826,122			1,870,817
Equity		349,941			343,956			342,720			341,476			342,563
Total liabilities and equity	$	2,264,585		$	2,222,262		$	2,222,377		$	2,167,598		$	2,213,380

Average Yield/Costs (annualized)
Loans receivable and held for sale		5.85	%		5.84	%		5.73	%		5.75	%		5.75	%
Mortgage related securities		3.09	%		3.04	%		2.90	%		2.83	%		2.67	%
Debt securities, federal funds sold and short-term investments		4.54	%		4.74	%		4.74	%		4.90	%		4.85	%
Total interest-earning assets		5.54	%		5.53	%		5.43	%		5.46	%		5.46	%

Demand accounts		0.11	%		0.11	%		0.11	%		0.11	%		0.11	%
Money market and savings accounts		2.09	%		2.04	%		2.07	%		2.10	%		2.00	%
Certificates of deposit – retail		3.78	%		3.92	%		4.11	%		4.33	%		4.53	%
Certificates of deposit - brokered		3.89	%		4.11	%		4.35	%		4.18	%		4.18	%
Total interest-bearing deposits		3.12	%		3.19	%		3.35	%		3.52	%		3.58	%
Borrowings		3.51	%		3.86	%		3.67	%		3.93	%		4.11	%
Total interest-bearing liabilities		3.21	%		3.36	%		3.43	%		3.62	%		3.72	%


COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income	$	15,521		$	14,617		$	13,640		$	12,403		$	12,886
Provision (credit) for credit losses		(518	)		(276	)		(19	)		(518	)		331
Total noninterest income		1,305			1,359			1,686			1,348			1,595
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		5,646			5,036			5,027			5,212			4,883
Occupancy, office furniture and equipment		1,026			907			920			1,076			825
Advertising		250			213			219			171			204
Data processing		741			733			806			712			691
Communications		103			108			99			100			89
Professional fees		185			200			196			347			196
Real estate owned		(298	)		4			(8	)		(10	)		12
Loan processing expense		-			-			-			-			-
Other		630			617			466			596			563
Total noninterest expense		8,283			7,818			7,725			8,204			7,463
Income before income taxes		9,061			8,434			7,620			6,065			6,687
Income tax expense		2,063			1,518			1,400			1,427			1,399
Net income	$	6,998		$	6,916		$	6,220		$	4,638		$	5,288

Efficiency ratio - QTD (non-GAAP)		49.23	%		48.94	%		50.40	%		59.66	%		51.54	%
Efficiency ratio - YTD (non-GAAP)		51.76	%		52.71	%		54.78	%		59.66	%		59.58	%


MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income (loss)	$	205		$	103		$	53		$	152		$	(92	)
Provision (credit) for credit losses		(40	)		7			10			(40	)		36
Total noninterest income		20,172			20,985			22,643			15,731			17,455
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		15,489			15,716			16,312			12,054			13,781
Occupancy, office furniture and equipment		798			781			833			853			754
Advertising		446			499			527			552			523
Data processing		465			475			507			498			542
Communications		129			141			158			135			135
Professional fees		33			180			303			1,373			917
Real estate owned		-			-			-			-			-
Loan processing expense		571			688			817			920			486
Other		1,586			1,271			1,230			1,751			814
Total noninterest expense		19,517			19,751			20,687			18,136			17,952
Income (loss) before income taxes expense (benefit)		900			1,330			1,999			(2,213	)		(625	)
Income tax expense (benefit)		244			382			531			(588	)		(428	)
Net income (loss)	$	656		$	948		$	1,468		$	(1,625	)	$	(197	)

Efficiency ratio - QTD (non-GAAP)		95.78	%		93.66	%		91.15	%		114.18	%		103.39	%
Efficiency ratio - YTD (non-GAAP)		97.56	%		98.17	%		100.63	%		114.18	%		97.74	%

Loan originations	$	534,646		$	539,404		$	588,838		$	387,729		$	470,650
Purchase		78.9	%		90.1	%		91.7	%		87.5	%		82.1	%
Refinance		21.1	%		9.9	%		8.3	%		12.5	%		17.9	%
Gross margin on loans sold⁽¹⁾		3.80	%		3.87	%		3.84	%		3.98	%		3.74	%

⁽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
markgerke@wsbonline.com

FAQ

What were Waterstone Financial (WSBF) Q4 2025 earnings and EPS?

Net income for Q4 2025 was $7.7 million, or $0.44 per diluted share. According to the company, that compares to $5.2 million, or $0.28 per diluted share, for Q4 2024 and reflects higher net interest income and asset-quality gains.

How did Waterstone Financial (WSBF) net interest margin change in Q4 2025?

Net interest margin increased to 2.89% in Q4 2025, up 47 basis points year-over-year. According to the company, the increase was driven by higher loan yields and lower funding costs across borrowings and deposits.

How much capital did Waterstone Financial (WSBF) return to shareholders in Q4 2025?

The company returned $5.3 million to shareholders in Q4 2025 through buybacks and dividends. According to the company, that included repurchasing ~174,000 shares for $2.7 million and a $0.15 per-share quarterly dividend.

What drove Waterstone Financial (WSBF) mortgage banking performance in Q4 2025?

Mortgage banking pre-tax income was positive for the third straight quarter, with originations of $534.6 million in Q4 2025. According to the company, increased refinance activity and higher non-interest mortgage income supported results.

Did Waterstone Financial (WSBF) see any credit trends in Q4 2025 investors should note?

Past due loans rose to 0.86% of total loans at 12/31/2025 from 0.50% at 9/30/2025. According to the company, the increase largely reflects higher past-due balances in specific loan categories despite overall strong asset quality and net recoveries.

What is Waterstone Financial's (WSBF) book value per share at year-end 2025?

Book value per share was $19.03 at December 31, 2025. According to the company, book value increased by $0.53 during the quarter due to strong earnings, buybacks, and improving investment security valuations.

Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Twelve Months Ended December 31, 2025