Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2026
Rhea-AI Summary
Waterstone Financial (NASDAQ: WSBF) reported net income of $8.5 million, or $0.49 diluted EPS, for Q2 2026, up from $7.7 million, or $0.43, in Q2 2025. For the first six months of 2026, net income was $14.5 million versus $10.8 million a year earlier, with diluted EPS rising to $0.84 from $0.59.
According to Waterstone Financial, consolidated return on average assets reached 1.52% and return on average equity was 9.65% in Q2 2026. Net interest margin expanded to 3.03%, its highest level since Q4 2022. Community Banking segment pre-tax income increased 18.2% to $9.0 million, driven by a 16.1% rise in net interest income to $15.8 million and higher loan yields alongside lower funding costs. Mortgage Banking segment pre-tax income was $1.6 million, down 20.2% year over year as higher origination volume was offset by lower sales margins, with gross margin on loans sold declining to 3.60%.
Book value per share increased to $19.53 at June 30, 2026 from $19.03 at year-end 2025. Nonperforming assets were 0.30% of total assets, and past due loans were 0.63% of total loans. The company declared a quarterly dividend of $0.17 per share and returned $6.5 million to shareholders in Q2 2026 through dividends and the repurchase of approximately 200,000 shares at an average cost of $18.40 per share.
Positive
- Q2 2026 net income $8.5 million vs. $7.7 million in Q2 2025
- Six‑month 2026 net income $14.5 million vs. $10.8 million in 2025
- Net interest margin 3.03% in Q2 2026, up from 2.60% year over year
- Community Banking pre-tax income up 18.2% to $9.0 million in Q2 2026
- Shareholder returns $6.5 million via $0.17 dividend and 200,000 share buyback
- Asset quality nonperforming assets at 0.30% of total assets as of June 30, 2026
Negative
- Mortgage Banking pre-tax income down 20.2% to $1.6 million year over year in Q2 2026
- Gross margin on loans sold declined to 3.60% from 3.84% in Q2 2025
- Total noninterest expense increased to $29.4 million from $28.4 million year over year
- Provision for credit losses $236,000 in Q2 2026 vs. negative $9,000 in Q2 2025
- Past due loans ratio rose to 0.63% from 0.58% of total loans vs. prior quarter
News Explained
At June 30, 2026, Waterstone reported $38,201 thousand in cash and 17,975 thousand shares outstanding.
Waterstone’s
The balance sheet reports cash and cash equivalents of
Together, these figures frame the disclosure as an update to the company’s liquidity and outstanding-share position, rather than only an earnings report.
News Market Reaction – WSBF
In the Jul 24 session, WSBF gained 3.14%, reflecting a moderate positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 23 | Cash dividend | Positive | +1.5% | Declared regular quarterly cash dividend payable to shareholders on August 3, 2026. |
| Apr 27 | Share repurchase | Positive | +2.6% | Authorized additional share repurchases, expanding the total available authorization under its existing program. |
| Apr 23 | Q1 earnings | Positive | -0.3% | Reported higher quarterly earnings, stronger banking income, and improved mortgage segment results. |
| Mar 17 | Dividend increase | Positive | -0.6% | Raised the regular quarterly cash dividend to shareholders. |
| Jan 28 | Q4 earnings | Positive | +8.3% | Reported quarterly and full-year earnings with higher margin and shareholder distributions. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive operating and shareholder-return announcements produced three aligned reactions and two divergences in the selected five-event history.
Key Terms
net interest margin financial
non-GAAP ratio financial
nonperforming assets financial
weighted average yield financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
WAUWATOSA, Wis., July 23, 2026 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of
“We achieved another quarter of strong financial results, as quarterly net interest margin hit
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 and1.39% for the quarter ended June 30, 2025. - Consolidated return on average equity (annualized) was
9.65% for the quarter ended June 30, 2026 and9.04% 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, and0.37% 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, and0.69% 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 , or18.2% , 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 , or16.1% , 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 , or0.6% , 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 to2.60% 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 to2.97% 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 to50.40% 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 , or2.0% , 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 , or1.3% 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 or11.6% , 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 , or5.6% , 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 for88.6% of originations for the quarter ended June 30, 2026 compared to91.7% of total originations for the quarter ended June 30, 2025. - Mortgage banking non-interest income decreased
$280,000 , or1.2% , 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 to3.84% 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 or1.6% , 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 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 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.
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
| For The Three Months Ended June 30, | For The Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In Thousands, except per share amounts) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 26,610 | $ | 25,875 | $ | 52,561 | $ | 50,953 | |||||||
| Mortgage-related securities | 1,479 | 1,253 | 2,933 | 2,444 | |||||||||||
| Debt securities, federal funds sold and short-term investments | 1,497 | 1,557 | 3,107 | 3,043 | |||||||||||
| Total interest income | 29,586 | 28,685 | 58,601 | 56,440 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 10,035 | 10,967 | 20,408 | 22,299 | |||||||||||
| Borrowings | 3,541 | 4,010 | 6,720 | 7,857 | |||||||||||
| Total interest expense | 13,576 | 14,977 | 27,128 | 30,156 | |||||||||||
| Net interest income | 16,010 | 13,708 | 31,473 | 26,284 | |||||||||||
| Provision (credit) for credit losses | 236 | (9 | ) | 500 | (567 | ) | |||||||||
| Net interest income after provision (credit) for credit losses | 15,774 | 13,717 | 30,973 | 26,851 | |||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on loans and deposits | 463 | 413 | 837 | 1,006 | |||||||||||
| Increase in cash surrender value of life insurance | 1,135 | 1,014 | 1,684 | 1,495 | |||||||||||
| Mortgage banking income | 22,144 | 22,559 | 41,094 | 38,287 | |||||||||||
| Other | 498 | 343 | 853 | 638 | |||||||||||
| Total noninterest income | 24,240 | 24,329 | 44,468 | 41,426 | |||||||||||
| Noninterest expenses: | |||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 21,974 | 21,121 | 41,816 | 38,168 | |||||||||||
| Occupancy, office furniture, and equipment | 1,570 | 1,753 | 3,536 | 3,682 | |||||||||||
| Advertising | 727 | 746 | 1,344 | 1,469 | |||||||||||
| Data processing | 1,279 | 1,313 | 2,537 | 2,525 | |||||||||||
| Communications | 226 | 257 | 484 | 492 | |||||||||||
| Professional fees | 300 | 500 | 683 | 2,236 | |||||||||||
| Real estate owned | 27 | (8 | ) | 29 | (18 | ) | |||||||||
| Loan processing expense | 817 | 817 | 1,846 | 1,737 | |||||||||||
| Other | 2,459 | 1,878 | 4,979 | 4,436 | |||||||||||
| Total noninterest expenses | 29,379 | 28,377 | 57,254 | 54,727 | |||||||||||
| Income before income taxes | 10,635 | 9,669 | 18,187 | 13,550 | |||||||||||
| Income tax expense | 2,173 | 1,942 | 3,728 | 2,787 | |||||||||||
| Net income | $ | 8,462 | $ | 7,727 | $ | 14,459 | $ | 10,763 | |||||||
| Income per share: | |||||||||||||||
| Basic | $ | 0.49 | $ | 0.43 | $ | 0.84 | $ | 0.59 | |||||||
| Diluted | $ | 0.49 | $ | 0.43 | $ | 0.84 | $ | 0.59 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 17,114 | 17,989 | 17,243 | 18,127 | |||||||||||
| Diluted | 17,184 | 18,004 | 17,308 | 18,143 | |||||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| Assets | (In Thousands, except per share amounts) | ||||||
| Cash | $ | 32,749 | $ | 63,560 | |||
| Federal funds sold | 5,159 | 7,255 | |||||
| Interest-earning deposits in other financial institutions and other short term investments | 293 | 292 | |||||
| Cash and cash equivalents | 38,201 | 71,107 | |||||
| Securities available for sale (at fair value) | 237,348 | 230,848 | |||||
| Loans held for sale (at fair value) | 151,688 | 145,057 | |||||
| Loans receivable | 1,683,881 | 1,675,552 | |||||
| Less: Allowance for credit losses ("ACL") - loans | 17,884 | 17,478 | |||||
| Loans receivable, net | 1,665,997 | 1,658,074 | |||||
| Office properties and equipment, net | 18,900 | 18,855 | |||||
| Federal Home Loan Bank stock (at cost) | 19,226 | 19,804 | |||||
| Cash surrender value of life insurance | 79,217 | 77,353 | |||||
| Real estate owned, net | 318 | 424 | |||||
| Prepaid expenses and other assets | 41,864 | 37,985 | |||||
| Total assets | $ | 2,252,759 | $ | 2,259,507 | |||
| Liabilities and Shareholders' Equity | |||||||
| Liabilities: | |||||||
| Demand deposits | $ | 182,023 | $ | 175,595 | |||
| Money market and savings deposits | 343,530 | 329,031 | |||||
| Time deposits | 895,428 | 932,646 | |||||
| Total deposits | 1,420,981 | 1,437,272 | |||||
| Borrowings | 412,000 | 412,258 | |||||
| Advance payments by borrowers for taxes | 18,772 | 2,996 | |||||
| Other liabilities | 49,877 | 57,589 | |||||
| Total liabilities | 1,901,630 | 1,910,115 | |||||
| Shareholders' equity: | |||||||
| Preferred stock | - | - | |||||
| Common stock | 180 | 184 | |||||
| Additional paid-in capital | 71,637 | 78,014 | |||||
| Retained earnings | 301,620 | 292,957 | |||||
| Unearned ESOP shares | (8,902 | ) | (9,496 | ) | |||
| Accumulated other comprehensive loss, net of taxes | (13,406 | ) | (12,267 | ) | |||
| Total shareholders' equity | 351,129 | 349,392 | |||||
| Total liabilities and shareholders' equity | $ | 2,252,759 | $ | 2,259,507 | |||
| Share Information | |||||||
| Shares outstanding | 17,975 | 18,360 | |||||
| Book value per share | $ | 19.53 | $ | 19.03 | |||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| (Dollars in Thousands, except per share amounts) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest income | $ | 16,010 | $ | 15,463 | $ | 15,711 | $ | 14,739 | $ | 13,708 | |||||||||
| Provision (credit) for credit losses | 236 | 264 | (558 | ) | (269 | ) | (9 | ) | |||||||||||
| Total noninterest income | 24,240 | 20,228 | 21,459 | 22,302 | 24,329 | ||||||||||||||
| Total noninterest expense | 29,379 | 27,875 | 27,677 | 27,466 | 28,377 | ||||||||||||||
| Income before income taxes | 10,635 | 7,552 | 10,051 | 9,844 | 9,669 | ||||||||||||||
| Income tax expense | 2,173 | 1,555 | 2,338 | 1,918 | 1,942 | ||||||||||||||
| Net income | $ | 8,462 | $ | 5,997 | $ | 7,713 | $ | 7,926 | $ | 7,727 | |||||||||
| Income per share – basic | $ | 0.49 | $ | 0.35 | $ | 0.44 | $ | 0.45 | $ | 0.43 | |||||||||
| Income per share – diluted | $ | 0.49 | $ | 0.34 | $ | 0.44 | $ | 0.45 | $ | 0.43 | |||||||||
| Dividends declared per common share | $ | 0.17 | $ | 0.17 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||||||
| Performance Ratios (annualized): | |||||||||||||||||||
| Return on average assets - QTD | 1.52 | % | 1.10 | % | 1.35 | % | 1.42 | % | 1.39 | % | |||||||||
| Return on average equity - QTD | 9.65 | % | 6.88 | % | 8.74 | % | 9.14 | % | 9.04 | % | |||||||||
| Net interest margin - QTD | 3.03 | % | 2.97 | % | 2.89 | % | 2.76 | % | 2.60 | % | |||||||||
| Return on average assets - YTD | 1.31 | % | 1.10 | % | 1.19 | % | 1.13 | % | 0.99 | % | |||||||||
| Return on average equity - YTD | 8.26 | % | 6.88 | % | 7.62 | % | 7.23 | % | 6.32 | % | |||||||||
| Net interest margin - YTD | 3.00 | % | 2.97 | % | 2.68 | % | 2.61 | % | 2.54 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Past due loans to total loans | 0.63 | % | 0.58 | % | 0.86 | % | 0.50 | % | 0.69 | % | |||||||||
| Nonaccrual loans to total loans | 0.39 | % | 0.44 | % | 0.37 | % | 0.35 | % | 0.49 | % | |||||||||
| Nonperforming assets to total assets | 0.30 | % | 0.35 | % | 0.29 | % | 0.27 | % | 0.37 | % | |||||||||
| Allowance for credit losses - loans to loans receivable | 1.06 | % | 1.05 | % | 1.04 | % | 1.03 | % | 1.07 | % | |||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited) | |||||||||||||||||||
| At or For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Average balances | (Dollars in Thousands) | ||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans receivable and held for sale | $ | 1,799,170 | $ | 1,788,736 | $ | 1,842,908 | $ | 1,809,600 | $ | 1,812,065 | |||||||||
| Mortgage related securities | 185,513 | 183,980 | 180,434 | 178,063 | 173,220 | ||||||||||||||
| Debt securities, federal funds sold and short term investments | 136,901 | 137,861 | 133,781 | 131,165 | 131,710 | ||||||||||||||
| Total interest-earning assets | 2,121,584 | 2,110,577 | 2,157,123 | 2,118,828 | 2,116,995 | ||||||||||||||
| Noninterest-earning assets | 109,031 | 108,366 | 107,462 | 103,434 | 105,382 | ||||||||||||||
| Total assets | $ | 2,230,615 | $ | 2,218,943 | $ | 2,264,585 | $ | 2,222,262 | $ | 2,222,377 | |||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Demand accounts | $ | 93,170 | $ | 90,133 | $ | 92,292 | $ | 90,015 | $ | 89,548 | |||||||||
| Money market, savings, and escrow accounts | 354,112 | 343,416 | 339,368 | 334,300 | 320,908 | ||||||||||||||
| Certificates of deposit - retail | 817,261 | 817,019 | 823,586 | 823,274 | 830,550 | ||||||||||||||
| Certificates of deposit - brokered | 86,441 | 110,192 | 105,496 | 61,814 | 72,533 | ||||||||||||||
| Total interest-bearing deposits | 1,350,984 | 1,360,760 | 1,360,742 | 1,309,403 | 1,313,539 | ||||||||||||||
| Borrowings | 399,510 | 377,438 | 419,541 | 440,968 | 437,784 | ||||||||||||||
| Total interest-bearing liabilities | 1,750,494 | 1,738,198 | 1,780,283 | 1,750,371 | 1,751,323 | ||||||||||||||
| Noninterest-bearing demand deposits | 87,072 | 88,975 | 89,673 | 88,799 | 85,665 | ||||||||||||||
| Noninterest-bearing liabilities | 41,506 | 38,073 | 44,688 | 39,136 | 42,669 | ||||||||||||||
| Total liabilities | 1,879,072 | 1,865,246 | 1,914,644 | 1,878,306 | 1,879,657 | ||||||||||||||
| Equity | 351,543 | 353,697 | 349,941 | 343,956 | 342,720 | ||||||||||||||
| Total liabilities and equity | $ | 2,230,615 | $ | 2,218,943 | $ | 2,264,585 | $ | 2,222,262 | $ | 2,222,377 | |||||||||
| Average Yield/Costs (annualized) | |||||||||||||||||||
| Loans receivable and held for sale | 5.93 | % | 5.88 | % | 5.85 | % | 5.84 | % | 5.73 | % | |||||||||
| Mortgage related securities | 3.20 | % | 3.21 | % | 3.09 | % | 3.04 | % | 2.90 | % | |||||||||
| Debt securities, federal funds sold and short term investments | 4.39 | % | 4.74 | % | 4.54 | % | 4.74 | % | 4.74 | % | |||||||||
| Total interest-earning assets | 5.59 | % | 5.58 | % | 5.54 | % | 5.53 | % | 5.43 | % | |||||||||
| Demand accounts | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | |||||||||
| Money market and savings accounts | 2.16 | % | 2.25 | % | 2.09 | % | 2.04 | % | 2.07 | % | |||||||||
| Certificates of deposit - retail | 3.57 | % | 3.68 | % | 3.78 | % | 3.92 | % | 4.11 | % | |||||||||
| Certificates of deposit - brokered | 3.81 | % | 3.82 | % | 3.89 | % | 4.11 | % | 4.35 | % | |||||||||
| Total interest-bearing deposits | 2.98 | % | 3.09 | % | 3.12 | % | 3.19 | % | 3.35 | % | |||||||||
| Borrowings | 3.56 | % | 3.42 | % | 3.51 | % | 3.86 | % | 3.67 | % | |||||||||
| Total interest-bearing liabilities | 3.11 | % | 3.16 | % | 3.21 | % | 3.36 | % | 3.43 | % | |||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE LOAN BALANCES (Unaudited) | |||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||||
| Ending Balance | Quarterly Average Balance | Ending Balance | Quarterly Average Balance | Ending Balance | Quarterly Average Balance | ||||||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| Loans Receivable Category | |||||||||||||||||||||||
| One- to four-family | $ | 460,495 | $ | 464,384 | $ | 471,890 | $ | 478,616 | $ | 503,343 | $ | 513,349 | |||||||||||
| Over four family | 781,860 | 773,593 | 769,927 | 763,930 | 725,352 | 725,341 | |||||||||||||||||
| Home equity | 12,939 | 13,165 | 12,970 | 13,153 | 13,362 | 12,999 | |||||||||||||||||
| Construction and land | 67,944 | 65,428 | 66,032 | 60,932 | 69,760 | 60,702 | |||||||||||||||||
| Commercial real estate | 324,373 | 324,029 | 328,808 | 327,819 | 321,977 | 321,388 | |||||||||||||||||
| Consumer Loans | 680 | 694 | 718 | 759 | 828 | 831 | |||||||||||||||||
| Commercial business loans | 35,590 | 35,357 | 33,967 | 33,568 | 29,651 | 32,291 | |||||||||||||||||
| Total | $ | 1,683,881 | $ | 1,676,650 | $ | 1,684,312 | $ | 1,678,777 | $ | 1,664,273 | $ | 1,666,901 | |||||||||||
| COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest income | $ | 15,830 | $ | 15,226 | $ | 15,521 | $ | 14,617 | $ | 13,640 | |||||||||
| Provision (credit) for credit losses | 249 | 284 | (518 | ) | (276 | ) | (19 | ) | |||||||||||
| Total noninterest income | 2,020 | 1,153 | 1,305 | 1,359 | 1,686 | ||||||||||||||
| Noninterest expenses: | |||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 5,612 | 5,575 | 5,646 | 5,036 | 5,027 | ||||||||||||||
| Occupancy, office furniture and equipment | 942 | 1,103 | 1,026 | 907 | 920 | ||||||||||||||
| Advertising | 251 | 212 | 250 | 213 | 219 | ||||||||||||||
| Data processing | 722 | 765 | 741 | 733 | 806 | ||||||||||||||
| Communications | 105 | 112 | 103 | 108 | 99 | ||||||||||||||
| Professional fees | 197 | 228 | 185 | 200 | 196 | ||||||||||||||
| Real estate owned | 27 | 2 | (298 | ) | 4 | (8 | ) | ||||||||||||
| Loan processing expense | - | - | - | - | - | ||||||||||||||
| Other | 741 | 598 | 630 | 617 | 466 | ||||||||||||||
| Total noninterest expense | 8,597 | 8,595 | 8,283 | 7,818 | 7,725 | ||||||||||||||
| Income before income taxes | 9,004 | 7,500 | 9,061 | 8,434 | 7,620 | ||||||||||||||
| Income tax expense | 1,741 | 1,538 | 2,063 | 1,518 | 1,400 | ||||||||||||||
| Net income | $ | 7,263 | $ | 5,962 | $ | 6,998 | $ | 6,916 | $ | 6,220 | |||||||||
| Efficiency ratio - QTD (non-GAAP) | 48.16 | % | 52.48 | % | 49.23 | % | 48.94 | % | 50.40 | % | |||||||||
| Efficiency ratio - YTD (non-GAAP) | 50.23 | % | 52.48 | % | 51.76 | % | 52.71 | % | 54.78 | % | |||||||||
| MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest income | $ | 164 | $ | 214 | $ | 205 | $ | 103 | $ | 53 | |||||||||
| Provision (credit) for credit losses | (12 | ) | (20 | ) | (40 | ) | 7 | 10 | |||||||||||
| Total noninterest income | 22,363 | 19,121 | 20,172 | 20,985 | 22,643 | ||||||||||||||
| Noninterest expenses: | |||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 16,565 | 14,471 | 15,489 | 15,716 | 16,312 | ||||||||||||||
| Occupancy, office furniture and equipment | 628 | 863 | 798 | 781 | 833 | ||||||||||||||
| Advertising | 476 | 405 | 446 | 499 | 527 | ||||||||||||||
| Data processing | 557 | 490 | 465 | 475 | 507 | ||||||||||||||
| Communications | 121 | 146 | 129 | 141 | 158 | ||||||||||||||
| Professional fees | 103 | 152 | 33 | 180 | 303 | ||||||||||||||
| Real estate owned | - | - | - | - | - | ||||||||||||||
| Loan processing expense | 817 | 1,029 | 571 | 688 | 817 | ||||||||||||||
| Other | 1,676 | 1,777 | 1,586 | 1,271 | 1,230 | ||||||||||||||
| Total noninterest expense | 20,943 | 19,333 | 19,517 | 19,751 | 20,687 | ||||||||||||||
| Income before income taxes | 1,596 | 22 | 900 | 1,330 | 1,999 | ||||||||||||||
| Income tax expense | 425 | 10 | 244 | 382 | 531 | ||||||||||||||
| Net income | $ | 1,171 | $ | 12 | $ | 656 | $ | 948 | $ | 1,468 | |||||||||
| Efficiency ratio - QTD (non-GAAP) | 92.97 | % | 99.99 | % | 95.78 | % | 93.66 | % | 91.15 | % | |||||||||
| Efficiency ratio - YTD (non-GAAP) | 96.21 | % | 99.99 | % | 97.56 | % | 98.17 | % | 100.63 | % | |||||||||
| Loan originations | $ | 621,819 | $ | 508,314 | $ | 534,646 | $ | 539,404 | $ | 588,838 | |||||||||
| Purchase | 88.6 | % | 73.9 | % | 78.9 | % | 90.1 | % | 91.7 | % | |||||||||
| Refinance | 11.4 | % | 26.1 | % | 21.1 | % | 9.9 | % | 8.3 | % | |||||||||
| Gross margin on loans sold(1) | 3.60 | % | 3.65 | % | 3.80 | % | 3.87 | % | 3.84 | % | |||||||||
| (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
