false
0001569994
0001569994
2026-07-23
2026-07-23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): |
July 23, 2026 |
Waterstone Financial, Inc.
(Exact name of registrant as specified in its charter)
| Maryland |
001-36271 |
90-1026709 |
|
(State or other jurisdiction of
incorporation)
|
(Commission File
Number)
|
(I.R.S. Employer Identification No.)
|
11200 W Plank Ct, Wauwatosa, Wisconsin 53226
(Address of principal executive offices)
414-761-1000
Registrant’s telephone number, including area code:
Not Applicable
Former name or former address, if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol |
|
Name of each exchange on which registered |
| Common Stock, $0.01 Par Value |
|
WSBF |
|
The NASDAQ Stock Market, LLC |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities and Exchange Act of 1934.
|
☐
|
Emerging growth company
|
|
☐
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
Item 2.02 Results of Operations and Financial Condition.
On July 23, 2026, Waterstone Financial, Inc. issued a press release announcing its financial results for the quarter and six months ended June 30, 2026. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached to this report and incorporated by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. |
Description |
| |
|
| 99.1 |
Press release of Waterstone Financial, Inc. issued July 23, 2026. |
| |
|
| 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
|
Waterstone Financial, Inc. |
|
| |
|
|
|
| Date: July 23, 2026 |
|
/s/ Mark R. Gerke |
|
| |
|
Name: Mark R. Gerke |
|
| |
|
Title: Chief Financial Officer |
|
EXHIBIT INDEX
| Exhibit No. |
Description |
| |
|
| 99.1 |
Press release of Waterstone Financial, Inc. issued July 23, 2026. |
| |
|
| 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Exhibit 99.1
Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2026.
WAUWATOSA, WI – 7/23/26– 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 increases 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 certificate of deposits 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, visit 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 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
