Waterstone Financial Q3 earnings fall to $6.17M

Available on EDGAR 11/13/2026 - 04:01 PM EST Accepted by SEC EDGAR 11/13/2026 - 04:00 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Waterstone Financial, Inc. (WSBF) reported consolidated net income of $6.174 million for the quarter ended September 30, 2026, compared with $7.926 million a year earlier; diluted earnings per share were $0.36 versus $0.45. For the nine months ended September 30, 2026, net income was $20.633 million versus $18.689 million, with diluted earnings per share of $1.19 versus $1.04.

Community Banking's net interest income was $16.0 million, up 9.6% from a year earlier, and its net interest margin was 3.06% versus 2.76%. Mortgage Banking recorded a $754,000 pretax loss, compared with $1.330 million pretax income; originations were $509.7 million versus $539.4 million, and gross margin on loans sold was 3.48% versus 3.87%.

Asset-quality measures were higher than a year earlier: past-due loans were 0.81% of total loans versus 0.50%, and nonperforming assets were 0.55% of total assets versus 0.27%. Waterstone declared a quarterly dividend of $0.17 per common share. Book value per share was $19.29 at September 30, 2026.

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Positive

• Moderate pointNine-month net income: $20.633 million, versus $18.689 million.
• Moderate pointCommunity Banking net interest income: $16.0 million, up 9.6%.

Negative

• Moderate pointQuarterly net income: $6.174 million, versus $7.926 million.
• Moderate pointMortgage Banking posted a $754,000 pretax loss, versus $1.330 million income.

Filing Explained

Waterstone furnished its September-quarter results in this Form 8-K; the release links the increases in past-due loans and nonperforming assets to one significant relationship previously classified as substandard, specifying a source of the reported credit deterioration.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Quarterly net income: $6.174 million Quarterly diluted earnings per share: $0.36 Nine-month net income: $20.633 million +5 more

8 metrics

Quarterly net income $6.174 million Quarter ended September 30, 2026; compared with $7.926 million in the prior-year quarter

Quarterly diluted earnings per share $0.36 Quarter ended September 30, 2026; compared with $0.45 in the prior-year quarter

Nine-month net income $20.633 million Nine months ended September 30, 2026; compared with $18.689 million a year earlier

Community Banking net interest income $16.0 million Quarter ended September 30, 2026; up 9.6% from the prior-year quarter

Mortgage Banking pretax result Loss of $754,000 Quarter ended September 30, 2026; compared with $1.330 million pretax income a year earlier

Mortgage Banking loan originations $509.7 million Quarter ended September 30, 2026; compared with $539.4 million a year earlier

Nonperforming assets to total assets 0.55% At September 30, 2026; compared with 0.27% at September 30, 2025

Community Banking net interest margin 3.06% Quarter ended September 30, 2026; compared with 2.76% a year earlier

Key Terms

net interest margin, nonperforming assets, collateral dependent reserve, efficiency ratio, +2 more

6 terms

net interest margin financial

"Net interest margin increased 30 basis points to 3.06%"

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.

nonperforming assets financial

"Nonperforming assets as a percentage of total assets was 0.55%"

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.

collateral dependent reserve financial

"a $305,000 collateral dependent reserve for a loan"

efficiency ratio financial

"The efficiency ratio, a non-GAAP ratio, was 49.55%"

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.

mortgage servicing rights financial

"sold mortgage servicing rights related to $121.9 million in loans"

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

securities available for sale financial

"Securities available for sale (at fair value)"

Securities available for sale are investments—like bonds or shares—that a company owns but does not plan to hold until they mature or trade every day; they are kept with the intention that they may be sold when needed or when a good opportunity arises. For investors, these holdings matter because their market value changes can affect a company’s reported net worth and provide a source of cash or unexpected gains or losses, similar to having a reserve of items you can sell when prices are favorable.

Earnings Snapshot

Net income, quarter: $6.174 million

Quarter and nine months ended September 30, 2026

Net income, quarter $6.174 million Compared with $7.926 million in the quarter ended September 30, 2025

Diluted earnings per share, quarter $0.36 Compared with $0.45 in the quarter ended September 30, 2025

Net income, nine months $20.633 million Compared with $18.689 million for the nine months ended September 30, 2025

Community Banking net interest income $16.0 million Up 9.6% from the quarter ended September 30, 2025

Community Banking net interest margin 3.06% Compared with 2.76% in the quarter ended September 30, 2025

Mortgage Banking pretax result Loss of $754,000 Compared with pretax income of $1.330 million in the quarter ended September 30, 2025

Mortgage Banking loan originations $509.7 million Compared with $539.4 million in the quarter ended September 30, 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was WSBF's net income in the quarter ended September 30, 2026?

Waterstone Financial reported $6.174 million in net income for the quarter ended September 30, 2026, compared with $7.926 million a year earlier; diluted earnings per share were $0.36 versus $0.45. For the nine months ended September 30, 2026, net income was $20.633 million.

How did WSBF's Mortgage Banking segment perform in the third quarter of 2026?

Mortgage Banking recorded a $754,000 pretax loss for the quarter ended September 30, 2026, compared with $1.330 million in pretax income a year earlier. Loan originations were $509.7 million versus $539.4 million, and gross margin on loans sold was 3.48% versus 3.87%.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false 0001569994 0001569994 2026-11-13 2026-11-13

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): November 13, 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 November 13, 2026, Waterstone Financial, Inc. issued a press release announcing its financial results for the quarter and nine months ended September 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 November 13, 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: November 13, 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 November 13, 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 Nine Months Ended September 30, 2026.

WAUWATOSA, WI – 11/13/26– Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $6.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2026 compared to $7.9 million, or $0.45 per diluted share, for the quarter ended September 30, 2025.  Net income totaled $20.6 million for the nine months ended September 30, 2026 compared to net income of $18.7 million for the nine months ended September 30, 2025. Net income per diluted share was $1.19 for the nine months ended September 30, 2026 compared to net income per diluted share of $1.04 for the nine months ended September 30, 2025.

"We are pleased with the hard work to reach another strong quarter with increased challenges from rising short-term and long-term treasury rates,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "The Community Banking segment realized another record quarterly net interest income of $16.0 million, which represented a $1.4 million increase compared to the quarter ended September 30, 2025.  The increase was primarily due to a reduction of our average cost of funds, driven in part by continued growth in average transaction deposits. The Mortgage Banking segment realized a pre-tax loss of $754,000 which represents a decrease of $2.1 million compared to the quarter ended September 30, 2025.  Sales margins continue to remain under pressure, following the trend from the second quarter and remaining lower than recent averages. The Mortgage Banking segment loan origination volume was hindered by a significant jump in mortgage rates.  Book value per share decreased $0.24 during the quarter primarily due to treasury rates increasing negatively impacting the value of accumulated other comprehensive losses along with declaring our quarterly dividend of $0.17 per share. We still remain is a strong capital position." 

Highlights of the Quarter Ended September 30, 2026

Waterstone Financial, Inc. (Consolidated)

●	Consolidated net income of Waterstone Financial, Inc. totaled $6.2 million for the quarter ended September 30, 2026 compared to net income of $7.9 million for the quarter ended September 30, 2025.
●	Consolidated return on average assets (annualized) was 1.09% for the quarter ended September 30, 2026 and 1.42% for the quarter ended September 30, 2025.
●	Consolidated return on average equity (annualized) was 6.93% for the quarter ended September 30, 2026 and 9.14% for the quarter ended September 30, 2025.
●	Dividends declared during the quarter ended September 30, 2026 totaled $0.17 per common share.
●	Nonperforming assets as a percentage of total assets was 0.55% at September 30, 2026, 0.30% at June 30, 2026, and 0.27% at September 30, 2025.
●	Past due loans as a percentage of total loans was 0.81% at September 30, 2026, 0.63% at June 30, 2026, and 0.50% at September 30, 2025.
●	Book value per share was $19.29 at September 30, 2026 and $19.03 at December 31, 2025.  Book value decreased approximately $0.24 during the quarter ended September 30, 2026. Of the $0.24 overall decrease, approximately $0.46 was due to the additional available for sale losses as treasury rate increases.

Community Banking Segment

●	Pre-tax income totaled $8.3 million for the quarter ended September 30, 2026, which represents a $176,000, or 2.1%, decrease compared to $8.4 million for the quarter ended September 30, 2025.
●	Net interest income totaled $16.0 million for the quarter ended September 30, 2026, which represents a $1.4 million, or 9.6%, increase compared to $14.6 million for the quarter ended September 30, 2025.
●	Average loans held for investment totaled $1.70 billion during the quarter ended September 30, 2026, which represents an increase of $13.2 million, or 0.8%, compared to $1.68 billion for the quarter ended September 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 increased $18.5 million compared to $1.68 billion for the quarter ended June 30, 2026. The increase was primarily due to increases in multi-family mortgages offset by a decrease in single-family mortgages. See details on average loans by category in the table below.
●	Net interest margin increased 30 basis points to 3.06% for the quarter ended September 30, 2026 compared to 2.76% for the quarter ended September 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 three basis points compared to 3.03% for the quarter ended June 30, 2026, which was primarily driven by a decrease in the weighted average cost of deposits and increases in mortgage related securities and debt securities yields.
●	Past due loans at the community banking segment totaled $11.7 million at September 30, 2026, $8.5 million at June 30, 2026, and $6.8 million at September 30, 2025.  The increase in past due loans and non-performing assets was related to one significant relationship which was previously identified as substandard.

●	The segment had a negative provision for credit losses related to funded loans of $83,000 for the quarter ended September 30, 2026 compared to a negative provision for credit losses related to funded loans of $137,000 for the quarter ended September 30, 2025.  The current quarter decrease was primarily due to a decrease in commercial real estate external qualitative risk factors offset by a $305,000 collateral dependent reserve for a loan that was previously classified as substandard. The provision for credit losses related to unfunded loan commitments was $571,000 for the quarter ended September 30, 2026 compared to a negative provision for credit losses related to unfunded loan commitments of $139,000 for the quarter ended September 30, 2025. The provision for credit losses related to unfunded loan commitments for the quarter ended September 30, 2026 was due primarily to an increase of construction and commercial real estate loans in the loan pipeline and unfunded construction balance at quarter end.
●	The efficiency ratio, a non-GAAP ratio, was 49.55% for the quarter ended September 30, 2026, compared to 48.94% for the quarter ended September 30, 2025.
●	Average core retail deposits (excluding brokered and escrow accounts) totaled $1.35 billion during the quarter ended September 30, 2026, an increase of $39.5 million, or 3.0%, compared to $1.31 billion during the quarter ended September 30, 2025 due primarily to increases in money market and demand deposits balances. Average core retail deposits increased $14.5 million, or 4.3% annualized, compared to $1.34 billion for the quarter ended June 30, 2026 due primarily to an increase in money market balances. The segment had an average of $80.4 million in brokered certificate of deposits during the quarter ended September 30, 2026 compared to $61.8 million during the quarter ended September 30, 2025.
●	Total compensation, payroll taxes and other employee benefits increased $603,000 or 12.0%, to $5.6 million during the quarter ended September 30, 2026 compared to $5.0 million during the quarter ended September 30, 2025. The increase primarily related to increased salary expense, health insurance expense and ESOP expense as the average market price per share increased compared to the prior year.

Mortgage Banking Segment

●	Pre-tax loss totaled $754,000 for the quarter ended September 30, 2026, compared to a pre-tax income of $1.3 million for the quarter ended September 30, 2025.
●	Loan originations decreased $29.7 million, or 5.5%, to $509.7 million during the quarter ended September 30, 2026, compared to $539.4 million during the quarter ended September 30, 2025. Origination volume relative to purchase activity accounted for 90.4% of originations for the quarter ended September 30, 2026 compared to 90.1% of total originations for the quarter ended September 30, 2025.
●	Mortgage banking non-interest income decreased $2.8 million, or 13.4%, to $18.2 million for the quarter ended September 30, 2026, compared to $21.0 million for the quarter ended September 30, 2025.
●	Gross margin on loans sold totaled 3.48% for the quarter ended September 30, 2026, compared to 3.87% for the quarter ended September 30, 2025.  The 10.3% decrease was driven by lower sales margins, as secondary market investors remained concerned about elevated long-term rates.
●	During the quarter ended September 30, 2026, the Company sold mortgage servicing rights related to $121.9 million in loans receivable and with a book value of $1.0 million for $1.4 million resulting in a gain on sale of $391,000. There was no comparable sale during the quarter ended September 30, 2025.
●	Total compensation, payroll taxes and other employee benefits decreased $993,000 or 6.3%, to $14.7 million during the quarter ended September 30, 2026 compared to $15.7 million during the quarter ended September 30, 2025. The decrease primarily related to decreased commission expense, health insurance expense, and bonus accrual.
●	Total other noninterest expense increased $537,000, or 42.3%, to $1.8 million during the quarter ended September 30, 2026 compared to $1.3 million during the quarter ended September 30, 2025. The increase primarily related to an increase in provision for loan sale losses due to a pool of loans identified with additional risks to buy them back.

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 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 September 30,								For The Nine Months Ended September 30,
		2026				2025				2026				2025
		(In Thousands, except per share amounts)
Interest income:
Loans		$	26,955			$	26,625			$	79,516			$	77,578
Mortgage-related securities			1,506				1,365				4,439				3,809
Debt securities, federal funds sold and short-term investments			1,582				1,566				4,689				4,609
Total interest income			30,043				29,556				88,644				85,996
Interest expense:
Deposits			10,183				10,527				30,591				32,826
Borrowings			3,444				4,290				10,164				12,147
Total interest expense			13,627				14,817				40,755				44,973
Net interest income			16,416				14,739				47,889				41,023
Provision (credit) for credit losses			443				(269	)			943				(836	)
Net interest income after provision (credit) for credit losses			15,973				15,008				46,946				41,859
Noninterest income:
Service charges on loans and deposits			473				618				1,310				1,624
Increase in cash surrender value of life insurance			597				526				2,281				2,021
Mortgage banking income			17,493				20,875				58,587				59,162
Other			727				283				1,580				921
Total noninterest income			19,290				22,302				63,758				63,728
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits			20,159				20,534				61,975				58,702
Occupancy, office furniture, and equipment			1,751				1,688				5,287				5,370
Advertising			605				712				1,949				2,181
Data processing			1,318				1,210				3,855				3,735
Communications			281				249				765				741
Professional fees			354				380				1,037				2,616
Real estate owned			(31	)			4				(2	)			(14	)
Loan processing expense			696				688				2,542				2,425
Other			2,529				2,001				7,508				6,437
Total noninterest expenses			27,662				27,466				84,916				82,193
Income before income taxes			7,601				9,844				25,788				23,394
Income tax expense			1,427				1,918				5,155				4,705
Net income		$	6,174			$	7,926			$	20,633			$	18,689
Income per share:
Basic		$	0.36			$	0.45			$	1.20			$	1.04
Diluted		$	0.36			$	0.45			$	1.19			$	1.04
Weighted average shares outstanding:
Basic			17,104				17,639				17,196				17,962
Diluted			17,189				17,671				17,270				17,985

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

		September 30,				December 31,
		2026				2025
		(Unaudited)
Assets		(In Thousands, except per share amounts)
Cash		$	48,769			$	63,560
Federal funds sold			5,843				7,255
Interest-earning deposits in other financial institutions and other short term investments			291				292
Cash and cash equivalents			54,903				71,107
Securities available for sale (at fair value)			238,139				230,848
Loans held for sale (at fair value)			111,014				145,057
Loans receivable			1,698,019				1,675,552
Less: Allowance for credit losses ("ACL") - loans			17,762				17,478
Loans receivable, net			1,680,257				1,658,074
Office properties and equipment, net			18,804				18,855
Federal Home Loan Bank stock (at cost)			17,161				19,804
Cash surrender value of life insurance			79,814				77,353
Real estate owned, net			934				424
Prepaid expenses and other assets			52,006				37,985
Total assets		$	2,253,032			$	2,259,507
Liabilities and Shareholders' Equity
Liabilities:
Demand deposits		$	179,705			$	175,595
Money market and savings deposits			344,187				329,031
Time deposits			915,574				932,646
Total deposits			1,439,466				1,437,272
Borrowings			391,343				412,258
Advance payments by borrowers for taxes			25,608				2,996
Other liabilities			49,679				57,589
Total liabilities			1,906,096				1,910,115
Shareholders' equity:
Preferred stock			-				-
Common stock			180				184
Additional paid-in capital			72,232				78,014
Retained earnings			304,881				292,957
Unearned ESOP shares			(8,605	)			(9,496	)
Accumulated other comprehensive loss, net of taxes			(21,752	)			(12,267	)
Total shareholders' equity			346,936				349,392
Total liabilities and shareholders' equity		$	2,253,032			$	2,259,507
Share Information
Shares outstanding			17,988				18,360
Book value per share		$	19.29			$	19.03

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

SUMMARY OF KEY QUARTERLY FINANCIAL DATA

(Unaudited)

		At or For the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
		(Dollars in Thousands, except per share amounts)
Condensed Results of Operations:
Net interest income		$	16,416			$	16,010			$	15,463			$	15,711			$	14,739
Provision (credit) for credit losses			443				236				264				(558	)			(269	)
Total noninterest income			19,290				24,240				20,228				21,459				22,302
Total noninterest expense			27,662				29,379				27,875				27,677				27,466
Income before income taxes			7,601				10,635				7,552				10,051				9,844
Income tax expense			1,427				2,173				1,555				2,338				1,918
Net income		$	6,174			$	8,462			$	5,997			$	7,713			$	7,926
Income per share – basic		$	0.36			$	0.49			$	0.35			$	0.44			$	0.45
Income per share – diluted		$	0.36			$	0.49			$	0.34			$	0.44			$	0.45
Dividends declared per common share		$	0.17			$	0.17			$	0.17			$	0.15			$	0.15
Performance Ratios (annualized):
Return on average assets - QTD			1.09	%			1.52	%			1.10	%			1.35	%			1.42	%
Return on average equity - QTD			6.93	%			9.65	%			6.88	%			8.74	%			9.14	%
Net interest margin - QTD			3.06	%			3.03	%			2.97	%			2.89	%			2.76	%
Return on average assets - YTD			1.24	%			1.31	%			1.10	%			1.19	%			1.13	%
Return on average equity - YTD			7.82	%			8.26	%			6.88	%			7.62	%			7.23	%
Net interest margin - YTD			3.02	%			3.00	%			2.97	%			2.68	%			2.61	%
Asset Quality Ratios:
Past due loans to total loans			0.81	%			0.63	%			0.58	%			0.86	%			0.50	%
Nonaccrual loans to total loans			0.68	%			0.39	%			0.44	%			0.37	%			0.35	%
Nonperforming assets to total assets			0.55	%			0.30	%			0.35	%			0.29	%			0.27	%
Allowance for credit losses - loans to loans receivable			1.05	%			1.06	%			1.05	%			1.04	%			1.03	%

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS

(Unaudited)

		At or For the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
Average balances		(Dollars in Thousands)
Interest-earning assets
Loans receivable and held for sale		$	1,804,340			$	1,799,170			$	1,788,736			$	1,842,908			$	1,809,600
Mortgage related securities			184,800				185,513				183,980				180,434				178,063
Debt securities, federal funds sold and short term investments			139,186				136,901				137,861				133,781				131,165
Total interest-earning assets			2,128,326				2,121,584				2,110,577				2,157,123				2,118,828
Noninterest-earning assets			112,180				109,031				108,366				107,462				103,434
Total assets		$	2,240,506			$	2,230,615			$	2,218,943			$	2,264,585			$	2,222,262
Interest-bearing liabilities
Demand accounts		$	94,151			$	93,170			$	90,133			$	92,292			$	90,015
Money market, savings, and escrow accounts			370,761				354,112				343,416				339,368				334,300
Certificates of deposit - retail			822,452				817,261				817,019				823,586				823,274
Certificates of deposit - brokered			80,366				86,441				110,192				105,496				61,814
Total interest-bearing deposits			1,367,730				1,350,984				1,360,760				1,360,742				1,309,403
Borrowings			388,730				399,510				377,438				419,541				440,968
Total interest-bearing liabilities			1,756,460				1,750,494				1,738,198				1,780,283				1,750,371
Noninterest-bearing demand deposits			86,908				87,072				88,975				89,673				88,799
Noninterest-bearing liabilities			43,778				41,506				38,073				44,688				39,136
Total liabilities			1,887,146				1,879,072				1,865,246				1,914,644				1,878,306
Equity			353,360				351,543				353,697				349,941				343,956
Total liabilities and equity		$	2,240,506			$	2,230,615			$	2,218,943			$	2,264,585			$	2,222,262
Average Yield/Costs (annualized)
Loans receivable and held for sale			5.93	%			5.93	%			5.88	%			5.85	%			5.84	%
Mortgage related securities			3.23	%			3.20	%			3.21	%			3.09	%			3.04	%
Debt securities, federal funds sold and short term investments			4.51	%			4.39	%			4.74	%			4.54	%			4.74	%
Total interest-earning assets			5.60	%			5.59	%			5.58	%			5.54	%			5.53	%
Demand accounts			0.11	%			0.11	%			0.11	%			0.11	%			0.11	%
Money market and savings accounts			2.13	%			2.16	%			2.25	%			2.09	%			2.04	%
Certificates of deposit - retail			3.56	%			3.57	%			3.68	%			3.78	%			3.92	%
Certificates of deposit - brokered			3.85	%			3.81	%			3.82	%			3.89	%			4.11	%
Total interest-bearing deposits			2.95	%			2.98	%			3.09	%			3.12	%			3.19	%
Borrowings			3.51	%			3.56	%			3.42	%			3.51	%			3.86	%
Total interest-bearing liabilities			3.08	%			3.11	%			3.16	%			3.21	%			3.36	%

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES

SUMMARY OF QUARTERLY AVERAGE LOAN BALANCES

(Unaudited)

		September 30, 2026								June 30, 2026								September 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		$	450,887			$	453,534			$	460,495			$	464,384			$	506,758			$	503,112
Over four family			810,524				802,369				781,860				773,593				769,325				740,220
Home equity			12,544				12,994				12,939				13,165				13,382				13,686
Construction and land			59,239				61,681				67,944				65,428				69,152				67,678
Commercial real estate			327,692				327,858				324,373				324,029				323,613				325,033
Consumer Loans			692				675				680				694				938				849
Commercial business loans			36,441				35,996				35,590				35,357				31,668				31,322
Total		$	1,698,019			$	1,695,107			$	1,683,881			$	1,676,650			$	1,714,836			$	1,681,900

COMMUNITY BANKING SEGMENT

SUMMARY OF KEY QUARTERLY FINANCIAL DATA

(Unaudited)

		At or For the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
		(Dollars in Thousands)
Condensed Results of Operations:
Net interest income		$	16,025			$	15,830			$	15,226			$	15,521			$	14,617
Provision (credit) for credit losses			488				249				284				(518	)			(276	)
Total noninterest income			1,311				2,020				1,153				1,305				1,359
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits			5,639				5,612				5,575				5,646				5,036
Occupancy, office furniture and equipment			1,020				942				1,103				1,026				907
Advertising			165				251				212				250				213
Data processing			718				722				765				741				733
Communications			113				105				112				103				108
Professional fees			199				197				228				185				200
Real estate owned			(31	)			27				2				(298	)			4
Loan processing expense			-				-				-				-				-
Other			767				741				598				630				617
Total noninterest expense			8,590				8,597				8,595				8,283				7,818
Income before income taxes			8,258				9,004				7,500				9,061				8,434
Income tax expense			1,685				1,741				1,538				2,063				1,518
Net income		$	6,573			$	7,263			$	5,962			$	6,998			$	6,916
Efficiency ratio - QTD (non-GAAP)			49.55	%			48.16	%			52.48	%			49.23	%			48.94	%
Efficiency ratio - YTD (non-GAAP)			50.00	%			50.23	%			52.48	%			51.76	%			52.71	%

MORTGAGE BANKING SEGMENT

SUMMARY OF KEY QUARTERLY FINANCIAL DATA

(Unaudited)

		At or For the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
		(Dollars in Thousands)
Condensed Results of Operations:
Net interest income		$	351			$	164			$	214			$	205			$	103
Provision (credit) for credit losses			(45	)			(12	)			(20	)			(40	)			7
Total noninterest income			18,171				22,363				19,121				20,172				20,985
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits			14,723				16,565				14,471				15,489				15,716
Occupancy, office furniture and equipment			731				628				863				798				781
Advertising			440				476				405				446				499
Data processing			600				557				490				465				475
Communications			168				121				146				129				141
Professional fees			155				103				152				33				180
Real estate owned			-				-				-				-				-
Loan processing expense			696				817				1,029				571				688
Other			1,808				1,676				1,777				1,586				1,271
Total noninterest expense			19,321				20,943				19,333				19,517				19,751
Income (loss) before income taxes			(754	)			1,596				22				900				1,330
Income tax (benefit) expense			(280	)			425				10				244				382
Net (loss) income		$	(474	)		$	1,171			$	12			$	656			$	948
Efficiency ratio - QTD (non-GAAP)			104.31	%			92.97	%			99.99	%			95.78	%			93.66	%
Efficiency ratio - YTD (non-GAAP)			97.94	%			96.21	%			99.99	%			97.56	%			98.17	%
Loan originations		$	509,730			$	621,819			$	508,314			$	534,646			$	539,404
Purchase			90.4	%			88.6	%			73.9	%			78.9	%			90.1	%
Refinance			9.6	%			11.4	%			26.1	%			21.1	%			9.9	%
Gross margin on loans sold(1)			3.48	%			3.60	%			3.65	%			3.80	%			3.87	%

⁽¹⁾ Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations

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