Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2026

(NASDAQ:WSBF) Waterstone Financial, Inc., the 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 same quarter in 2025. Net income for the nine months ended September 30, 2026, was $20.6 million, up from $18.7 million for the nine months ended September 30, 2025. Net income per diluted share for the nine months ended September 30, 2026, was $1.19, compared to $1.04 for the same period in 2025. William Bruss, Chief Executive Officer of Waterstone Financial, Inc., stated that the company achieved another strong quarter despite challenges from rising treasury rates. The Community Banking segment recorded record quarterly net interest income of $16.0 million, a $1.4 million increase over the prior year quarter. The Mortgage Banking segment posted a pre-tax loss of $754,000, a decrease of $2.1 million compared to the prior year quarter, with loan origination volume hindered by higher mortgage rates. Book value per share decreased $0.24 during the quarter, primarily due to increased treasury rates and the declaration of a $0.17 per share quarterly dividend. Consolidated return on average assets (annualized) was 1.09% for the quarter, down from 1.42% a year earlier, and return on average equity (annualized) was 6.93%, down from 9.14%. Nonperforming assets as a percentage of total assets rose to 0.55% at September 30, 2026, from 0.27% at September 30, 2025. Past due loans as a percentage of total loans increased to 0.81% at September 30, 2026, from 0.50% at September 30, 2025. Book value per share was $19.29 at September 30, 2026, compared to $19.03 at December 31, 2025. The Community Banking segment's pre-tax income was $8.3 million for the quarter, a decrease of $176,000 from the prior year, while net interest income rose to $16.0 million from $14.6 million. Average loans held for investment were $1.70 billion, up $13.2 million from the prior year, and average core retail deposits were $1.35 billion, up $39.5 million. The segment had a negative provision for credit losses related to funded loans of $83,000 and a provision for credit losses related to unfunded loan commitments of $571,000. The efficiency ratio was 49.55% for the quarter, compared to 48.94% a year earlier. The Mortgage Banking segment's loan originations were $509.7 million, down $29.7 million, or 5.5%, from the prior year, and non-interest income decreased by $2.8 million to $18.2 million. Gross margin on loans sold was 3.48%, down from 3.87%. The company sold mortgage servicing rights related to $121.9 million in loans for $1.4 million, resulting in a gain on sale of $391,000. Total compensation, payroll taxes, and other employee benefits in the Mortgage Banking segment decreased by $993,000 to $14.7 million. Total other noninterest expense in the segment increased by $537,000 to $1.8 million. Consolidated interest income for the quarter was $30.0 million, and total interest expense was $13.6 million. Net interest income for the quarter was $16.4 million. Total noninterest income for the quarter was $19.3 million, and total noninterest expenses were $27.7 million. Income before income taxes was $7.6 million, and income tax expense was $1.4 million. Weighted average diluted shares outstanding for the quarter were 17,189.

Waterstone Financial, Inc. Announces Expansion of Share Repurchase Program

Waterstone Financial, Inc. (NASDAQ: WSBF) announced that its Board of Directors authorized the repurchase of up to an additional 2,000,000 shares of the Company’s outstanding shares of common stock under its existing repurchase program on April 27, 2026. Prior to this authorization, 148,285 shares remained available to repurchase. With the new authorization, a total of 2,148,285 shares are now available for repurchase, representing approximately 11.9% of the Company’s issued and outstanding shares of common stock as of April 27, 2026. The timing and method of repurchases will depend on various factors, and the program may be suspended, terminated, or modified at any time. This announcement is significant for investors as it may impact share value and reflects the company's capital allocation strategy.