Waterstone Financial (WSBF) investor relations material

Executive summary

• Net income for Q2 2026 was $8.5 million ($0.49 per diluted share), up from $7.7 million ($0.43 per share) in Q2 2025; six-month net income rose to $14.5 million, a 34% increase from $10.8 million year-over-year.

• Earnings per share increased to $0.84 for the six months, compared to $0.59 in the prior year.

• Community banking segment drove most net interest income, while mortgage banking contributed the majority of noninterest income and expenses.

• Quarterly net interest margin rose to 3.03%, the highest since Q4 2022.

• $6.5 million was returned to shareholders via buybacks and dividends in Q2 2026.

Financial highlights

• Net interest income for Q2 2026 rose 16.8% to $16.0 million; for the six months, it increased 19.7% to $31.5 million year-over-year.

• Noninterest income for Q2 was $24.2 million, nearly flat year-over-year; for the six months, it grew 7.3% to $44.5 million.

• Noninterest expenses increased 3.5% to $29.4 million for the quarter and 4.6% to $57.3 million for the six months.

• Return on average assets was 1.52% for Q2 and 1.31% for the six months; return on average equity was 9.65% and 8.26%, respectively.

• Book value per share increased to $19.54 at June 30, 2026.

Outlook and guidance

• Management highlighted ongoing margin pressure in mortgage banking due to lower sales margins in the secondary market.

• Interest rate risk remains a focus, with simulation showing a 100 basis point rate increase could decrease net interest income by 1.03%.

• Management expects continued growth in loan yields and transaction deposits.

• Forward-looking statements caution about risks from interest rates, competition, regulation, and economic conditions.

• No significant changes in risk profile or capital adequacy are anticipated.