Waterstone Financial (WSBF) investor relations material

Executive summary

• Net income for Q2 2025 was $7.7 million, up from $5.7 million in Q2 2024; six-month net income was $10.8 million, up from $8.8 million year-over-year.

• Earnings per share for Q2 2025 were $0.43 (basic and diluted), compared to $0.31 in Q2 2024; six-month EPS was $0.59, up from $0.47.

• Book value per share increased to $18.19 at June 30, 2025, from $17.53 at December 31, 2024.

• Active share repurchase program contributed to book value growth, with 508,000 shares repurchased at $12.80 per share.

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

Financial highlights

• Net interest income for Q2 2025 rose 28.4% to $13.7 million; six-month net interest income increased 20.5% to $26.3 million year-over-year.

• Noninterest income for Q2 2025 fell 8.2% to $24.3 million, mainly due to lower mortgage banking income; six-month noninterest income dropped 13.2% to $41.4 million.

• Noninterest expenses for Q2 2025 decreased 6.2% to $28.4 million; six-month noninterest expenses declined 5.3% to $54.7 million.

• Annualized return on average assets was 1.39% for Q2 2025 and 0.99% for the six months; return on average equity was 9.04% and 6.32%, respectively.

• Allowance for credit losses was $17.8 million at June 30, 2025, with net recoveries of $22,000 for the six months.

Outlook and guidance

• Management expects insignificant impact from recent U.S. tax reform legislation on deferred tax assets and liabilities.

• No significant items impacted earnings for the three and six months ended June 30, 2025.

• The company continues to monitor economic conditions and adjust qualitative factors in credit loss provisioning.

• Management remains focused on maintaining strong asset quality and cost control.

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