Waterstone Financial (WSBF) investor relations material

Executive summary

• Net income rose to $6.0 million ($0.34 per diluted share) for Q1 2026, up from $3.0 million ($0.17 per share) year-over-year.

• Return on average assets increased to 1.10% from 0.57% year-over-year; return on average equity rose to 6.88% from 3.61%.

• Strong net interest margin expansion and higher loan origination volumes, especially in mortgage banking, drove results.

• $7.3 million returned to shareholders via buybacks and dividends; quarterly dividend increased to $0.17 per share.

Financial highlights

• Net interest income grew 22.8% year-over-year to $15.2 million in the community banking segment.

• Consolidated net interest margin improved to 2.97% from 2.47% year-over-year.

• Book value per share increased to $19.19 at March 31, 2026, from $19.03 at December 31, 2025.

• Nonperforming assets as a percentage of total assets remained stable at 0.35%.

Outlook and guidance

• Management expects continued benefit from net interest margin expansion and loan origination activity, but notes increased allowance for credit losses due to external factors.

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