For Immediate ReleaseChicago, IL – October 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla, Inc. (TSLA) , UnitedHealth Group Inc. (UNH) , Shopify Inc. (SHOP) and Waterstone Financial, Inc. (WSBF) .Here are highlights from Tuesday’s Analyst Blog:Top Research Reports for Tesla, UnitedHealth and SpotifyThe ...

Waterstone Financial, Inc. (WSBF) has been upgraded from a “Neutral” to an “Outperform” rating, signaling strength in the company’s strategic direction and financial fundamentals. The upgrade follows a detailed assessment of the company’s second-quarter 2025 performance, which highlights resilience in core operations and early signs of recovery in its mortgage banking segment. While it continues to navigate industry-wide challenges, several encouraging developments have justified the more favorable rating o ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including key financial statements and detailed notes [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This statement details the company's financial position, with total assets increasing by **$47.0 million (2.1%)** | Metric | June 30, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total Assets | $2,256,560 | $2,209,608 | $46,952 | 2.1% | | Cash and cash equivalents | $70,923 | $39,761 | $31,162 | 78.4% | | Securities available for sale | $218,757 | $208,549 | $10,208 | 4.9% | | Loans held for sale | $161,826 | $135,909 | $25,917 | 19.1% | | Loans receivable, net | $1,646,473 | $1,662,329 | $(15,856) | (1.0)% | | Total Liabilities | $1,915,069 | $1,870,473 | $44,596 | 2.4% | | Total Deposits | $1,384,707 | $1,359,897 | $24,810 | 1.8% | | Total Borrowings | $465,726 | $446,519 | $19,207 | 4.3% | | Total Shareholders' Equity | $341,491 | $339,135 | $2,356 | 0.7% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased for both periods ended June 30, 2025, driven by higher net interest income and negative credit loss provision | Metric (In Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | :--------------------------- | :--------------------------- | :----- | :------- | | Total interest income | $28,685 | $28,020 | $665 | 2.4% | $56,440 | $54,925 | $1,515 | 2.8% | | Total interest expense| $14,977 | $17,341 | $(2,364)| (13.6)% | $30,156 | $33,109 | $(2,953)| (8.9)% | | Net interest income | $13,708 | $10,679 | $3,029 | 28.4% | $26,284 | $21,816 | $4,468 | 20.5% | | Provision (credit) for credit losses | $(9) | $(225) | $216 | (96.0)% | $(567) | $(158) | $(409) | 258.9% | | Total noninterest income | $24,329 | $26,497 | $(2,168)| (8.2)% | $41,426 | $47,745 | $(6,319)| (13.2)% | | Total noninterest expenses | $28,377 | $30,259 | $(1,882)| (6.2)% | $54,727 | $57,809 | $(3,082)| (5.3)% | | Net income | $7,727 | $5,712 | $2,015 | 35.3% | $10,763 | $8,750 | $2,013 | 23.0% | | Basic EPS | $0.43 | $0.31 | $0.12 | 38.7% | $0.59 | $0.47 | $0.12 | 25.5% | | Diluted EPS | $0.43 | $0.31 | $0.12 | 38.7% | $0.59 | $0.47 | $0.12 | 25.5% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased for both periods ended June 30, 2025, due to net unrealized holding gains on available-for-sale securities | Metric (In Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net income | $7,727 | $5,712 | $2,015 | 35.3% | $10,763 | $8,750 | $2,013 | 23.0% | | Net unrealized holding gain (loss) on AFS securities, net of tax | $1,146 | $(654) | $1,800 | (275.2)% | $3,494 | $(1,923) | $5,417 | (281.7)% | | Comprehensive income | $8,873 | $5,058 | $3,815 | 75.4% | $14,257 | $6,827 | $7,430 | 108.8% | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased by **$2.4 million** to **$341.5 million** at June 30, 2025, driven by comprehensive income | Metric (In Thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Total Shareholders' Equity | $341,491 | $339,135 | $2,356 | 0.7% | | Net income (6 months) | $10,763 | $8,750 | $2,013 | 23.0% | | Other comprehensive income (6 months) | $3,494 | $(1,923) | $5,417 | (281.7)% | | Cash dividend (6 months) | $(5,381) | $(5,578) | $197 | (3.5)% | | Purchase of common stock returned to authorized but unissued (6 months) | $(9,667) | $(11,116) | $1,449 | (13.0)% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$31.2 million** for the six months ended June 30, 2025, despite decreased operating cash flow | Metric (In Thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net cash used in operating activities | $(11,705) | $(49,456) | $37,751| (76.3)% | | Net cash provided by (used in) investing activities | $10,440 | $(14,225) | $24,665| (173.4)% | | Net cash provided by financing activities | $32,427 | $68,576 | $(36,149)| (52.7)% | | Increase in cash and cash equivalents | $31,162 | $4,895 | $26,267| 536.6% | | Cash and cash equivalents at end of period | $70,923 | $41,316 | $29,607| 71.6% | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, financial instruments, loan portfolio, regulatory capital

Core Insights - Waterstone Financial, Inc. reported a significant increase in earnings per share (EPS) for Q2 2025, rising to 43 cents from 31 cents in Q2 2024, marking a 39% increase [2] - The company's net income for the quarter was $7.7 million, up from $5.7 million in the same period last year [3] - The net interest margin improved to 2.60%, up from 2.01% year-over-year, indicating better yields on interest-earning assets [4] Financial Performance - Revenue from net interest income increased to $13.7 million from $10.9 million year-over-year, while noninterest income decreased to $24.3 million from $26.5 million [2] - Total assets as of June 30, 2025, were $2.22 billion, slightly up from $2.21 billion at the end of 2024 [4] - The loan portfolio saw a decline, with loans receivable at $1.64 billion, down from $1.7 billion in December 2024 [4] Shareholder Actions - The company repurchased approximately 508,000 shares at an average cost of $12.80 per share, increasing book value per share to $18.19 from $17.53 [5] - Dividends declared remained steady at 15 cents per share [5] Management Commentary - The CEO highlighted strong earnings performance, particularly in the community banking segment, which saw a 50.4% increase in pre-tax income to $7.6 million [6] - The community banking segment's growth was attributed to a $2.4 million increase in net interest income and effective expense management [6] Mortgage Banking Insights - Mortgage originations declined by 7.1% year-over-year to $588.8 million, with purchase originations making up 91.7% of the total [7] - Noninterest income from mortgage banking fell by 9.7% to $22.6 million, while gross margin on loans sold decreased to 3.8% from 3.9% [7] - Compensation and employee benefits expenses decreased by 3.4%, aiding earnings despite a decline in mortgage revenue [7]

Core Insights - Waterstone Financial, Inc. reported a net income of $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025, compared to $5.7 million, or $0.31 per diluted share, for the same quarter in 2024 [1][3] - The company achieved its highest quarterly earnings per share since December 31, 2021, driven by growth in net interest income and strong asset quality [2][3] - The Community Banking segment saw a $2.4 million increase in net interest income, primarily due to improved cost of funds [2][3] - The Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded [2][3] Financial Performance - Consolidated net income for the quarter was $7.7 million, a 35.1% increase from $5.7 million in the same quarter of 2024 [3][12] - Return on average assets (annualized) improved to 1.39% from 1.02% year-over-year [3][16] - Return on average equity (annualized) increased to 9.04% from 6.84% year-over-year [3][16] - Dividends declared were $0.15 per common share [3][16] - Book value per share rose to $18.19 from $17.53 at the end of 2024 [3][14] Asset Quality - Nonperforming assets as a percentage of total assets was 0.37% at June 30, 2025, compared to 0.25% at June 30, 2024 [3][17] - Past due loans as a percentage of total loans was 0.69% at June 30, 2025, down from 0.76% at June 30, 2024 [3][17] - The company experienced minimal loan loss activity, resulting in releases from the allowance for credit losses [2][3] Community Banking Segment - Net interest income for the Community Banking segment was $13.6 million, a 21.4% increase from $11.2 million in the same quarter of 2024 [3][12] - Average loans held for investment totaled $1.67 billion, a slight decrease of 0.1% year-over-year [3][12] - Net interest margin increased to 2.60% from 2.01% year-over-year [3][12] Mortgage Banking Segment - Loan originations decreased by $45.3 million, or 7.1%, to $588.8 million compared to $634.1 million in the same quarter of 2024 [9][22] - Mortgage banking non-interest income decreased by $2.4 million, or 9.7%, to $22.6 million [9][22] - Gross margin on loans sold was 3.84%, down from 3.93% in the same quarter of 2024 [9][22]

[Executive Summary & Consolidated Overview](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Consolidated%20Overview) Waterstone Financial, Inc. reported strong Q2 and YTD 2025 financial growth, marked by increased net income, diluted EPS, and improved profitability ratios, alongside strategic share repurchases and stable asset quality [Overall Financial Performance (Q2 and Six Months Ended June 30, 2025)](index=1&type=section&id=1.1.%20Overall%20Financial%20Performance%20(Q2%20and%20Six%20Months%20Ended%20June%2030,%202025)) Waterstone Financial, Inc. reported increased net income and diluted EPS for both the second quarter and the first six months of 2025 compared to the same periods in 2024, indicating strong financial growth **Consolidated Net Income and Diluted EPS (Q2 and Six Months Ended June 30):** | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :-------------------- | :------ | :------ | :-------------- | :-------------- | | Net Income (in millions) | $7.7 | $5.7 | $10.763 | $8.750 | | Diluted EPS | $0.43 | $0.31 | $0.59 | $0.47 | [CEO Commentary](index=1&type=section&id=1.2.%20CEO%20Commentary) CEO William Bruss expressed satisfaction with the quarter's performance, noting the highest quarterly EPS since Q4 2021. He highlighted growth in Community Banking's net interest income due to improved cost of funds, strong asset quality, and pre-tax income in Mortgage Banking as origination volumes expanded and legal settlement fees normalized. The company also increased book value per share through earnings and share repurchases - Achieved **highest quarterly earnings per share** since the quarter ended December 31, 2021[2](index=2&type=chunk) - Community Banking segment grew net interest income by **$2.4 million** YoY, primarily due to improved cost of funds[2](index=2&type=chunk) - Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded and professional fees normalized[2](index=2&type=chunk) - Book value per share increased through strong earnings and an active share repurchase program[2](index=2&type=chunk) [Consolidated Highlights](index=1&type=section&id=1.3.%20Consolidated%20Highlights) The company demonstrated strong consolidated financial performance in Q2 2025, with significant increases in net income, return on average assets, and return on average equity year-over-year. Book value per share also improved, supported by share repurchases, while asset quality metrics showed slight changes **Consolidated Financial Performance (Q2 YoY Change):** | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net Income (in millions) | $7.7 | $5.7 | +$2.0 (+35.1%) | | Return on average assets (annualized) | 1.39% | 1.02% | +37 bps | | Return on average equity (annualized) | 9.04% | 6.84% | +220 bps | - Dividends declared during Q2 2025 totaled **$0.15 per common share**[4](index=4&type=chunk) - Repurchased approximately **508,000 shares** at a cost of **$6.5 million** (**$12.80 per share**), increasing book value by approximately **$0.14** during Q2 2025[4](index=4&type=chunk) **Asset Quality Ratios (Consolidated):** | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Nonperforming assets as % of total assets | 0.37% | 0.35% | 0.25% | | Past due loans as % of total loans | 0.69% | 0.67% | 0.76% | [Segment Performance Review](index=1&type=section&id=2.%20Segment%20Performance%20Review) The company's segments showed varied performance, with Community Banking achieving significant income growth and improved net interest margin, while Mortgage Banking maintained pre-tax income despite lower originations [Community Banking Segment Highlights](index=1&type=section&id=2.1.%20Community%20Banking%20Segment%20Highlights) The Community Banking segment reported a substantial increase in pre-tax income and net interest income for Q2 2025, driven by an improved net interest margin. Average loans held for investment saw a slight decrease, primarily due to single-family mortgages, while past due loans remained managed **Community Banking Segment Financial Performance (Q2 YoY Change):** | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :------------------------ | :-------------------- | :-------------------- | :----- | | Pre-tax income | $7.6 | $5.1 | +$2.5 (+49.0%) | | Net interest income | $13.6 | $11.2 | +$2.4 (+21.4%) | | Net interest margin | 2.60% | 2.01% | +59 bps | - Average loans held for investment decreased by **$1.5 million** (**0.1%**) YoY to **$1.67 billion** in Q2 2025, primarily due to a decrease in single-family mortgages offset by increases in commercial real estate and multi-family mortgages[4](index=4&type=chunk) **Community Banking Segment Past Due Loans:** | Metric | June 30, 2025 (in millions) | March 31, 2025 (in millions) | June 30, 2024 (in millions) | | :---------------------- | :-------------------------- | :--------------------------- | :-------------------------- | | Past due loans | $8.9 | $7.6 | $9.3 | [Mortgage Banking Segment Highlights](index=2&type=section&id=2.2.%20Mortgage%20Banking%20Segment%20Highlights) The Mortgage Banking segment maintained pre-tax income at $2.0 million for Q2 2025, consistent with the prior year, despite a decrease in loan originations and non-interest income. The segment improved its efficiency ratio and saw an increase in average core retail deposits **Mortgage Banking Segment Financial Performance (Q2 YoY Change):** | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :-------------------------------- | :-------------------- | :-------------------- | :------- | | Pre-tax income | $2.0 | $2.0 | $0.0 (0.0%) | | Loan originations | $588.8 | $634.1 | -$45.3 (-7.1%) | | Mortgage banking non-interest income | $22.6 | $25.1 | -$2.5 (-9.7%) | | Efficiency ratio | 50.40% | 62.37% | -1197 bps | | Gross margin on loans sold | 3.84% | 3.93% | -9 bps | - Average core retail deposits increased by **$91.7 million** (**7.5%**) YoY to **$1.31 billion** in Q2 2025, primarily due to increases in checking, money market, and certificates of deposit balances[6](index=6&type=chunk) - Purchase activity accounted for **91.7%** of originations in Q2 2025, compared to **92.7%** in Q2 2024[6](index=6&type=chunk) [Company Information and Disclosures](index=3&type=section&id=3.%20Company%20Information%20and%20Disclosures) This section provides an overview of Waterstone Financial, Inc.'s structure and operations, along with important disclosures regarding forward-looking statements and the use of non-GAAP financial measures [About Waterstone Financial, Inc.](index=3&type=section&id=3.1.%20About%20Waterstone%20Financial,%20Inc.) Waterstone Financial, Inc. is a savings and loan holding company for WaterStone Bank, a community-focused financial institution operating 14 branches in southeastern Wisconsin. It also owns WaterStone Mortgage Corporation, a national lender licensed in 48 states, committed to innovation, integrity, and community service - Waterstone Financial, Inc. is the holding company for WaterStone Bank, established in **1921**, with **14 branch locations** in southeastern Wisconsin[7](index=7&type=chunk) - WaterStone Bank offers personal and business banking products and is the parent company of WaterStone Mortgage Corporation, a national lender licensed in **48 states**[7](index=7&type=chunk) - The company supports financial and homeownership goals with a commitment to innovation, integrity, and community service[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=3.2.%20Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking information in the press release, emphasizing that actual results may differ materially due to various risks and uncertainties, including changes in interest rates, market demand, competition, regulations, and economic conditions. Readers are advised not to place undue reliance on these statements - The press release contains forward-looking statements subject to risks and uncertainties under the Private Securities Litigation Reform Act of 1995[10](index=10&type=chunk) - Actual results may differ materially due to factors such as changes in interest rates, demand, competition, banking regulation, tax laws, technological advances, and economic conditions[10](index=10&type=chunk) - Readers are cautioned not to place undue reliance on these statements, which reflect beliefs only as of the press release date[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=3.3.%20Non-GAAP%20Financial%20Measures) Management uses non-GAAP financial measures to provide a clearer understanding of ongoing operations and enhance comparability with prior periods, believing investors may find them useful for analyzing performance without the impact of unusual items. However, these measures are supplementary to GAAP results and may have limitations regarding appropriateness of items or calculation differences across companies - Management uses non-GAAP financial information to provide a greater understanding of ongoing operations and enhance comparability of results with prior periods[11](index=11&type=chunk) - Investors may use non-GAAP measures to analyze financial performance without the impact of unusual items or events[11](index=11&type=chunk) - Non-GAAP data is supplementary to GAAP results and not a substitute; limitations include potential disagreements on items and differing calculation methods across companies[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=4.%20Consolidated%20Financial%20Statements) This section presents the consolidated statements of income and financial condition, highlighting significant increases in net income, total assets, and deposits for Q2 2025 [Consolidated Statements of Income](index=4&type=section&id=4.1.%20Consolidated%20Statements%20of%20Income) The consolidated statements of income show a significant increase in net interest income and net income for both the three and six months ended June 30, 2025, compared to the prior year. This was primarily driven by higher interest income and a decrease in total interest expense, despite a reduction in noninterest income **Consolidated Statements of Income (Three Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Total interest income | $28,685 | $28,020 | +$665 | | Total interest expense | $14,977 | $17,341 | -$2,364 | | Net interest income | $13,708 | $10,679 | +$3,029 | | Total noninterest income | $24,329 | $26,497 | -$2,168 | | Total noninterest expenses | $28,377 | $30,259 | -$1,882 | | Net income | $7,727 | $5,712 | +$2,015 | | Diluted EPS | $0.43 | $0.31 | +$0.12 | **Consolidated Statements of Income (Six Months Ended June 30, in thousands):** | Metric | 2025 | 2024 | Change | | :--------------------------------------- | :----- | :----- | :----- | | Total interest income | $56,440 | $54,925 | +$1,515 | | Total interest expense | $30,156 | $33,109 | -$2,953 | | Net interest income | $26,284 | $21,816 | +$4,468 | | Total noninterest income | $41,426 | $47,745 | -$6,319 | | Total noninterest expenses | $54,727 | $57,809 | -$3,082 | | Net income | $10,763 | $8,750 | +$2,013 | | Diluted EPS | $0.59 | $0.47 | +$0.12 | [Consolidated Statements of Financial Condition](index=5&type=section&id=4.2.%20Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, Waterstone Financial, Inc. reported an increase in total assets and total deposits compared to December 31, 2024. Cash and cash equivalents significantly rose, while loans receivable slightly decreased. Total shareholders' equity also saw a modest increase **Consolidated Statements of Financial Condition (As of June 30, 2025 vs. December 31, 2024, in thousands):** | Metric | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------ | :---------------- | :----- | | Total assets | $2,256,560 | $2,209,608 | +$46,952 | | Cash and cash equivalents | $70,923 | $39,761 | +$31,162 | | Loans receivable, net | $1,646,473 | $1,662,329 | -$15,856 | | Total deposits | $1,384,707 | $1,359,897 | +$24,810 | | Total liabilities | $1,915,069 | $1,870,473 | +$44,596 | | Total shareholders' equity | $341,491 | $339,135 | +$2,356 | | Book value per share | $18.19 | $17.53 | +$0.66 | [Supplementary Financial Data](index=6&type=section&id=5.%20Supplementary%20Financial%20Data) This section provides detailed supplementary financial data, including consolidated and segment-specific quarterly performance, average balances, and yield/cost analyses, illustrating key trends and ratios [Summary of Key Quarterly Financial Data (Consolidated)](index=6&type=section&id=5.1.%20Summary%20of%20Key%20Quarterly%20Financial%20Data%20(Consolidated)) Consolidated quarterly data shows a positive trend in net interest income and net income, with Q2 2025 marking the highest net income in the past five quarters. Performance ratios like ROAA and ROAE also improved significantly quarter-over-quarter and year-over-year, while asset quality ratios remained relatively stable **Condensed Results of Operations (Consolidated, in thousands):** | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income | $13,708 | $12,576 | $12,835 | $11,517 | $10,679 | | Net income | $7,727 | $3,036 | $5,210 | $4,728 | $5,712 | | Income per share – diluted | $0.43 | $0.17 | $0.28 | $0.26 | $0.31 | **Performance Ratios (Consolidated, annualized):** | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Return on average assets - QTD | 1.39% | 0.57% | 0.94% | 0.83% | 1.02% | | Return on average equity - QTD | 9.04% | 3.61% | 6.05% | 5.55% | 6.84% | | Net interest margin - QTD | 2.60% | 2.47% | 2.42% | 2.13% | 2.01% | **Asset Quality Ratios (Consolidated):** | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Past due loans to total loans | 0.69% | 0.67% | 0.95% | 0.63% | 0.76% | | Nonperforming assets to total assets | 0.37% | 0.35% | 0.28% | 0.25% | 0.25% | | Allowance for credit losses - loans to loans receivable | 1.07% | 1.08% | 1.09% | 1.07% | 1.10% | [Summary of Quarterly Average Balances and Yield/Costs (Consolidated)](index=7&type=section&id=5.2.%20Summary%20of%20Quarterly%20Average%20Balances%20and%20Yield/Costs%20(Consolidated)) The consolidated average balances show an increase in total interest-earning assets and total interest-bearing deposits in Q2 2025 compared to the previous quarter. The total interest-earning assets yield slightly decreased QoQ, while the total interest-bearing liabilities cost also decreased, contributing to an improved net interest margin **Average Balances (Consolidated, in thousands):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :-------- | :-------- | :-------- | | Total interest-earning assets | $2,116,995 | $2,062,568 | $2,139,495 | | Total interest-bearing deposits | $1,313,539 | $1,303,792 | $1,143,035 | | Borrowings | $437,784 | $397,053 | $622,771 | | Total interest-bearing liabilities | $1,751,323 | $1,700,845 | $1,765,806 | **Average Yield/Costs (Consolidated, annualized):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------------- | :------ | :------ | :------ | | Loans receivable and held for sale yield | 5.73% | 5.75% | 5.54% | | Total interest-earning assets yield | 5.43% | 5.46% | 5.27% | | Total interest-bearing deposits cost | 3.35% | 3.52% | 3.42% | | Borrowings cost | 3.67% | 3.93% | 4.92% | | Total interest-bearing liabilities cost | 3.43% | 3.62% | 3.95% | [Community Banking Segment Summary of Key Quarterly Financial Data](index=8&type=section&id=5.3.%20Community%20Banking%20Segment%20Summary%20of%20Key%20Quarterly%20Financial%20Data) The Community Banking segment showed consistent growth in net interest income and net income over the past five quarters, with Q2 2025 reporting the highest figures. The efficiency ratio significantly improved both quarter-over-quarter and year-over-year **Community Banking Segment Condensed Results of Operations (in thousands):** | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income | $13,640 | $12,403 | $12,886 | $12,250 | $11,234 | | Net income | $6,220 | $4,638 | $5,288 | $4,705 | $4,349 | **Community Banking Segment Efficiency Ratio (non-GAAP):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------- | :------ | :------ | :------ | | Efficiency ratio - QTD | 50.40% | 59.66% | 62.37% | [Mortgage Banking Segment Summary of Key Quarterly Financial Data](index=9&type=section&id=5.4.%20Mortgage%20Banking%20Segment%20Summary%20of%20Key%20Quarterly%20Financial%20Data) The Mortgage Banking segment reported a positive net income in Q2 2025, recovering from a loss in Q1 2025, and showing an improvement compared to Q2 2024. Loan originations decreased year-over-year but increased significantly quarter-over-quarter, with purchase activity remaining dominant. The efficiency ratio improved QoQ and YoY **Mortgage Banking Segment Condensed Results of Operations (in thousands):** | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--------------------------------------- | :------ | :-------- | :------ | :---- | :------ | | Net income | $1,468 | $(1,625) | $(197) | $(50) | $1,313 | | (Loss) income before income taxes (benefit) expense | $1,999 | $(2,213) | $(625) | $144 | $1,997 | **Mortgage Banking Segment Loan Originations (in thousands):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :---------------------- | :-------- | :-------- | :-------- | | Loan originations | $588,838 | $387,729 | $634,109 | | Purchase % | 91.7% | 87.5% | 92.7% | | Refinance % | 8.3% | 12.5% | 7.3% | **Mortgage Banking Segment Efficiency Ratio (non-GAAP) and Gross Margin:** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :------ | :-------- | :------ | | Efficiency ratio - QTD | 91.15% | 114.18% | 91.64% | | Gross margin on loans sold | 3.84% | 3.98% | 3.93% |

Core Viewpoint - Zacks Investment Research has initiated coverage of Waterstone Financial, Inc. (WSBF) with a Neutral recommendation, indicating a balanced outlook for the company despite its capital strength and earnings stability, due to several risk factors and operational inefficiencies limiting near-term upside potential [1] Financial Strength - Waterstone's financial foundation is robust, with a Common Equity Tier 1 (CET1) capital ratio of 20.32% and a Total Capital Ratio of 21.40% as of March 2025, significantly exceeding regulatory minimums [2] - The company offers a consistent dividend yield of 4.4%, above the industry average, with the most recent quarterly dividend of 15 cents per share declared in June [2] Performance Metrics - Improvements in net interest margin from 2.15% in Q1 2024 to 2.47% in Q1 2025 reflect effective asset-liability management and lower borrowing costs [3] - Interest-earning asset yields rose to 5.46%, while reliance on higher-cost Federal Home Loan Bank borrowings has significantly declined [3] Liquidity Position - As of March 31, 2025, Waterstone holds $43.3 million in cash and has $377 million in unused FHLB borrowing capacity, indicating a strong liquidity position [4] - The deposit base continues to expand, particularly in time deposits, providing flexibility in funding and pricing strategies [4] Challenges - The Mortgage Banking segment reported a $1.6 million loss in Q1, reversing a profit from the same period last year, driven by a 20% decline in loan originations [5] - The company has $21.8 million in unrealized losses on its securities portfolio, primarily in government-sponsored mortgage-backed securities, which could impact book value if interest rates rise [5] Credit Quality - Substandard commercial real estate loans are elevated at $11.9 million, with collateral-dependent loans rising sharply to $17.5 million, indicating potential pressure in the CRE segment [6] - Nonaccrual loans increased to $7.4 million, highlighting concerns regarding credit quality trends [6] Market Sentiment - Waterstone's share price has underperformed compared to peers and the broader market, reflecting tepid investor sentiment [7] - Trading multiples suggest the stock is not overvalued but do not indicate a compelling discount, with the market pricing in a stable but limited growth trajectory [7]

Core Insights - Waterstone Financial, Inc. has elected Molly Mulroy and Laura Piotrowski to its Board of Directors, effective July 22, 2025 [1][2] Group 1: Board Members' Backgrounds - Molly Mulroy is currently the Executive Vice President and Chief Administrative Officer of WEC Energy Group, overseeing various departments including Human Resources and IT Services [2][3] - Mulroy has held multiple leadership roles since joining WEC Energy Group in 1999, including Vice President and Chief Information Officer [3] - Laura Piotrowski is the CEO and President of Cavendish Vernal, a strategic advisory firm she founded in 2017, and has previously held senior finance roles [5][6] Group 2: Educational and Community Involvement - Mulroy holds a bachelor's degree from the University of Minnesota and an MBA from the University of Chicago, and is active in the Milwaukee community [4] - Piotrowski earned her bachelor's degree from the University of Wisconsin-Milwaukee and an Executive MBA from Marquette University, and is a Certified Public Accountant [7] Group 3: Company Overview - Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, which was established in 1921 and operates 14 branch locations in southeastern Wisconsin [8] - WaterStone Bank offers a comprehensive suite of personal and business banking products and is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states [8][9]

Core Viewpoint - Waterstone Financial, Inc. (NASDAQ: WSBF) is rated as a Hold for income-focused investors looking for long-term buy and hold investments, indicating a cautious outlook on the stock's performance [1]. Company Summary - WSBF is characterized as a small regional bank that has faced challenges during significant economic events such as the Financial Crisis and the Covid pandemic [1]. - The bank's performance has been under scrutiny due to its historical difficulties, suggesting a need for careful evaluation by potential investors [1]. Analyst Background - David A. Johnson, the founder and principal of Endurance Capital Management, has over 30 years of investment experience and holds advanced degrees in finance and business administration, indicating a strong background in financial analysis [1].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited consolidated financial statements and management's analysis of financial performance [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides the unaudited consolidated financial statements and related notes for the quarter ended March 31, 2025 [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This section presents the consolidated statements of financial condition as of March 31, 2025, and December 31, 2024 Consolidated Statements of Financial Condition (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total Assets | $2,175,367 | $2,209,608 | $(34,241) | (1.55)% | | Total Liabilities | $1,834,007 | $1,870,473 | $(36,466) | (1.95)% | | Total Shareholders' Equity | $341,360 | $339,135 | $2,225 | 0.66% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section details the consolidated statements of income for the three months ended March 31, 2025, and 2024 Consolidated Statements of Income (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total Interest Income | $27,755 | $26,905 | $850 | 3.16% | | Total Interest Expense | $15,179 | $15,768 | $(589) | (3.74)% | | Net Interest Income | $12,576 | $11,137 | $1,439 | 12.92% | | Provision (credit) for credit losses | $(558) | $67 | $(625) | (932.84)% | | Total Noninterest Income | $17,097 | $21,248 | $(4,151) | (19.54)% | | Total Noninterest Expenses | $26,350 | $27,550 | $(1,200) | (4.36)% | | Income before income taxes | $3,881 | $4,768 | $(887) | (18.60)% | | Income tax expense | $845 | $1,730 | $(885) | (51.16)% | | Net Income | $3,036 | $3,038 | $(2) | (0.07)% | | Basic Income per share | $0.17 | $0.16 | $0.01 | 6.25% | | Diluted Income per share | $0.17 | $0.16 | $0.01 | 6.25% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the consolidated statements of comprehensive income for the three months ended March 31, 2025, and 2024 Consolidated Statements of Comprehensive Income (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :---------------------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net Income | $3,036 | $3,038 | $(2) | (0.07)% | | Net unrealized holding gain (loss) on available for sale securities | $2,348 | $(1,269) | $3,617 | (284.99)% | | Total Other Comprehensive Income (Loss) | $2,348 | $(1,269) | $3,617 | (284.99)% | | Comprehensive Income | $5,384 | $1,769 | $3,615 | 204.35% | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section presents changes in consolidated shareholders' equity for the three months ended March 31, 2025, and 2024 Consolidated Statements of Changes in Shareholders' Equity (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | | Balances at beginning of period | $339,135 | $344,056 (Dec 31, 2023) | - | | Net income | $3,036 | $3,038 (Q1 2024) | - | | Other comprehensive income (loss) | $2,348 | $(1,269) (Q1 2024) | - | | Total comprehensive income | $5,384 | $1,769 (Q1 2024) | - | | Cash dividend, $0.15 per share | $(2,711) | $(2,817) (Q1 2024) | - | | Purchase of common stock | $(3,173) | $(5,346) (Q1 2024) | - | | Balances at end of period | $341,360 | $338,003 (March 31, 2024) | - | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the consolidated statements of cash flows for the three months ended March 31, 2025, and 2024 Consolidated Statements of Cash Flows (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | | Net cash provided by (used in) operating activities | $26,743 | $(9,938) | $36,681 | | Net cash provided by (used in) investing activities | $16,857 | $(146) | $17,003 | | Net cash (used in) provided by financing activities | $(40,072) | $19,377 | $(59,449) | | Increase in cash and cash equivalents | $3,528 | $9,293 | $(5,765) | | Cash and cash equivalents at end of period | $43,289 | $45,714 | $(2,425) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of presentation, accounting policies, and specific financial items [Note 1 — Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%94%20Basis%20of%20Presentation) This note describes the organizational structure and primary business activities of Waterstone Financial, Inc. and its subsidiaries - Waterstone Financial, Inc. includes WaterStone Bank SSB (community banking), Wauwatosa Investments, Inc. (investment subsidiary), and Waterstone Mortgage Corporation (mortgage banking)[21](index=21&type=chunk) - WaterStone Bank operates 14 banking offices in Milwaukee, Washington, and Waukesha Counties, Wisconsin, focusing on real estate loans and funding primarily through retail deposits and Federal Home Loan Bank (FHLB) advances[22](index=22&type=chunk) - Waterstone Mortgage Corporation originates single-family residential real estate loans for sale into the secondary market, utilizing lines of credit from WaterStone Bank and another financial institution[24](index=24&type=chunk) [Note 2 — Securities Available for Sale](index=10&type=section&id=Note%202%20%E2%80%94%20Securities%20Available%20for%20Sale) This note details the fair value of securities available for sale and the assessment of unrealized losses Securities Available for Sale (Fair Value) | Category | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Mortgage-backed securities | $9,498 | $9,611 | $(113) | (1.18)% | | Collateralized mortgage obligations | $145,659 | $138,136 | $7,523 | 5.45% | | Government sponsored enterprise bonds | $2,467 | $2,440 | $27 | 1.11% | | Municipal securities | $44,691 | $47,076 | $(2,385) | (5.07)% | | Other debt securities | $11,300 | $11,286 | $14 | 0.12% | | Total | $213,615 | $208,549 | $5,066 | 2.43% | - The Company reviews its investment securities quarterly for unrealized losses, which are primarily due to noncredit-related factors like changes in interest rates and market conditions. No allowance for credit losses on securities was recognized as of March 31, 2025, and December 31, 2024[33](index=33&type=chunk) [Note 3 — Loans Receivable](index=12&type=section&id=Note%203%20%E2%80%94%20Loans%20Receivable) This note provides a breakdown of loans receivable by type and details the allowance for credit losses activity Loans Receivable by Type | Loan Type | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :---------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | One- to four-family | $519,393 | $516,128 | $3,265 | 0.63% | | Multi-family | $716,792 | $741,428 | $(24,636) | (3.32)% | | Home equity | $12,837 | $13,188 | $(351) | (2.66)% | | Construction and land | $57,221 | $61,427 | $(4,206) | (6.85)% | | Commercial real estate | $321,022 | $313,494 | $7,528 | 2.40% | | Consumer | $820 | $825 | $(5) | (0.61)% | | Commercial loans | $35,434 | $34,086 | $1,348 | 3.96% | | Total | $1,663,519 | $1,680,576 | $(17,057) | (1.01)% | Allowance for Credit Losses (ACL) - Loans Activity | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Balance at beginning of period | $18,247 | $18,549 | | Provision (credit) for credit losses | $(354) | $(3) | | Charge-offs | $(21) | $(11) | | Recoveries | $33 | $14 | | Balance at end of period | $17,905 | $18,549 | Non-accrual Loans | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total non-accrual loans | $7,423 | $5,665 | $1,758 | 31.03% | | Non-accrual loans to total loans receivable | 0.45% | 0.34% | 0.11% | 32.35% | | Non-accrual loans to total assets | 0.34% | 0.26% | 0.08% | 30.77% | [Note 4 — Mortgage Servicing Rights](index=21&type=section&id=Note%204%20%E2%80%94%20Mortgage%20Servicing%20Rights) This note outlines the activity and valuation of mortgage servicing rights, including unpaid principal balances Mortgage Servicing Rights Activity (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | MSR at beginning of period | $732 | $1,811 | $(1,079) | (59.58)% | | Additions | $148 | $207 | $(59) | (28.50)% | | Amortization | $(43) | $(170) | $127 | (74.71)% | | Valuation allowance (recorded) recovered | $(12) | $313 | $(325) | (103.83)% | | MSR at end of period, net | $825 | $2,161 | $(1,336) | (61.82)% | - The unpaid principal balance of loans serviced for others increased to **$94.8 million** at March 31, 2025, from **$83.4 million** at December 31, 2024[64](index=64&type=chunk) [Note 5 — Deposits](index=21&type=section&id=Note%205%20%E2%80%94%20Deposits) This note presents the contractual maturities of time deposits and details regarding uninsured and related-party deposits Time Deposits Contractual Maturities (March 31, 2025) | Maturity Period | Amount (In Thousands) | | :-------------------------- | :-------------------- | | Within one year | $845,730 | | More than one to two years | $66,291 | | More than two to three years | $2,164 | | More than three to four years | $368 | | More than four through five years | $261 | | Total | $914,814 | - Uninsured time deposits of **$250,000 or more** aggregated **$173.7 million** at March 31, 2025, up from **$167.3 million** at December 31, 2024[68](index=68&type=chunk) - Deposits from directors, executive officers, and their related entities increased to **$21.2 million** at March 31, 2025, from **$11.3 million** at December 31, 2024[69](index=69&type=chunk) [Note 6 — Borrowings](index=22&type=section&id=Note%206%20%E2%80%94%20Borrowings) This note details the Company's borrowings by category, including FHLB advances and repurchase agreements Borrowings by Category (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 Balance (In Thousands) | March 31, 2025 Weighted Average Rate | December 31, 2024 Balance (In Thousands) | December 31, 2024 Weighted Average Rate | | :------------------------ | :----------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | FHLB short-term advances | $194,130 | 4.28% | $293,553 | 4.41% | | FHLB long-term advances | $190,000 | 3.29% (avg) | $150,000 | 2.93% (avg) | | Repurchase agreements | $11,722 | 7.49% | $2,966 | 7.49% | | Total borrowings | $395,852 | 3.74% | $446,519 | 3.92% | - Total borrowings decreased by **$50.7 million (11.3%)** to **$395.9 million** at March 31, 2025, primarily due to a **$99.4 million** decrease in short-term FHLB borrowings, partially offset by a **$40.0 million** increase in long-term FHLB borrowings and an **$8.7 million** increase in repurchase agreements[183](index=183&type=chunk) - The Company had approximately **$377.2 million** in unused borrowing capacity at the FHLB as of March 31, 2025[73](index=73&type=chunk) [Note 7 – Regulatory Capital](index=23&type=section&id=Note%207%20%E2%80%93%20Regulatory%20Capital) This note provides an overview of WaterStone Bank's regulatory capital ratios and its 'well-capitalized' status - As of March 31, 2025, WaterStone Bank was considered "well-capitalized," with all capital ratios exceeding the well-capitalized requirements[81](index=81&type=chunk) Waterstone Bank Capital Ratios (March 31, 2025) | Capital Ratio | Actual Ratio | Minimum for Capital Adequacy | Minimum for Well Capitalized | | :------------------------------------ | :----------- | :--------------------------- | :--------------------------- | | Total Capital (to risk-weighted assets) | 20.68% | 8.00% | 10.00% | | Tier I Capital (to risk-weighted assets) | 19.60% | 6.00% | 8.00% | | Common Equity Tier 1 Capital (to risk-weighted assets) | 19.60% | 4.50% | 6.50% | | Tier I Capital (to average assets) | 15.86% | 4.00% | 5.00% | [Note 8 – Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities](index=26&type=section&id=Note%208%20%E2%80%93%20Commitments,%20Off-Balance%20Sheet%20Arrangements,%20and%20Contingent%20Liabilities) This note details financial instruments with potential credit risk, legal settlements, and other off-balance sheet items Financial Instruments with Potential Credit Risk (March 31, 2025 vs. December 31, 2024) | Commitment Type | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :---------------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Commitments to extend credit under amortizing loans | $19,046 | $19,052 | $(6) | (0.03)% | | Commitments to extend credit under home equity lines | $11,300 | $11,531 | $(231) | (2.00)% | | Unused portion of construction loans | $64,499 | $72,753 | $(8,254) | (11.34)% | | Unused portion of business lines of credit | $13,199 | $15,061 | $(1,862) | (12.36)% | | Standby letters of credit | $1,504 | $399 | $1,105 | 276.94% | - The Company's reserve for losses related to recourse provisions on residential mortgage loans sold totaled **$1.2 million** as of March 31, 2025, a decrease from **$1.3 million** at December 31, 2024[88](index=88&type=chunk) - The Company finalized a legal settlement during Q1 2025, with an accrued legal liability of **$1.7 million** at March 31, 2025, up from **$1.3 million** at December 31, 2024[89](index=89&type=chunk) [Note 9 – Derivative Financial Instruments](index=27&type=section&id=Note%209%20%E2%80%93%20Derivative%20Financial%20Instruments) This note describes the Company's use of mortgage banking derivatives and interest rate swaps to manage market exposure - The Company uses mortgage banking derivatives (interest rate lock commitments and forward commitments) to manage interest rate exposure on loans intended for sale in the secondary market, but these are not designated for hedge accounting[91](index=91&type=chunk) - The Company also offers interest rate swaps to customers, offsetting risk with back-to-back swaps with third-party dealers, which are not designated for hedge accounting[98](index=98&type=chunk) Outstanding Notional Balances and Fair Values of Derivatives (March 31, 2025) | Derivative Type | March 31, 2025 Notional Amount (In Millions) | March 31, 2025 Asset Fair Value (In Millions) | March 31, 2025 Liability Fair Value (In Millions) | | :------------------------ | :------------------------------------------ | :------------------------------------------ | :--------------------------------------------- | | Forward commitments | $264.0 | $0.6 | $- | | Interest rate locks | $212.0 | $- | $- | | Interest rate swaps | $147.5 | $10.5 | $10.5 | [Note 10 – Earnings Per Share](index=29&type=section&id=Note%2010%20%E2%80%93%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per share for the periods presented Earnings Per Share Calculation (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change | % Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net income (In Thousands) | $3,036 | $3,038 | $(2) | (0.07)% | | Basic earnings per share | $0.17 | $0.16 | $0.01 | 6.25% | | Diluted earnings per share | $0.17 | $0.16 | $0.01 | 6.25% | | Weighted average shares outstanding (Basic) | 18,267 | 19,021 | (754) | (3.96)% | | Weighted average shares outstanding (Diluted) | 18,280 | 19,036 | (756) | (3.97)% | [Note 11 – Fair Value Measurements](index=29&type=section&id=Note%2011%20%E2%80%93%20Fair%20Value%20Measurements) This note explains the fair value hierarchy and provides details on assets and liabilities measured at fair value - The Company categorizes fair value measurements into a three-level hierarchy: Level 1 (quoted prices in active markets for identical assets/liabilities), Level 2 (observable inputs other than Level 1 quoted prices), and Level 3 (unobservable inputs)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) Assets Recorded at Fair Value on a Recurring Basis (March 31, 2025) | Asset Category | Total Fair Value (In Thousands) | Level 1 (In Thousands) | Level 2 (In Thousands) | Level 3 (In Thousands) | | :------------------------------------ | :----------------------------- | :--------------------- | :--------------------- | :--------------------- | | Available for sale securities | $213,615 | $- | $213,615 | $- | | Loans held for sale | $116,290 | $- | $116,290 | $- | | Mortgage banking derivative assets | $616 | $- | $- | $616 | | Interest rate swap assets | $10,525 | $- | $10,525 | $- | - The significant unobservable input for mortgage banking derivatives (Level 3) is the loan pull-through rate, which was **65.6%** at March 31, 2025, and **66.3%** at December 31, 2024[123](index=123&type=chunk) [Note 12 – Segment Reporting](index=35&type=section&id=Note%2012%20%E2%80%93%20Segment%20Reporting) This note outlines the financial performance and operations of the Community Banking and Mortgage Banking segments - The Company operates with two reportable segments: Community Banking and Mortgage Banking[135](index=135&type=chunk) - The Community Banking segment provides consumer and business banking products and services primarily in Southeastern Wisconsin, including various loans, deposits, and investment services[136](index=136&type=chunk)[137](index=137&type=chunk) - The Mortgage Banking segment originates residential mortgage loans for sale on the secondary market, operating in 25 states[138](index=138&type=chunk) Segment Net Income (Three months ended March 31, 2025) | Segment | Net Income (Loss) (In Thousands) | | :---------------- | :----------------------------- | | Community Banking | $4,638 | | Mortgage Banking | $(1,625) | | Holding Company and Other | $23 | | Consolidated | $3,036 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operational results for Q1 2025 [Forward-Looking Information](index=38&type=section&id=Forward-Looking%20Information) This section highlights the forward-looking nature of certain statements and potential factors causing actual results to differ - The report contains forward-looking statements regarding goals, intentions, business plans, growth strategies, loan and investment portfolio quality, and estimates of risks and future costs/benefits[144](index=144&type=chunk)[145](index=145&type=chunk) - Actual results could differ materially due to factors such as general economic conditions, competition, inflation, interest rate changes, regulatory changes, market risks, and technological risks[146](index=146&type=chunk) [Overview](index=39&type=section&id=Overview) This section provides a high-level summary of the contributions of the Community Banking and Mortgage Banking segments - The community banking segment generates most consolidated net interest income and requires the significant majority of the provision for loan losses[151](index=151&type=chunk) - The mortgage banking segment generates the significant majority of noninterest income and a majority of noninterest expenses[151](index=151&type=chunk) [Comparison of Community Banking Segment Results of Operations](index=39&type=section&id=Comparison%20of%20Community%20Banking%20Segment%20Results%20of%20Operations) This section analyzes the Community Banking segment's financial performance for Q1 2025 compared to Q1 2024 Community Banking Segment Key Financials (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net income | $4,638 | $2,640 | $1,998 | 75.61% | | Net interest income | $12,403 | $11,598 | $805 | 6.94% | | Provision (credit) for credit losses | $(518) | $105 | $(623) | (593.33)% | | Compensation, payroll taxes, and other employee benefits | $5,212 | $5,360 | $(148) | (2.76)% | - The negative provision for credit losses was primarily due to decreases in historical loss rates and loan portfolio balances, offset by an increase in commercial real estate loan qualitative factors related to economic and internal asset quality risks[154](index=154&type=chunk) [Comparison of Mortgage Banking Segment Results of Operations](index=40&type=section&id=Comparison%20of%20Mortgage%20Banking%20Segment%20Results%20of%20Operations) This section analyzes the Mortgage Banking segment's financial performance for Q1 2025 compared to Q1 2024 Mortgage Banking Segment Key Financials (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net income (loss) | $(1,625) | $298 | $(1,923) | (645.64)% | | Mortgage loans originated for sale | $387,700 | $485,100 | $(97,400) | (20.08)% | | Total mortgage banking noninterest income | $15,731 | $20,328 | $(4,597) | (22.61)% | | Compensation, payroll taxes, and other employee benefits | $12,054 | $14,756 | $(2,702) | (18.31)% | | Professional fees | $1,373 | $520 | $853 | 164.04% | - The decrease in loan production volume was driven by a **24.8%** decrease in purchase products, partially offset by a **$14.5 million** increase in refinance products[156](index=156&type=chunk) - Gross margin on loans originated and sold decreased by **3.1%**, reflecting decreased industry demand and increased competition[156](index=156&type=chunk) [Consolidated Waterstone Financial, Inc. Results of Operations](index=40&type=section&id=Consolidated%20Waterstone%20Financial,%20Inc.%20Results%20of%20Operations) This section presents the consolidated operational results and key performance metrics for Waterstone Financial, Inc. Consolidated Performance Metrics (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change | % Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net income (In Thousands) | $3,036 | $3,038 | $(2) | (0.07)% | | Basic Earnings per share | $0.17 | $0.16 | $0.01 | 6.25% | | Diluted Earnings per share | $0.17 | $0.16 | $0.01 | 6.25% | | Annualized return on average assets | 0.57% | 0.56% | 0.01% | 1.79% | | Annualized return on average equity | 3.61% | 3.56% | 0.05% | 1.40% | [Net Interest Income](index=41&type=section&id=Net%20Interest%20Income) This section analyzes net interest income and margin for Q1 2025 compared to Q1 2024 Net Interest Income and Margin (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change | % Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net interest income (In Thousands) | $12,576 | $11,137 | $1,439 | 12.92% | | Net interest rate spread | 1.84% | 1.49% | 0.35% | 23.49% | | Net interest margin | 2.47% | 2.15% | 0.32% | 14.88% | - Net interest income increased by **$1.4 million (12.9%)** due to increased yields on loan and securities portfolios and decreased cost of borrowings, as more investments were funded by deposits rather than borrowings[166](index=166&type=chunk) - Interest expense on borrowings decreased by **$3.0 million (43.4%)** due to a **$205.6 million** decrease in the average balance of borrowings and a **61 basis point** decrease in the average cost of borrowings[167](index=167&type=chunk) [Provision for Credit Losses](index=43&type=section&id=Provision%20for%20Credit%20Losses) This section details the provision for credit losses on loans and unfunded commitments for the periods presented Provision for Credit Losses (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total provision (credit) for credit losses | $(558) | $67 | $(625) | (932.84)% | | Provision (credit) for credit losses on loans | $(354) | $(3) | $(351) | (11700.00)% | | Provision (credit) for credit losses on unfunded commitments | $(204) | $70 | $(274) | (391.43)% | - The negative provision for credit losses on loans was primarily due to a decrease in historical losses used in the calculation, a decrease in loan balance, and an improvement in certain asset quality metrics[168](index=168&type=chunk) - The decrease in provision related to unfunded commitments was primarily due to a decrease in construction loans yet to be funded[168](index=168&type=chunk) [Noninterest Income](index=43&type=section&id=Noninterest%20Income) This section analyzes the components and changes in noninterest income for the three months ended March 31, 2025, and 2024 Noninterest Income (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total noninterest income | $17,097 | $21,248 | $(4,151) | (19.54)% | | Mortgage banking income | $15,728 | $20,068 | $(4,340) | (21.63)% | | Service charges on loans and deposits | $593 | $424 | $169 | 39.86% | | Increase in cash surrender value of life insurance | $481 | $348 | $133 | 38.22% | - The decrease in mortgage banking income was primarily due to a **3.1%** decrease in gross margin on loans originated and sold and an **18.8%** decrease in total loan origination volume[170](index=170&type=chunk) [Noninterest Expenses](index=44&type=section&id=Noninterest%20Expenses) This section analyzes the components and changes in noninterest expenses for the three months ended March 31, 2025, and 2024 Noninterest Expenses (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total noninterest expenses | $26,350 | $27,550 | $(1,200) | (4.36)% | | Compensation, payroll taxes, and other employee benefits | $17,047 | $19,876 | $(2,829) | (14.23)% | | Professional fees | $1,736 | $743 | $993 | 133.65% | | Other noninterest expense | $2,558 | $1,418 | $1,140 | 80.39% | - Compensation and benefits decreased due to reduced employee headcount, lower loan origination volumes, and decreased health insurance expense[173](index=173&type=chunk) - Professional fees increased significantly due to legal services and the finalization of a settlement related to a previously disclosed legal matter[173](index=173&type=chunk) [Income Taxes](index=44&type=section&id=Income%20Taxes) This section details the income tax expense and effective tax rate for the three months ended March 31, 2025, and 2024 Income Tax Expense and Effective Rate (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Income tax expense | $845 | $1,730 | $(885) | (51.16)% | | Effective tax rate | 21.8% | 36.3% | (14.5)% | (39.94)% | - The decrease in the effective tax rate was related to a one-time charge to state income tax in 2024 for the establishment of a valuation allowance for a Wisconsin state income deferred tax asset[172](index=172&type=chunk) [Comparison of Financial Condition at March 31, 2025 and December 31, 2024](index=45&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031,%202025%20and%20December%2031,%202024) This section compares the Company's financial condition at March 31, 2025, to December 31, 2024 - Total assets decreased by **$34.2 million (1.5%)** to **$2.18 billion**, primarily reflecting decreases in loans receivable and loans held for sale, and a decrease in borrowings[174](index=174&type=chunk) - Cash and cash equivalents increased by **$3.5 million (8.9%)** to **$43.3 million**, reflecting increased funding from deposits and advance payments by borrowers for taxes[175](index=175&type=chunk) - Loans held for sale decreased by **$19.6 million** due to a slowdown in purchase activity caused by interest rates and affordable housing inventory constraints[177](index=177&type=chunk) - Total deposits increased by **$21.3 million** to **$1.38 billion**, driven by increases in time deposits and money market/savings deposits[182](index=182&type=chunk) [ASSET QUALITY](index=47&type=section&id=ASSET%20QUALITY) This section provides an analysis of the Company's asset quality, including nonperforming assets and loan delinquency [NONPERFORMING ASSETS](index=47&type=section&id=NONPERFORMING%20ASSETS) This section details the Company's nonperforming assets, including non-accrual loans and real estate owned Nonperforming Assets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total non-accrual loans | $7,423 | $5,665 | $1,758 | 31.03% | | Total real estate owned | $135 | $515 | $(380) | (73.79)% | | Total nonperforming assets | $7,558 | $6,180 | $1,378 | 22.30% | | Nonperforming assets to total assets | 0.35% | 0.28% | 0.07% | 25.00% | - Non-accrual loans increased by **$1.8 million (31.0%)** to **$7.4 million**, with **$2.3 million** in loans placed on non-accrual status during the quarter[191](index=191&type=chunk) [LOAN DELINQUENCY](index=49&type=section&id=LOAN%20DELINQUENCY) This section presents an analysis of loan delinquency rates, categorized by days past due Loan Delinquency (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Loans past due less than 90 days | $5,116 | $11,137 | $(6,021) | (54.06)% | | Loans past due 90 days or more | $6,106 | $3,985 | $2,121 | 53.22% | | Total loans past due | $11,222 | $15,122 | $(3,900) | (25.79)% | | Total loans past due to total loans receivable | 0.67% | 0.90% | (0.23)% | (25.56)% | - Total past due loans decreased by **$3.9 million (25.8%)**, primarily due to a significant decrease in loans past due less than 90 days, while loans past due 90 days or more increased[197](index=197&type=chunk) [ALLOWANCE FOR CREDIT LOSSES - LOANS](index=50&type=section&id=ALLOWANCE%20FOR%20CREDIT%20LOSSES%20-%20LOANS) This section details the activity and ratios related to the allowance for credit losses on loans Allowance for Credit Losses - Loans Activity (Three months ended March 31, 2025 vs. 2024) | Metric | Three months ended March 31, 2025 (In Thousands) | Three months ended March 31, 2024 (In Thousands) | Change (In Thousands) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | | Balance at beginning of period | $18,247 | $18,549 | $(302) | | Provision (credit) for credit losses - loans | $(354) | $(3) | $(351) | | Total charge-offs | $21 | $11 | $10 | | Total recoveries | $33 | $14 | $19 | | Net charge-offs (recoveries) | $(12) | $(3) | $(9) | | Balance at end of period | $17,905 | $18,549 | $(644) | Allowance for Credit Losses - Loans Ratios (March 31, 2025 vs. 2024) | Ratio | March 31, 2025 | March 31, 2024 | Change | | :------------------------------------ | :------------- | :------------- | :----- | | ACL to non-accrual loans | 241.21% | 380.73% | (139.52)% | | ACL to loans receivable | 1.08% | 1.11% | (0.03)% | | Net recoveries to average loans outstanding (annualized) | (0.00)% | 0.00% | (0.00)% | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's primary sources and uses of liquidity and its capital management strategies - Primary sources of liquidity include deposits, loan repayments, sales of loans held for sale, investment maturities, and FHLB advances[207](index=207&type=chunk) - Key uses of cash during Q1 2025 included funding loans held for sale (**$387.7 million**), purchases of mortgage-related securities (**$10.2 million**), and payoffs of short-term (**$90.7 million**) and long-term (**$40.0 million**) borrowings[208](index=208&type=chunk) - Key sources of cash during Q1 2025 included proceeds from sale of loans held for sale (**$422.9 million**), long-term borrowings (**$80.0 million**), and an increase in deposits (**$21.3 million**)[209](index=209&type=chunk) - The Company had approximately **$342.7 million** of uninsured deposits from about **1,430** customers as of March 31, 2025[214](index=214&type=chunk) [Capital](index=52&type=section&id=Capital) This section provides an overview of the Company's capital position, including shareholders' equity and regulatory capital - Shareholders' equity increased by **$2.2 million** to **$341.4 million**, primarily due to an increase in the fair value of mortgage-related securities[186](index=186&type=chunk)[217](index=217&type=chunk) - The Board authorized a **2,000,000 share** stock repurchase program in Q2 2024, with approximately **1.4 million shares** remaining as of March 31, 2025[217](index=217&type=chunk) - WaterStone Bank is considered "well capitalized" under regulatory guidelines, exceeding all requirements as of March 31, 2025[218](index=218&type=chunk) [Contractual Obligations, Commitments, Contingent Liabilities, and Off-balance Sheet Arrangements](index=52&type=section&id=Contractual%20Obligations,%20Commitments,%20Contingent%20Liabilities,%20and%20Off-balance%20Sheet%20Arrangements) This section outlines the Company's contractual obligations, commitments, and off-balance sheet arrangements - During Q1 2025, the Company entered into **$80.0 million** of new long-term debt, paid down **$40.0 million** in existing long-term debt, and repaid **$90.1 million** of short-term debt[219](index=219&type=chunk) - Commitments, contingent liabilities, and off-balance sheet arrangements have not materially changed since the 2024 Annual Report on Form 10-K[220](index=220&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section addresses the Company's exposure to market risk, primarily interest rate risk, and its management strategies [Management of Market Risk](index=53&type=section&id=Management%20of%20Market%20Risk) This section describes the Company's approach to identifying, measuring, and managing market risk, particularly interest rate risk - The Company's most significant market risk is interest rate risk, which is evaluated and managed by an Asset/Liability Committee[221](index=221&type=chunk) - Strategies to manage interest rate risk include emphasizing variable-rate loans, reducing and shortening the expected average life of the investment portfolio, and lengthening the term structure of deposits and FHLB borrowings[222](index=222&type=chunk) [Income Simulation](index=53&type=section&id=Income%20Simulation) This section presents an income simulation analysis, showing net interest income sensitivity to interest rate changes Net Interest Income Sensitivity (March 31, 2025) | Immediate Change in Rates | Dollar Change (In Thousands) | Percentage Change | | :------------------------ | :--------------------------- | :---------------- | | +300 basis points | $(7,954) | (15.11)% | | +200 basis points | $(4,481) | (8.51)% | | +100 basis points | $(2,345) | (4.46)% | | -100 basis points | $1,447 | 2.75% | [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and internal control over financial reporting [Disclosure Controls and Procedures](index=54&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the evaluation and effectiveness of the Company's disclosure controls and procedures - The Company's disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025[227](index=227&type=chunk) [Internal Control Over Financial Reporting](index=54&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) This section states that no material changes occurred in internal control over financial reporting during the quarter - No material changes in the Company's internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025[228](index=228&type=chunk) [PART II. OTHER INFORMATION](index=49&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part contains other required information, including legal proceedings, risk factors, and equity security repurchases [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 for information regarding the Company's legal proceedings and contingent liabilities - Information on legal proceedings is incorporated by reference from Note 8 - Commitments, Off-Balance Sheet Arrangements, and Contingent Liabilities[229](index=229&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the Company's latest Annual Report on Form 10-K - No material changes in risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[230](index=230&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the Company's common stock repurchase activities during the first quarter of 2025 Common Stock Repurchases (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Shares Remaining Under Plan | | :------------------------------------ | :----------------------------- | :--------------------------- | :-------------------------- | | January 1, 2025 - January 31, 2025 | 140,071 | $13.05 | 1,517,023 | | February 1, 2025 - February 28, 2025 | 11,906 | $14.00 | 1,505,117 | | March 1, 2025 - March 31, 2025 | 85,299 | $13.81 | 1,419,818 | | Total (Q1 2025) | 237,276 | $13.37 | 1,419,818 | - The Board of Directors authorized a new **2,000,000 share** repurchase plan on April 23, 2024, with no expiration date[232](index=232&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable, indicating no defaults upon senior securities during the reporting period - This item is not applicable[233](index=233&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable, indicating no mine safety disclosures are required for the Company - This item is not applicable[234](index=234&type=chunk) [Item 5. Other Information](index=56&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1 trading arrangements were adopted or terminated by directors or executive officers - No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025[235](index=235&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and financial statements in iXBRL format - Exhibits include Sarbanes-Oxley Act Section 302 and 906 certifications by the CEO and CFO, and financial statements in iXBRL format[235](index=235&type=chunk) [Signatures](index=56&type=section&id=Signatures) This section provides the signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report was signed by William F. Bruss (CEO) and Mark R. Gerke (CFO) on May 8, 2025[238](index=238&type=chunk)