Shares of Waterstone Financial, Inc. (WSBF) have gained 7.2% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 0.4% decline over the same time frame. Over the past month, the stock has gained 12.4% compared with the S&P 500’s 0.8% growth.Waterstone Financial reported net income of 44 cents per share for the fourth quarter of 2025, up 57.1% from 28 cents per share in the year-ago period. The company also posted 22.4% year-over-year growth in net ...

WAUWATOSA, Wisc., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.7 million, or $0.44 per diluted share, for the quarter ended December 31, 2025 compared to $5.2 million, or $0.28 per diluted share, for the quarter ended December 31, 2024. Net income totaled $7.9 million, or $0.45 per diluted share, for the quarter ended September 30, 2025. Net income per diluted share was $1.48 for the twelve months ended December 3 ...

Exhibit 99.1 Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Twelve Months Ended December 31, 2025. Mortgage Banking Segment WAUWATOSA, WI – 1/28/26– Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.7 million, or $0.44 per diluted share, for the quarter ended December 31, 2025 compared to $5.2 million, or $0.28 per diluted share, for the quarter ended December 31, 2024. Net income totaled $7.9 million, or $0.45 per dilut ...

Core Viewpoint - Waterstone Financial, Inc. (WSBF) has significantly outperformed its industry peers, with a 21.5% increase in share price over the past six months, while the industry saw a decline of 1.8% [1] Company Overview - Waterstone Financial operates as a community-focused financial institution through WaterStone Bank and its mortgage subsidiary, providing traditional banking services and originating loans primarily for the secondary market [3] - The company's core lending includes residential and commercial real estate, construction, business, and consumer loans, funded through deposits and other sources [3] Financial Performance - The loan portfolio grew to $1.71 billion as of September 30, 2025, up from $1.68 billion at the end of 2024, driven by a focus on multi-family and commercial real estate lending [4] - Net interest income for Q3 2025 rose to $14.7 million, a $3.2 million increase from Q3 2024, attributed to a 19-basis-point improvement in loan yield and a favorable asset mix [5] - The net interest margin expanded from 2.14% in Q3 2024 to 2.76% in Q3 2025, supported by a $159.6 million reduction in average borrowings and lower rates on new funding sources [6] Capital Position - As of September 30, 2025, the total capital ratio was 20.46% and the Common Equity Tier 1 capital ratio was 19.45%, well above regulatory minimums, providing a cushion against market volatility [7] - The board declared a quarterly dividend of 15 cents per share in December 2025, reflecting the company's commitment to returning capital to shareholders [7] Operational Efficiency - The company has improved operational efficiency, particularly in the mortgage banking segment, with a $0.2 million reduction in compensation and benefits expenses in Q3 2025 compared to the previous year [8] - The community banking segment also saw savings from reduced health insurance claims [8] Challenges - The mortgage banking segment faced a decline in loan origination volume, down $19.3 million year over year, leading to lower mortgage banking income [9] - The company is managing elevated unrealized losses in its investment portfolio due to interest rate shifts, along with regulatory pressures and competitive deposit markets [9] Valuation - WSBF is trading at a price/earnings ratio of 12.63X, below the industry average of 12.99X and lower than Citizens Community Bancorp's 14.2X, but higher than Northpointe Bancshares' 9.51X [10] Conclusion - Strong capital ratios, expanding net interest margin, and disciplined cost controls highlight the company's strategic resilience, while growth in higher-yielding commercial real estate loans supports long-term earnings [11] - Despite headwinds such as lower mortgage volumes and unrealized investment losses, the company's fundamentals and undervaluation present a potential investment opportunity [13]

Financial Performance - Net income for the community banking segment increased to $6.9 million for Q3 2025, up from $4.7 million in Q3 2024, representing a 46.8% increase[155] - Net interest income rose by $2.4 million to $14.6 million in Q3 2025 compared to $12.3 million in Q3 2024, a growth of 19.5%[155] - The mortgage banking segment reported a net income of $948,000 in Q3 2025, a turnaround from a net loss of $50,000 in Q3 2024[158] - Net income for the nine months ended September 30, 2025, totaled $17.8 million, up from $11.7 million for the same period in 2024[176] - Net income for the nine months ended September 30, 2025, increased to $18.7 million, up from $13.5 million in the same period of 2024, representing a growth of 38.8%[183] - Earnings per share (EPS) for the nine months ended September 30, 2025, rose to $1.04, compared to $0.72 for the same period in 2024, reflecting an increase of 44.4%[183] Income and Expenses - Total noninterest income decreased by $250,000, or 1.1%, to $22.3 million, primarily due to a $19.9 million, or 3.6%, decrease in total loan origination volume[172] - Total noninterest income decreased by $6.6 million, or 9.3%, to $63.7 million for the nine months ended September 30, 2025, compared to $70.3 million for the same period in 2024[194] - Total noninterest expenses decreased by $1.1 million, or 3.8%, to $27.5 million for the three months ended September 30, 2025, compared to $28.6 million for the same period in 2024[173] - Total noninterest expenses decreased by $4.2 million, or 4.8%, to $82.2 million for the nine months ended September 30, 2025, compared to $86.4 million for the same period in 2024[195] - Compensation and employee benefits expense decreased by $290,000 to $5.0 million in Q3 2025, primarily due to lower health insurance claims[157] - Total compensation and employee benefits decreased by $3.5 million, or 7.3%, to $44.1 million for the nine months ended September 30, 2025, primarily due to reduced employee headcount[181] Asset Quality and Credit Losses - The provision for credit losses was negative $269,000 for the three months ended September 30, 2025, compared to negative $377,000 for the same period in 2024, reflecting improved risk factors[170] - The provision for credit losses was a negative $836,000 for the nine months ended September 30, 2025, compared to a negative provision of $535,000 in the same period of 2024, indicating improved asset quality[192] - Total nonperforming assets decreased to $6.1 million at September 30, 2025, from $6.2 million at December 31, 2024, with total non-accrual loans to total loans remaining stable at 0.35%[212] - The allowance for credit losses decreased to $17.7 million at September 30, 2025, with a negative provision of $599,000 for the nine months ended September 30, 2025[204] - Past due loans decreased by $6.6 million, or 43.7%, to $8.5 million at September 30, 2025, from $15.1 million at December 31, 2024[221] Loan Originations and Mortgage Banking - Total mortgage loan originations decreased by $19.3 million, or 3.5%, to $539.4 million in Q3 2025 from $558.7 million in Q3 2024[158] - Mortgage banking noninterest income decreased by $7.4 million, or 11.1%, to $59.4 million for the nine months ended September 30, 2025, due to a decrease in loan production volume[179] - The company originated $1.52 billion in mortgage loans held for sale during the nine months ended September 30, 2025, a decrease of $162.0 million, or 9.7%, from the previous year[179] - Mortgage banking income declined by $7.0 million, or 10.6%, primarily due to a $150.1 million decrease in loan origination volumes, which fell to $1.51 billion[194] Interest Income and Margin - Net interest margin improved to 2.76% in Q3 2025 compared to 2.14% in Q3 2024[165] - Net interest income increased by $7.7 million, or 23.1%, to $41.0 million during the nine months ended September 30, 2025, compared to $33.3 million in 2024[190] - The average yield on loans increased by 22 basis points, contributing to a $903,000 increase in interest income on loans, despite a $48.3 million decrease in average loans receivable[191] - Interest income on loans rose by $35,000, or 0.1%, to $26.6 million, driven by a 19 basis point increase in average yield, despite a $61.0 million decrease in average loans receivable[168] Regulatory and Capital Position - As of September 30, 2025, WaterStone Bank exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines[241] - Shareholders' equity increased by $6.4 million to $345.5 million at September 30, 2025, primarily due to increases in net income and the fair value of the securities portfolio[210] - The Company had approximately $365.8 million of uninsured deposits for approximately 1,462 customers as of September 30, 2025[237] Interest Rate Risk Management - WaterStone Bank's interest rate risk management strategy includes emphasizing variable rate loans and reducing the expected average life of the investment portfolio[245] - The most recent income simulation indicates that a 100 basis point increase in interest rates would decrease forecast net interest income over the next 12 months by 3.60%[249] - Conversely, a 100 basis point decrease in interest rates would increase net interest income by 1.01%[249] - The Asset/Liability Committee meets at least weekly to review asset/liability policies and interest rate risk position[244] - The bank's interest rate risk exposure is regularly monitored and evaluated quarterly[246]

Core Insights - Waterstone Financial, Inc. has successfully implemented a turnaround strategy, leading to growth and profitability in both WaterStone Bank and Waterstone Mortgage Corporation [1] Company Performance - Waterstone Bank and Waterstone Mortgage Corporation are both performing well, indicating that the company's strategy is effective [1]

Core Insights - Waterstone Financial, Inc. (WSBF) shares increased by 5% following the earnings report for Q3 2025, outperforming the S&P 500's 2.9% growth during the same period [1] - The company reported a net income of $7.9 million, a 67.6% increase from $4.7 million in the same quarter last year [2] - Net interest income rose to $14.7 million, reflecting a 28% year-over-year gain [2] Financial Performance - Earnings per share reached 45 cents, a substantial increase of 73.1% from 26 cents per share a year ago [2] - Return on average assets (ROAA) improved to 1.4% from 0.8% year-over-year [3] - Return on average equity (ROAE) increased to 9.1% from 5.6% in the prior-year quarter [3] - Book value per share rose to $18.65 from $17.53 at year-end 2024 [3] Asset Quality - Nonperforming assets as a percentage of total assets slightly increased to 0.27% from 0.25% year-over-year [4] - Past due loans as a percentage of total loans decreased to 0.5% from 0.6% a year earlier [4] Segment Performance Community Banking - Pre-tax income in the Community Banking segment was $8.4 million, a 49.4% increase from $5.6 million in Q3 2024 [5] - Net interest income in this segment rose 19.3% year-over-year to $14.6 million, driven by improved yields on loans and lower cost of funds [5] - The net interest margin expanded to 2.76% from 2.13% in the same period last year [5] - The segment recorded a negative provision for credit losses of $0.1 million, indicating continued credit strength [6] - Efficiency ratio improved to 48.9% from 60.4% in the prior-year quarter [6] Mortgage Banking - Mortgage Banking generated pre-tax income of $1.3 million, up from $0.1 million in the prior-year quarter [7] - Loan originations declined by 3.5% to $539.4 million, but improved gross margins on loans sold and reduced compensation costs boosted profitability [7] - Non-interest income in this segment slightly decreased to $21 million from $21.4 million [7] Management Commentary - CEO William Bruss attributed strong quarterly results to enhanced net interest margin and ongoing asset quality strength [8] - Both Community and Mortgage Banking segments contributed to year-over-year earnings improvement [8] - The increase in book value per share was due to robust earnings, share repurchases, and favorable valuation adjustments [8] Factors Influencing Results - Positive net income growth was driven by higher interest income on loans, margin expansion, and controlled operating expenses [9] - A lower cost of borrowings and deposits enhanced the net interest margin [9] - Mortgage operations benefited from tighter expense management and slightly higher loan sale margins [10] - Community banking saw strength in deposit growth and interest income [10] Other Developments - During the quarter, the company repurchased approximately 270,000 shares at a cost of $3.8 million, contributing to a 61-cent increase in book value per share [11] - The company declared a quarterly dividend of 15 cents per share [11]

Core Insights - Waterstone Financial, Inc. reported a net income of $7.9 million, or $0.45 per diluted share, for the quarter ended September 30, 2025, representing a significant increase from $4.7 million, or $0.26 per diluted share, for the same quarter in 2024 [1][4][17] - The company achieved a consolidated return on average assets of 1.42% and a return on average equity of 9.14% for the quarter ended September 30, 2025, compared to 0.83% and 5.55% respectively for the same quarter in 2024 [4][18] - The Community Banking segment saw a 19.3% increase in net interest income, totaling $14.6 million for the quarter, driven by improved loan yields and reduced funding costs [2][4][21] Financial Performance - Consolidated net income increased by $3.2 million, or 68.1%, from the previous year [4] - Pre-tax income for the quarter was $8.4 million, a 49.4% increase compared to $5.6 million for the same quarter in 2024 [4][17] - The company repurchased approximately 270,000 shares at a cost of $3.8 million, increasing book value per share by $0.07 during the quarter [4][10] Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.27% at September 30, 2025, down from 0.25% a year earlier [4][18] - Past due loans as a percentage of total loans improved to 0.50% from 0.63% year-over-year [4][18] Community Banking Segment - The Community Banking segment's net interest income rose by $2.4 million, or 19.3%, compared to the same quarter in 2024 [2][21] - The efficiency ratio improved to 48.94% for the quarter, down from 60.35% in the same quarter of the previous year [10][21] Mortgage Banking Segment - The Mortgage Banking segment recorded a second consecutive quarter of pre-tax income, attributed to effective expense management and improved margins [2][23] - Mortgage banking non-interest income decreased by $401,000, or 1.9%, to $21.0 million compared to the same quarter in 2024 [10][23]

Financial Performance - Waterstone Financial, Inc. reported net income of $7.9 million, or $0.45 per diluted share, for Q3 2025, a 73.1% increase compared to $4.7 million, or $0.26 per diluted share, for Q3 2024[1] - Net income for Q3 2025 was $7,926,000, representing a 67.5% increase compared to $4,728,000 in Q3 2024[11] - Basic earnings per share increased to $0.45 in Q3 2025, up from $0.26 in Q3 2024[11] Income and Revenue - Total interest income for Q3 2025 was $29,556,000, an increase of 1.25% from $29,191,000 in Q3 2024[11] - Net interest income after provision for credit losses rose to $15,008,000 in Q3 2025, up 26.4% from $11,894,000 in Q3 2024[11] - Noninterest income totaled $22,302,000 in Q3 2025, slightly down from $22,552,000 in Q3 2024[11] Asset and Deposit Growth - Total assets as of September 30, 2025, were $2,269,169,000, compared to $2,209,608,000 as of December 31, 2024[13] - Total deposits increased to $1,385,973,000 as of September 30, 2025, from $1,359,897,000 at the end of 2024[13] - Average core retail deposits increased by $65.4 million, or 5.2%, to $1.31 billion for Q3 2025 compared to $1.25 billion for Q3 2024[4] Efficiency and Returns - Consolidated return on average assets was 1.42% for Q3 2025, up from 0.83% for Q3 2024, while return on average equity increased to 9.14% from 5.55%[3] - The efficiency ratio improved to 48.94% for Q3 2025, down from 60.35% for Q3 2024[4] - The allowance for credit losses on loans was $17,670,000 as of September 30, 2025, down from $18,247,000 at the end of 2024[13] Community Banking Segment - The Community Banking segment achieved a net interest income growth of $2.4 million, or 19.3%, totaling $14.6 million for Q3 2025 compared to $12.3 million for Q3 2024[3] - Net income for the Community Banking segment rose to $6,916,000 in September 2025, an increase from $6,220,000 in June 2025, marking a growth of 11.19%[18] - The efficiency ratio for the Community Banking segment improved to 48.94% in September 2025, down from 50.40% in June 2025, indicating enhanced operational efficiency[18] Mortgage Banking Segment - The Mortgage Banking segment recorded pre-tax income of $1.3 million for Q3 2025, compared to $144,000 for Q3 2024[4] - Loan originations in the Mortgage Banking segment totaled $539,404,000 in September 2025, down from $588,838,000 in June 2025, reflecting a decrease of 8.45%[20] - The gross margin on loans sold in the Mortgage Banking segment was 3.87% in September 2025, slightly up from 3.84% in June 2025[20] Nonperforming Assets - Nonperforming assets as a percentage of total assets decreased to 0.27% at September 30, 2025, down from 0.37% at June 30, 2025, and 0.25% at September 30, 2024[3] Other Financial Metrics - Book value per share increased to $18.65 at September 30, 2025, up from $17.53 at December 31, 2024[3] - Total noninterest income for the Community Banking segment was $1,359,000 in September 2025, compared to $1,686,000 in June 2025, reflecting a decrease of 19.39%[18] - The efficiency ratio for the Mortgage Banking segment was 93.66% in September 2025, compared to 91.15% in June 2025, indicating a decline in efficiency[20]

Core Insights - The article highlights recent research reports on major stocks including Tesla, UnitedHealth, Shopify, and Waterstone Financial, emphasizing their performance and market conditions [2][5][8][11][14]. Tesla, Inc. (TSLA) - Tesla's shares have outperformed the Zacks Automotive - Domestic industry over the past year, with a gain of 85.4% compared to the industry's 72.9% [5]. - The company is facing challenges with declining EV sales, recording its first annual decline in deliveries in 2024, which has continued into 2025 [5][6]. - Operating margins are shrinking, and expenses are rising, with Musk indicating that upcoming quarters may be difficult [6]. - The Energy Generation & Storage unit remains a strength, and the expansion of the Supercharger network is ongoing [6]. - Tesla has launched a robotaxi service, which has received mixed reactions, but the company sees potential for significant cost and scalability advantages [7]. UnitedHealth Group Inc. (UNH) - UnitedHealth's shares have underperformed the Zacks Medical - HMOs industry over the past year, declining by 37% compared to the industry's 31.3% [8]. - The company is experiencing cost pressures, higher medical utilization, and a significant debt burden, which threaten margin stability [8]. - The Medical Care Ratio (MCR) is expected to increase to 89.4% in 2025, and the earnings outlook for 2025 has been trimmed [8]. - Despite challenges, UnitedHealth benefits from balanced growth across its segments, driven by rising healthcare demand and disciplined execution [9][10]. Shopify Inc. (SHOP) - Shopify's shares have outperformed the Zacks Internet - Services industry over the past year, with a gain of 99.2% compared to the industry's 51% [11]. - The company is expanding its merchant base through new tools and AI-driven solutions, enhancing customer engagement and operational efficiency [11][12]. - Shopify's international growth, particularly in Europe, is a key catalyst for its prospects [12]. - However, the company faces gross margin pressure due to increased hosting costs and a new paid trial program, which may impact operating profit [13]. Waterstone Financial, Inc. (WSBF) - Waterstone Financial's shares have outperformed the Zacks Financial - Savings and Loan industry over the past year, with a gain of 14.9% compared to the industry's 10.9% [14]. - The company demonstrated earnings resilience with a 35.2% year-over-year net income growth in Q2 2025, despite challenges in mortgage banking [14]. - Improved return on assets (ROA) and return on equity (ROE) indicate enhanced profitability driven by cost discipline [14]. - The Community Banking segment showed robust income growth, although mortgage banking remains a drag due to declining originations and rising non-accruals [15][16].