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WATERSTONE FINANCIAL , INC . WATERSTONE BANK 11200 W. PLANK CT . WAUWATOSA , WI 53226 Exhibit 99.1 Exhibit 99.1 Contact : Mark R. Gerke Chief Financial Officer Waterstone Financial , Inc. Announces Results of Operations for the Quarter Ended March 31 , 2021 . WAUWATOSA , WI - 04/26/2021 - Waterstone Financial , Inc. ( NASDAQ : WSBF ) , holding company for WaterStone Bank , reported net income of $ 21.3 million , or $ 0.89 per diluted share for the quarter ended March 31 , 2021 compared to $ 6.1 million , or $ 0.24 per diluted share for the quarter ended March 31 , 2020 . " We've started the year strong with a record first quarter profit driven by continued strong mortgage origination volumes at the mortgage banking segment " , said Douglas Gordon , Chief Executive Officer of Waterstone Financial , Inc. “ Our team's commitment to meeting the needs of our customers has continued to show through our results . I continue to be impressed with the efforts of all the employees from both the community banking and mortgage banking segments as we continue to deliver in a challenging environment . " Highlights of the Quarter Ended March 31 , 2021 Waterstone Financial , Inc. ( Consolidated ) • • • Consolidated net income of Waterstone Financial , Inc. totaled $ 21.3 million for the quarter ended March 31 , 2021 , compared to $ 6.1 million for the quarter ended March 31 , 2020 . Consolidated return on average assets was 3.99 % for the quarter ended March 31 , 2021 compared to 1.21 % for the quarter ended March 31 , 2020 . Consolidated return on average equity was 20.49 % for the quarter ended March 31 , 2021 and 6.24 % for the quarter ended March 31 , 2020 . Dividends declared during the quarter ended March 31 , 2021 totaled $ 0.20 per common share . Community Banking Segment • • • Pre - tax income totaled $ 9.1 million for the quarter ended March 31 , 2021 , which represents a 73.4 % increase compared to $ 5.3 million for the quarter ended March 31 , 2020 . Net interest income totaled $ 14.2 million for the quarter ended March 31 , 2021 , which represents a 10.4 % increase compared to $ 12.9 million for the quarter ended March 31 , 2020 . Average loans held for investment totaled $ 1.35 billion during the quarter ended March 31 , 2021 , which represents a decrease of $ 46.5 million , or 3.3 % , compared to $ 1.39 billion for the quarter ended March 31 , 2020. Average loans held for investment decreased $ 55.8 million compared to $ 1.40 billion for the quarter ended December 31 , 2020 as loans continue to prepay at an accelerated rate . Net interest margin increased 12 basis points to 2.80 % for the quarter ended March 31 , 2021 compared to 2.68 % for the quarter ended March 31 , 2020 , which was a result of lower average rates on deposits , as certificate of deposits repriced at lower rates . Net interest margin increased seven basis points compared to 2.73 % for the quarter ended December 31 , 2020 , driven by lower average rates on deposits , as certificate of deposits repriced at lower rates . The segment had a negative provision for loan losses of $ 1.1 million for the quarter ended March 31 , 2021 compared to a $ 750,000 provision for loan losses for the quarter ended March 31 , 2020. Net recoveries totaled $ 27,000 for the quarter ended March 31 , 2021 , compared to net recoveries of $ 54,000 for the quarter ended March 31 , 2020 . -5-