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WATERSTONE FINANCIAL , INC . WATERSTONE BANK 11200 W. PLANK CT . WAUWATOSA , WI 53226 Exhibit 99.1 Contact : Mark R. Gerke Chief Financial Officer Exhibit 99.1 Waterstone Financial , Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30 , 2021 . WAUWATOSA , WI - 07/20/2021 – Waterstone Financial , Inc. ( NASDAQ : WSBF ) , holding company for WaterStone Bank , reported net income of $ 17.9 million , or $ 0.74 per diluted share for the quarter ended June 30 , 2021 compared to $ 20.9 million , or $ 0.85 per diluted share for the quarter ended June 30 , 2020. Net income per diluted share was $ 1.64 for the six months ended June 30 , 2021 compared to net income per diluted share of $ 1.08 for the six months ended June 30 , 2020 . “ Our Company's strong performance continued during the second quarter and we were excited to declare and pay a $ 0.50 special dividend during the quarter , " said Douglas Gordon , Chief Executive Officer of Waterstone Financial , Inc. “ Our business model has allowed us to maximize the opportunity presented by the current market , return capital to our shareholders and continue to enhance our book value . ” Highlights of the Quarter Ended June 30 , 2021 Waterstone Financial , Inc. ( Consolidated ) • • • . Consolidated net income of Waterstone Financial , Inc. totaled $ 17.9 million for the quarter ended June 30 , 2021 , compared to $ 20.9 million for the quarter ended June 30 , 2020 . Consolidated return on average assets was 3.25 % for the quarter ended June 30 , 2021 compared to 3.87 % for the quarter ended June 30 , 2020 . Consolidated return on average equity was 16.49 % for the quarter ended June 30 , 2021 and 22.39 % for the quarter ended June 30 , 2020 . Dividends declared during the quarter ended June 30 , 2021 totaled $ 0.70 per common share , which included a quarterly dividend of $ 0.20 per share and a special dividend of $ 0.50 per share . We repurchased approximately 59,000 shares at a cost of $ 1.1 million during the quarter ended June 30 , 2021 . Community Banking Segment • • • Pre - tax income totaled $ 9.7 million for the quarter ended June 30 , 2021 , which represents a 106.4 % increase compared to $ 4.7 million for the quarter ended June 30 , 2020 . Net interest income totaled $ 14.5 million for the quarter ended June 30 , 2021 , which represents a 6.0 % increase compared to $ 13.7 million for the quarter ended June 30 , 2020 . Average loans held for investment totaled $ 1.32 billion during the quarter ended June 30 , 2021 , which represents a decrease of $ 101.6 million , or 7.2 % , compared to $ 1.42 billion for the quarter ended June 30 , 2020. Average loans held for investment decreased $ 27.7 million compared to $ 1.35 billion for the quarter ended March 31 , 2021 as residential real estate loans continue to prepay at an accelerated rate . Net interest margin increased 16 basis points to 2.78 % for the quarter ended June 30 , 2021 compared to 2.62 % for the quarter ended June 30 , 2020 , which was a result of lower average rates on deposits , as certificate of deposits repriced at lower rates . Net interest margin decreased two basis points compared to 2.80 % for the quarter ended March 31 , 2021 , driven by a decrease in PPP loan fees as the first round loan payoffs decreased .