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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 Nine Months Ended September 30 , 2021 . Waterstone Financial , Inc. ( NASDAQ : WSBF ) , holding company for WaterStone Bank , reported net income of $ 19.0 million , or $ 0.79 per diluted share for the quarter ended September 30 , 2021 compared to $ 26.3 million , or $ 1.08 per diluted share for the quarter ended September 30 , 2020. Net income per diluted share was $ 2.43 for the nine months ended September 30 , 2021 compared to net income per diluted share of $ 2.15 for the nine months ended September 30 , 2020 . " We are pleased with the Company's continued strong financial results during the third quarter , " said Douglas Gordon , Chief Executive Officer of Waterstone Financial , Inc. “ We have the right team members to navigate market challenges , as we meet the ever changing demands for our customers . Our results validate the strategies we have implemented over the past years to grow our brands and deliver for our shareholders . ” Highlights of the Quarter Ended September 30 , 2021 Waterstone Financial , Inc. ( Consolidated ) • • • Consolidated net income of Waterstone Financial , Inc. totaled $ 19.0 million for the quarter ended September 30 , 2021 , compared to $ 26.3 million for the quarter ended September 30 , 2020 . Consolidated return on average assets was 3.38 % for the quarter ended September 30 , 2021 compared to 4.78 % for the quarter ended September 30 , 2020 . Consolidated return on average equity was 17.25 % for the quarter ended September 30 , 2021 and 26.30 % for the quarter ended September 30 , 2020 . Dividends declared during the quarter ended September 30 , 2021 totaled $ 0.20 per common share . We repurchased approximately 178,000 shares at a cost of $ 3.5 million during the quarter ended September 30 , 2021 . Community Banking Segment • • • • Pre - tax income totaled $ 8.9 million for the quarter ended September 30 , 2021 , which represents a $ 1.1 million , or 14.4 % , increase compared to $ 7.7 million for the quarter ended September 30 , 2020 . Net interest income totaled $ 14.1 million for the quarter ended September 30 , 2021 , which represents a 4.7 % increase compared to $ 13.5 million for the quarter ended September 30 , 2020 . Average loans held for investment totaled $ 1.26 billion during the quarter ended September 30 , 2021 , which represents a decrease of $ 174.0 million , or 12.2 % , compared to $ 1.43 billion for the quarter ended September 30 , 2020. Average loans held for investment decreased $ 63.8 million compared to $ 1.32 billion for the quarter ended June 30 , 2021 as residential real estate loans continue to prepay at an accelerated rate . Net interest margin increased five basis points to 2.68 % for the quarter ended September 30 , 2021 compared to 2.63 % for the quarter ended September 30 , 2020 , which was a result of lower average rates on deposits , as certificate of deposits repriced at lower rates . Net interest margin decreased 10 basis points compared to 2.78 % for the quarter ended June 30 , 2021 , driven by a decrease in average loan balance and a higher average cash balance . The segment had a negative provision for loan losses of $ 750,000 for the quarter ended September 30 , 2021 compared to a $ 1.0 million provision for loan losses for the quarter ended September 30 , 2020. Net recoveries totaled $ 100,000 for the quarter ended September 30 , 2021 , as one significant loan recovery payment was received during the quarter , compared to net recoveries of $ 85,000 for the quarter ended September 30 , 2020 . Noninterest income decreased $ 1.4 million for the quarter ended September 30 , 2021 compared to the quarter ended September 30 , 2020 , due primarily to a decrease in gains from death benefit received on two bank owned life insurance policies during the three months ended September 30 , 2020 . Noninterest expense decreased $ 116,000 for the quarter ended September 30 , 2021 compared to the quarter ended September 30 , 2020. Other noninterest expense decreased $ 396,000 as certain loan - related expenses decreased . Compensation , payroll taxes and other employee benefits expense increased $ 360,000 primarily due to an increase in health insurance expense and Employee Stock Ownership Plan expense as the average stock price increased compared to the quarter ending September 30 , 2020 . The efficiency ratio was 48.74 % for the quarter ended September 30 , 2021 , compared to 47.23 % for the quarter ended September 30 , 2020 . Average deposits ( excluding escrow accounts ) totaled $ 1.25 billion during the quarter ended September 30 , 2021 , an increase of $ 74.9 million , or 6.3 % , compared to $ 1.18 billion during the quarter ended September 30 , 2020. Average deposits increased $ 24.3 million , or 7.9 % annualized compared to the $ 1.23 billion for the quarter ended June 30 , 2021 . Nonperforming assets as percentage of total assets was 0.18 % at September 30 , 2021 , 0.20 % at June 30 , 2021 , and 0.31 % at September 30 , 2020 . Past due loans as percentage of total loans was 0.92 % at September 30 , 2021 , 0.53 % at June 30 , 2021 , and 0.39 % at September 30 , 2020 . PPP loans totaled $ 4.1 million as of September 30 , 2021. The average balance for the quarter ended September 30 , 2021 was $ 10.6 million . For the quarter ended September 30 , 2021 , PPP loan interest income recognized was approximately $ 26,000 and the amortization of fee income was approximately $ 464,000 . Net interest margin , excluding the impact of the PPP loans , was 2.63 % . Net interest margin for the quarter ended September 30 , 2021 , including the impact of the PPP loans , was 2.68 % . The Company held approximately $ 3.5 million in loans , representing 0.3 % of the total loan portfolio as of September 30 , 2021 , which had been modified as either a deferment of principal or principal and interest since the beginning of the pandemic . Of the $ 3.5 million in loans , $ 559,000 qualify as modifications under the Coronavirus Aid , Relief and Economic Security ( " CARES Act " ) . The remaining $ 2.9 million is composed of three loan relationships that are classified as troubled debt restructurings .