15 unchanged sentences
Based on that assessment, we believe that, as of December 31, 2025, our internal control over financial reporting is effective based on those criteria.
−Removed: FORVIS, LLP has audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2024, as stated in their report dated February 28, 2025.
+Added: Forvis Mazars, LLP has audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, as stated in their report dated February 26, 2026.
/s/ William F.
8 unchanged sentences
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025, 2024, and 2023, in conformity with accounting principles generally accepted in the United States of America.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2025, expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework:
+Added: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2026, expressed an unqualified opinion thereon.
Basis for Opinion
42 unchanged sentences
(2013) issued by COSO.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of December 31, 2024 and 2023, and for the years ended December 31, 2024 and 2023, and our report dated February 28, 2025, expressed an unqualified opinion on those financial statements.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of December 31, 2025 and 2024, and for each of the three years in the period ended December 31, 2025, 2024, and 2023, and our report dated February 26, 2026 expressed an unqualified opinion on those financial statements.
Basis for Opinion
18 unchanged sentences
February 26, 2026
−Removed: Report of Independent Registered Public Accounting Firm
−Removed: Board of Directors and Shareholders
Waterstone Financial, Inc.
−Removed: Wauwatosa, Wisconsin
−Removed: Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows of Waterstone Financial, Inc.
−Removed: and Subsidiaries (the Company) for the year ended December 31, 2022, and the related notes (collectively referred to as the financial statements).
−Removed: In our opinion, the financial statements referred to above present fairly, in all material respects, the results of the Company’s operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.
−Removed: Basis for Opinion
−Removed: The Company’s management is responsible for these financial statements.
−Removed: Our responsibility is to express an opinion on the Company’s financial statements based on our audit.
−Removed: We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
−Removed: federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audit in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
−Removed: Our audit of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
−Removed: Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
−Removed: Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
−Removed: We believe that our audit provides a reasonable basis for our opinion.
−Removed: /s/ CliftonLarsonAllen LLP
−Removed: CliftonLarsonAllen LLP
−Removed: We have served as the Company’s auditor from 2021 through 2022.
−Removed: Milwaukee, Wisconsin
−Removed: February 28, 2023
−Removed: Waterstone Financial, Inc.
and Subsidiaries
105 unchanged sentences
Communications
−Removed: 922 988 1,189
Professional fees
25 unchanged sentences
$ 26,402 $ 18,688 $ 9,375
−Removed: Other comprehensive (loss) income, net of tax:
−Removed: Net unrealized holding (loss) gain arising during the period, net of tax benefit (expense) of $ 279 , ($ 1,584 ),and $ 6,868 , respectively
+Added: Other comprehensive income (loss), net of tax:
+Added: Net unrealized holding gain (loss) arising during the period, net of tax (expense) benefit of ($ 1,831 ), $ 279 ,and ($ 1,584 ), respectively
6,519 ( 994 ) 1,684
−Removed: Total other comprehensive (loss) income
+Added: Total other comprehensive income (loss)
6,519 ( 994 ) 1,684
13 unchanged sentences
- - - 9,375 - - $ 9,375
−Removed: Other comprehensive loss:
+Added: Other comprehensive income:
- - - - - 1,684 1,684
1 unchanged sentence
- - - - - - 11,059
−Removed: Adoption of new accounting pronouncement (See Note 1)
−Removed: - - - ( 1,392 ) - - ( 1,392 )
ESOP shares committed to be released to Plan participants
12 unchanged sentences
- $ - $ - $ 18,688 $ - $ - $ 18,688
−Removed: Other comprehensive income:
+Added: Other comprehensive loss:
- - - - - ( 994 ) ( 994 )
15 unchanged sentences
- $ - $ - $ 26,402 $ - $ - $ 26,402
−Removed: Other comprehensive loss:
+Added: Other comprehensive income:
- - - - - 6,519 6,519
41 unchanged sentences
Gain on death benefit on bank owned life insurance
−Removed: ( 266 ) - ( 340 )
Increase in accrued interest receivable
2 unchanged sentences
( 2,561 ) ( 1,969 ) ( 1,710 )
−Removed: (Increase) decrease in derivative assets
+Added: Decrease (increase) in derivative assets
5,162 ( 1,094 ) 4,467
5 unchanged sentences
( 4,710 ) 213 ( 5,431 )
+Added: Gain on sale of Real Estate Owned
Gain on sale of mortgage servicing rights
2 unchanged sentences
2,148 2,971 ( 1,181 )
−Removed: Decrease in other liabilities
+Added: Increase (decrease) in other liabilities
4,561 ( 3,564 ) ( 1,533 )
2 unchanged sentences
Investing activities:
−Removed: Net increase in loans receivable
+Added: Net decrease (increase) in loans receivable
5,196 ( 16,692 ) ( 154,171 )
19 unchanged sentences
Death benefit from bank owned life insurance
−Removed: 662 474 1,183
Net cash used in by investing activities
17 unchanged sentences
( 16,209 ) ( 14,915 ) ( 26,032 )
−Removed: Net cash (used in) provided by financing activities
+Added: Net cash provided by (used in) financing activities
15,908 ( 20,760 ) 176,580
7 unchanged sentences
Cash paid during the period for:
−Removed: Income tax (refunds) payments
+Added: Income tax payments (refunds)
$ 5,013 $ 2,389 $ 1,169
15 unchanged sentences
These reclassifications did not result in any changes to previously reported net income.
−Removed: The Company reclassed certain line items in the Consolidated Statements of Cash Flows.
+Added: The Company reclassified certain line items in the Consolidated Statements of Cash Flows.
Nature of Operations
112 unchanged sentences
The ACL estimate incorporates a reasonable and supportable economic forecast through the use of externally developed macroeconomic scenarios applied in the model.
−Removed: The model include both current and forecasted unemployment rates.
+Added: The model includes both current and forecasted unemployment rates.
Collateral dependent loans
13 unchanged sentences
Real estate owned is transferred into the portfolio at estimated net realizable value, which includes selling costs.
−Removed: To the extent that the net carrying value of the loan exceeds the estimated fair value of the property at the date of transfer, the excess is charged to the allowance for loan losses within 90 days of being transferred.
+Added: To the extent that the net carrying value of the loan exceeds the estimated fair value of the property at the date of transfer, the excess is charged to the allowance for credit losses within 90 days of being transferred.
Subsequent write-downs to reflect current fair value, as well as gains and losses upon disposition and revenue and expenses incurred in maintaining such properties, are treated as period costs and included in real estate owned in the consolidated statements of operations.
10 unchanged sentences
The Company is the beneficiary of the life insurance policies.
−Removed: The cash surrender value of life insurance is reported at the amount that would be received in cash if the polices were surrendered.
+Added: The cash surrender value of life insurance is reported at the amount that would be received in cash if the policies were surrendered.
Increases in the cash value of the policies and proceeds of death benefits received are recorded in noninterest income.
50 unchanged sentences
Accounting Standards Adopted in 2025
+Added: The Company adopted " Income Taxes (Topic 740 ):
+Added: Improvements to Income Tax Disclosures" under ASU 2023 - 09 on January 1, 2025, and applied the standard's provisions on a retrospective basis.
+Added: The updated guidance requires disclosure of specific categories and greater disaggregation of information included in the rate reconciliation and additional disclosures related to income taxes paid.
+Added: The adoption did not have an impact on the Company’s consolidated financial statements, other than the expanded income tax disclosures.
+Added: See Note 12 – Income Taxes for further information.
+Added: Accounting Standards Adopted in 2024
The Company adopted "Segment Reporting (Topic 280 ):
7 unchanged sentences
Adoption of "Troubled Debt Restructurings and Vintage Disclosures" under ASC Topic 326 did not have a material impact on the Company's consolidated financial statements.
−Removed: Accounting Standards Adopted in 2022
−Removed: The Company adopted ASC Topic 326 on January 1, 2022 , and applied the standard’s provisions as a cumulative-effect adjustment to retained earnings, as of January 1, 2022 ( i.e., modified retrospective approach).
−Removed: Upon adoption of the standard, the Company recorded a $ 430,000 increase to the allowance for credit losses and $ 1.4 million increase to the allowance for unfunded commitments, which resulted in a $ 1.4 million after-tax decrease to retained earnings as of January 1, 2022 .
−Removed: The tax effect resulted in a $ 439,000 increase to deferred tax assets.
−Removed: The Company did not record an allowance for AFS securities on January 1, 2022 as the investment portfolio consists primarily of debt securities explicitly or implicitly backed by the U.S.
−Removed: Government for which credit risk is deemed minimal.
−Removed: The impact going forward will depend on the composition, characteristics, and credit quality of the loan and securities portfolios as well as the economic conditions at future reporting periods.
−Removed: See Note 2 - Securities Available for Sale and Note 3 - Loans Receivable for more information.
Securities Available for Sale
11 unchanged sentences
183,153 546 ( 15,758 ) 167,941
−Removed: Government sponsored enterprise bonds
−Removed: 2,500 - ( 60 ) 2,440
Municipal securities
37 unchanged sentences
Due after one year through five years
+Added: 12,751 11,666
Due after five years through ten years
17 unchanged sentences
859 11 4,660 502 5,519 513
−Removed: Government sponsored enterprise bonds
−Removed: - - 2,440 60 2,440 60
Municipal securities
25 unchanged sentences
The Company does not consider its securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses in each category have occurred as a result of changes in noncredit-related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration.
−Removed: Furthermore, the Company does not have the intent to sell any of these securities and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost.
+Added: Furthermore, the Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.
During the years ended December 31, 2025 , 2024 , and 2023 , there were no sales of securities.
21 unchanged sentences
Qualifying loans receivable totaling $ 1.27 billion were pledged as collateral against $ 406.1 million and $ 1.23 billion were pledged as collateral against $ 443.6 million in outstanding Federal Home Loan Bank of Chicago advances under a blanket security agreement at December 31, 2025 and December 31, 2024 , respectively.
+Added: The Corporation has granted loans to its directors, executive officers, or their related interests.
+Added: These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time for comparable transactions with other unrelated customers, and do not involve more than a normal risk of collection.
+Added: These loans to related parties are summarized below:
+Added: (In Thousands)
+Added: Balance at beginning of year
+Added: Balance at end of year
An analysis of past due loans receivable as of December 31, 2025 and 2024 follows:
40 unchanged sentences
Includes $ 819,000 and $ 522,000 for December 31, 2025 and 2024 , respectively, which are on non-accrual status.
−Removed: Includes $ 1.1 million and $ 11,000 for December 31, 2024 and 2023 , respectively, which are on non-accrual status.
+Added: Includes $ - and $ 1.1 million for December 31, 2025 and 2024 , respectively, which are on non-accrual status.
Includes $ 523,000 and $ 28,000 for December 31, 2025 and 2024 , respectively, which are on non-accrual status.
59 unchanged sentences
4,743 7,975 174 1,352 3,199 47 267 17,757
−Removed: Adoption of CECL (1)
−Removed: $ 88 $ 100 $ 58 $ 886 $ ( 640 ) $ 7 $ ( 69 ) $ 430
−Removed: Provision (credt) for loan losses
+Added: Provision (credit) for credit losses - loans
2,259 ( 665 ) 33 ( 372 ) ( 641 ) 46 267 927
3 unchanged sentences
$ 6,886 $ 7,318 $ 211 $ 983 $ 2,561 $ 56 $ 534 $ 18,549
−Removed: ( 1 ) The Company adopted ASU 2016 - 13 as of January 1, 2022.
−Removed: The 2021 amounts presented are calculated under the prior accounting standard.
The Company utilized the Vintage Loss Rate method in determining expected future credit losses for each of the loan categories except for the Construction and Consumer categories.
33 unchanged sentences
This reserve is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans.
−Removed: The allowance for unfunded commitments at December 31, 2024 and December 31, 2023 was $ 1.2 million and $ 1.1 million.
+Added: The allowance for unfunded commitments at December 31, 2025 and December 31, 2024 was $ 740,000 and $ 1.2 million.
Provision for Credit Losses :
21 unchanged sentences
Commercial loans
−Removed: Total loans receivable
+Added: 15,755 10,093
The Company's procedures dictate that an updated valuation must be obtained with respect to underlying collateral at the time a loan is deemed impaired.
120 unchanged sentences
$ - - $ 962 2 $ 962 2
+Added: Non Farm, Non Residential
$ 6,706 1 $ - - $ 6,706 1
+Added: $ 6,706 1 $ 962 2 $ 7,668 3
Financing receivables whose borrowers are experiencing financial difficulty involve granting concessions to a borrower experiencing financial difficulty by modifying the terms of the loan in an effort to avoid foreclosure.
10 unchanged sentences
(Dollars in Thousands)
−Removed: Interest reduction and principal forebearance
+Added: Interest reduction and principal forbearance
$ - - $ - - $ - -
Interest reduction
−Removed: 15 1 - - 15 1
−Removed: Principal forebearance
+Added: Principal forbearance
7,668 3 - - 7,668 3
$ 7,668 3 $ - - $ 7,668 3
−Removed: There were no restructuring of financing receivables whose borrowers are experiencing financial difficulty during the year ended December 31, 2024 .
−Removed: There was one restructuring for $ 528,000 of financing receivables whose borrowers are experiencing financial difficulty during the year ended December 31, 2023 .
+Added: There were three restructurings for $ 7.7 million of financing receivables whose borrowers are experiencing financial difficulty during the year ended December 31, 2025 .
+Added: There were no restructurings of financing receivables whose borrowers are experiencing financial difficulty during the year ended December 31, 2024 .
There were no restructurings of financing receivables whose borrowers are experiencing financial difficulty within the past twelve months of which there was a default during the years ended December 31, 2025 and 2024 .
12 unchanged sentences
0.27 % 0.26 %
−Removed: Residential one - to four -family mortgage loans that were in the process of foreclosure were $ 1.9 million and $ 250,000 at December 31, 2024 and December 31, 2023 , respectively.
+Added: Residential one - to four -family mortgage loans that were in the process of foreclosure were $ 1.9 million at December 31, 2025 and December 31, 2024 , respectively.
Office Properties and Equipment
18 unchanged sentences
( 295 ) ( 291 )
−Removed: ( 1,958 ) ( 2,767 )
Mortgage servicing rights at end of the year
4 unchanged sentences
Loans serviced for others are not reflected in the consolidated statements of financial condition.
−Removed: The fair value of mortgage servicing rights was $ 807,000 at December 31, 2024 and $ 2.2 million at December 31, 2023 .
−Removed: During the year ended December 31, 2024 , the Company sold mortgage servicing rights related to $ 233.0 million in loans serviced for third parties which had a book value of $ 2.0 million.
−Removed: The sale generated $ 2.1 million in net proceeds and a $ 152,000 gain.
−Removed: During the year ended December 31, 2023 , the Company sold mortgage servicing rights related to $ 318.4 million in loans serviced for third parties which had a book value of $ 2.9 million.
+Added: The fair value of mortgage servicing rights was $ 1.3 million at December 31, 2025 and $ 807,000 at December 31, 2024 .
+Added: During the year ended December 31, 2025 , the Company did not have any sales of mortgage servicing rights.
+Added: During the year ended December 31, 2024 , the Company sold mortgage servicing rights related to $ 233.0 million in loans serviced for third parties with a book value of $ 2.0 million.
The sale generated $ 2.1 million in net proceeds and a $ 152,000 gain.
22 unchanged sentences
December 31, 2025
−Removed: Callable/Putable
−Removed: Settlement Date
+Added: December 31, 2024
+Added: Weighted Average Rate
+Added: Weighted Average Rate
(Dollars in Thousands)
FHLB advances
−Removed: $ 10,000 December 3, 2027 3.48 % Fixed
−Removed: Putable December 3, 2024 Monthly
−Removed: 10,000 December 6, 2027 3.47 % Fixed
−Removed: Putable December 4, 2024 Monthly
−Removed: 10,000 December 10, 2027 3.49 % Fixed
−Removed: Putable December 10, 2024 Monthly
−Removed: 50,000 December 14, 2027 1.73 % Fixed
−Removed: N/A December 14, 2017 N/A
−Removed: 10,000 May 15, 2029 3.54 % Fixed
−Removed: Putable May 15, 2024 Monthly
−Removed: 10,000 June 4, 2029 3.55 % Fixed
−Removed: Putable June 4, 2024 Monthly
−Removed: 10,000 June 5, 2029 3.48 % Fixed
−Removed: Putable June 5, 2024 Monthly
−Removed: 10,000 June 14, 2029 3.43 % Fixed
−Removed: Putable June 14, 2024 Monthly
−Removed: 10,000 June 18, 2029 3.47 % Fixed
−Removed: Putable June 18, 2024 Monthly
−Removed: 10,000 July 9, 2029 3.40 % Fixed
−Removed: Putable July 8, 2024 Monthly
−Removed: 10,000 July 12, 2029 3.35 % Fixed
−Removed: Putable July 12, 2024 Monthly
−Removed: Total FHLB long-term advances
−Removed: $ 150,000 2.89 %
−Removed: 80,300 January 2, 2025 4.44 % Fixed
−Removed: 16,000 January 6, 2025 4.59 % Fixed
−Removed: 27,453 January 6, 2025 4.59 % Fixed
−Removed: 10,000 January 6, 2025 3.53 % Fixed
−Removed: 13,600 January 9, 2025 4.50 % Fixed
−Removed: 28,500 January 9, 2025 4.50 % Fixed
−Removed: 12,300 January 9, 2025 4.50 % Fixed
−Removed: 9,900 January 16, 2025 4.41 % Fixed
−Removed: 2,000 January 17, 2025 4.40 % Fixed
−Removed: 20,700 January 21, 2025 4.39 % Fixed
−Removed: 15,500 January 23, 2025 4.36 % Fixed
−Removed: 20,000 January 29, 2025 4.74 % Fixed
−Removed: 11,300 March 17, 2025 4.41 % Fixed
−Removed: 26,000 October 1, 2025 3.95 % Fixed
−Removed: Total FHLB short-term advances
+Added: FHLB short-term advances
$ 216,084 3.69 % $ 293,553 4.41 %
−Removed: Total FHLB advances
+Added: FHLB long-term advances maturing 2027
50,000 1.73 % 80,000 2.39 %
−Removed: Repurchase agreements
−Removed: $ 2,966 N/A 7.49 % Variable
−Removed: Total borrowings
+Added: FHLB long-term advances maturing 2028
40,000 3.38 % - -
−Removed: December 31, 2023
−Removed: Callable/Putable
−Removed: Settlement Date
−Removed: (Dollars in Thousands)
−Removed: FHLB advances
−Removed: $ 50,000 December 14, 2027
−Removed: December 14, 2017
−Removed: 10,000 August 7, 2028
−Removed: December 7, 2023
−Removed: 10,000 August 8, 2028
−Removed: December 8, 2023
−Removed: 10,000 October 10, 2028
−Removed: November 10, 2023
−Removed: 10,000 October 10, 2028
−Removed: November 10, 2023
−Removed: 10,000 November 3, 2028
−Removed: December 4, 2023
−Removed: 10,000 November 6, 2028
−Removed: December 6, 2023
−Removed: 15,000 November 14, 2028
−Removed: December 14, 2023
−Removed: 10,000 November 29, 2028
−Removed: December 29, 2023
−Removed: 10,000 November 29, 2028
−Removed: January 29, 2024
−Removed: 10,000 December 4, 2028
−Removed: January 4, 2023
−Removed: Total FHLB long-term advances
+Added: FHLB long-term advances maturing 2029
60,000 3.48 % 70,000 3.46 %
−Removed: 60,000 January 2, 2024
−Removed: 20,000 January 2, 2024
−Removed: 20,000 January 5, 2024
−Removed: 20,500 January 8, 2024
−Removed: 18,000 January 8, 2024
−Removed: 14,000 January 16, 2024
−Removed: 21,000 January 22, 2024
−Removed: 33,000 January 29, 2024
−Removed: 27,500 February 20, 2024
−Removed: 27,000 February 27, 2024
−Removed: 24,500 March 13, 2024
−Removed: 23,500 December 29, 2024
−Removed: Total FHLB short-term advances
+Added: FHLB long-term advances maturing 2030
40,000 3.21 % - -
1 unchanged sentence
406,084 3.34 % 443,553 3.89 %
−Removed: Short-Term Borrowings
−Removed: Federal reserve bank
−Removed: $ 145,000 December 31, 2024
−Removed: Total Federal reserve bank
−Removed: $ 145,000 4.83 %
Repurchase agreements
−Removed: $ 2,054 N/A 8.20 % Variable
−Removed: Total short-term borrowings
6,174 6.68 % 2,966 7.49 %
14 unchanged sentences
Under the master netting agreement, the Company is entitled to set off the collateral placed with a single counterparty against obligations owed to that counterparty.
−Removed: The Company selects loans that meet underwriting criteria established by the Federal Home Loan Bank Chicago (FHLBC) as collateral for outstanding advances.
+Added: The Company selects loans that meet underwriting criteria established by the Federal Home Loan Bank of Chicago (FHLBC) as collateral for outstanding advances.
The Company’s borrowings at the FHLBC are limited to 76 % of the carrying value of unencumbered one - to four -family mortgage loans, 62 % of the carrying value of home equity loans and 73 % of the carrying value of over four -family loans.
11 unchanged sentences
The Community Bank Leverage Ratio is currently 9%.
−Removed: A financial institution can elect to be subject to this new definition, and opt-out of this new definition, at any time.
−Removed: As a qualified community bank, we elected to opt-out of this definition during the second quarter of 2020.
Prompt corrective action regulations provide five classifications:
169 unchanged sentences
( 38,231 ) 16.69
+Added: ( 2,005 ) 20.75
Nonvested at December 31, 2024
3 unchanged sentences
Nonvested at December 31, 2025
+Added: 107,959 11.25
The Company amortizes the expense related to restricted stock awards as compensation expense over the vesting period.
6 unchanged sentences
Participating employees may annually contribute pretax compensation in accordance with IRS limits.
−Removed: The Company made matching contributions of $ 962,000 , $ 1.0 million, and $ 1.3 million to the plans during the years ended December 31, 2024, 2023 and 2022 , respectively.
+Added: The Company made matching contributions of $ 787,000 , $ 962,000 , and $ 1.0 million to the plans during the years ended December 31, 2025, 2024 and 2023 , respectively.
Employee Stock Ownership Plan
39 unchanged sentences
Add (deduct) effect of:
−Removed: State income taxes net of Federal income tax (benefit) expense
+Added: State income taxes net of Federal income tax expense (benefit)(1)
654 2.0 1,083 4.5 ( 74 ) ( 0.7 )
2 unchanged sentences
Non-deductible ESOP and stock option expense
+Added: 85 0.3 65 0.3 73 0.7
Tax-exempt interest income
1 unchanged sentence
Non-deductible compensation
+Added: - - - - 87 0.8
Death benefit on bank owned life insurance
4 unchanged sentences
( 126 ) ( 0.4 ) ( 126 ) ( 0.5 ) ( 168 ) ( 1.5 )
−Removed: Valuation allowance - available for sale securities
−Removed: Valuation allowance - other temporary differences
168 0.5 ( 1 ) ( 0.0 ) ( 6 ) ( 0.1 )
−Removed: Income tax provision
−Removed: $ 5,314 $ 1,657 $ 4,992
−Removed: Effective tax rate
+Added: Income tax provision/effective tax rate
$ 7,043 21.1 $ 5,314 22.1 $ 1,657 15.0
+Added: ( 1 ) In 2025, state and local income taxes in New Mexico, Minnesota, Illinois, and Idaho comprised greater than 50% of the tax effect in this category.
+Added: In 2024, state and local income taxes in New Mexico and Minnesota comprised greater than 50% of the tax effect in this category.
+Added: In 2023, state and local income taxes in Wisconsin.
The significant components of the Company’s net deferred tax assets (liabilities) included in prepaid expenses and other assets are as follows at December 31, 2025 and 2024 :
12 unchanged sentences
Valuation allowance - available for sale securities
+Added: ( 401 ) ( 517 )
Valuation allowance - other temporary differences
+Added: ( 2,043 ) ( 1,867 )
Total gross deferred tax assets
3 unchanged sentences
( 271 ) ( 191 )
−Removed: FHLB stock dividends
( 951 ) ( 968 )
12 unchanged sentences
A valuation allowance is required if it is more likely than not that some portion of the deferred tax asset will not be realized.
−Removed: The valuation allowance as of December 31, 2024, of $ 2.4 million is the result of the valuation allowance for state related attributes, net of subsequent changes to those attributes along with the state related impact of changes to the unrealized losses on securities AFS disposed.
−Removed: Of the $ 1.4 million in state operating loss carry forward, there is a $ 1.3 million valuation allowance recorded against it.
−Removed: At December 31, 2023, no valuation allowance was determined to be necessary.
+Added: The Company had a deferred tax asset of $ 1.7 million and $ 1.4 million related to the state operating loss carry forward as of December 31, 2025 and 2024, and there were valuation allowances of $ 1.5 million and $ 1.3 million recorded against it.
+Added: The income tax payments for the years ended December 31, 2025, 2024 and 2023 as follows:
+Added: Years ended December 31,
+Added: (Dollars in Thousands)
+Added: Income taxes paid:
+Added: 4,720 3,270 1,000
+Added: state and local
+Added: All other states
+Added: 273 ( 146 ) 169
+Added: Total income taxes paid
+Added: 5,013 2,389 1,169
Under the Internal Revenue Code and Wisconsin Statutes, the Company was permitted to deduct, for tax years beginning before 1988, an annual addition to a reserve for bad debts.
43 unchanged sentences
Given that the underlying loans delivered to buyers are predominantly conventional first lien mortgages, historical experience has resulted in insignificant losses and repurchase activity.
−Removed: The Company's reserve for losses related to these recourse provisions that is reported as a component of other liabilities on the Company's consolidated statement of financial condition totaled $ 1.3 million and $ 1.7 million as of December 31, 2024 and December 31, 2023 , respectively.
+Added: The Company's reserve for losses related to these recourse provisions that is reported as a component of other liabilities on the Company's consolidated statement of financial condition totaled $ 1.0 million as of December 31, 2025 and $ 1.3 million as of December 31, 2024 .
In the normal course of business, the Company, or its subsidiaries are involved in various legal proceedings.
1 unchanged sentence
The Company intends to continue to vigorously defend its interests in these matters and pursue all possible legal defenses against the claims.
−Removed: In relation to various legal matters, we had an accrued legal liability balance of $ 1.3 million and $ 125,000 included within accrued liabilities on the consolidated balance sheets as of December 31, 2024 and 2023, respectively.
+Added: In relation to various legal matters, we had no accrued legal liability balance as of December 31, 2025, and $ 1.3 million included within accrued liabilities on the consolidated balance sheet as of December 31, 2024 .
Derivative Financial Instruments
67 unchanged sentences
The pull through rate is computed using historical data and the ratio is periodically reviewed by the Company.
−Removed: The back-to-back swaps mature in December 2029 to June 2037.
+Added: The back-to-back swaps mature in August 2026 to June 2037.
Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements.
29 unchanged sentences
5,519 - 5,519 -
−Removed: Government sponsored enterprise bonds
−Removed: 2,440 - 2,440 -
Municipal securities
69 unchanged sentences
Balance at December 31, 2024
−Removed: Mortgage derivative gain, net
+Added: Mortgage derivative loss, net
Balance at December 31, 2025
12 unchanged sentences
$ 505 $ - $ - $ 505
−Removed: Impaired mortgage servicing rights
−Removed: 1,063 - - 1,063
Real estate owned – On a non-recurring basis, real estate owned is recorded in the consolidated statements of financial condition at the lower of cost or fair value.
2 unchanged sentences
Given the significance of the adjustments made to appraised values necessary to estimate the fair value of the properties, real estate owned is considered to be Level 3 in the fair value hierarchy of valuation techniques.
−Removed: Mortgage servicing rights - The Company utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of mortgage servicing rights.
−Removed: The model utilizes prepayment assumptions to project cash flows related to the mortgage servicing rights based upon the current interest rate environment, which is then discounted to estimate an expected fair value of the mortgage servicing rights.
−Removed: The model considers characteristics specific to the underlying mortgage portfolio, such as:
−Removed: contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges and costs to service.
−Removed: Given the significance of the unobservable inputs utilized in the estimation process, mortgage servicing rights are classified as Level 3 within the fair value hierarchy.
−Removed: The Company records the mortgage servicing rights at the lower of amortized cost or fair value.
For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:
19 unchanged sentences
32.4 % 96.9 % 79.6 %
−Removed: Mortgage servicing rights
−Removed: 1,063 Pricing models
−Removed: Prepayment rate
−Removed: 6.7 % 23.9 % 14.6 %
−Removed: Discount rate
−Removed: 10.0 % 15.5 % 11.2 %
−Removed: Cost to service
−Removed: $ 77 $ 471 $ 107
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.
117 unchanged sentences
Total expense
−Removed: Income before income tax expense (benefit)
+Added: Income before income tax expense
26,467 18,784 9,507
−Removed: Income tax expense (benefit)
+Added: Income tax expense
$ 26,402 $ 18,688 $ 9,375
8 unchanged sentences
Stock based compensation
−Removed: Equity in loss of subsidiaries
+Added: Equity in income of subsidiaries
( 26,174 ) ( 18,347 ) ( 8,964 )
14 unchanged sentences
( 1,243 ) ( 15,816 ) ( 25,821 )
−Removed: Net decrease in cash
+Added: Net increase (decrease) in cash
440 ( 14,163 ) ( 23,731 )
35 unchanged sentences
( 1,331 ) ( 63 ) - ( 1,394 )
−Removed: Net interest income after provision (credit) for credit losses
+Added: Net interest income after provision for credit losses
57,512 576 40 58,128
14 unchanged sentences
Real estate owned
+Added: ( 312 ) - - ( 312 )
Loan processing expense
39 unchanged sentences
31,737 80,443 ( 544 ) 111,636
−Removed: Income (loss) before income taxes (benefit)
+Added: Income before income taxes
21,679 1,885 438 24,002
−Removed: Income taxes (benefit)
4,697 521 96 5,314
−Removed: Net income (loss)
$ 16,982 $ 1,364 $ 342 $ 18,688
40 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.