3 unchanged sentences
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
−Removed: September 30, 2025
+Added: March 31, 2026
December 31, 2025
44 unchanged sentences
Shareholders’ equity:
−Removed: Preferred stock (par value $ .01 per share) authorized - 50,000,000 shares at September 30, 2025 and at December 31, 2024, no shares issued
−Removed: Common stock (par value $ .01 per share) authorized - 100,000,000 shares at September 30, 2025 and at December 31, 2024, issued and outstanding - 18,524,115 at September 30, 2025 and 19,343,251 at December 31, 2024
+Added: Preferred stock (par value $.
+Added: 01 per share) authorized - 50,000,000 shares at March 31, 2026 and at December 31, 2025, no shares issued
+Added: Common stock (par value $.
+Added: 01 per share) authorized - 100,000,000 shares at March 31, 2026 and at December 31, 2025, issued and outstanding - 18,145,996 at March 31, 2026 and 18,359,717 at December 31, 2025
Additional paid-in capital
14 unchanged sentences
CONSOLIDATED STATEMENTS OF INCOME
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands, except per share amounts)
30 unchanged sentences
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands)
−Removed: $ 7,926 $ 4,728 $ 18,689 $ 13,478
−Removed: Other comprehensive income, net of tax:
−Removed: Net unrealized holding gain on available for sale securities:
−Removed: Net unrealized holding gain arising during the period, net of tax expense of $ 564 , $ 1,394 , $ 1,546 and $ 855 , respectively
−Removed: 2,005 4,965 5,499 3,042
−Removed: Total other comprehensive income
−Removed: 2,005 4,965 5,499 3,042
+Added: Other comprehensive (loss) income, net of tax:
+Added: Net unrealized holding (loss) gain on available for sale securities:
+Added: Net unrealized holding (loss) gain arising during the period, net of tax benefit (expense) of $286 and ($659), respectively
+Added: Total other comprehensive (loss) income
Comprehensive income
−Removed: $ 9,931 $ 9,693 $ 24,188 $ 16,520
See accompanying notes to unaudited consolidated financial statements.
6 unchanged sentences
(In Thousands, except per share amounts)
−Removed: For the nine months ended September 30, 2024
+Added: For the three months ended March 31, 2025
Balances at December 31, 2024
15 unchanged sentences
( 237 ) ( 2 ) ( 3,171 ) - - - ( 3,173 )
−Removed: Balances at September 30, 2024
+Added: Balances at March 31, 2025
19,281 $ 193 $ 90,470 $ 277,521 $ ( 10,386 ) $ ( 16,438 ) $ 341,360
−Removed: For the nine months ended September 30, 2025
+Added: For the three months ended March 31, 2026
Balances at December 31, 2025
2 unchanged sentences
- - - 5,997 - - 5,997
−Removed: Other comprehensive income
−Removed: - - - - - 5,499 5,499
−Removed: Total comprehensive income
−Removed: ESOP shares committed to be released to plan participants
−Removed: - - 182 - 890 - 1,072
−Removed: Cash dividend, $ 0.45 per share
−Removed: - - - ( 8,017 ) - - ( 8,017 )
−Removed: Stock compensation activity, net of tax
−Removed: 196 2 2,264 - - - 2,266
−Removed: Stock compensation expense
−Removed: - - 336 - - - 336
−Removed: Purchase of common stock returned to authorized but unissued
−Removed: ( 1,015 ) ( 10 ) ( 13,475 ) - - - ( 13,485 )
−Removed: Balances at September 30, 2025
−Removed: 18,524 $ 185 $ 80,521 $ 287,868 $ ( 9,792 ) $ ( 13,287 ) $ 345,495
−Removed: Comprehensive
−Removed: Shareholders'
−Removed: Income (Loss)
−Removed: (In Thousands, except per share amounts)
−Removed: For the three months ended September 30, 2024
−Removed: Balances at June 30, 2024
−Removed: 19,479 195 92,964 272,778 ( 11,276 ) ( 19,715 ) $ 334,946
−Removed: Comprehensive income:
−Removed: - - - 4,728 - - 4,728
−Removed: Other comprehensive income
−Removed: - - - - - 4,965 4,965
−Removed: Total comprehensive income
−Removed: ESOP shares committed to be released to Plan participants
−Removed: - - 84 - 297 - 381
−Removed: Cash dividend, $ 0.15 per share
−Removed: - - - ( 2,758 ) - - ( 2,758 )
−Removed: Stock compensation activity, net of tax
−Removed: 50 - 634 - - - 634
−Removed: Stock compensation expense
−Removed: - - 105 - - - 105
−Removed: Purchase of common stock returned to authorized but unissued
−Removed: ( 72 ) ( 1 ) ( 998 ) - - - ( 999 )
−Removed: Balances at September 30, 2024
−Removed: 19,457 $ 194 $ 92,789 $ 274,748 $ ( 10,979 ) $ ( 14,750 ) $ 342,002
−Removed: (In Thousands, except per share amounts)
−Removed: For the three months ended September 30, 2025
−Removed: Balances at June 30, 2025
−Removed: 18,776 188 84,106 282,578 ( 10,089 ) ( 15,292 ) 341,491
−Removed: Comprehensive income:
−Removed: - - - 7,926 - - 7,926
−Removed: Other comprehensive income
+Added: Other comprehensive loss
- - - - - ( 1,020 ) ( 1,020 )
10 unchanged sentences
( 247 ) ( 2 ) ( 4,393 ) - - - ( 4,395 )
−Removed: Balances at September 30, 2025
+Added: Balances at March 31, 2026
18,146 $ 182 $ 74,488 $ 296,027 $ ( 9,199 ) $ ( 13,287 ) $ 348,211
3 unchanged sentences
CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands)
9 unchanged sentences
Proceeds on sales of loans originated for sale
−Removed: Increase in accrued interest receivable
+Added: (Increase) decrease in accrued interest receivable
Increase in cash surrender value of life insurance
−Removed: Decrease in derivative assets
+Added: (Increase) decrease in derivative assets
Increase in accrued interest on deposits and borrowings
Increase in accrued taxes
−Removed: Gain on sale of mortgage servicing rights
−Removed: Decrease in derivative liabilities
−Removed: Decrease (increase) in other assets
+Added: Decrease (increase) in derivative liabilities
+Added: (Increase) decrease in other assets
(Decrease) increase in other liabilities
−Removed: Net cash provided by operating activities
+Added: Net cash (used in) provided by operating activities
Investing activities:
−Removed: Net increase in loans receivable
+Added: Net (increase) decrease in loans receivable
Purchases of:
1 unchanged sentence
Mortgage related securities
−Removed: Bank Owned Life Insurance
Premises and equipment
3 unchanged sentences
Sales of FHLB Stock
−Removed: Sales of mortgage servicing rights
−Removed: Net cash used in investing activities
+Added: Net cash (used in) provided by investing activities
Financing activities:
8 unchanged sentences
Net cash provided by financing activities
−Removed: Increase in cash and cash equivalents
+Added: (Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
28 unchanged sentences
The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s December 31, 2025 Annual Report on Form 10 -K.
−Removed: Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025 or for any other period.
+Added: Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or for any other period.
The preparation of the unaudited consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period.
3 unchanged sentences
The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report on Form 10 -Q were issued.
−Removed: There were no significant subsequent events for the three and nine months ended September 30, 2025 through the issuance date of these unaudited consolidated financial statements that warranted adjustment to or disclosure in the unaudited consolidated financial statements.
−Removed: Impact of Recent Accounting Pronouncements
−Removed: The Company adopted ASU No.
−Removed: 2023 - 09, “Income Taxes (Topic 740 ):
−Removed: Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities.
−Removed: This update is effective for fiscal years beginning after December 15, 2024.
−Removed: Adoption of ASU No.
−Removed: 2023 - 09 did not have a material impact on the Company's consolidated financial statements.
+Added: There were no significant subsequent events for the three months ended March 31, 2026 through the issuance date of these unaudited consolidated financial statements that warranted adjustment to or disclosure in the unaudited consolidated financial statements.
Note 2 — Securities Available for Sale
The amortized cost and fair values of the Company’s investment in securities available for sale follow:
−Removed: September 30, 2025
+Added: March 31, 2026
(In Thousands)
26 unchanged sentences
183,153 546 ( 15,758 ) 167,941
−Removed: Government sponsored enterprise bonds
−Removed: 2,500 - ( 60 ) 2,440
Municipal securities
6 unchanged sentences
The Company’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
−Removed: At September 30, 2025 , $ 72,000 of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities.
+Added: At March 31, 2026 , $ 47,000 of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities.
At December 31, 2025 , $ 59,000 of the Company's mortgage related securities were pledged as collateral to secure mortgage banking related activities.
−Removed: The amortized cost and fair values of investment securities by contractual maturity at September 30, 2025 are shown below.
+Added: The amortized cost and fair values of investment securities by contractual maturity at March 31, 2026 are shown below.
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
13 unchanged sentences
Gross unrealized losses on securities available for sale and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows:
−Removed: September 30, 2025
+Added: March 31, 2026
Less than 12 months
24 unchanged sentences
859 11 4,660 502 5,519 513
−Removed: Government sponsored enterprise bonds
−Removed: - - 2,440 60 2,440 60
Municipal securities
5 unchanged sentences
In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.
−Removed: As of September 30, 2025 and December 31, 2024 , no allowance for credit losses on securities was recognized.
+Added: As of March 31, 2026 and December 31, 2025 , no allowance for credit losses on securities was recognized.
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.
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.
−Removed: During the three and nine months ended September 30, 2025 and September 30, 2024 , there were no sales of securities.
+Added: During the three months ended March 31, 2026 and March 31, 2025 , there were no sales of securities.
Note 3 - Loans Receivable
−Removed: Loans receivable at September 30, 2025 and December 31, 2024 are summarized as follows:
−Removed: September 30, 2025
+Added: Loans receivable at March 31, 2026 and December 31, 2025 are summarized as follows:
+Added: March 31, 2026
December 31, 2025
17 unchanged sentences
While the real estate collateralizing these loans is primarily residential in nature, it ranges from owner-occupied single family homes to large apartment complexes.
−Removed: Qualifying loans receivable totaling $ 1.22 billion and $ 1.23 billion at September 30, 2025 and December 31, 2024 , respectively, were pledged as collateral against $ 460.2 million and $ 443.6 million in outstanding Federal Home Loan Bank of Chicago ("FHLB") advances under a blanket security agreement at September 30, 2025 and December 31, 2024 .
−Removed: An analysis of past due loans receivable as of September 30, 2025 and December 31, 2024 follows:
−Removed: As of September 30, 2025
+Added: Qualifying loans receivable totaling $ 1.24 billion and $ 1.27 billion at March 31, 2026 and December 31, 2025 , respectively, were pledged as collateral against $ 406.9 million and $ 406.1 million in outstanding Federal Home Loan Bank of Chicago ("FHLB") advances under a blanket security agreement at March 31, 2026 and December 31, 2025 .
+Added: An analysis of past due loans receivable as of March 31, 2026 and December 31, 2025 follows:
+Added: As of March 31, 2026
1-59 Days Past Due (1) 60-89 Days Past Due (2) 90 Days or Greater Total Past Due Current (3)
34 unchanged sentences
$ 7,248 $ 2,327 $ 4,832 $ 14,407 $ 1,661,145 $ 1,675,552
−Removed: ( 1 ) Includes $ 489,000 and $ 522,000 at September 30, 2025 and December 31, 2024 , respectively, which are on non-accrual status.
−Removed: ( 2 ) Includes $ 590,000 and $ 1.1 million September 30, 2025 and December 31, 2024 , respectively, which are on non-accrual status.
−Removed: ( 3 ) Includes $ 733,000 and $ 28,000 at September 30, 2025 and December 31, 2024 , respectively, which are on non-accrual status.
−Removed: The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2025 and the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2024 :
−Removed: One- to Four-Family
−Removed: Land and Construction
−Removed: Commercial Real Estate
−Removed: (In Thousands)
−Removed: Nine months ended September 30, 2025
−Removed: Balance at beginning of period
−Removed: $ 5,286 $ 7,079 $ 212 $ 1,205 $ 3,920 $ 79 $ 466 $ 18,247
−Removed: Provision (credit) for credit losses - loans
−Removed: ( 389 ) 6 ( 24 ) ( 66 ) ( 11 ) 45 ( 160 ) ( 599 )
−Removed: - - - - - ( 42 ) - ( 42 )
−Removed: 51 3 - 2 - 8 - 64
−Removed: Balance at end of period
−Removed: $ 4,948 $ 7,088 $ 188 $ 1,141 $ 3,909 $ 90 $ 306 $ 17,670
−Removed: Nine months ended September 30, 2024
−Removed: Balance at beginning of period
−Removed: $ 6,886 $ 7,318 $ 211 $ 983 $ 2,561 $ 56 $ 534 $ 18,549
−Removed: Provision (credit) for credit losses - loans
−Removed: ( 1,661 ) ( 243 ) ( 12 ) 271 1,204 43 ( 41 ) ( 439 )
−Removed: ( 3 ) - - - - ( 26 ) - ( 29 )
−Removed: 104 8 - 2 3 - - 117
−Removed: Balance at end of period
−Removed: $ 5,326 $ 7,083 $ 199 $ 1,256 $ 3,768 $ 73 $ 493 $ 18,198
+Added: ( 1 ) Includes $ 991,000 and $ 819,000 at March 31, 2026 and December 31, 2025 , respectively, which are on non-accrual status.
+Added: ( 2 ) Includes $ - and $ - at March 31, 2026 and December 31, 2025 , respectively, which are on non-accrual status.
+Added: ( 3 ) Includes $ 817,000 and $ 523,000 at March 31, 2026 and December 31, 2025 , respectively, which are on non-accrual status.
+Added: The following tables present the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2026 and the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2025 :
One to-Four- Family
2 unchanged sentences
(In Thousands)
−Removed: Three months ended September 30, 2025
+Added: Three months ended March 31, 2026
Balance at beginning of period
6 unchanged sentences
$ 4,446 $ 7,599 $ 163 $ 1,055 $ 4,078 $ 69 $ 299 $ 17,709
−Removed: Three months ended September 30, 2024
+Added: Three months ended March 31, 2025
Balance at beginning of period
41 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 were $ 1.0 million and $ 1.2 million at September 30, 2025 and December 31, 2024 , respectively.
+Added: The allowance for unfunded commitments were $ 783,000 and $ 740,000 at March 31, 2026 and December 31, 2025 , respectively.
Provision for Credit Losses :
3 unchanged sentences
Three months ended
−Removed: Nine months ended
−Removed: September 30, 2025
−Removed: September 30, 2024
−Removed: September 30, 2025
−Removed: September 30, 2024
+Added: March 31, 2026
+Added: March 31, 2025
(In Thousands)
2 unchanged sentences
Unfunded commitments
−Removed: ( 139 ) ( 84 ) ( 237 ) ( 96 )
Investment securities
4 unchanged sentences
The following tables present collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation.
−Removed: The following tables present collateral dependent loans by portfolio segment as of September 30, 2025 and December 31, 2024 :
−Removed: September 30, 2025
+Added: The following tables present collateral dependent loans by portfolio segment as of March 31, 2026 and December 31, 2025 :
+Added: March 31, 2026
December 31, 2025
6 unchanged sentences
Commercial real estate
+Added: 11,215 11,282
Commercial loans
24 unchanged sentences
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.
−Removed: The following table presents information relating to the Company’s internal risk ratings of its loans receivable as of September 30, 2025 and December 31, 2024 :
+Added: The following table presents information relating to the Company’s internal risk ratings of its loans receivable as of March 31, 2026 and December 31, 2025 :
One to Four-Family
2 unchanged sentences
(In Thousands)
−Removed: At September 30, 2025
+Added: At March 31, 2026
$ 6,936 $ 415 $ 14 $ - $ 11,215 $ - $ - $ 18,580
8 unchanged sentences
Credit Quality Information:
−Removed: The following table presents total loans by risk categories and year of origination as of September 30, 2025 :
+Added: The following table presents total loans by risk categories and year of origination as of March 31, 2026 :
(In Thousands)
68 unchanged sentences
The following presents data on restructurings of financing receivables whose borrowers are experiencing financial difficulty:
−Removed: As of September 30, 2025
+Added: As of March 31, 2026
(Dollars in Thousands)
+Added: One- to four-family
+Added: $ - - $ 1,697 4 $ 1,697 4
Commercial Real Estate
6,706 1 - - 6,706 1
+Added: $ 6,706 1 $ 1,697 4 $ 8,403 5
+Added: As of December 31, 2025
+Added: (Dollars in Thousands)
One- to four-family
$ - - $ 962 2 $ 962 2
+Added: Commercial Real Estate
6,706 1 - - 6,706 1
+Added: $ 6,706 1 $ 962 2 $ 7,668 3
The following presents restructurings of financing receivables whose borrowers are experiencing financial difficulty by concession type:
−Removed: As of September 30, 2025
+Added: As of March 31, 2026
Performing in accordance with modified terms
3 unchanged sentences
$ 8,403 5 $ - - $ 8,403 5
−Removed: There were no borrowers experiencing financial difficulty as of December 31, 2024.
−Removed: There were no of financing receivables whose borrowers are experiencing financial difficulty within the past twelve months of which there was a default during the three or nine months ended September 30, 2025 and September 30, 2024 .
−Removed: The following table presents data on non-accrual loans as of September 30, 2025 and December 31, 2024 :
−Removed: September 30, 2025
+Added: As of December 31, 2025
+Added: Performing in accordance with modified terms
+Added: (Dollars in Thousands)
+Added: Interest reduction
+Added: $ - - $ - - $ - -
+Added: Principal forbearance
+Added: 7,668 3 - - 7,668 3
+Added: $ 7,668 3 $ - - $ 7,668 3
+Added: There were no financing receivables whose borrowers are experiencing financial difficulty within the past twelve months of which there was a default during the three months ended March 31, 2026 and March 31, 2025 .
+Added: The following table presents data on non-accrual loans as of March 31, 2026 and December 31, 2025 :
+Added: March 31, 2026
December 31, 2025
11 unchanged sentences
0.33 % 0.27 %
−Removed: Residential one - to four -family mortgage loans that were in the process of foreclosure were $ 1.8 million and $ 1.9 million at September 30, 2025 and December 31, 2024 , respectively.
+Added: Residential one - to four -family mortgage loans that were in the process of foreclosure were $ 2.5 million and $ 1.9 million at March 31, 2026 and December 31, 2025 , respectively.
Note 4 — Mortgage Servicing Rights
The following table presents the activity in the Company’s mortgage servicing rights:
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands)
3 unchanged sentences
Mortgage servicing rights at end of the period
−Removed: Valuation allowance (recorded) recovered during the period
+Added: Valuation allowance recorded during the period
Mortgage servicing rights at end of the period, net
−Removed: $ 1,039 $ 491
−Removed: The unpaid principal balance of loans serviced for others was $ 118.3 million and $ 83.4 million at September 30, 2025 and December 31, 2024 , respectively.
+Added: The unpaid principal balance of loans serviced for others was $ 117.0 million and $ 119.0 million at March 31, 2026 and December 31, 2025 , respectively.
These loans are not reflected in the consolidated statements of financial condition.
−Removed: The fair value of mortgage servicing rights was $ 1.3 million at September 30, 2025 and $ 807,000 at December 31, 2024 , respectively.
−Removed: During the three and nine months ended September 30, 2025 , there were no sales of mortgage servicing rights.
−Removed: During the the three months ended September 30, 2024, there were no sales of mortgage servicing rights.
−Removed: During the nine months ended September 30, 2024 , the Company sold mortgage servicing rights related to $ 233.0 million in loans receivable with a book value of $ 2.0 million for $ 2.1 million resulting in a gain on sale of $ 152,000 .
+Added: The fair value of mortgage servicing rights was $ 1.2 million at March 31, 2026 and $ 1.3 million at December 31, 2025 , respectively.
+Added: During the three months ended March 31, 2026 and March 31, 2025, there were no sales of mortgage servicing rights.
The following table shows the estimated future amortization expense for mortgage servicing rights for the periods indicated:
2 unchanged sentences
Note 5 — Deposits
−Removed: At September 30, 2025 and December 31, 2024 , the aggregate balance of uninsured time deposits of $250,000 or more was $ 174.4 million and $ 167.3 million, respectively.
+Added: At March 31, 2026 and December 31, 2025 , the aggregate balance of uninsured time deposits of $250,000 or more was $ 184.3 million and $ 183.2 million, respectively.
The Company does not have uninsured deposits less than $250,000 in aggregate balance.
−Removed: A summary of the contractual maturities of time deposits at September 30, 2025 is as follows:
+Added: A summary of the contractual maturities of time deposits at March 31, 2026 is as follows:
(In Thousands)
5 unchanged sentences
Certain directors and executive officers, including their immediate families and companies in which they are principal owners, are depositors of the Bank.
−Removed: Such deposits amounted to $ 12.1 million and $ 11.3 million at September 30, 2025 and December 31, 2024 , respectively.
+Added: Such deposits amounted to $ 21.6 million and $ 25.5 million at March 31, 2026 and December 31, 2025 , respectively.
Note 6 — Borrowings
Borrowings consist of the following:
−Removed: September 30, 2025
+Added: March 31, 2026
December 31, 2025
13 unchanged sentences
30,000 3.27 % 40,000 3.21 %
+Added: FHLB long-term advances maturing 2031
+Added: 20,000 2.90 % - -
Total FHLB advances
4 unchanged sentences
$ 413,034 3.29 % $ 412,258 3.39 %
−Removed: The short-term repurchase agreement represents the outstanding portion of a total $ 50.0 million commitment with one unrelated bank as of September 30, 2025 .
+Added: The short-term repurchase agreement represents the outstanding portion of a total $ 50.0 million commitment with one unrelated bank as of March 31, 2026 .
The short-term repurchase agreement is utilized by Waterstone Mortgage Corporation to finance loans originated for sale.
1 unchanged sentence
Related interest rates are based upon the note rate associated with the loans being financed.
−Removed: The short-term repurchase agreement had a $ 8.9 million balance at September 30, 2025 and a $ 3.0 million balance at December 31, 2024 .
−Removed: The $ 250.2 million in FHLB short-term advances as of September 30, 2025 have fixed rates.
−Removed: The $ 210.0 million in FHLB long-term advances as of September 30, 2025 have fixed rates.
+Added: The short-term repurchase agreement had a $ 6.1 million balance at March 31, 2026 and a $ 6.2 million balance at December 31, 2025 .
+Added: The $ 163.9 million in FHLB short-term advances as of March 31, 2026 have fixed rates.
+Added: The $ 243.0 million in FHLB long-term advances as of March 31, 2026 have fixed rates.
A total of $ 140.0 million in FHLB long-term advances have FHLB call options available.
7 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: At September 30, 2025 , the Company had approximately $ 334.0 million in unused borrowing capacity at the FHLB.
+Added: At March 31, 2026 , the Company had approximately $ 381.0 million in unused borrowing capacity at the FHLB.
The Company selects loans that meet underwriting criteria established by the FHLB as collateral for outstanding advances.
The Company’s borrowings from the FHLB are limited to 76 % of the carrying value of unencumbered one - to four -family mortgage loans, 62 % of the carrying value of multi-family loans and 62 % of the carrying value of home equity loans.
−Removed: In addition, these advances were collateralized by FHLB stock of $ 20.7 million at September 30, 2025 and $ 20.3 million at December 31, 2024 , respectively.
+Added: In addition, these advances were collateralized by FHLB stock of $ 18.8 million at March 31, 2026 and $ 19.8 million at December 31, 2025 , respectively.
In the event of prepayment, the Company is obligated to pay all remaining contractual interest on the advance.
18 unchanged sentences
The minimum capital conservation buffer is 2.5%.
−Removed: As of September 30, 2025 , the Bank was considered well-capitalized, with all capital ratios exceeding the well-capitalized requirement.
+Added: As of March 31, 2026 , the Bank was considered well-capitalized, with all capital ratios exceeding the well-capitalized requirement.
There are no conditions or events that management believes have changed the Bank’s prompt corrective action capitalization category.
The Bank is subject to regulatory restrictions on the amount of dividends it may declare and pay to the Company without prior regulatory approval, and to regulatory notification requirements for dividends that do not require prior regulatory approval.
−Removed: The actual and required capital amounts and ratios for the Bank as of September 30, 2025 and December 31, 2024 are presented in the tables below:
−Removed: September 30, 2025
+Added: The actual and required capital amounts and ratios for the Bank as of March 31, 2026 and December 31, 2025 are presented in the tables below:
+Added: March 31, 2026
For Capital Adequacy Purposes
7 unchanged sentences
369,946 20.26 % 146,110 8.00 % 191,770 10.50 % 182,635 10.00 %
−Removed: Tier I Capital (to risk-weighted assets)
+Added: Tier 1 Capital (to risk-weighted assets)
Consolidated Waterstone Financial, Inc.
7 unchanged sentences
351,454 19.24 % 82,190 4.50 % 127,840 7.00 % 118,713 6.50 %
−Removed: Tier I Capital (to average assets)
+Added: Tier 1 Capital (to average assets)
Consolidated Waterstone Financial, Inc.
15 unchanged sentences
367,517 20.49 % 143,526 8.00 % 188,377 10.50 % 179,407 10.00 %
−Removed: Tier I capital (to risk-weighted assets)
+Added: Tier 1 capital (to risk-weighted assets)
Consolidated Waterstone Financial, Inc.
7 unchanged sentences
349,299 19.47 % 80,733 4.50 % 125,585 7.00 % 116,614 6.50 %
−Removed: Tier I Capital (to average assets)
+Added: Tier 1 Capital (to average assets)
Consolidated Waterstone Financial, Inc.
10 unchanged sentences
The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.
−Removed: September 30, 2025
+Added: March 31, 2026
December 31, 2025
22 unchanged sentences
The Company holds mortgages on the underlying real estate as collateral supporting those commitments for which collateral is deemed necessary.
−Removed: The Company has determined that there are no probable losses related to commitments to extend credit or the standby letters of credit as of September 30, 2025 and December 31, 2024 .
+Added: The Company has determined that there are no probable losses related to commitments to extend credit or the standby letters of credit as of March 31, 2026 and December 31, 2025 .
Please see Note 3 - Loans Receivable for discussion on the allowance for credit losses - unfunded commitments.
6 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 totaled $ 1.0 million as of September 30, 2025 and $ 1.3 million as of December 31, 2024 .
+Added: The Company's reserve for losses related to these recourse provisions totaled $ 1.1 million as of March 31, 2026 and $ 1.0 million as of December 31, 2025 .
In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings.
30 unchanged sentences
The following tables presents the outstanding notional balances and fair values of outstanding derivative instruments:
−Removed: September 30, 2025
+Added: March 31, 2026
Derivatives not designated as Hedging Instruments
37 unchanged sentences
Interest Rate Swaps
−Removed: The back-to-back swaps mature in December 2029 to June 2037.
+Added: The back-to-back swaps mature in June 2027 to June 2037.
Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements.
−Removed: As of September 30, 2025 and December 31, 2024 , no back-to-back swaps were in default.
+Added: As of March 31, 2026 and December 31, 2025 , no back-to-back swaps were in default.
The Company pays fixed rates and receives floating rates based upon SOFR on the swaps with dealer counterparties.
Dealer counterparty swaps are subject to master netting agreements among the contracts within our Bank.
−Removed: No right of offset existed with dealer counterparty swaps as of September 30, 2025 and December 31, 2024 .
+Added: No right of offset existed with dealer counterparty swaps as of March 31, 2026 and December 31, 2025 .
All changes in the fair value of these instruments are recorded in other non-interest income.
−Removed: The Company pledged no cash at September 30, 2025 and at December 31, 2024 .
+Added: The Company pledged no cash at March 31, 2026 and at December 31, 2025 .
Note 10 – Earnings Per Share
2 unchanged sentences
Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of all potential common shares.
−Removed: There were 179,000 and 183,000 antidilutive shares of common stock for the three months ended September 30, 2025 and 2024 , respectively.
−Removed: There were 216,000 and 206,000 antidilutive shares of common stock for the nine months ended September 30, 2025 and 2024 , respectively.
+Added: There were 59,000 and 222,000 antidilutive shares of common stock for the three months ended March 31, 2026 and 2025 , respectively.
Presented below are the calculations for basic and diluted earnings per share:
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands, except per share amounts)
21 unchanged sentences
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
−Removed: The following table presents information about our assets recorded in the consolidated statements of financial condition at their fair value on a recurring basis as of September 30, 2025 and December 31, 2024 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
+Added: The following table presents information about our assets recorded in the consolidated statements of financial condition at their fair value on a recurring basis as of March 31, 2026 and December 31, 2025 , and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
Fair Value Measurements Using
−Removed: September 30, 2025
+Added: March 31, 2026
(In Thousands)
31 unchanged sentences
5,519 - 5,519 -
−Removed: Government sponsored enterprise bonds
−Removed: 2,440 - 2,440 -
Municipal securities
39 unchanged sentences
The table below presents reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3 ) during 2026 and 2025 .
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
−Removed: (In Thousands)
+Added: Three months ended March 31,
(In Thousands)
Mortgage derivative, net balance at the beginning of the period
−Removed: $ 335 $ 1,164 $ 851 $ ( 30 )
−Removed: Mortgage derivative (loss) gain, net
−Removed: 204 ( 252 ) ( 312 ) 942
+Added: Mortgage derivative gain (loss), net
Mortgage derivative, net balance at the end of the period
2 unchanged sentences
Assets Recorded at Fair Value on a Non-recurring Basis
−Removed: The following tables present information about assets recorded in the consolidated statements of financial condition at their fair value on a non-recurring basis as of September 30, 2025 and December 31, 2024 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.
+Added: The following tables present information about assets recorded in the consolidated statements of financial condition at their fair value on a non-recurring basis as of March 31, 2026 and December 31, 2025 , and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.
Fair Value Measurements Using
−Removed: September 30, 2025
+Added: March 31, 2026
(In Thousands)
16 unchanged sentences
The Company records the mortgage servicing rights at the lower of amortized cost or fair value.
−Removed: For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2025 and December 31, 2024 , the significant unobservable inputs used in the fair value measurements were as follows:
+Added: For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of March 31, 2026 and December 31, 2025 , the significant unobservable inputs used in the fair value measurements were as follows:
Significant Unobservable Input Value
Fair Value at Significant
−Removed: September 30,
(Dollars in Thousands)
7 unchanged sentences
30.8 % 30.8 % 30.8 %
−Removed: Mortgage servicing rights
−Removed: 1,327 Pricing models
−Removed: Prepayment rate
−Removed: 8.1 % 47.1 % 12.7 %
−Removed: Discount rate
−Removed: 9.5 % 11.0 % 9.5 %
Mortgage banking derivatives
14 unchanged sentences
The carrying amounts and fair values of the Company’s financial instruments consist of the following:
−Removed: September 30, 2025
+Added: March 31, 2026
December 31, 2025
38 unchanged sentences
Fair values for the Company’s commitments to extend credit and standby letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparty’s credit standing, and discounted cash flow analyses.
−Removed: The fair value of the Company’s commitments to extend credit was not material at September 30, 2025 and December 31, 2024 .
+Added: The fair value of the Company’s commitments to extend credit was not material at March 31, 2026 and December 31, 2025 .
Note 12 – Segment Reporting
22 unchanged sentences
Presented below is the segment information:
−Removed: As of or for the three months ended September 30, 2025
+Added: As of or for the three months ended March 31, 2026
(In Thousands)
22 unchanged sentences
- 1,029 - 1,029
+Added: 598 1,777 145 2,520
Total noninterest expenses
6 unchanged sentences
$ 2,498,740 $ 186,458 $ ( 433,980 ) $ 2,251,218
−Removed: As of or for the three months ended September 30, 2024
+Added: As of or for the three months ended March 31, 2025
(In Thousands)
16 unchanged sentences
Communications
−Removed: Professional fees
100 135 - 235
−Removed: Real estate owned
−Removed: Loan processing expense
−Removed: 602 1,261 102 1,965
−Removed: Total noninterest expenses
−Removed: 8,133 20,557 ( 130 ) 28,560
−Removed: Income before income tax expense
−Removed: 5,646 144 96 5,886
−Removed: Income tax expense
−Removed: 941 194 23 1,158
−Removed: Net income (loss)
−Removed: $ 4,705 $ ( 50 ) $ 73 $ 4,728
−Removed: $ 2,472,126 $ 193,726 $ ( 421,516 ) $ 2,244,336
−Removed: As of or for the nine months ended September 30, 2025
−Removed: (In Thousands)
−Removed: Net interest income
−Removed: $ 40,660 $ 308 $ 55 $ 41,023
−Removed: Provision (credit) for credit losses
−Removed: ( 813 ) ( 23 ) - ( 836 )
−Removed: Net interest income after provision (credit) for credit losses
−Removed: 41,473 331 55 41,859
−Removed: Noninterest income:
−Removed: 4,393 59,359 ( 24 ) 63,728
−Removed: Noninterest expenses:
−Removed: Compensation, payroll taxes, and other employee benefits
−Removed: 15,275 44,082 ( 655 ) 58,702
−Removed: Occupancy, office furniture and equipment
−Removed: 2,903 2,467 - 5,370
−Removed: 603 1,578 - 2,181
−Removed: Data processing
−Removed: 2,251 1,480 4 3,735
−Removed: Communications
−Removed: 307 434 - 741
Professional fees
4 unchanged sentences
596 1,751 211 2,558
−Removed: 1,679 4,252 506 6,437
Total noninterest expenses
8,204 18,136 10 26,350
−Removed: Income before income tax expense
−Removed: 22,119 1,116 159 23,394
−Removed: Income tax expense
−Removed: 4,345 325 35 4,705
−Removed: $ 17,774 $ 791 $ 124 $ 18,689
−Removed: As of or for the nine months ended September 30, 2024
−Removed: (In Thousands)
−Removed: Net interest income (expense)
−Removed: $ 35,082 $ ( 1,853 ) $ 104 $ 33,333
−Removed: Provision (credit) for credit losses
−Removed: ( 476 ) ( 59 ) - ( 535 )
−Removed: Net interest income (expense) after provision (credit) for credit losses
−Removed: 35,558 ( 1,794 ) 104 33,868
−Removed: Noninterest income:
−Removed: 3,708 66,795 ( 206 ) 70,297
−Removed: Noninterest expenses:
−Removed: Compensation, payroll taxes, and other employee benefits
−Removed: 15,802 47,572 ( 719 ) 62,655
−Removed: Occupancy, office furniture and equipment
−Removed: 2,887 3,107 - 5,994
−Removed: 714 2,113 - 2,827
−Removed: Data processing
−Removed: 2,100 1,627 18 3,745
−Removed: Communications
−Removed: 217 481 - 698
−Removed: Professional fees
−Removed: 575 1,468 27 2,070
−Removed: Real estate owned
−Removed: Loan processing expense
−Removed: - 2,604 - 2,604
−Removed: 1,965 3,519 278 5,762
−Removed: Total noninterest expenses
+Added: Income (loss) before income tax expense (benefit)
6,065 ( 2,213 ) 29 3,881
−Removed: Income before income tax expense
+Added: Income tax expense (benefit)
1,427 ( 588 ) 6 845
−Removed: Income tax expense
+Added: Net income (loss)
$ 4,638 $ ( 1,625 ) $ 23 $ 3,036
47 unchanged sentences
It is intended to complement the unaudited consolidated financial statements, footnotes, and supplemental financial data appearing elsewhere in this Quarterly Report on Form 10-Q and should be read in conjunction therewith.
−Removed: The detailed discussion in the sections below focuses on the results of operations for the three and nine months ended September 30, 2025 and 2024 and the financial condition as of September 30, 2025 compared to the financial condition as of December 31, 2024.
+Added: The detailed discussion in the sections below focuses on the results of operations for the three months ended March 31, 2026 and 2025 and the financial condition as of March 31, 2026 compared to the financial condition as of December 31, 2025.
As described in the notes to the unaudited consolidated financial statements, we have two reportable segments:
6 unchanged sentences
Our mortgage banking segment generates the significant majority of our noninterest income and a majority of our noninterest expenses.
−Removed: We have provided below a discussion of the material results of operations for each segment on a separate basis for the three and nine months ended September 30, 2025 and 2024, which focuses on noninterest income and noninterest expenses.
+Added: We have provided below a discussion of the material results of operations for each segment on a separate basis for the three months ended March 31, 2026 and 2025, which focuses on noninterest income and noninterest expenses.
We have also provided a discussion of the consolidated operations of the Company, which includes the consolidated operations of the Bank and Waterstone Mortgage Corporation, for the same periods.
−Removed: On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act, which changes existing U.S.
−Removed: tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes.
−Removed: The Company anticipates an insignificant impact to deferred tax assets and liabilities and to income taxes payable in the period of enactment.
−Removed: The Company continues to evaluate the impact the new legislation will have on the consolidated financial statements.
Significant Items
−Removed: There were no significant items that impacted earnings for the three and nine months ended September 30, 2025 and 2024.
−Removed: Comparison of Community Banking Segment Results of Operations for the Three Months Ended September 30, 2025 and 2024
−Removed: Net income totaled $6.9 million for the three months ended September 30, 2025 compared to $4.7 million for the three months ended September 30, 2024.
−Removed: Net interest income increased $2.4 million to $14.6 million for the three months ended September 30, 2025 compared to $12.3 million for the three months ended September 30, 2024.
−Removed: Interest expense on borrowings decreased $3.1 million as growth in time deposits allowed us to carry a lower average balance of FHLB advances.
−Removed: There was a negative provision for credit losses of $276,000 for the three months ended September 30, 2025 compared to a negative provision for credit losses of $302,000 for the three months ended September 30, 2024.
−Removed: The negative provision for credit losses of $276,000 consisted of a $137,000 negative provision related to loans and $139,000 provision related to unfunded commitments for the three months ended September 30, 2025.
−Removed: The current quarter decrease was primarily due to decreases in single-family and commercial real estate qualitative risk factors, offset by an increase in the multi-family loan balances.
−Removed: The negative provision for credit losses related to unfunded loan commitments was $139,000 for the quarter ended September 30, 2025 compared to a negative provision for credit losses related to unfunded loan commitments of $84,000 for the quarter ended September 30, 2024.
−Removed: The negative provision for credit losses related to unfunded loan commitments for the quarter ended September 30, 2025 was due primarily to a decrease in the construction loans waiting to be funded.
−Removed: Compensation, payroll taxes, and other employee benefits expense decreased $290,000 to $5.0 million compared to the quarter ending September 30, 2024 primarily due to a decrease in health insurance expense as claims decreased.
−Removed: Comparison of Mortgage Banking Segment Results of Operations for the Three Months Ended September 30, 2025 and 2024
−Removed: Net income totaled $948,000 for the three months ended September 30, 2025 compared to a net loss of $50,000 for the three months ended September 30, 2024.
−Removed: We originated $539.4 million in mortgage loans held for sale (including sales to the community banking segment) during the three months ended September 30, 2025, which represents a decrease of $19.3 million, or 3.5%, from the $558.7 million originated during the three months ended September 30, 2024.
−Removed: The decrease in loan production volume was driven by a $10.7 million, or 2.2%, decrease in purchase products and a $8.6 million decrease in refinance products.
−Removed: Total mortgage banking noninterest income decreased $401,000, or 1.9%, to $21.0 million during the three months ended September 30, 2025 compared to $21.4 million during the three months ended September 30, 2024.
−Removed: The decrease in mortgage banking noninterest income was related to a 3.5% decrease in volume and was partially offset by a 1.1% increase in gross margin on loans originated and sold for the three months ended September 30, 2025 compared to September 30, 2024.
+Added: There were no significant items that impacted earnings for the three months ended March 31, 2026 and 2025.
+Added: Comparison of Community Banking Segment Results of Operations for the Three Months Ended March 31, 2026 and 2025
+Added: Net income totaled $6.0 million for the three months ended March 31, 2026 compared to $4.6 million for the three months ended March 31, 2025.
+Added: Net interest income increased $2.8 million to $15.2 million for the three months ended March 31, 2026 compared to $12.4 million for the three months ended March 31, 2025.
+Added: Interest expense on borrowings decreased $742,000 as growth in time deposits allowed us to carry a lower average balance of FHLB advances and interest expense on deposits decreased as accounts repriced at a lower rate and transitioned to more money market accounts.
+Added: There was a provision for credit losses of $284,000 for the three months ended March 31, 2026 compared to a negative provision for credit losses of $518,000 for the three months ended March 31, 2025.
+Added: The provision for credit losses of $284,000 consisted of a $240,000 provision related to loans and $44,000 provision related to unfunded commitments for the three months ended March 31, 2026.
+Added: The current quarter increase was primarily due to increases in multi-family and construction loan balances along with an increase in multifamily external qualitative factors.
+Added: The provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2026 was due primarily to an increase in the loan pipeline balance at quarter end.
+Added: Compensation, payroll taxes, and other employee benefits expense increased $363,000 to $5.6 million compared to the quarter ending March 31, 2025 primarily due to increases in health insurance, variable compensation, restricted stock expense due to new directors and executive grants, and ESOP compensation as average share price has risen year-over-year.
+Added: Comparison of Mortgage Banking Segment Results of Operations for the Three Months Ended March 31, 2026 and 2025
+Added: Net income totaled $12,000 for the three months ended March 31, 2026 compared to a net loss of $1.6 million for the three months ended March 31, 2025.
+Added: We originated $508.3 million in mortgage loans held for sale (including sales to the community banking segment) during the three months ended March 31, 2026, which represents an increase of $120.6 million, or 31.1%, from the $387.7 million originated during the three months ended March 31, 2025.
+Added: The increase in loan production volume was driven by a $36.4 million, or 10.7%, increase in purchase products and a $84.2 million, or 173.7%, increase in refinance products.
+Added: Total mortgage banking noninterest income increased $3.4 million, or 21.5%, to $19.1 million during the three months ended March 31, 2026 compared to $15.7 million during the three months ended March 31, 2025.
+Added: The increase in mortgage banking noninterest income was related to a 31.1% increase in volume and was partially offset by a 8.3% decrease in gross margin on loans originated and sold for the three months ended March 31, 2026 compared to March 31, 2025.
Gross margin on loans originated and sold is the ratio of mortgage banking income (excluding the change in interest rate lock fair value) divided by total loan originations.
4 unchanged sentences
Department of Agriculture loan.
−Removed: Loans originated for the purchase of a residential property comprised 90.1% of total originations during the three months ended September 30, 2025, compared to 88.9% of total originations during the three months ended September 30, 2024, respectively.
−Removed: The mix of loan type trended towards more governmental loans and less conventional loans, with governmental loans and conventional loans comprising 37.7% and 62.3% of all loan originations, respectively, during the three months ended September 30, 2025, compared to 35.2% and 64.8% of all loan originations, respectively, during the three months ended September 30, 2024.
−Removed: Total compensation, payroll taxes and other employee benefits decreased $214,000, or 1.3%, to $15.7 million for the three months ended September 30, 2025 compared to $15.9 million for the three months ended September 30, 2024.
−Removed: The decrease primarily related to decreased commission expense due to a decrease in loan origination volumes and salary expense due to reduced employee headcount and a offset by increases in the annual bonus accrual and sign-on incentives.
+Added: Loans originated for the purchase of a residential property comprised 73.9% of total originations during the three months ended March 31, 2026, compared to 87.5% of total originations during the three months ended March 31, 2025, respectively.
+Added: The mix of loan type trended towards more conventional loans and less governmental loans, with conventional loans and governmental loans comprising 65.1% and 34.9% of all loan originations, respectively, during the three months ended March 31, 2026, compared to 62.0% and 38.0% of all loan originations, respectively, during the three months ended March 31, 2025.
+Added: Total compensation, payroll taxes and other employee benefits increased $2.4 million, or 20.1%, to $14.5 million for the three months ended March 31, 2026 compared to $12.1 million for the three months ended March 31, 2025.
+Added: The increase primarily related to increased commission expense due to an increase in fundings, manager pay expense as profitability improved, production incentive expense, and salary expense.
Consolidated Waterstone Financial, Inc.
Results of Operations
−Removed: Three months ended September 30,
+Added: Three months ended March 31,
(Dollars In Thousands, except per share amounts)
9 unchanged sentences
Yields on interest-earning assets are computed on a fully tax-equivalent yield, where applicable.
−Removed: Three months ended September 30,
+Added: Three months ended March 31,
Average Balance
25 unchanged sentences
Average interest-earning assets to average interest-bearing liabilities
−Removed: Interest income includes net deferred loan fee amortization income of $185,000 and $168,000 for the three months ended September 30, 2025 and 2024, respectively.
+Added: Interest income includes net deferred loan fee amortization income of $186,000 and $206,000 for the three months ended March 31, 2026 and 2025, respectively.
Average balance of mortgage related and debt securities are based on amortized historical cost.
Yields on tax-exempt municipal securities are not presented on a tax-equivalent basis in this table.
−Removed: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 4.97% and 5.26% for the three months ended September 30, 2025 and 2024, respectively.
+Added: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 5.03% and 5.15% for the three months ended March 31, 2026 and 2025, respectively.
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities and is presented on a fully tax equivalent basis.
7 unchanged sentences
For purposes of this table, changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.
−Removed: Three months ended September 30,
+Added: Three months ended March 31,
2026 versus 2025
15 unchanged sentences
______________
−Removed: Interest income includes net deferred loan fee amortization income of $185,000 and $168,000 for the three months ended September 30, 2025 and 2024, respectively.
+Added: Interest income includes net deferred loan fee amortization income of $186,000 and $206,000 for the three months ended March 31, 2026 and 2025, respectively.
Non-accrual loans have been included in average loans receivable balance.
2 unchanged sentences
Yields on tax-exempt municipal securities are not presented on a tax-equivalent basis in this table.
−Removed: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 4.97% and 5.26% for the three months ended September 30, 2025 and 2024, respectively.
−Removed: Net interest income increased $3.2 million, or 28.0%, to $14.7 million during the three months ended September 30, 2025 compared to $11.5 million during the three months ended September 30, 2024 primarily due to increased yields on our loan and securities portfolios as well as decreased cost of borrowings as a larger portion of our investments were funded by deposits rather than borrowings.
−Removed: Additionally, there was a decrease in borrowing rates compared to the prior year period.
−Removed: Interest income on loans increased $35,000, or 0.1%, to $26.6 million due primarily to a 19 basis point increase in average yield on loans as interest rates continued to increase.
−Removed: The increase in yield was offset by a $61.0 million decrease on the average loans receivable and held for sales balance.
−Removed: Interest expense on retail time deposits decreased $823,000, or 9.2%, to $8.1 million primarily due to the the 62 basis point decrease in average in average cost of retail time deposits compared to the prior year period.
−Removed: This decrease was partially offset by a $37.5 million increase in average retail time deposit balance.
+Added: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 5.03% and 5.15% for the three months ended March 31, 2026 and 2025, respectively.
+Added: Net interest income increased $2.9 million, or 23.0%, to $15.5 million during the three months ended March 31, 2026 compared to $12.6 million during the three months ended March 31, 2025 primarily due to increased yields on our loan and securities portfolios as well as decreased cost of deposits and borrowings as replacement rates decreased compared to the prior year period.
+Added: Interest income on loans increased $873,000, or 3.5%, to $26.0 million due primarily to a 13 basis point increase in average yield on loans as loans repricing at higher interest rates.
+Added: Interest expense on retail time deposits decreased $1.3 million, or 15.3%, to $7.4 million primarily due to the 65 basis point decrease in average cost of retail time deposits compared to the prior year period.
+Added: There was also a $1.6 million decrease in the average balance of retail time deposits.
Interest expense on brokered time deposits increased $39,000 due to the increase of $13.1 million in average brokered time deposits.
1 unchanged sentence
Additionally, the average balance increased $42.7 million.
−Removed: Interest expense on borrowings decreased $2.9 million, or 40.4%, to $4.3 million due to a $159.6 million decrease in the average balance of borrowings during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as we transitioned to more time deposits and money market accounts.
−Removed: Additionally, the average cost of borrowings decreased by 91 basis points as there were fed funds rate cuts over the past year.
−Removed: Provision for Credit Losses
−Removed: There was a negative provision for credit losses of $269,000 for the three months ended September 30, 2025 compared to a negative $377,000 provision for credit losses for the three months ended September 30, 2024.
−Removed: The $269,000 negative provision for credit losses consisted of a $130,000 negative provision related to loans and a provision related to unfunded commitments of $139,000 for the three months ended September 30, 2025.
−Removed: During the three months ended September 30, 2025, the decrease was primarily due to decreases in single-family and commercial real estate qualitative risk factors, offset by an increase in the multi-family loan balances.
−Removed: The negative provision for credit losses related to unfunded loan commitments for the quarter ended September 30, 2025 was due primarily to a decrease in the construction loans waiting to be funded.
−Removed: The provision is primarily a function of the Company's reserving methodology and assessments of certain quantitative and qualitative factors which are used to determine an appropriate allowance for credit losses for the period.
−Removed: See further discussion regarding the allowance for loan losses in the "Asset Quality" section for an analysis of charge-offs, nonperforming assets, specific reserves and additional provisions and the "Allowance for Credit Loss" section.
−Removed: Noninterest Income
−Removed: Three months ended September 30,
−Removed: (Dollars In Thousands)
−Removed: Service charges on loans and deposits
−Removed: Increase in cash surrender value of life insurance
−Removed: Mortgage banking income
−Removed: Total noninterest income
−Removed: Total noninterest income decreased $250,000, or 1.1%, to $22.3 million during the three months ended September 30, 2025 compared to $22.6 million during the three months ended September 30, 2024.
−Removed: The decrease in mortgage banking income was primarily the result of a decrease in loan origination volumes offset by an increase in gross margin on loans originated.
−Removed: Total loan origination volume on a consolidated basis decreased $19.9 million, or 3.6%, to $535.6 million during the three months ended September 30, 2025 compared to $555.5 million during the three months ended September 30, 2024.
−Removed: Gross margin on loans originated and sold is the ratio of mortgage banking income (excluding the change in interest rate lock fair value) divided by total loan originations.
−Removed: Gross margin on loans originated and sold increased 1.1% at the mortgage banking segment.
−Removed: See "Comparison of Mortgage Banking Segment Results of Operations for the Three Months Ended September 30, 2025 and 2024" above for additional discussion of the increase in mortgage banking income.
−Removed: Three months ended September 30,
−Removed: (Dollars In Thousands)
−Removed: Compensation, payroll taxes, and other employee benefits
−Removed: Occupancy, office furniture, and equipment
−Removed: Data processing
−Removed: Communications
−Removed: Professional fees
−Removed: Real estate owned
−Removed: Loan processing expense
−Removed: Total noninterest expenses
−Removed: Total noninterest expenses decreased $1.1 million, or 3.8%, to $27.5 million during the three months ended September 30, 2025 compared to $28.6 million during the three months ended September 30, 2024.
−Removed: Compensation, payroll taxes and other employee benefits expense at our mortgage banking segment decreased $214,000, or 1.3%, to $15.7 million during the three months ended September 30, 2025.
−Removed: The decrease primarily related to decreased commission expense due to a decrease in loan origination volumes and salary expense due to reduced employee headcount and a offset by an increase in health insurance expense.
−Removed: Compensation, payroll taxes and other employee benefits expense at the community banking segment decreased $290,000, or 5.4%, to $5.0 million during the three months ended September 30, 2025.
−Removed: The decrease was primarily due to a decrease in health insurance expense as claims decreased.
−Removed: Occupancy, office furniture and equipment expense at the mortgage banking segment decreased $171,000 to $781,000 during the three months ended September 30, 2025, primarily resulting from decreased rent and depreciation expenses as underperforming branches were closed over the past year.
−Removed: Occupancy, office furniture and equipment expense at the community banking segment increased $3,000 to $907,000 during the three months ended September 30, 2025.
−Removed: The increase was due primarily to increases in equipment maintenance and utility costs.
−Removed: Professional fees decreased $189,000 to $380,000 during the three months ended September 30, 2025.
−Removed: The decrease was primarily related to a decrease in legal fees at the mortgage banking segment as a settlement related to a prior year dispute was finalized in previous quarter.
−Removed: Other noninterest expense increased $36,000, or 1.8%, to $2.0 million during the three months ended September 30, 2025.
−Removed: The increase primarily related to increased provision for loan sale losses, provision for branch losses, and branch overhead at the mortgage banking segment.
−Removed: Income tax expense totaled $1.9 million for the three months ended September 30, 2025 compared to $1.2 million during the three months ended September 30, 2024.
−Removed: Income tax expense was recognized on the statement of income during the three months ended September 30, 2025 at an effective rate of 19.5% of pretax income compared to the three months ended September 30, 2024 at an effective rate of 19.7% of pretax income.
−Removed: Comparison of Community Banking Segment Results of Operations for the Nine Months Ended September 30, 2025 and 2024
−Removed: Net income totaled $17.8 million for the nine months ended September 30, 2025 compared to $11.7 million for the nine months ended September 30, 2024.
−Removed: Net interest income increased $5.6 million to $40.7 million for the nine months ended September 30, 2025 compared to $35.1 million for the nine months ended September 30, 2024.
−Removed: Interest expense on borrowings decreased $10.0 million as growth in time deposits allowed us to carry a lower average balance of FHLB advances along with a decrease in average cost of borrowings as there were fed funds rate cuts over the past year..
−Removed: Interest expense on deposits increased $3.6 million due primarily to a reduction in time deposit interest rate offerings.
−Removed: There was a negative provision for credit losses of $813,000 for the nine months ended September 30, 2025 compared to a negative provision for credit losses of $476,000 for the nine months ended September 30, 2024.
−Removed: The negative provision for credit losses of $813,000 consisted of a $575,000 negative provision related to loans and $237,000 provision related to unfunded commitments for the nine months ended September 30, 2025.
−Removed: The current year decrease was primarily due to decreases in historical loss rates, loan portfolio balances, and certain loan qualitative factors primarily in the single-family category.
−Removed: The negative provision for credit losses related to unfunded loan commitments was $237,000 for the nine months ended September 30, 2025 compared to a negative provision for credit losses related to unfunded loan commitments of $96,000 for the nine months ended September 30, 2024.
−Removed: The negative provision for credit losses related to unfunded loan commitments was primarily due to a decrease in construction loans that are waiting to be funded compared to the prior year end and certain qualitative factors.
−Removed: Compensation, payroll taxes, and other employee benefits expense decreased $527,000 to $15.3 million compared to the quarter ending September 30, 2024 primarily due to a decrease in health insurance expense as claims decreased.
−Removed: Other noninterest expense decreased $286,000 to $1.7 million primarily due to a decrease in certain loan fees paid to the mortgage banking segment for the purchase of single-family adjustable rate mortgage loans decreased.
−Removed: These fees are eliminated in the consolidated statements of income.
−Removed: Comparison of Mortgage Banking Segment Results of Operations for the Nine Months Ended September 30, 2025 and 2024
−Removed: Net income totaled $791,000 for the nine months ended September 30, 2025 compared to net income of $1.6 million for the nine months ended September 30, 2024.
−Removed: We originated $1.52 billion in mortgage loans held for sale (including sales to the community banking segment) during the nine months ended September 30, 2025, which represents a decrease of $162.0 million, or 9.7%, from the $1.68 billion originated during the nine months ended September 30, 2024.
−Removed: The decrease in loan production volume was driven by a $170.5 million, or 11.1%, decrease in purchase products offset by a $8.5 million increase in refinance products.
−Removed: Total mortgage banking noninterest income decreased $7.4 million, or 11.1%, to $59.4 million during the nine months ended September 30, 2025 compared to $66.8 million during the nine months ended September 30, 2024.
−Removed: The decrease in mortgage banking noninterest income was related to a 9.7% decrease in volume and a 1.6% decrease in gross margin on loans originated and sold for the nine months ended September 30, 2025 compared to September 30, 2024.
−Removed: Gross margin on loans originated and sold is the ratio of mortgage banking income (excluding the change in interest rate lock fair value) divided by total loan originations.
−Removed: The gross margin on loans originated and sold contraction reflects decreased industry demand due to the increased competition from mortgage originators.
−Removed: We sell loans on both a servicing-released and a servicing-retained basis.
−Removed: Waterstone Mortgage Corporation has contracted with a third party to service the loans for which we retain servicing.
−Removed: Additionally, our overall margin can be affected by the mix of both loan type (conventional loans versus governmental) and loan purpose (purchase versus refinance).
−Removed: Conventional loans include loans that conform to Fannie Mae and Freddie Mac standards, whereas governmental loans are those loans guaranteed by the federal government, such as a Federal Housing Authority or U.S.
−Removed: Department of Agriculture loan.
−Removed: Loans originated for the purchase of a residential property comprised 90.0% of total originations during the nine months ended September 30, 2025, compared to 90.9% of total originations during the nine months ended September 30, 2024, respectively.
−Removed: The mix of loan type trended towards more governmental loans and less conventional loans, with governmental loans and conventional loans comprising 39.6% and 60.4% of all loan originations, respectively, during the nine months ended September 30, 2025, compared to 36.7% and 63.7% of all loan originations, respectively, during the nine months ended September 30, 2024.
−Removed: Total compensation, payroll taxes and other employee benefits decreased $3.5 million, or 7.3%, to $44.1 million for the nine months ended September 30, 2025 compared to $47.6 million for the nine months ended September 30, 2024.
−Removed: The decrease primarily related to decreased commission expense, branch manager pay, and salary expense driven by reduced employee headcount and a decrease in loan origination volumes and branch profitability.
−Removed: Professional fees increased $388,000, or 26.4%, to $1.9 million for the nine months ended September 30, 2025, compared to $1.5 million for the nine months ended September 30, 2024.
−Removed: The increase was primarily related to legal services and the finalization of a settlement related to a previously disclosed legal matter during the nine months ended September 30, 2025 .
−Removed: The Company maintained a $1.3 million accrual related to this legal matter as of December 31, 2024.
−Removed: Consolidated Waterstone Financial, Inc.
−Removed: Results of Operations
−Removed: Nine months ended September 30,
−Removed: (Dollars In Thousands, except per share amounts)
−Removed: Earnings per share - basic
−Removed: Earnings per share - diluted
−Removed: Annualized return on average assets
−Removed: Annualized return on average equity
−Removed: Net Interest Income
−Removed: Average Balance Sheets, Interest and Yields/Costs
−Removed: The following table sets forth average balance sheets, annualized average yields and costs, and certain other information for the periods indicated.
−Removed: Non-accrual loans are included in the computation of the average balances of loans receivable and held for sale.
−Removed: The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
−Removed: Yields on interest-earning assets are computed on a fully tax-equivalent yield, where applicable.
−Removed: Nine months ended September 30,
−Removed: Average Balance
−Removed: Average Balance
−Removed: (Dollars in Thousands)
−Removed: Interest-earning assets:
−Removed: Loans receivable and held for sale (1)
−Removed: Mortgage related securities (2)
−Removed: Debt securities, federal funds sold and short-term investments (2) (3)
−Removed: Total interest-earning assets
−Removed: Noninterest-earning assets
−Removed: Liabilities and equity
−Removed: Interest-bearing liabilities:
−Removed: Demand accounts
−Removed: Money market and savings accounts
−Removed: Time deposits - retail
−Removed: Time deposits - brokered
−Removed: Total interest-bearing deposits
−Removed: Total interest-bearing liabilities
−Removed: Noninterest-bearing liabilities
−Removed: Noninterest-bearing deposits
−Removed: Other noninterest-bearing liabilities
−Removed: Total noninterest-bearing liabilities
−Removed: Total liabilities
−Removed: Total liabilities and equity
−Removed: Net interest income / Net interest rate spread (4)
−Removed: Net interest-earning assets (5)
−Removed: Net interest margin (6)
−Removed: Average interest-earning assets to average interest-bearing liabilities
−Removed: Interest income includes net deferred loan fee amortization income of $336,000 and $486,000 for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: Average balance of mortgage related and debt securities are based on amortized historical cost.
−Removed: Yields on tax-exempt municipal securities are not presented on a tax-equivalent basis in this table.
−Removed: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 5.00% and 5.12% for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities and is presented on a fully tax equivalent basis.
−Removed: Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
−Removed: Net interest margin represents net interest income divided by average total interest-earning assets.
−Removed: Rate/Volume Analysis
−Removed: The following table sets forth the effects of changing rates and volumes on our net interest income for the periods indicated.
−Removed: The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume).
−Removed: The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate).
−Removed: The net column represents the sum of the prior columns.
−Removed: For purposes of this table, changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.
−Removed: Nine months ended September 30,
−Removed: 2025 versus 2024
−Removed: Increase (Decrease) due to
−Removed: (In Thousands)
−Removed: Interest income:
−Removed: Loans receivable and held for sale(1) (2)
−Removed: Mortgage related securities(3)
−Removed: Other earning assets(3) (4)
−Removed: Total interest-earning assets
−Removed: Interest expense:
−Removed: Demand accounts
−Removed: Money market and savings accounts
−Removed: Time deposits - retail
−Removed: Time deposits - brokered
−Removed: Total interest-bearing deposits
−Removed: Total interest-bearing liabilities
−Removed: Net change in net interest income
−Removed: ______________
−Removed: Interest income includes net deferred loan fee amortization income of $336,000 and $486,000 for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: Non-accrual loans have been included in average loans receivable balance.
−Removed: Includes available for sale securities.
−Removed: Average balance of available for sale securities is based on amortized historical cost.
−Removed: Yields on tax-exempt municipal securities are not presented on a tax-equivalent basis in this table.
−Removed: The tax-equivalent yields on debt securities, federal funds sold and short-term investments were 5.00% and 5.12% for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: Net interest income increased $7.7 million, or 23.1%, to $41.0 million during the nine months ended September 30, 2025 compared to $33.3 million during the nine months ended September 30, 2024 primarily due to increased yields on our loan and securities portfolios as well as decreased cost of borrowings as a larger portion of our investments were funded by deposits rather than borrowings.
−Removed: Additionally, there was a decrease in borrowing rates compared to the prior year period.
−Removed: Interest income on loans increased $903,000, or 1.2%, to $77.6 million due primarily to a 22 basis point increase in average yield on loans as interest rates continued to increase.
−Removed: The increase was offset by a $48.3 million decrease on the average loans receivable and held for sale balances.
−Removed: Interest expense on retail time deposits increased $425,000, or 1.7%, to $25.4 million primarily due to the the increase in average balance of $62.9 million.
−Removed: Interest expense on brokered time deposits increased $2.4 million due to the addition of $77.0 million in average brokered time deposits balance.
−Removed: Interest expense on money market, savings, and escrow accounts increased $822,000, or 20.0%,to $4.9 million due primarily to a 19 basis point increase in average cost of money market, savings, and escrow accounts as rates increased to stay competitive in the market and attract new accounts.
−Removed: Additionally, the average balance increased $25.8 million.
−Removed: Interest expense on borrowings decreased $9.5 million, or 43.8%, to $12.1 million due to a $183.2 million decrease in the average balance of borrowings during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 as we transitioned to more time deposits.
+Added: Interest expense on borrowings decreased $668,000, or 17.4%, to $3.2 million due to a $19.6 million decrease in the average balance of borrowings during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 as we transitioned to more time deposits and money market accounts.
Additionally, the average cost of borrowings decreased by 51 basis points as there were fed funds rate cuts over the past year.
Provision for Credit Losses
−Removed: There was a negative provision for credit losses of $836,000 for the nine months ended September 30, 2025 compared to a negative provision for credit losses of $535,000 for the nine months ended September 30, 2024.
−Removed: The $836,000 negative provision for credit losses consisted of a $599,000 negative provision related to loans and a negative provision related to unfunded commitments of $237,000 for the nine months ended September 30, 2025.
−Removed: During the nine months ended September 30, 2025, the decrease was primarily due to decreases in single-family qualitative risk factors.
−Removed: The decrease in provision for unfunded commitments was primarily due to a decrease in historical loss and qualitative factors in certain loan categories.
−Removed: We made adjustments to our qualitative factors, primarily to account for the changes in internal metrics and external risk factors.
−Removed: The forecast factor remained unchanged as we monitor the economic environment going forward.
+Added: There was a provision for credit losses of $264,000 for the three months ended March 31, 2026 compared to a negative $558,000 provision for credit losses for the three months ended March 31, 2025.
+Added: The $264,000 provision for credit losses consisted of a $220,000 provision related to loans and a provision related to unfunded commitments of $44,000 for the three months ended March 31, 2026.
+Added: During the three months ended March 31, 2026, the increase was primarily due to increases in multi-family and construction loan balances along with an increase in multifamily external qualitative factors.
+Added: The provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2026 was due primarily to an increase in the loan pipeline balance at quarter end.
The provision is primarily a function of the Company's reserving methodology and assessments of certain quantitative and qualitative factors which are used to determine an appropriate allowance for credit losses for the period.
1 unchanged sentence
Noninterest Income
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(Dollars In Thousands)
3 unchanged sentences
Total noninterest income
−Removed: Total noninterest income decreased $6.6 million, or 9.3%, to $63.7 million during the nine months ended September 30, 2025 compared to $70.3 million during the nine months ended September 30, 2024.
−Removed: The decrease in mortgage banking income was primarily the result of a decrease in loan origination volumes and a decrease in gross margin.
−Removed: Total loan origination volume on a consolidated basis decreased $150.1 million, or 9.0%, to $1.51 billion during the nine months ended September 30, 2025 compared to $1.66 billion during the nine months ended September 30, 2024.
+Added: Total noninterest income increased $3.1 million or 18.3%, to $20.2 million during the three months ended March 31, 2026 compared to $17.1 million during the three months ended March 31, 2025.
+Added: The $219,000 decrease in service charges on loans and deposits was primarily due to a decrease in loan prepayment penalties.
+Added: The increase in mortgage banking income was primarily the result of an increase in loan origination volumes offset by a decrease in gross margin on loans originated.
+Added: Total loan origination volume on a consolidated basis increased $117.7 million, or 30.4%, to $505.5 million during the three months ended March 31, 2026 compared to $387.7 million during the three months ended March 31, 2025.
Gross margin on loans originated and sold is the ratio of mortgage banking income (excluding the change in interest rate lock fair value) divided by total loan originations.
Gross margin on loans originated and sold decreased 8.3% at the mortgage banking segment.
−Removed: See "Comparison of Mortgage Banking Segment Results of Operations for the Nine Months Ended September 30, 2025 and 2024" above for additional discussion of the increase in mortgage banking income.
−Removed: The increase in cash surrender value of life insurance of $459,000 was primarily due to the additional policy added at the end of December 31, 2024 and the increase in dividend rates.
−Removed: Nine months ended September 30,
+Added: See "Comparison of Mortgage Banking Segment Results of Operations for the Three Months Ended March 31, 2026 and 2025" above for additional discussion of the increase in mortgage banking income.
+Added: Three months ended March 31,
(Dollars In Thousands)
7 unchanged sentences
Total noninterest expenses
−Removed: Total noninterest expenses decreased $4.2 million, or 4.8%, to $82.2 million during the nine months ended September 30, 2025 compared to $86.4 million during the nine months ended September 30, 2024.
−Removed: Compensation, payroll taxes and other employee benefits expense at our mortgage banking segment decreased $3.5 million, or 7.3%, to $44.1 million during the nine months ended September 30, 2025.
−Removed: The decrease primarily related to decreased commission expense, branch manager pay, and salary expense driven by reduced employee headcount and a decrease in loan origination volumes and branch profitability.
−Removed: Compensation, payroll taxes and other employee benefits expense at the community banking segment decreased $527,000,or 3.3%, to $15.3 million during the nine months ended September 30, 2025.
−Removed: The decrease was primarily due to a decrease in health insurance expense as claims decreased.
−Removed: Occupancy, office furniture and equipment expense at the mortgage banking segment decreased $640,000, to $2.5 million during the nine months ended September 30, 2025, primarily resulting from decreased rent and depreciation expenses as underperforming branches were closed over the past year.
−Removed: Advertising expense decreased $646,000, or 22.9%, to $2.2 million during the nine months ended September 30, 2025.
−Removed: This was driven by a decrease of $535,000, or 25.3%, at the mortgage banking segment as it continues to focus on control costs in the challenging rate environment.
−Removed: Professional fees increased $546,000 to $2.6 million during the nine months ended September 30, 2025.
−Removed: The increase was primarily related to legal services and the finalization of a settlement related to a previously disclosed legal matter during the nine months ended September 30, 2025.
−Removed: The Company maintained a $1.3 million accrual related to this legal matter as of December 31, 2024.
−Removed: Other noninterest expense increased $675,000,or 11.7%, to $6.4 million during the nine months ended September 30, 2025.
−Removed: The increase primarily related to increased provision for branch losses, amortization of mortgage serving rights, hedging expense, and branch overhead at the mortgage banking segment.
−Removed: Income tax expense totaled $4.7 million for the nine months ended September 30, 2025 compared to $4.3 million during the nine months ended September 30, 2024.
−Removed: Income tax expense was recognized on the statement of income during the nine months ended September 30, 2025 at an effective rate of 20.1% of pretax income and during the nine months ended September 30, 2024 at an effective rate of 24.3% of pretax income.
−Removed: The decrease was primarily due to the 2024 Wisconsin tax law enacted which resulted in no Wisconsin state income taxes being expensed in future years, resulting in a lower estimated effective tax rate.
−Removed: The elimination of Wisconsin state income tax expense resulted in the establishment of a valuation allowance for 2024 Wisconsin state income deferred tax assets, resulting in a one-time $1.1 million charge to state income tax expense in the first quarter of 2024.
−Removed: Comparison of Financial Condition at September 30, 2025 and December 31, 2024
−Removed: Total Assets – Total assets increased by $59.6 million, or 2.7%, to $2.27 billion at September 30, 2025 from $2.21 billion at December 31, 2024.
−Removed: The increase in total assets primarily reflects an increase in cash and cash equivalents, loans held for investment, and securities available for sale funded through an increase in deposits, borrowings, and advance payments by borrowers for taxes.
−Removed: Cash and Cash Equivalents – Cash and cash equivalents increased $14.0 million, or 35.2%, to $53.8 million at September 30, 2025, compared to $39.8 million at December 31, 2024.
−Removed: The increase in cash and cash equivalents primarily reflects the increase of funding sources from deposits, borrowings, and advance payments by borrowers for taxes.
−Removed: Securities Available for Sale – Securities available for sale increased $17.9 million to $226.4 million at September 30, 2025.
−Removed: The increase was primarily due to the purchases of securities exceeding paydowns and maturities and an increase in fair value as longer term interest rates decreased compared to the prior year period.
−Removed: Loans Held for Sale - Loans held for sale decreased $233,000 to $135.7 million at September 30, 2025 due to a decrease primarily due to seasonal slowdown as year end approaches.
−Removed: Loans Receivable - Loans receivable held for investment increased $34.3 million to $1.71 billion at September 30, 2025.
−Removed: The increase in total loans receivable was primarily attributable to increases in each of the multi-family, commercial real estate, and construction loan categories offset by a decrease in the one-to-four family loan category.
+Added: Total noninterest expenses increased $1.5 million, or 5.8%, to $27.9 million during the three months ended March 31, 2026 compared to $26.4 million during the three months ended March 31, 2025.
+Added: Compensation, payroll taxes and other employee benefits expense at our mortgage banking segment increased $2.4 million, or 20.1%, to $14.5 million during the three months ended March 31, 2026.
+Added: The increase primarily related to increased commission expense due to an increase in fundings, manager pay expense as profitability improved, production incentive expense, and salary expense.
+Added: Compensation, payroll taxes and other employee benefits expense at the community banking segment increased $363,000, or 7.0%, to $5.6 million during the three months ended March 31, 2026.
+Added: The increase was primarily due to increases in health insurance, variable compensation, restricted stock expense due to new directors and executive grants, and ESOP compensation as average share price has risen year-over-year.
+Added: Occupancy, office furniture and equipment expense at the mortgage banking segment increased $10,000 to $863,000 during the three months ended March 31, 2026, primarily resulting from increases in depreciation expense offset by a decrease in rent expense.
+Added: Occupancy, office furniture and equipment expense at the community banking segment increased $27,000 to $1.1 million during the three months ended March 31, 2026.
+Added: The increase was due primarily to increases in snow plowing and depreciation of equipment as new ATM's were installed, offset by a decrease in equipment maintenance and repair and office building rental expense.
+Added: Professional fees decreased $1.4 million to $383,000 during the three months ended March 31, 2026.
+Added: The decrease was primarily related to a decrease in legal fees at the mortgage banking segment as a settlement related to a prior year dispute was finalized during the three months ended March 31, 2025.
+Added: Other noninterest expense decreased $38,000, or 1.5%, to $2.5 million during the three months ended March 31, 2026.
+Added: The decrease primarily related to a decrease in provision for branch losses offset by an increase in provision for loan sale losses.
+Added: Income tax expense totaled $1.6 million for the three months ended March 31, 2026 compared to $845,000 during the three months ended March 31, 2025.
+Added: The increase was primarily due to the increase in pre-tax income.
+Added: Income tax expense was recognized on the statement of income during the three months ended March 31, 2026 at an effective rate of 20.6% of pretax income compared to the three months ended March 31, 2025 at an effective rate of 21.8% of pretax income.
+Added: Comparison of Financial Condition at March 31, 2026 and December 31, 2025
+Added: Total Assets – Total assets decreased by $8.3 million, or 0.4%, to $2.25 billion at March 31, 2026 from $2.26 billion at December 31, 2025.
+Added: The decrease in total assets primarily reflects a decrease in cash and cash equivalents, partially offset by increases in loans receivable and securities available for sale.
+Added: Cash and Cash Equivalents – Cash and cash equivalents decreased $26.5 million, or 37.2%, to $44.7 million at March 31, 2026, compared to $71.1 million at December 31, 2025.
+Added: The decrease in cash and cash equivalents primarily reflects the increase in loans receivable and securities available for sale.
+Added: Securities Available for Sale – Securities available for sale increased $6.2 million to $237.0 million at March 31, 2026.
+Added: The increase was primarily due to the purchases of securities exceeding paydowns and maturities offset by a decrease in fair value as longer term interest rates increased compared to prior year end.
+Added: Loans Held for Sale - Loans held for sale decreased $707,000 to $144.4 million at March 31, 2026.
+Added: Loans Receivable - Loans receivable held for investment increased $8.8 million to $1.68 billion at March 31, 2026.
+Added: The increase in total loans receivable was primarily attributable to increases in each of the multi-family, commercial real estate, construction, and commercial loan categories offset by a decrease in the one-to-four family loan category.
The following table shows loan originations during the periods indicated.
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(In Thousands)
7 unchanged sentences
Total loans originated for investment
−Removed: Allowance for Credit Losses - Loans - The allowance for credit losses decreased to $17.7 million at September 30, 2025.
−Removed: There was a $599,000 negative provision for credit losses - loans for the nine months ended September 30, 2025.
−Removed: The negative provision for credit losses related to loans decreased primarily due to a decrease in historical losses used in the calculation and decreases in certain qualitative factors.
+Added: Allowance for Credit Losses - Loans - The allowance for credit losses increased to $17.7 million at March 31, 2026.
+Added: There was a $264,000 provision for credit losses - loans for the three months ended March 31, 2026.
+Added: The provision for credit losses related to loans was primarily due to increases in multi-family and construction loan balances along with an increase in multifamily external qualitative factors.
+Added: The provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2026 was due primarily to an increase in the loan pipeline balance at quarter end.
See Note 3 - Loans Receivable of the notes to unaudited consolidated financial statements for further discussion on the allowance for credit losses.
−Removed: Additionally, net recoveries totaled $22,000 for the nine months ended September 30, 2025.
−Removed: Prepaid expenses and other assets – Total prepaid expenses and other assets decreased $8.4 million to $39.8 million at September 30, 2025.
−Removed: The decrease was primarily due to decreases in back-to-back loan swap fair value adjustment and the deferred tax asset for unrealized losses as long term interest rates decreased.
−Removed: Deposits – Total deposits increased $26.1 million to $1.39 billion at September 30, 2025.
+Added: Additionally, net recoveries totaled $11,000 for the three months ended March 31, 2026.
+Added: Prepaid expenses and other assets – Total prepaid expenses and other assets increased $4.4 million to $42.3 million at March 31, 2026.
+Added: The increase was primarily due to increases in mortgage investor receivables, accounts receivable, and the deferred tax asset for unrealized losses as long term interest rates increased.
+Added: Deposits – Total deposits increased $1.5 million to $1.44 billion at March 31, 2026.
The increase was driven by increases of $6.2 million in demand deposits and $13.5 million in money market and savings deposits offset by a decrease of $18.1 million in time deposits.
−Removed: Borrowings – Total borrowings increased $22.5 million, or 5.0%, to $469.1 million at September 30, 2025.
+Added: Borrowings – Total borrowings increased $800,000, or 0.2%, to $413.0 million at March 31, 2026.
The community banking segment increased its FHLB long-term borrowings by $83.0 million, decreased its short-term FHLB borrowings by $52.2 million, and paid off $30.0 million in long-term FHLB borrowings.
−Removed: External short-term borrowings at the mortgage banking segment increased a total of $5.9 million at September 30, 2025 from December 31, 2024.
−Removed: Advance Payments by Borrowers for Taxes - Advance payments by borrowers for taxes increased $21.4 million to $27.0 million at September 30, 2025.
+Added: External short-term borrowings at the mortgage banking segment decreased by a total of $30,000 at March 31, 2026 from December 31, 2025.
+Added: Advance Payments by Borrowers for Taxes - Advance payments by borrowers for taxes increased $8.1 million to $11.1 million at March 31, 2026.
The increase was the result of payments received from borrowers for their real estate taxes and is seasonally normal, as balances increase during the course of the calendar year until real estate tax obligations are paid in the fourth quarter.
−Removed: Other Liabilities - Other liabilities decreased $16.8 million to $41.6 million at September 30, 2025.
+Added: Other Liabilities - Other liabilities decreased $17.5 million to $40.1 million at March 31, 2026.
Other liabilities decreased primarily due to a seasonal decrease in outstanding checks related to advance payments by borrowers for taxes.
1 unchanged sentence
At the time at which the disbursements are made, the outstanding checks are classified as other liabilities in the statements of financial condition, and these amounts remain classified as other liabilities until settled.
−Removed: The decrease was also due to decrease in back-to-back loan swap fair value adjustment as long-term interest rates decreased.
−Removed: Shareholders ’ Equity – Shareholders' equity increased $6.4 million to $345.5 million at September 30, 2025.
−Removed: Shareholders' equity increased primarily due increases in net income and the fair value of the securities portfolio.
+Added: Shareholders ’ Equity – Shareholders' equity decreased $1.2 million to $348.2 million at March 31, 2026.
+Added: Shareholders' equity decreased primarily due to decreases in the fair value of securities, shares repurchased, and dividends declared during the period.
ASSET QUALITY
NONPERFORMING ASSETS
−Removed: At September 30,
At December 31,
8 unchanged sentences
One- to four-family
−Removed: Construction and land
+Added: Commercial real estate
Total real estate owned
13 unchanged sentences
The following table sets forth activity in our non-accrual loans for the periods indicated.
−Removed: At or for the Nine Months
−Removed: Ended September 30,
+Added: At or for the Three Months
+Added: Ended March 31,
(In Thousands)
4 unchanged sentences
Balance at end of period
−Removed: Total non-accrual loans increased by $331,000, or 5.8%, to $6.0 million as of September 30, 2025 compared to $5.7 million as of December 31, 2024.
−Removed: The ratio of non-accrual loans to total loans receivable was 0.35% at September 30, 2025 and 0.34% at December 31, 2024.
−Removed: During the nine months ended September 30, 2025, $3.6 million in loans were placed on non-accrual status.
−Removed: Offsetting this activity, $2.1 million in loans returned to accrual status and $1.2 million in principal payments were received during the nine months ended September 30, 2025.
−Removed: Of the $6.0 million in total non-accrual loans as of September 30, 2025, $4.3 million in loans have been specifically reviewed to assess whether a specific valuation allowance is necessary.
+Added: Total non-accrual loans increased by $1.3 million, or 21.2%, to $7.5 million as of March 31, 2026 compared to $6.2 million as of December 31, 2025.
+Added: The ratio of non-accrual loans to total loans receivable was 0.44% at March 31, 2026 and 0.37% at December 31, 2025.
+Added: During the three months ended March 31, 2026, $2.7 million in loans were placed on non-accrual status.
+Added: Offsetting this activity, $692,000 in loans returned to accrual status and $664,000 in principal payments were received during the three months ended March 31, 2026.
+Added: Of the $7.5 million in total non-accrual loans as of March 31, 2026, $5.1 million in loans have been specifically reviewed to assess whether a specific valuation allowance is necessary.
A specific valuation allowance is established for an amount equal to the impairment when the carrying value of the loan exceeds the present value of expected future cash flows, discounted at the loan's original effective interest rate or the fair value of the underlying collateral with an adjustment made for costs to dispose of the asset.
−Removed: Based upon these specific reviews, no charge-offs have been recorded over the life of these loans and there were no specific reserves as of September 30, 2025.
−Removed: The remaining $1.7 million of non-accrual loans were reviewed on an aggregate basis as of September 30, 2025.
−Removed: The outstanding principal balance of our five largest non-accrual loans as of September 30, 2025 totaled $2.7 million, which represents 45.0% of total non-accrual loans as of that date.
+Added: Based upon these specific reviews, no charge-offs have been recorded over the life of these loans and there were no specific reserves as of March 31, 2026.
+Added: The remaining $2.4 million of non-accrual loans were reviewed on an aggregate basis as of March 31, 2026.
+Added: The outstanding principal balance of our five largest non-accrual loans as of March 31, 2026 totaled $3.2 million, which represents 42.6% of total non-accrual loans as of that date.
The loans held for investment at the mortgage segment were reviewed on an aggregate basis.
2 unchanged sentences
Determination as to the ultimate collectability of the remaining book value is supported by an updated credit department evaluation of the borrower's financial condition and prospects for repayment, including consideration of the borrower's sustained historical repayment performance and other relevant factors.
−Removed: As of September 30, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest.
+Added: As of March 31, 2026 and December 31, 2025, there were no loans 90 or more days past due and still accruing interest.
LOAN DELINQUENCY
The following table summarizes loan delinquency in total dollars and as a percentage of the total loan portfolio:
−Removed: At September 30,
At December 31,
4 unchanged sentences
Total loans past due to total loans receivable
−Removed: 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.
+Added: Past due loans decreased by $4.6 million, or 32.1%, to $9.8 million at March 31, 2026 from $14.4 million at December 31, 2025.
Loans past due less than 90 days decreased by $5.5 million, or 57.1%, primarily due to a decrease in the one-to four-family loan category.
−Removed: Loans past due 90 days or more increased by $199,000, or 5.0%, primarily in the multi-family loan category during the nine months ended September 30, 2025.
+Added: Loans past due 90 days or more increased by $844,000, or 17.5%, primarily in the one-to four-family loan category during the three months ended March 31, 2026.
ALLOWANCE FOR CREDIT LOSSES - LOANS
−Removed: At or for the Nine Months
−Removed: Ended September 30,
+Added: At or for the Three Months
+Added: Ended March 31,
(Dollars in Thousands)
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Net recoveries (annualized) to beginning of the year allowance
−Removed: The allowance for credit losses - loans was $17.7 million at September 30, 2025 and $18.2 million at December 31, 2024.
−Removed: During the nine months ended September 30, 2025, there was a $599,000 negative provision for credit losses.
−Removed: Additionally, net recoveries totaled $22,000 for the nine months ended September 30, 2025.
−Removed: We had net recoveries of $22,000, or less than 0.01% of average loans annualized, for the nine months ended September 30, 2025, compared to net recoveries of $88,000, or 0.01% of average loans annualized, for the nine months ended September 30, 2024.
+Added: The allowance for credit losses - loans was $17.7 million at March 31, 2026 and $17.5 million at December 31, 2025.
+Added: During the three months ended March 31, 2026, there was a $264,000 provision for credit losses.
+Added: Additionally, net recoveries totaled $11,000 for the three months ended March 31, 2026.
+Added: We had net recoveries of $11,000, or less than 0.01% of average loans annualized, for the three months ended March 31, 2026, compared to net recoveries of $12,000, or less than 0.01% of average loans annualized, for the three months ended March 31, 2025.
Our underwriting policies and procedures emphasize that credit decisions must rely on both the credit quality of the borrower and the estimated value of the underlying collateral.
17 unchanged sentences
Additional sources of liquidity used for the purpose of managing long- and short-term cash flows include advances from the FHLB.
−Removed: During the nine months ended September 30, 2025, primary uses of cash and cash equivalents included:
−Removed: $1.51 billion in funding loans held for sale, $28.6 million for purchases of mortgage related securities, $9.2 million for purchases of debt securities, $37.5 million for payoffs of short-term borrowings, $70.0 million for payoffs of long-term borrowings, $8.1 million for cash dividends paid, $34.2 million for increase in loans held for investment, and $13.5 million for purchases of our common stock.
−Removed: During the nine months ended September 30, 2025, primary sources of cash and cash equivalents included:
−Removed: $1.57 billion in proceeds from the sale of loans held for sale, $130.0 million in long-term borrowings, $18.6 million in principal repayments on mortgage related securities, $26.1 million for increase in deposits, $9.0 million in maturities of debt securities, $2.3 million in proceeds from exercised stock options, and $18.7 million in net income.
−Removed: During the nine months ended September 30, 2024, primary uses of cash and cash equivalents included:
−Removed: $1.66 billion in funding loans held for sale, $31.1 million to fund loans held for investment, $10.8 million for purchases of mortgage related securities, $12.2 million for purchases of debt securities, $2.3 million for FHLB stock, $145.0 million for payoffs of long-term borrowings, $55.9 million for payoffs of short-term borrowings, $8.5 million for cash dividends paid, and $12.1 million for purchases of common stock.
−Removed: During the nine months ended September 30, 2024, primary sources of cash and cash equivalents included:
−Removed: $1.74 billion in proceeds from the sale of loans held for sale, $150.0 million in long-term borrowings, $16.7 million in principal repayments on mortgage related securities, $73.2 million for increase in deposits, $5.7 million in maturities of debt securities, $2.1 million in proceeds for mortgage servicing rights sale, and $13.4 million in net income.
+Added: During the three months ended March 31, 2026, primary uses of cash and cash equivalents included:
+Added: $505.5 million in funding loans held for sale, $8.7 million to fund loans receivable, $8.7 million for purchases of mortgage related securities, $8.6 million for purchases of debt securities, $52.2 million for payoffs of short-term borrowings, $30.0 million for payoffs of long-term borrowings, $2.6 million for cash dividends paid, and $4.4 million for purchases of our common stock.
+Added: During the three months ended March 31, 2026, primary sources of cash and cash equivalents included:
+Added: $524.9 million in proceeds from the sale of loans held for sale, $83.0 million in long-term borrowings, $6.5 million in principal repayments on mortgage related securities, $2.4 million in sales of FHLB stock, $1.5 million for increase in deposits, $120,000 in maturities of debt securities, $548,000 in proceeds from exercised stock options, and $6.0 million in net income.
A portion of our liquidity consists of cash and cash equivalents, which are a product of our operating, investing and financing activities.
−Removed: At September 30, 2025 and 2024, respectively, $53.8 million and $41.4 million of our assets were invested in cash and cash equivalents.
−Removed: At September 30, 2025, cash and cash equivalents were comprised of the following:
+Added: At March 31, 2026 and 2025, respectively, $44.7 million and $43.3 million of our assets were invested in cash and cash equivalents.
+Added: At March 31, 2026, cash and cash equivalents were comprised of the following:
$38.8 million in cash held at the Federal Reserve Bank and other depository institutions and $5.9 million in federal funds sold and short-term investments.
2 unchanged sentences
If we require funds beyond our ability to generate them internally, borrowing agreements exist with the FHLB which provide an additional source of funds.
−Removed: At September 30, 2025, we had $210.0 million in long term advances from the FHLB with contractual maturity dates in 2027, 2028, 2029, and 2030.
+Added: At March 31, 2026, we had $243.0 million in long term advances from the FHLB with contractual maturity dates in 2027, 2028, 2029, 2030, and 2031.
See Note 6 - Borrowings of the notes to unaudited consolidated financial statements for additional information about the remaining call option details of our FHLB long-term debt.
−Removed: The Company had approximately $365.8 million of uninsured deposits for approximately 1,462 customers as of September 30, 2025.
+Added: The Company had approximately $383.2 million of uninsured deposits for approximately 1,509 customers as of March 31, 2026.
Uninsured deposit amounts are estimated based on the portions of customer account balances that exceed the FDIC insurance limits.
−Removed: At September 30, 2025, we had outstanding commitments to originate loans receivable of $44.7 million.
−Removed: In addition, at September 30, 2025, we had unfunded commitments under construction loans of $44.3 million, unfunded commitments under business lines of credit of $15.6 million and unfunded commitments under home equity lines of credit and standby letters of credit of $12.3 million.
−Removed: At September 30, 2025, certificates of deposit scheduled to mature in one year or less totaled $843.9 million.
+Added: At March 31, 2026, we had outstanding commitments to originate loans receivable of $36.0 million.
+Added: In addition, at March 31, 2026, we had unfunded commitments under construction loans of $34.1 million, unfunded commitments under business lines of credit of $13.2 million and unfunded commitments under home equity lines of credit and standby letters of credit of $12.8 million.
+Added: At March 31, 2026, certificates of deposit scheduled to mature in one year or less totaled $859.7 million.
Based on prior experience, management believes that, subject to the Bank’s funding needs, a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case.
8 unchanged sentences
The ability of WaterStone Bank to pay dividends is subject to regulatory restrictions.
−Removed: At September 30, 2025, Waterstone Financial, Inc.
+Added: At March 31, 2026, Waterstone Financial, Inc.
(on an unconsolidated basis) had liquid assets totaling $11.2 million.
−Removed: Shareholders' equity increased $6.4 million to $345.5 million at September 30, 2025.
−Removed: Shareholders' equity increased primarily due to net income and the increase in valuations of our securities available for sale.
+Added: Shareholders' equity decreased $1.2 million to $348.2 million at March 31, 2026.
+Added: Shareholders' equity decreased primarily due to decreases in the fair value of securities during the period.
The Company's Board of Directors authorized a 2,000,000 share stock repurchase program in the second quarter of 2024.
−Removed: As of September 30, 2025, the Company has approximately 643,000 shares remaining in the plan.
+Added: As of March 31, 2026, the Company has approximately 223,000 shares remaining in the plan.
WaterStone Bank is subject to various regulatory capital requirements, including a risk-based capital measure.
The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning assets and off-balance sheet items to broad risk categories.
−Removed: At September 30, 2025, WaterStone Bank exceeded all regulatory capital requirements and is considered “well capitalized” under regulatory guidelines.
+Added: At March 31, 2026, WaterStone Bank exceeded all regulatory capital requirements and is considered “well capitalized” under regulatory guidelines.
See “Notes to Unaudited Consolidated Financial Statements - Note 7 - Regulatory Capital.”
Contractual Obligations, Commitments, Contingent Liabilities, and Off-balance Sheet Arrangements
−Removed: During the three months ended September 30, 2025, we entered into $39.0 million of new long-term debt, entered into $194.5 million of new short-term debt, and repaid $186.5 million in short-term debt.
+Added: During the three months ended March 31, 2026, we entered into $83.0 million of new long-term debt, repaid $30.0 million of existing long-term debt, and repaid $52.2 million in short-term debt.
See Note 6 - Borrowings of the notes to unaudited consolidated financial statements for additional information about the remaining maturities of our FHLB long-term debt.
2 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.