WATERSTONE BANK

11200 W. PLANK CT.

WAUWATOSA WI 53226

Contact: Allan Hosack

Chief Financial Officer

414.459.4010

AllanHosack@wsbonline.com

FOR IMMEDIATE RELEASE

WATERSTONE FINANCIAL DECLARES REGULAR QUARTERLY CASH DIVIDENDS

Wauwatosa, Wis., 3/18/2014 —The Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) today declared a regular quarterly cash dividend of $0.05 per common share, payable on May 2, 2014 to shareholders of record at the close of business on April 11, 2014.

ABOUT WATERSTONE FINANCIAL, INC.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa, Brookfield, Franklin/Hales Corners, Germantown/Menomonee Falls, Oak Creek, Oconomowoc/Lake Country, Pewaukee, Waukesha/Brookfield, West Allis, Wisconsin and a commercial lending branch in Maple Grove, Minnesota. WaterStone Bank is the parent company to Waterstone Mortgage, which offers mortgage banking offices in twelve states.

For more information about the Bank, go to wsbonline.com.

# # #