Core Insights - Waterstone Financial, Inc. has elected Molly Mulroy and Laura Piotrowski to its Board of Directors, effective July 22, 2025 [1][2] Group 1: Board Members' Backgrounds - Molly Mulroy is currently the Executive Vice President and Chief Administrative Officer of WEC Energy Group, overseeing various departments including Human Resources and IT Services [2][3] - Mulroy has held multiple leadership roles since joining WEC Energy Group in 1999, including Vice President and Chief Information Officer [3] - Laura Piotrowski is the CEO and President of Cavendish Vernal, a strategic advisory firm she founded in 2017, and has previously held senior finance roles [5][6] Group 2: Educational and Community Involvement - Mulroy holds a bachelor's degree from the University of Minnesota and an MBA from the University of Chicago, and is active in the Milwaukee community [4] - Piotrowski earned her bachelor's degree from the University of Wisconsin-Milwaukee and an Executive MBA from Marquette University, and is a Certified Public Accountant [7] Group 3: Company Overview - Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, which was established in 1921 and operates 14 branch locations in southeastern Wisconsin [8] - WaterStone Bank offers a comprehensive suite of personal and business banking products and is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states [8][9]

I rate Waterstone Financial, Inc. (NASDAQ: WSBF ) a Hold, for income-focused investors interested in long-term buy and hold investments. WSBF is a small regional bank that has had its difficulties during the Financial Crisis, Covid, and more recently theDavid A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment fun ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-36271 WATERSTONE FINANCIAL, INC. (Exact name of registrant as specified in its charter) Maryland 90-1026709 (State or other jurisdiction of incorporation o ...

Core Viewpoint - Waterstone Financial, Inc. reported stable net income of $3.0 million for Q1 2025, maintaining earnings per share at $0.17, slightly up from $0.16 in Q1 2024, despite challenges in the Mortgage Banking segment [1][2]. Community Banking Segment - The Community Banking segment saw a 6.9% increase in net interest income, totaling $12.4 million for Q1 2025, compared to $11.6 million in Q1 2024 [3][8]. - The net interest margin improved by 32 basis points to 2.47% in Q1 2025 from 2.15% in Q1 2024, driven by a higher yield on loans and a decrease in borrowing costs [3][8]. - Asset quality remained strong, with nonperforming assets at 0.35% of total assets as of March 31, 2025, compared to 0.23% a year earlier [3][18]. - The company repurchased approximately 237,000 shares at a cost of $3.2 million, enhancing book value per share to $17.70 [3][12]. Mortgage Banking Segment - The Mortgage Banking segment reported a pre-tax loss of $2.2 million for Q1 2025, a significant decline from a pre-tax income of $369,000 in Q1 2024, attributed to a market-wide decrease in loan origination volumes [2][8]. - Loan originations decreased by 20.1% to $387.7 million in Q1 2025 from $485.1 million in Q1 2024, with a notable shift in origination volume towards purchase activity [8][25]. - Noninterest income from mortgage banking fell by 22.6% to $15.7 million in Q1 2025, down from $20.3 million in Q1 2024 [8][25]. Financial Performance Metrics - Return on average assets for Q1 2025 was 0.57%, slightly up from 0.56% in Q1 2024, while return on average equity increased to 3.61% from 3.56% [3][18]. - The efficiency ratio improved to 59.66% in Q1 2025 from 65.17% in Q1 2024, indicating better cost management [8][23]. - Average core retail deposits rose by 7.4% to $1.28 billion in Q1 2025, compared to $1.19 billion in Q1 2024, reflecting strong customer retention [8][18].

Financial Performance - Waterstone Financial, Inc. reported net income of $3.0 million, or $0.17 per diluted share, for Q1 2025, compared to $3.0 million, or $0.16 per diluted share, for Q1 2024[1]. - Net income for the quarter was $3,036, a decrease of 41.87% compared to $5,210 in the previous quarter[15]. - Net income for the quarter was $4,638,000, down 12.3% from $5,288,000 in the prior quarter[18]. Income and Revenue - Net interest income increased by $805,000, or 6.9%, to $12.4 million for Q1 2025, compared to $11.6 million for Q1 2024[3]. - Net interest income was $12,576, a slight decrease from $12,835 in the previous quarter, reflecting a decrease of 2.02%[15]. - Total noninterest income was $17,097, down from $19,005, indicating a decline of 10.03%[15]. - Total noninterest income decreased to $1,348,000 from $1,595,000, reflecting a decline of 15.5%[18]. Banking Segment Performance - Pre-tax income for the Community Banking segment totaled $6.1 million for Q1 2025, representing a $1.8 million, or 41.7%, increase compared to $4.3 million for Q1 2024[3]. - The provision for credit losses in the banking segment was $(518,000), compared to $331,000 in the previous quarter, reflecting improved credit quality[18]. Mortgage Banking Segment Performance - Loan originations in the Mortgage Banking segment decreased by $97.4 million, or 20.1%, to $387.7 million during Q1 2025 compared to $485.1 million during Q1 2024[4]. - In the mortgage banking segment, loan originations totaled $387,729,000, a decrease of 17.6% from $470,650,000 in the prior quarter[20]. - Mortgage banking non-interest income decreased by $4.6 million, or 22.6%, to $15.7 million for Q1 2025 compared to $20.3 million for Q1 2024[4]. - The company reported a net loss of $1,625,000 in the mortgage banking segment, compared to a loss of $197,000 in the previous quarter[20]. - The efficiency ratio for the mortgage banking segment was 114.18%, compared to 103.39% in the previous quarter, indicating increased costs relative to income[20]. - The percentage of purchase loans in total loan originations was 87.5%, up from 82.1% in the previous quarter, indicating a shift towards purchase activity[20]. Asset and Liability Management - Average loans held for investment increased by $10.7 million, or 0.6%, to $1.67 billion during Q1 2025 compared to $1.66 billion for Q1 2024[3]. - Total assets decreased to $2,175,367, down from $2,209,608, representing a decline of approximately 1.54%[13]. - Total deposits increased to $1,381,200, up from $1,359,897, showing a growth of 1.57%[13]. - Loans receivable, net amounted to $1,645,614, a decrease from $1,662,329, representing a decline of 1.00%[13]. - Total liabilities decreased to $1,834,007 from $1,870,473, a decline of approximately 1.94%[13]. Efficiency and Ratios - The efficiency ratio improved to 59.66% for Q1 2025, down from 65.17% for Q1 2024[4]. - The efficiency ratio for the quarter was 59.66%, an increase from 51.54% in the previous quarter, indicating a decline in operational efficiency[18]. - Return on average assets for the quarter was 0.57%, down from 0.94% in the previous quarter[15]. - Return on average equity for the quarter was 3.61%, a decrease from 6.05% in the previous quarter[15]. Book Value - Book value per share increased to $17.70 at March 31, 2025, compared to $17.53 at December 31, 2024[3]. - Book value per share increased to $17.70 from $17.53, reflecting a growth of 0.97%[13].

Core Points - Michael Hansen has announced his retirement as a Director of Waterstone Financial, Inc. and its subsidiary WaterStone Bank SSB [1] - Hansen has been a director since 2003 and has served as chair of the Audit Committee, as well as being a member of the Board Executive Committee and Nominating and Corporate Governance Committee [2] - During the transition, Hansen will sell shares of Company stock as part of his retirement and estate planning [3] - Patrick Lawton, Chairman of the Company, expressed gratitude for Hansen's 22 years of service and leadership [3] Company Overview - Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, established in 1921 [4] - WaterStone Bank offers a range of personal and business banking products and operates 14 branch locations in southeastern Wisconsin [4] - WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states [4] - The Company emphasizes innovation, integrity, and community service to support financial and homeownership goals of customers nationwide [5]

Loan Portfolio and Composition - As of December 31, 2024, Waterstone Bank's loan portfolio composition included 30.71% one- to four-family residential loans, 44.12% multi-family residential loans, and 18.65% commercial real estate loans[36]. - The total loan portfolio at December 31, 2024, was $1.68 billion, with a net loan amount of $1.66 billion after accounting for an allowance for credit losses of $18.25 million[36]. - One- to four-family residential mortgage loans totaled $516.1 million, representing 30.7% of total loans as of December 31, 2024[39]. - Multi-family loans amounted to $741.4 million, accounting for 44.1% of total loans at the same date[42]. - Home equity loans and lines of credit reached $13.2 million, or 0.8% of total loans outstanding as of December 31, 2024[45]. - Construction and land loans totaled $61.4 million, representing 3.7% of total loans[46]. - Commercial real estate loans were $313.5 million, making up 18.7% of total loans as of December 31, 2024[50]. - The average outstanding one- to four-family first mortgage loan balance was approximately $302,000[41]. - The average outstanding multi-family mortgage loan balance was approximately $1.6 million[43]. - The average outstanding commercial loan was $467,000 as of December 31, 2024[54]. Mortgage Banking Operations - Waterstone Financial's mortgage banking subsidiary, Waterstone Mortgage Corporation, originated $2.13 billion in mortgage loans held for sale during the year ended December 31, 2024[22]. - The company originated $2.15 billion in mortgage loans held for sale during the year ended December 31, 2024, an increase of $26.6 million, or 1.3%, from the previous year[94]. - Total mortgage banking noninterest income increased by $5.8 million, or 7.4%, to $84.3 million during the year ended December 31, 2024[94]. - The gross margin on loans originated and sold increased by 0.2% for the year ended December 31, 2024, compared to the previous year[94]. - The mix of loan types trended towards more conventional loans, comprising 63.8% of all loan originations during the year ended December 31, 2024[95]. Asset Quality and Credit Losses - Total non-accrual loans increased by $857,000 to $5.7 million as of December 31, 2024, compared to $4.8 million as of December 31, 2023[67]. - The ratio of non-accrual loans to total loans receivable was 0.34% at December 31, 2024, up from 0.29% at December 31, 2023[67]. - Total nonperforming assets rose to $6.2 million as of December 31, 2024, compared to $5.1 million as of December 31, 2023[64]. - Loans past due less than 90 days increased by $4.3 million during the year ended December 31, 2024, totaling $11.1 million[77]. - Total loans past due increased by $3.9 million, or 34.4%, to $15.1 million at December 31, 2024, from $11.3 million at December 31, 2023[77]. - The outstanding principal balance of the five largest non-accrual loans totaled $2.6 million, representing 45.9% of total non-accrual loans as of December 31, 2024[69]. - The allowance for credit losses - loans decreased by $302,000 to $18.2 million at December 31, 2024, from $18.5 million at December 31, 2023[85]. - Net recoveries totaled $40,000 for the year ended December 31, 2024, compared to net charge-offs of $135,000 for the year ended December 31, 2023[86]. Deposits and Funding - Total deposits increased by $169.3 million, or 14.2%, from December 31, 2023 to December 31, 2024, driven by a $175.3 million increase in certificates of deposit[114]. - Certificates of deposit comprised 66.6% of total customer deposits as of December 31, 2024, with a weighted average cost of 4.42%[111]. - The company had $905.5 million in certificates of deposit as of December 31, 2024, compared to $730.3 million as of December 31, 2023[113]. - As of December 31, 2024, total deposits amounted to $1,266,337,000, with a year-over-year growth of 3.20% compared to $1,209,617,000 in 2023[117]. - The balance of uninsured deposits of $250,000 or more increased to $327.2 million in 2024 from $287.9 million in 2023[117]. Capital and Regulatory Compliance - WaterStone Bank's capital to assets ratio was 15.68% as of December 31, 2024, significantly above the minimum requirement of 6%[145]. - The common equity Tier 1 capital ratio was 19.21%, indicating strong capital adequacy compared to the required minimum of 4.5%[156]. - The Tier 1 leverage ratio stood at 15.55%, well above the minimum requirement of 4.0%[156]. - WaterStone Bank's total risk-based capital ratio was 20.29%, exceeding the minimum requirement of 8.0%[156]. - WaterStone Bank is classified as "well capitalized" under federal regulations, meeting all capital requirements[156]. - The Federal Deposit Insurance Corporation insures deposits up to $250,000 per depositor per account ownership category[140]. - WaterStone Bank's assessment rates for deposit insurance range from 2.5 to 32 basis points based on total assets less tangible capital[141]. - WaterStone Bank is required to hold $20.3 million in capital stock of the Federal Home Loan Bank of Chicago as of December 31, 2024[172]. Regulatory Environment - Waterstone Financial is subject to comprehensive regulation by the Wisconsin Department of Financial Institutions and the FDIC[21]. - Waterstone Financial operates in a highly regulated environment, subject to supervision by various bank regulatory agencies[200]. - Federal regulations require annual on-site examinations for depository institutions, with exceptions for well-capitalized institutions with assets under $3 billion[168]. - The Federal Reserve Board's regulations require holding companies to act as a source of strength to their subsidiary depository institutions during financial stress[180]. - Waterstone Financial is subject to limitations on dividend payments if stockholders' equity would fall below the liquidation account amount[182]. Employee and Corporate Culture - The company had 600 full-time equivalent employees as of December 31, 2024, with a focus on creating a culture that attracts and retains top talent[120]. - The company offers comprehensive compensation and benefits packages, including a 401k Plan and Employee Stock Ownership Plan, to attract and retain key talent[121].

Core Viewpoint - Waterstone Financial, Inc. reported a significant turnaround in financial performance for the quarter ended December 31, 2024, achieving a net income of $5.2 million compared to a net loss of $40,000 in the same quarter of the previous year, indicating a strong recovery and growth trajectory for the company [1][3]. Financial Performance - Net income for the quarter was $5.2 million, or $0.28 per diluted share, compared to a net loss of $40,000, or less than $0.01 per diluted share, for the quarter ended December 31, 2023 [1]. - For the year ended December 31, 2024, net income per diluted share was $1.01, up from $0.46 in 2023 [1]. - Pre-tax income increased by $1.4 million, or 26.0%, to $6.7 million for the quarter ended December 31, 2024, compared to $5.3 million for the same quarter in 2023 [3]. - Net interest income rose to $12.9 million, a $830,000 increase, or 6.9%, from $12.1 million in the prior year [3]. Asset Quality and Loan Performance - The consolidated return on average assets was 0.94% for the quarter ended December 31, 2024, compared to (0.01)% for the same quarter in 2023 [3]. - Nonperforming assets as a percentage of total assets was 0.28% at December 31, 2024, compared to 0.23% at December 31, 2023 [3]. - Past due loans as a percentage of total loans increased to 0.95% at December 31, 2024, from 0.68% at December 31, 2023 [3][18]. Shareholder Returns and Capital Management - Dividends declared during the quarter totaled $0.15 per common share [3]. - The company repurchased approximately 194,000 shares at a cost of $2.8 million, or $14.43 per share [3]. - Book value per share increased to $17.53 at December 31, 2024, from $16.94 at December 31, 2023 [3]. Community Banking Segment - The Community Banking segment reported a consolidated net income of $5.2 million for the quarter ended December 31, 2024, compared to a net loss of $40,000 for the same quarter in 2023 [3]. - Average loans held for investment totaled $1.68 billion, an increase of $21.5 million, or 1.3%, compared to $1.66 billion for the quarter ended December 31, 2023 [3]. - The efficiency ratio improved to 51.54% for the quarter ended December 31, 2024, compared to 63.26% for the same quarter in 2023 [8][22]. Mortgage Banking Segment - The Mortgage Banking segment achieved a pre-tax loss of $625,000 for the quarter ended December 31, 2024, a significant improvement from a $6.0 million pre-tax loss in the same quarter of 2023 [8]. - Loan originations increased by $12.3 million, or 2.7%, to $470.7 million during the quarter ended December 31, 2024, compared to $458.4 million in the prior year [8]. - Mortgage banking non-interest income rose by $1.4 million, or 8.9%, to $17.5 million for the quarter ended December 31, 2024, compared to $16.0 million in the previous year [8].

Financial Performance - Consolidated net income for the quarter ended December 31, 2024, was $5.2 million, compared to a net loss of $40,000 for the same quarter in 2023[1] - Net income for Q4 2024 was $5,210,000, compared to a loss of $40,000 in Q4 2023, indicating a significant turnaround[11] - The company reported a basic earnings per share of $0.28 for Q4 2024, compared to $(0.00) in Q4 2023[11] - Net income for December 2024 was $5,288 thousand, reflecting a 12.4% increase from $4,705 thousand in September 2024[18] Asset and Deposit Growth - Total assets as of December 31, 2024, were $2,209,608,000, slightly down from $2,213,389,000 in 2023[13] - Total deposits increased to $1,359,897,000 in 2024, up from $1,190,624,000 in 2023, representing a growth of 14.2%[13] - Average loans held for investment increased by $21.5 million, or 1.3%, to $1.68 billion compared to the same quarter in 2023[4] - Loan originations increased by $12.3 million, or 2.7%, to $470.7 million for the quarter ended December 31, 2024[6] Income and Expense Analysis - Net interest income rose by $830,000, or 6.9%, to $12.9 million for the quarter ended December 31, 2024[4] - Total interest income for Q4 2024 was $29,052,000, an increase of 8.5% from $26,694,000 in Q4 2023[11] - Noninterest income for Q4 2024 reached $19,005,000, up 12.6% from $16,876,000 in Q4 2023[11] - Total noninterest expenses decreased to $25,267,000 in Q4 2024 from $29,662,000 in Q4 2023, a reduction of 14.8%[11] Efficiency and Ratios - Return on average assets improved to 0.94% for the quarter ended December 31, 2024, from (0.01)% in the prior year[4] - The efficiency ratio improved to 51.54% for the quarter ended December 31, 2024, from 63.26% in the prior year[6] - The efficiency ratio for the quarter-to-date (non-GAAP) improved to 51.54% in December 2024 from 60.35% in September 2024[18] Shareholder Returns and Stock Activity - Dividends declared during the quarter totaled $0.15 per common share[4] - The company repurchased approximately 194,000 shares at a cost of $2.8 million, or $14.43 per share[4] Credit Quality - Nonperforming assets as a percentage of total assets was 0.28% at December 31, 2024, compared to 0.23% at December 31, 2023[4] - The allowance for credit losses on loans was 1.09% of loans receivable as of December 31, 2024, compared to 1.11% in 2023[15] - The provision for credit losses was $331 thousand in December 2024, compared to a credit of $(302) thousand in September 2024[18] Other Financial Metrics - Book value per share increased to $17.53 in 2024 from $16.94 in 2023, reflecting a growth of 3.5%[13] - Total interest-earning assets decreased to $2,112,753 thousand in December 2024 from $2,156,118 thousand in September 2024, a decline of 2.02%[16] - Net interest income after provision for credit losses for the twelve months ended December 31, 2024, was $46,336,000, compared to $49,559,000 in 2023, reflecting a decrease of 4.5%[11] - Total noninterest income rose to $1,595 thousand in December 2024, a 30% increase compared to $1,227 thousand in September 2024[18] - Noninterest expenses decreased to $7,463 thousand in December 2024, down from $8,133 thousand in September 2024, a reduction of 8.2%[18] - The gross margin on loans sold was 3.74% in December 2024, slightly down from 3.83% in September 2024[20] - The average yield on total interest-earning assets increased to 5.46% in December 2024 from 5.39% in September 2024[16]

Financial Performance - Net income for the community banking segment was $4.7 million for Q3 2024, up from $4.5 million in Q3 2023, reflecting a 4.4% increase[174]. - Earnings per share increased to $0.26 in Q3 2024 from $0.16 in Q3 2023, reflecting a significant improvement in profitability[180]. - Annualized return on average assets improved to 0.83% in Q3 2024 from 0.58% in Q3 2023, indicating better asset utilization[180]. - Annualized return on average equity increased to 5.55% in Q3 2024 from 3.63% in Q3 2023, showcasing enhanced shareholder value[180]. - Net income for the nine months ended September 30, 2024, was $11.7 million, down from $14.6 million in the same period of 2023[201]. Income and Expenses - Net interest income decreased by $181,000 to $12.3 million in Q3 2024 compared to $12.4 million in Q3 2023, primarily due to a $3.4 million increase in interest expense on deposits and borrowings[174]. - Total compensation and employee benefits decreased by $1.3 million, or 7.3%, to $15.9 million in Q3 2024 compared to $17.2 million in Q3 2023, driven by reduced headcount[179]. - Total noninterest expenses decreased by $1.5 million, or 4.9%, to $28.6 million compared to $30.0 million in the prior year[197]. - Compensation, payroll taxes, and other employee benefits expense decreased by $2.6 million, or 5.3%, to $47.6 million for the nine months ended September 30, 2024[207]. Mortgage Banking - The mortgage banking segment reported a net loss of $50,000 in Q3 2024, an improvement from a net loss of $1.4 million in Q3 2023[177]. - Mortgage loan originations decreased by $38.8 million, or 6.5%, to $558.7 million in Q3 2024 compared to $597.6 million in Q3 2023[177]. - Total mortgage banking noninterest income decreased by $66,000, or 0.3%, to $21.4 million in Q3 2024 compared to $21.5 million in Q3 2023[177]. - Mortgage banking income increased due to a rise in gross margin on loans originated and sold, which increased by 5.9% despite a decrease in loan origination volumes[194]. - The company originated $1.68 billion in mortgage loans during the nine months ended September 30, 2024, a 0.9% increase from $1.66 billion in the prior year[204]. - Mortgage banking income rose by $6.3 million, or 10.6%, to $66.2 million during the nine months ended September 30, 2024, compared to $59.9 million in the prior year[222]. Interest Income and Expense - Interest income on loans increased by $2.8 million, or 11.6%, to $26.6 million, driven by a 39 basis point increase in average yield and a $60.9 million, or 3.7%, increase in average loans held for investment[189]. - Interest expense on time deposits rose by $2.7 million, or 44.1%, to $9.0 million, primarily due to a 111 basis point increase in average cost of time deposits[189]. - Interest expense on time deposits rose by $10.8 million, or 76.5%, to $25.0 million, primarily due to a 163 basis point increase in average cost[216]. - Interest expense on borrowings increased by $5.1 million, or 30.5%, to $21.6 million due to a 53 basis point increase in the cost of borrowings[216]. Asset and Liability Management - Total assets increased by $30.9 million, or 1.4%, to $2.24 billion at September 30, 2024, from $2.21 billion at December 31, 2023[227]. - Total deposits increased by $73.2 million to $1.26 billion at September 30, 2024, driven by a $73.9 million increase in time deposits[234]. - Loans receivable held for investment increased by $31.2 million to $1.70 billion at September 30, 2024, primarily due to increases in multi-family, construction, and commercial real estate loans[230]. - Average balance of borrowings increased by $15.8 million to $600.6 million during the three months ended September 30, 2024[189]. Credit Quality - The provision for credit losses was negative $377,000 for the three months ended September 30, 2024, compared to a provision of $445,000 for the same period in 2023[191]. - The allowance for credit losses decreased to $18.2 million at September 30, 2024, with a negative provision of $439,000 for the nine months ended September 30, 2024[232]. - Total non-accrual loans increased by $560,000, or 11.6%, to $5.4 million as of September 30, 2024, compared to $4.8 million as of December 31, 2023[244]. - The ratio of non-accrual loans to total loans receivable was 0.32% at September 30, 2024, up from 0.29% at December 31, 2023[244]. - Total loans past due decreased by $628,000, or 5.6%, to $10.6 million at September 30, 2024, from $11.3 million at December 31, 2023[248]. Regulatory and Compliance - The company exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines as of September 30, 2024[269]. - The effective income tax rate increased to 19.7% for the three months ended September 30, 2024, compared to 13.3% in the same period of 2023[199]. - Income tax expense totaled $4.3 million for the nine months ended September 30, 2024, with an effective tax rate of 24.3%, compared to 19.0% in the prior year[226]. - There have been no changes in the Company's internal control over financial reporting during the fiscal quarter[279]. - The Company has not identified any material effects on its internal control over financial reporting[279]. Cash Flow and Liquidity - Primary uses of cash included $1.66 billion in funding loans held for sale and $145.0 million for payoffs of long-term borrowings during the nine months ended September 30, 2024[258]. - Primary sources of cash included $1.74 billion in proceeds from the sale of loans held for sale and $150.0 million in long-term borrowings during the nine months ended September 30, 2024[259]. - As of September 30, 2024, the company had $41.4 million in cash and cash equivalents, down from $62.3 million in 2023[262]. - The company had $325.3 million in uninsured deposits from approximately 1,354 customers as of September 30, 2024[264]. Shareholder Actions - Shareholders' equity decreased by $2.1 million to $342.0 million at September 30, 2024, primarily due to dividends declared and stock repurchases[238]. - The company authorized a stock repurchase program for 2,000,000 shares, with approximately 1.9 million shares remaining as of September 30, 2024[268]. Interest Rate Risk Management - At September 30, 2024, a 100 basis point increase in interest rates is projected to decrease net interest income by 7.08%[275]. - The company has implemented strategies to manage interest rate risk, including emphasizing variable rate loans and shortening the expected average life of the investment portfolio[272].