Financial Performance - Waterstone Financial, Inc. reported net income of $4.7 million, or $0.26 per diluted share, for Q3 2024, compared to $3.3 million, or $0.16 per diluted share, for Q3 2023[1]. - Net income for the quarter was $4,728,000, representing a 45.4% increase compared to $3,253,000 in the prior year[9]. - Net income for Q3 2024 was $4,728,000, down from $5,712,000 in Q2 2024, representing a decrease of 17.2%[11]. - Basic earnings per share increased to $0.26 from $0.16, a growth of 62.5% year-over-year[9]. - The net income for the Community Banking segment was $4,705,000 for September 30, 2024, an increase from $4,539,000 for the same period last year, reflecting a growth of 3.7%[13]. Asset and Loan Growth - Average loans held for investment increased by $60.9 million, or 3.7%, to $1.69 billion for Q3 2024 compared to $1.63 billion in Q3 2023[3]. - Loans receivable increased to $1,695,403,000 from $1,664,215,000, reflecting a growth of 1.9%[10]. - Average loans receivable and held for sale increased to $1,870,627,000 in Q3 2024 from $1,859,608,000 in Q2 2024, reflecting a growth of 0.92%[12]. - Loan originations in the Mortgage Banking segment decreased by $38.8 million, or 6.5%, to $558.7 million for Q3 2024 compared to $597.6 million in Q3 2023[5]. - Loan originations in the Mortgage Banking segment totaled $558,729,000 for September 30, 2024, a decrease from $634,109,000 for the previous quarter, indicating a decline of 11.9%[14]. Deposit Growth - Average deposits (excluding escrow accounts) rose by $47.9 million, or 4.0%, to $1.25 billion for Q3 2024 compared to $1.20 billion in Q3 2023[4]. - Total deposits rose to $1,263,841,000, compared to $1,190,624,000 at the end of 2023, marking a 6.1% increase[10]. Income and Expense Analysis - Total interest income for the quarter ended September 30, 2024, was $29,191,000, an increase of 10.9% from $26,377,000 for the same period in 2023[9]. - Noninterest income for the quarter was $22,552,000, slightly up from $22,230,000 in the same quarter last year[9]. - Total noninterest expenses decreased to $28,560,000 from $30,021,000, a reduction of 4.9%[9]. - Total noninterest income decreased to $22,552,000 in Q3 2024 from $26,497,000 in Q2 2024, indicating a decline of 14.8%[11]. Efficiency Ratios - The efficiency ratio for Q3 2024 was 60.35%, compared to 54.43% for Q3 2023, indicating a decline in operational efficiency[4]. - The efficiency ratio for the Community Banking segment improved to 60.35% for the quarter ended September 30, 2024, down from 62.37% for the previous quarter, indicating enhanced operational efficiency[13]. - The efficiency ratio for the Mortgage Banking segment was 99.67% for the quarter ended September 30, 2024, compared to 91.64% for the previous quarter, indicating a decline in efficiency[14]. Credit Quality - Nonperforming assets as a percentage of total assets remained stable at 0.25% for Q3 2024, unchanged from Q2 2024, but up from 0.20% in Q3 2023[2]. - The allowance for credit losses on loans was $18,198,000, down from $18,549,000, indicating improved credit quality[10]. - The allowance for credit losses to loans receivable was 1.07% as of September 30, 2024, compared to 1.10% in Q2 2024[11]. - Provision for credit losses in the Community Banking segment was $(302,000) for September 30, 2024, compared to $(550,000) for the same period last year, showing an improvement in credit quality[13]. Segment Performance - The Community Banking segment achieved pre-tax income of $5.6 million for Q3 2024, a slight decrease of $14,000, or 0.2%, from Q3 2023[3]. - Mortgage Banking segment pre-tax income improved to $144,000 for Q3 2024, compared to a pre-tax loss of $2.1 million in Q3 2023[5]. - Community Banking segment reported net interest income of $12,250,000 for September 30, 2024, an increase from $12,056,000 for September 30, 2023, representing a growth of 1.6% year-over-year[13]. - Total noninterest income in the Community Banking segment was $1,227,000 for September 30, 2024, compared to $894,000 for the same period last year, reflecting a significant increase of 37.2%[13]. - Total noninterest income in the Mortgage Banking segment was $21,386,000 for September 30, 2024, an increase from $16,028,000 for the same period last year, marking a growth of 33.5%[14].

Company Overview - Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, established in 1921, offering a full suite of personal and business banking products [2] - WaterStone Bank operates branches in various locations across Wisconsin, including Wauwatosa, Brookfield, and Milwaukee [2] - Waterstone Mortgage, a subsidiary of WaterStone Bank, has the capability to lend in 48 states [2] Dividend Declaration - On September 24, 2024, the Board of Directors declared a regular quarterly cash dividend of $0.15 per common share [1] - The dividend is scheduled to be payable on November 1, 2024, to shareholders of record as of the close of business on October 8, 2024 [1]

Financial Performance - Net income for the community banking segment decreased to $4.3 million for Q2 2024, down from $5.2 million in Q2 2023, representing a decline of 17.3%[147] - Net interest income for the community banking segment fell by $2.0 million to $11.2 million in Q2 2024, compared to $13.2 million in Q2 2023, a decrease of 15.2%[147] - The mortgage banking segment reported a net income of $1.3 million for Q2 2024, a turnaround from a net loss of $1.2 million in Q2 2023[150] - Net income for the community banking segment totaled $7.0 million for the six months ended June 30, 2024, down from $10.0 million for the same period in 2023[172] - Net interest income decreased by $4.7 million, or 17.6%, to $21.8 million for the six months ended June 30, 2024, compared to $26.5 million for the same period in 2023[186] Mortgage Banking - Mortgage loan originations increased by $10.8 million, or 1.7%, to $634.1 million in Q2 2024 from $623.3 million in Q2 2023[150] - Total mortgage banking noninterest income rose by $2.0 million, or 8.9%, to $25.1 million in Q2 2024 compared to $23.0 million in Q2 2023[150] - The company originated $1.12 billion in mortgage loans held for sale during the six months ended June 30, 2024, representing an increase of $53.2 million, or 5.0%, from the prior year[175] - Total mortgage banking noninterest income increased by $4.4 million, or 10.8%, to $45.4 million for the six months ended June 30, 2024, compared to $41.0 million for the same period in 2023[175] - Mortgage banking income rose by $2.92 million, or 13.3%, to $24.84 million for the three months ended June 30, 2024, compared to $21.91 million for the same period in 2023[166] - Mortgage banking income rose by $6.2 million, or 16.1%, to $44.9 million for the six months ended June 30, 2024, compared to $38.7 million for the same period in 2023[192] Interest Income and Expenses - Interest income on loans increased by $3.5 million, or 15.6%, to $25.6 million, driven by a 49 basis point increase in average yield and a $81.6 million, or 5.1%, increase in average loans held for investment[160] - Interest expense on time deposits rose by $3.5 million, or 71.1%, to $8.3 million, attributed to a 161 basis point increase in average cost of time deposits[160] - Interest expense on time deposits increased by $8.1 million, or 102.0%, to $16.0 million, primarily due to a 192 basis point increase in average cost[187] - Interest expense on borrowings increased by $2.0 million, or 35.7%, to $7.6 million due to an 84 basis point increase in the cost of borrowings[160] Credit Losses and Provisions - The community banking segment experienced a negative provision for credit losses of $279,000 in Q2 2024, compared to a provision of $158,000 in Q2 2023[148] - There was a negative provision for credit losses of $225,000 for the three months ended June 30, 2024, compared to a $186,000 provision for credit losses for the same period in 2023[162] - The provision for credit losses was a negative $158,000 for the six months ended June 30, 2024, compared to a $646,000 provision for credit losses for the same period in 2023[189] - The allowance for credit losses decreased to $18.4 million at June 30, 2024, with a negative provision of $146,000 for the six months ended June 30, 2024[203] Noninterest Income and Expenses - Total noninterest income increased by $3.0 million, or 12.6%, to $26.5 million during the three months ended June 30, 2024, compared to $23.5 million in the same period of 2023[164] - Total noninterest income increased by $5.7 million, or 13.5%, to $47.7 million during the six months ended June 30, 2024, compared to $42.1 million for the same period in 2023[191] - Total noninterest expenses decreased by $663,000, or 2.1%, to $30.26 million for the three months ended June 30, 2024, compared to $30.92 million for the same period in 2023[168] - Total noninterest expenses decreased by $2.2 million, or 3.7%, to $57.8 million for the six months ended June 30, 2024, compared to $60.0 million for the same period in 2023[195] Assets and Liabilities - Total assets increased by $76.2 million, or 3.4%, to $2.29 billion at June 30, 2024, from $2.21 billion at December 31, 2023[199] - Total liabilities increased to $1,877,402 thousand as of June 30, 2024, compared to $1,737,124 thousand as of June 30, 2023[182] - The average balance of borrowings increased by $115.8 million to $612.7 million during the six months ended June 30, 2024[187] - Total deposits increased by $33.3 million to $1.22 billion at June 30, 2024, driven by a $36.3 million increase in time deposits[204] Shareholders' Equity - Shareholders' equity decreased by $9.1 million to $334.9 million at June 30, 2024, primarily due to dividends declared and stock repurchases[206] - The company has a stock repurchase program authorized for 2,000,000 shares, with approximately 1.9 million shares remaining as of June 30, 2024[230] Regulatory and Compliance - The company is considered "well capitalized" under regulatory guidelines as of June 30, 2024[231] - There have been no changes in the Company's internal control over financial reporting during the fiscal quarter[239] - The Company has not identified any material effects on its internal control over financial reporting[239] - Legal proceedings and contingent liabilities are detailed in Part I, Item 1, Note 8[240] Market and Economic Conditions - A 100 basis point increase in interest rates is projected to decrease net interest income by 7.08% over the next 12 months, while a decrease of 100 basis points is expected to increase net interest income by 7.86%[235]

Financial Performance - Consolidated net income for the quarter ended June 30, 2024, was $5.7 million, an increase of 42.5% from $4.0 million for the same quarter in 2023[2] - Net income for the quarter ended June 30, 2024, was $5.712 million, up from $4.007 million in the same quarter of 2023, representing a growth of 42.5%[17] - Net income for June 30, 2024, was $4,349,000, up from $2,640,000 for March 31, 2024, indicating a significant increase of 64.7%[20] - Net income for June 30, 2024, was $1,313 thousand, a significant increase from $298 thousand for March 31, 2024[28] Asset and Deposit Growth - Average deposits increased by $35.7 million, or 3.0%, to $1.22 billion for the quarter ended June 30, 2024, compared to $1.18 billion for the same quarter in 2023[3] - Total assets reached $2.289 billion as of June 30, 2024, compared to $2.213 billion as of June 30, 2023, marking an increase of 3.4%[18] Loan Performance - Loan originations rose by $10.8 million, or 1.7%, to $634.1 million during the quarter ended June 30, 2024, compared to $623.3 million for the same quarter in 2023[4] - Average loans held for investment increased by $81.6 million, or 5.1%, to $1.67 billion for the quarter ended June 30, 2024, compared to $1.59 billion for the same quarter in 2023[13] - Past due loans in the Community Banking Segment rose to $9.3 million at June 30, 2024, compared to $5.7 million at June 30, 2023[13] - Loan originations reached $634,109 thousand for June 30, 2024, up from $485,109 thousand for March 31, 2024, indicating a growth of 30.6%[28] Income and Expense Analysis - Net interest income fell by $2.0 million, or 15.1%, to $11.2 million for the quarter ended June 30, 2024, down from $13.2 million in the same quarter of 2023[13] - Total interest income increased to $28.020 million for the quarter ended June 30, 2024, from $24.247 million in the same quarter of 2023, representing a growth of 11.5%[17] - Net interest income after provision for credit losses was $10.904 million for the quarter ended June 30, 2024, compared to $12.489 million for the same quarter in 2023, a decrease of 12.7%[17] - Total noninterest income increased to $26.497 million for the quarter ended June 30, 2024, from $23.525 million in the same quarter of 2023, reflecting a growth of 8.4%[17] - Total noninterest expenses were $7,937,000 for June 30, 2024, a decrease from $8,204,000 for March 31, 2024, showing a reduction of 3.3%[20] - Total noninterest income increased to $25,081 thousand for June 30, 2024, from $20,328 thousand for March 31, 2024, representing a growth of 23.3%[28] - Total noninterest expenses increased to $22,478 thousand for June 30, 2024, from $19,456 thousand for March 31, 2024, reflecting a rise of 10.4%[28] Efficiency and Ratios - Return on average assets improved to 1.02% for the quarter ended June 30, 2024, compared to 0.74% for the same quarter in 2023[2] - The efficiency ratio was 62.37% for the quarter ended June 30, 2024, compared to 55.81% for the same quarter in 2023[3] - The efficiency ratio for the quarter-to-date (QTD) was 62.37%, an improvement from 65.17% for the previous quarter[20] - Return on average equity (QTD) was 6.84% for June 30, 2024, up from 3.56% for March 31, 2024[26] - The net interest margin (QTD) was 2.01% for June 30, 2024, slightly down from 2.15% for March 31, 2024[26] Shareholder Returns - The company maintained a robust share repurchase program, repurchasing approximately 481,000 shares at a cost of $5.8 million, or $11.99 per share, which was accretive to book value per share by $0.13[2] - Book value per share increased to $17.20 at June 30, 2024, from $16.94 at December 31, 2023[2]

Financial Performance - Net income for the community banking segment decreased to $2.6 million for Q1 2024, down from $4.8 million in Q1 2023, reflecting a decline of 45.8%[161] - Net interest income for the community banking segment fell by $2.4 million to $11.6 million in Q1 2024, compared to $14.0 million in Q1 2023, a decrease of 17.1%[161] - The mortgage banking segment reported a net income of $298,000 for Q1 2024, a significant recovery from a net loss of $2.7 million in Q1 2023[164] - Total noninterest income increased by $2.7 million, or 14.5%, to $21.2 million, primarily due to a rise in mortgage banking income[179] - Mortgage banking income grew by $3.3 million, or 19.7%, to $20.1 million, resulting from a $62.0 million increase in total loan origination volume, which rose by 14.9%[180] Interest Income and Expense - Interest income on loans increased by $4.6 million, or 23.1%, to $24.5 million, driven by a 59 basis point increase in average yield and an 8.7% increase in average loans held for investment[176] - Interest expense on deposits and borrowings increased by $7.6 million in Q1 2024 due to rising interest rates, impacting net interest income[161] - Net interest income decreased by $2.7 million, or 19.3%, to $11.1 million for the three months ended March 31, 2024, compared to $13.8 million for the same period in 2023, primarily due to increased cost of funds from rising interest rates[175] - Interest expense on time deposits rose by $4.6 million, or 150.8%, to $7.7 million, attributed to a 227 basis point increase in average cost and a $91.0 million increase in average balance[176] - The net interest margin on a fully tax equivalent basis was 2.16% for the three months ended March 31, 2024, compared to 2.90% for the same period in 2023[175] Asset Quality - The provision for credit losses was $105,000 in Q1 2024, down from $388,000 in Q1 2023, indicating improved credit quality[162] - The provision for credit losses was $67,000 for the three months ended March 31, 2024, a decrease from $460,000 for the same period in 2023[177] - Total nonperforming assets increased slightly to $5.078 million at March 31, 2024, from $5.062 million at March 31, 2023[198] - The allowance for credit losses remained at $18.5 million at March 31, 2024, with a negative provision of $3,000 for the quarter[189] - Past due loans decreased by $604,000, or 5.4%, to $10.6 million at March 31, 2024, from $11.3 million at December 31, 2023[208] Balance Sheet Highlights - Total assets increased to $2.19 billion as of March 31, 2024, compared to $2.05 billion as of March 31, 2023[175] - Cash and cash equivalents rose by $9.3 million, or 25.5%, to $45.7 million at March 31, 2024, compared to $36.4 million at December 31, 2023[184] - Total deposits increased by $9.3 million to $1.20 billion at March 31, 2024, primarily due to a $17.0 million increase in time deposits[191] - Total borrowings increased by $23.1 million, or 3.8%, to $634.2 million at March 31, 2024[192] - Shareholders' equity decreased by $6.1 million to $338.0 million at March 31, 2024, primarily due to dividends declared and stock repurchases[195] Regulatory and Capital Management - As of March 31, 2024, WaterStone Bank exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines[230] - The Company had approximately $293.5 million of uninsured deposits for approximately 1,243 customers as of March 31, 2024[225] - The Company authorized a 2,000,000 share stock repurchase program in the second quarter of 2023, with approximately 403,000 shares remaining as of March 31, 2024[229] Interest Rate Risk Management - A 100 basis point instantaneous increase in interest rates is projected to decrease forecast net interest income over the next 12 months by 7.08%, while a 100 basis point decrease in rates is expected to increase net interest income by 7.86%[239] - WaterStone Bank emphasizes variable rate loans and has implemented strategies to manage interest rate risk, including reducing the expected average life of the investment portfolio[235] - Management regularly monitors interest rate risk to minimize exposure of earnings and capital to changes in interest rates[236] - The Asset/Liability Committee meets at least weekly to review asset/liability policies and interest rate risk position, which are evaluated quarterly[234] Internal Controls and Procedures - The company’s disclosure controls and procedures have been evaluated and deemed effective by the CEO and CFO as of the end of the reporting period[240] - There have been no changes in the company's internal control over financial reporting that materially affected its effectiveness during the fiscal quarter[241]

Financial Performance - Consolidated net income for the quarter ended March 31, 2024, was $3.0 million, or $0.16 per diluted share, compared to $2.2 million, or $0.10 per diluted share for the same period in 2023[1][4] - Net income for the quarter was $3,038 thousand, a significant recovery from a net loss of $40 thousand in the same quarter of the previous year[15] - Net income for the quarter was $2,640,000, down 35.4% from $4,074,000 in the same quarter last year[18] Loan and Asset Growth - Average loans held for investment increased by $133.0 million, or 8.7%, to $1.66 billion during the quarter ended March 31, 2024, compared to $1.53 billion for the same period in 2023[4] - Loan originations increased by $42.4 million, or 9.6%, to $485.1 million during the quarter ended March 31, 2024, compared to $442.7 million for the same period in 2023[6] - Total assets increased to $2,234,724 thousand as of March 31, 2024, compared to $2,213,389 thousand on December 31, 2023, reflecting a growth of 0.96%[13] - Total deposits increased to $1,199,894 thousand, up from $1,190,624 thousand, marking a growth of 0.2%[13] Income and Margin Analysis - Net interest income decreased by $2.4 million, or 17.2%, to $11.6 million for the quarter ended March 31, 2024, compared to $14.0 million for the same period in 2023[4] - The net interest margin decreased by 73 basis points to 2.15% for the quarter ended March 31, 2024, compared to 2.88% for the same period in 2023[4] - The net interest margin for the quarter was 2.15%, a decrease from 2.25% in the previous quarter[15] - Net interest income for the three months ended March 31, 2024, was $11,598,000, a decrease of 3.8% from $12,056,000 in the previous quarter[18] Noninterest Income - Mortgage banking non-interest income increased by $2.4 million, or 13.2%, to $20.3 million for the quarter ended March 31, 2024, compared to $18.0 million for the same period in 2023[6] - Total noninterest income rose to $21,248 thousand, up 25.5% from $16,876 thousand in the previous quarter[15] - Total noninterest income increased to $990,000 for the quarter, up from $894,000 in the previous quarter, representing an increase of 10.8%[18] - In the mortgage banking segment, total noninterest income rose to $20,328,000, up from $16,028,000 in the previous quarter, marking a 26.8% increase[20] Efficiency and Operational Metrics - The efficiency ratio for the Mortgage Banking segment was 65.17% for the quarter ended March 31, 2024, compared to 54.53% for the same period in 2023[6] - The efficiency ratio for the quarter was 65.17%, compared to 63.26% in the previous quarter, indicating a decline in operational efficiency[18] - The efficiency ratio for the mortgage banking segment was 98.33%, a significant improvement from 137.86% in the previous quarter[20] Shareholder Returns - Dividends declared during the quarter totaled $0.15 per common share[4] - The company declared dividends of $0.15 per common share, consistent with the previous quarter[15] - The company repurchased approximately 417,000 shares at a cost of $5.3 million, or $12.65 per share, during the quarter[4] Credit Quality - Nonperforming assets as a percentage of total assets remained stable at 0.23% as of March 31, 2024, compared to 0.22% at March 31, 2023[4] - The allowance for credit losses on loans remained stable at 1.11% of loans receivable[15] - The provision for credit losses in the mortgage banking segment was $(38,000), compared to a provision of $115,000 in the previous quarter, indicating a reduction in expected credit losses[20]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 or organization) (I.R.S. Employer ...

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 September 30, 2023 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) | 53226 | | --- | | 11200 W. Plank Court Wauwatosa, Wisconsin | (Address of principal executive offices) (Zip Code) (414) 761-1000 (Registrant's telephone number, including ar ...

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 June 30, 2023 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 or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 | 53226 | | --- | | 11200 W. Plank Court Wauwatosa, Wisconsin | 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, 2023 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) Mar ...