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 ...

Table of Contents 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, 2022 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) ...

Table of Contents For the quarterly period ended September 30, 2022 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) (IRS Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ Quarterly report pursuant to Secti ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%20l.%20Financial%20Statements) The financial statements present the company's financial position, results of operations, and cash flows, highlighting a decrease in assets and net income Consolidated Statements of Financial Condition - Total assets decreased to **$1.94 billion** as of June 30, 2022, from **$2.22 billion** at December 31, 2021, primarily due to a significant reduction in cash and cash equivalents and loans held for sale[11](index=11&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $122,193 | $376,722 | | Loans held for sale | $206,702 | $312,738 | | Loans receivable, net | $1,259,289 | $1,190,007 | | **Total Assets** | **$1,941,097** | **$2,215,858** | | **Liabilities & Equity** | | | | Total deposits | $1,213,230 | $1,233,386 | | Borrowings | $281,100 | $477,127 | | **Total Liabilities** | **$1,554,717** | **$1,783,085** | | **Total Shareholders' Equity** | **$386,380** | **$432,773** | Consolidated Statements of Income - Net income for the second quarter of 2022 was **$8.0 million**, a significant decrease from **$17.9 million** in the same period of 2021, driven by a sharp reduction in mortgage banking income[13](index=13&type=chunk) Consolidated Income Statement Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $14,081 | $14,277 | $25,945 | $28,229 | | Mortgage Banking Income | $29,410 | $49,649 | $57,685 | $104,040 | | Total Noninterest Income | $31,238 | $52,044 | $61,056 | $108,243 | | Total Noninterest Expenses | $35,050 | $43,297 | $69,984 | $86,297 | | **Net Income** | **$7,990** | **$17,894** | **$13,282** | **$39,238** | | Diluted EPS | $0.36 | $0.74 | $0.58 | $1.64 | Consolidated Statements of Changes in Shareholders' Equity - Shareholders' equity decreased from **$432.8 million** at year-end 2021 to **$386.4 million** at June 30, 2022, driven by stock repurchases, comprehensive loss, and cash dividends[17](index=17&type=chunk) - The company repurchased **2,099,000 shares** of common stock for **$37.9 million** during the first six months of 2022[17](index=17&type=chunk) Consolidated Statements of Cash Flows - Cash and cash equivalents decreased by **$254.5 million** in the first six months of 2022, compared to an increase of **$134.0 million** in the same period of 2021[22](index=22&type=chunk) - Significant financing activities in the first half of 2022 included the repayment of **$195.0 million** in long-term debt and the repurchase of **$37.9 million** in common stock[22](index=22&type=chunk) Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $118,163 | $76,913 | | Net cash (used in) provided by investing activities | ($100,752) | $64,108 | | Net cash used in financing activities | ($271,940) | ($7,049) | | **(Decrease) increase in cash and cash equivalents** | **($254,529)** | **$133,972** | Notes to Consolidated Financial Statements - The Company adopted ASC Topic 326 (CECL) on January 1, 2022, resulting in a **$1.4 million** after-tax decrease to retained earnings[35](index=35&type=chunk) - The company operates through two main subsidiaries: WaterStone Bank SSB, a community bank, and Waterstone Mortgage Corporation, a mortgage banking subsidiary[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Non-accrual loans increased to **$7.5 million** (0.59% of total loans) at June 30, 2022, from **$5.6 million** (0.46% of total loans) at December 31, 2021[80](index=80&type=chunk) - The company has two reportable segments: Community Banking and Mortgage Banking[155](index=155&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | One- to four-family | $312,657 | $300,523 | | Multi-family | $597,304 | $537,956 | | Commercial real estate | $266,375 | $250,676 | | Construction and land | $70,075 | $82,588 | | Other | $29,149 | $34,042 | | **Total** | **$1,276,560** | **$1,205,785** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Profitability declined significantly due to the mortgage banking segment's performance amid rising interest rates, while total assets decreased from lower cash balances Results of Operations - The Mortgage Banking segment's net income plummeted to **$1.7 million** in Q2 2022 from **$10.4 million** in Q2 2021, caused by lower origination volume and compressed margins[179](index=179&type=chunk) - The Community Banking segment's Q2 2022 net income was **$6.3 million**, down from **$7.5 million** in Q2 2021, due to lower net interest income[174](index=174&type=chunk) - Consolidated noninterest income for Q2 2022 decreased **40.0%** to **$31.2 million**, primarily due to a **$20.2 million** drop in mortgage banking income[195](index=195&type=chunk) - Consolidated noninterest expenses for Q2 2022 decreased **19.0%** to **$35.1 million**, mainly from an **$8.1 million** reduction in compensation and benefits[197](index=197&type=chunk)[200](index=200&type=chunk) Consolidated Results of Operations Summary | Metric | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $7,990 | $17,894 | $13,282 | $39,238 | | Diluted EPS | $0.36 | $0.74 | $0.58 | $1.64 | | Annualized ROA | 1.61% | 3.25% | 1.30% | 3.62% | | Annualized ROE | 7.93% | 16.49% | 6.42% | 18.49% | Financial Condition - Total assets decreased by **$274.8 million (12.4%)** to **$1.94 billion** at June 30, 2022, mainly due to a **$254.5 million** decrease in cash[225](index=225&type=chunk)[226](index=226&type=chunk)[228](index=228&type=chunk) - Loans receivable held for investment grew by **$70.8 million** to **$1.28 billion**, driven by increases in core real estate loan categories[228](index=228&type=chunk) - Total borrowings decreased by **$196.0 million (41.1%)** to **$281.1 million**, primarily due to the payoff of **$200.0 million** in FHLB borrowings[235](index=235&type=chunk) - Shareholders' equity declined by **$46.4 million** to **$386.4 million**, impacted by dividends, stock repurchases, and the adoption of CECL[238](index=238&type=chunk) Asset Quality - The allowance for credit losses on loans increased by **$1.5 million** to **$17.3 million** at June 30, 2022, due to the CECL adoption and provisions[231](index=231&type=chunk)[259](index=259&type=chunk) - Total past due loans increased slightly to **$7.7 million** (0.60% of total loans) at June 30, 2022, from **$7.1 million** (0.59% of total loans) at year-end 2021[255](index=255&type=chunk) Nonperforming Assets (in thousands) | Category | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total non-accrual loans | $7,493 | $5,574 | | Real estate owned | $148 | $148 | | **Total nonperforming assets** | **$7,641** | **$5,722** | | Nonperforming assets to total assets | 0.39% | 0.26% | Liquidity and Capital Resources - Primary uses of cash in the first half of 2022 included **$1.45 billion** to fund loans, **$195.0 million** for debt payoffs, and **$37.9 million** for stock repurchases[268](index=268&type=chunk) - Primary sources of cash included **$1.59 billion** in proceeds from the sale of loans and **$13.3 million** in net income[269](index=269&type=chunk) - At June 30, 2022, WaterStone Bank **exceeded all regulatory capital requirements** and was considered "well capitalized"[278](index=278&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate sensitivity, with models showing a negative impact on net interest income from both rising and falling rates - The company's primary market risk is **interest rate risk** due to its asset/liability structure, which is managed by an Asset/Liability Committee[283](index=283&type=chunk) Net Interest Income Sensitivity Analysis (as of June 30, 2022) | Immediate Change in Rates | +300 bps | +200 bps | +100 bps | -100 bps | | :--- | :--- | :--- | :--- | :--- | | **Percentage Change** | **(2.20)%** | **(0.95)%** | **(0.43)%** | **(1.97)%** | [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting during the quarter - Based on an evaluation as of June 30, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures are effective**[290](index=290&type=chunk) - **No material changes** occurred during the fiscal quarter that have affected, or are reasonably likely to affect, the company's internal control over financial reporting[291](index=291&type=chunk) [PART II. OTHER INFORMATION](index=73&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially impact its consolidated financial statements - Information regarding legal proceedings is detailed in Note 9 of the financial statements[292](index=292&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were identified since its 2021 Annual Report on Form 10-K - **No material changes** in risk factors were reported from the company's 2021 Annual Report on Form 10-K[293](index=293&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its stock repurchase program, buying back over 1.4 million shares during the second quarter of 2022 - The current share repurchase plan allows for the repurchase of 3,500,000 shares; as of the end of the quarter, **1,350,513 shares may yet be purchased**[294](index=294&type=chunk) Common Stock Repurchases in Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2022 | 417,700 | $18.08 | | May 2022 | 657,371 | $16.53 | | June 2022 | 342,333 | $16.87 | | **Total** | **1,417,404** | **$17.07** | [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including required Sarbanes-Oxley certifications and financial statements in iXBRL format - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and financial statements in iXBRL format[298](index=298&type=chunk)

OR Table of Contents ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-36271 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, 2022 (414) 761-1000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: WATERSTONE FINANCIAL, ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission file number: 001-36271 WATERSTONE FINANCIAL, INC. (Exact name of registrant as specified in its charter) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $0.01 Par Value WSBF The NASDAQ Stock Mar ...