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 ...

Financial Performance - Net income for the community banking segment was $4.5 million for the three months ended September 30, 2023, down from $6.6 million for the same period in 2022[165]. - Net income for the nine months ended September 30, 2023, totaled $14.6 million, down from $17.1 million for the same period in 2022[189]. - Earnings per share for the nine months ended September 30, 2023, was $0.46, down from $0.84 for the same period in 2022[199]. Deposits and Borrowings - Total deposits increased by 0.5% to $1.21 billion as of September 30, 2023, compared to December 31, 2022, with a $18.2 million increase, or 1.5%, during the three months ended September 30, 2023[162]. - Total borrowings increased by $201.1 million, or 52.0%, to $587.9 million at September 30, 2023[223]. - The average balance of time deposits increased by $94.6 million compared to the prior year period, contributing to the rise in interest expense[208]. Interest Income and Expenses - Net interest income decreased by $3.1 million to $12.4 million for the three months ended September 30, 2023, compared to $15.5 million in 2022[165]. - Interest income on loans increased by $7.6 million, or 46.8%, to $23.8 million, driven by a 94 basis point increase in average yield and a $316.3 million, or 24.1%, increase in average loans held for investment[181]. - Interest expense on time deposits surged by $5.5 million, or 722.5%, to $6.2 million, attributed to a 292 basis point increase in average cost and a $133.7 million increase in average balance[181]. Credit Losses and Non-Performing Loans - The provision for credit losses was $445,000 for the three months ended September 30, 2023, compared to $234,000 in the same period of 2022[167]. - Total non-accrual loans decreased by $224,000, or 5.2%, to $4.1 million as of September 30, 2023, with a ratio of non-accrual loans to total loans receivable at 0.25%[230]. - The allowance for credit losses increased by $796,000 to $18.6 million at September 30, 2023, with a provision of $829,000 for the nine months ended September 30, 2023[221]. Mortgage Banking - The mortgage banking segment reported a net loss of $1.4 million for the three months ended September 30, 2023, compared to a net loss of $1.3 million in 2022[170]. - Mortgage loan originations decreased by $132.3 million, or 18.1%, to $597.6 million for the three months ended September 30, 2023, compared to $729.9 million in 2022[170]. - Total mortgage banking noninterest income decreased by $5.9 million, or 21.4%, to $21.5 million during the three months ended September 30, 2023[170]. Expenses - Total noninterest expenses decreased by $5.7 million, or 15.9%, to $30.0 million for the three months ended September 30, 2023, compared to $35.7 million for the same period in 2022[187]. - Compensation, payroll taxes, and other employee benefits expense increased by $194,000 to $4.6 million for the three months ended September 30, 2023, primarily due to annual raises[169]. - Total noninterest income decreased by $5.2 million, or 18.9%, to $22.2 million, primarily due to declines in mortgage banking income and other income[185]. Asset and Liability Management - 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[264]. - The Asset/Liability Committee meets at least weekly to review asset/liability policies and interest rate risk positions, which are evaluated quarterly[263]. - The company focuses on managing interest rate risk to minimize exposure of earnings and capital to changes in interest rates[264]. Regulatory and Capital Position - The company exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines as of September 30, 2023[259]. - Shareholders' equity decreased by $24.2 million to $346.3 million at September 30, 2023, primarily due to dividends and stock repurchases[257]. - The company had outstanding commitments to originate loans receivable of $31.0 million as of September 30, 2023[255].

Financial Performance - Net income for the community banking segment was $5.2 million for the three months ended June 30, 2023, down from $6.3 million in the same period of 2022 [163]. - Net income for the six months ended June 30, 2023, totaled $10.0 million, a decrease from $10.6 million for the same period in 2022 [186]. - Earnings per share (basic) decreased to $0.30 for the six months ended June 30, 2023, from $0.59 for the same period in 2022 [195]. - The mortgage banking segment reported a net loss of $4.0 million for the six months ended June 30, 2023, compared to a net income of $2.8 million for the same period in 2022 [192]. Income and Expenses - Net interest income decreased by $472,000 to $13.2 million for the three months ended June 30, 2023, compared to $13.7 million in 2022 [163]. - Total noninterest income decreased by $7.7 million, or 24.7%, to $23.5 million, primarily due to declines in mortgage banking income and other income [182]. - Total noninterest expenses decreased by $4.1 million, or 11.8%, to $30.9 million for the three months ended June 30, 2023, compared to $35.1 million for the same period in 2022 [184]. - Total noninterest income decreased by $19.0 million, or 31.1%, to $42.1 million, mainly due to declines in mortgage banking income and service charges on loans and deposits [208]. - Total noninterest expenses decreased by $10.0 million, or 14.2%, to $60.0 million for the six months ended June 30, 2023, compared to $70.0 million for the same period in 2022 [210]. Loans and Mortgage Banking - Mortgage loans originated for sale totaled $623.3 million, a decrease of $155.4 million, or 20.0%, from $778.8 million in the prior year [167]. - Mortgage loan originations decreased by $421.2 million, or 28.3%, to $1.07 billion for the six months ended June 30, 2023, compared to $1.49 billion for the same period in 2022 [192]. - Mortgage banking income fell by $7.5 million, or 25.5%, to $21.9 million, resulting from a decrease in loan origination volume by $185.6 million, or 24.8% [183]. - Mortgage banking income fell by $19.0 million, or 32.9%, to $38.7 million, attributed to a $468.0 million, or 32.4%, decrease in total loan origination volume [209]. Credit Losses and Provisions - The provision for credit losses was $158,000 for the three months ended June 30, 2023, compared to a negative provision of $41,000 in the same period of 2022 [164]. - The provision for credit losses was $186,000 for the three months ended June 30, 2023, compared to a negative provision of $48,000 for the same period in 2022 [180]. - Provision for credit losses was $546,000 for the six months ended June 30, 2023, compared to a negative provision of $181,000 for the same period in 2022 [187]. - The allowance for credit losses increased by $617,000 to $18.4 million at June 30, 2023, with a provision for credit losses of $623,000 during the same period [219]. Assets and Deposits - Total deposits decreased by 1.0% to $1.19 billion as of June 30, 2023, with a minimal deposit outflow in the first half of the year [161]. - Total assets grew to $2.16 billion as of June 30, 2023, compared to $1.99 billion in the prior year [178]. - Total assets increased by $198.2 million, or 9.8%, to $2.23 billion at June 30, 2023, primarily due to an increase in loans held for investment and loans held for sale [213]. - Cash and cash equivalents rose by $14.5 million, or 31.2%, to $61.2 million at June 30, 2023, reflecting increased funding sources from borrowings [214]. Interest Income and Expense - Interest income on loans increased by $7.6 million, or 52.3%, to $22.2 million, driven by a 98 basis point increase in average yield and a $339.6 million, or 27.2%, increase in average loans held for investment [179]. - Interest expense on time deposits rose by $4.3 million, or 794.3%, to $4.9 million, attributed to a 243 basis point increase in average cost and a $111.1 million increase in average balance [179]. - Interest expense on time deposits surged by $6.8 million, or 621.8%, to $7.9 million, primarily due to a 201 basis point increase in average cost [205]. Capital and Shareholder Equity - The company remains well capitalized with a Total Capital ratio of 22.43% as of June 30, 2023 [161]. - Shareholders' equity decreased by $14.7 million to $355.8 million at June 30, 2023, primarily due to dividends and stock repurchases [259]. - WaterStone Bank exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines as of June 30, 2023 [261]. Interest Rate Risk Management - 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 [265]. - The Asset/Liability Committee meets at least weekly to review asset/liability policies and interest rate risk position [264]. - The company’s interest rate risk exposure is evaluated quarterly through simulation analysis [266]. - As of June 30, 2023, a 100 basis point instantaneous increase in interest rates is projected to decrease forecast net interest income over the next 12 months by 2.37% [269]. Legal and Regulatory Matters - The company is currently involved in legal proceedings initiated by Mutual of Omaha Mortgage, Inc. regarding employee hiring practices [273]. - There have been no changes in the company's internal control over financial reporting that materially affect its effectiveness [272]. - The company’s disclosure controls and procedures have been evaluated as effective by the CEO and CFO [271].

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) ...