Financial Performance - Net income for the community banking segment decreased to $4.1 million for Q1 2020, down from $5.8 million in Q1 2019, with net interest income decreasing by $224,000 to $12.9 million [191]. - The mortgage banking segment reported a net income of $2.0 million for Q1 2020, compared to $719,000 in Q1 2019, with mortgage loan originations increasing by $207.4 million, or 41.4%, to $708.8 million [195]. - Net income decreased to $6.069 million for the three months ended March 31, 2020, down from $6.542 million in the same period of 2019, representing a decline of 7.2% [198]. - Earnings per share (EPS) decreased to $0.24 for both basic and diluted shares, compared to $0.25 for basic and $0.24 for diluted shares in the prior year [198]. Income and Expenses - Total noninterest income increased by $7.2 million, or 29.7%, to $31.5 million during the three months ended March 31, 2020, compared to $24.3 million in the same period of 2019 [209]. - Total compensation, payroll taxes, and other employee benefits increased by $3.3 million, or 20.7%, to $19.4 million for the three months ended March 31, 2020, compared to $16.1 million for the same period in 2019 [197]. - Total noninterest expenses increased by $5.9 million, or 20.0%, to $35.2 million for the three months ended March 31, 2020, compared to $29.3 million for the same period in 2019 [211]. Loan Performance - The provision for loan losses was $750,000 for Q1 2020, compared to a negative provision of $700,000 in Q1 2019, reflecting worsening economic conditions [192]. - The provision for loan losses was $785,000 for the three months ended March 31, 2020, compared to a negative provision of $680,000 for the same period in 2019, reflecting worsening economic conditions due to the COVID-19 pandemic [207]. - Total loans past due increased by $4.6 million, or 70.5%, to $11.0 million at March 31, 2020, from $6.5 million at December 31, 2019 [242]. - The allowance for loan losses increased by $839,000 to $13.2 million at March 31, 2020, compared to $12.4 million at December 31, 2019 [249]. Assets and Liabilities - Total assets increased by $60.3 million, or 3.0%, to $2.06 billion at March 31, 2020, primarily due to increases in loans held for sale and loans receivable [213]. - Total deposits increased by $18.3 million to $1.09 billion at March 31, 2020, driven by a $23.5 million increase in money market and savings deposits [222]. - Total borrowings increased by $38.6 million, or 8.0%, to $522.2 million at March 31, 2020, with the community banking segment adding $40.0 million in short-term borrowings [223]. - Shareholders' equity decreased by $21.9 million to $371.8 million at March 31, 2020, primarily due to dividend declarations and stock repurchases [226]. Capital and Regulatory Compliance - As of March 31, 2020, the company maintained capital ratios exceeding all regulatory requirements, indicating sufficient capital to withstand potential economic downturns [188]. - The company is considered "well capitalized" under regulatory guidelines, exceeding all capital requirements as of March 31, 2020 [268]. COVID-19 Impact - The company modified 164 loans totaling $99.7 million under COVID-19 payment deferral programs, with an additional 13 loans totaling $7.2 million modified for principal and interest deferral [184]. - Interest income may be negatively impacted due to COVID-19-related payment deferrals, with potential future credit losses affecting reported income [187]. - The provision for loan losses was $785,000 for the three months ended March 31, 2020, reflecting an increased allocation due to the COVID-19 pandemic [249]. Mortgage Banking - Total mortgage banking noninterest income rose by $7.2 million, or 30.7%, to $30.8 million in Q1 2020, driven by increased loan production volume [195]. - Mortgage banking income increased by $7.047 million, or 30.2%, to $30.406 million, driven by a total loan origination volume increase of $196.5 million, or 40.0%, to $687.7 million [210].

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 1 0 - 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, 2019 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 Identification No.) | | 11200 W Plank Ct, Wauwatosa, Wisconsin 53226 | | (A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q T Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 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) (State or other jurisdiction of incorporation or organization) (IRS Employer Iden ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q T Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2019 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) (State or other jurisdiction of incorporation or organization) (IRS Employer Identific ...

Financial Performance - Net income for the community banking segment remained stable at $5.8 million for both Q1 2019 and Q1 2018, while net interest income decreased by $172,000 to $13.1 million [169]. - The mortgage banking segment reported a net income of $719,000 for Q1 2019, down from $1.1 million in Q1 2018, with mortgage loan originations decreasing by $14.6 million, or 2.8% [172]. - Total mortgage banking noninterest income decreased by $1.2 million, or 4.7%, to $23.6 million in Q1 2019 compared to $24.7 million in Q1 2018 [172]. - The overall net interest margin decreased to 2.93% in Q1 2019 from 3.18% in Q1 2018, reflecting increased interest expenses [178]. - The annualized return on average assets decreased to 1.39% in Q1 2019 from 1.57% in Q1 2018 [175]. - The annualized return on average equity decreased to 6.65% in Q1 2019 from 6.90% in Q1 2018 [175]. Income and Expenses - Compensation, payroll taxes, and other employee benefits expense decreased by $181,000, or 1.1%, to $16.1 million in Q1 2019 compared to Q1 2018 [174]. - Total noninterest income decreased by $926,000, or 3.7%, to $24.3 million during the three months ended March 31, 2019, primarily due to a decrease in mortgage banking income [189]. - Total noninterest expenses decreased by $798,000, or 2.6%, to $29.3 million during the three months ended March 31, 2019 [191]. Loan Loss Provisions - The provision for loan losses was a negative provision of $700,000 in Q1 2019, compared to a negative provision of $900,000 in Q1 2018 [169]. - Provision for loan losses amounted to a negative provision of $680,000 for the three months ended March 31, 2019, compared to a negative provision of $880,000 for the same period in 2018 [187]. - The allowance for loan losses decreased by $688,000 to $12.6 million at March 31, 2019, reflecting a negative provision due to an improved risk profile [227]. - Net charge-offs for the three months ended March 31, 2019, were $8,000, or less than 0.01% of average loans annualized [228]. Asset and Liability Management - Total assets increased by $13.3 million, or 0.7%, to $1.93 billion at March 31, 2019, from $1.92 billion at December 31, 2018 [193]. - Cash and cash equivalents increased by $18.7 million, or 21.8%, to $104.8 million at March 31, 2019, compared to $86.1 million at December 31, 2018 [194]. - Total deposits decreased by $1.2 million to $1.04 billion at March 31, 2019, primarily due to a decrease in demand and time deposits [201]. - Total borrowings increased by $13.4 million to $448.5 million at March 31, 2019, with external short-term borrowings at the mortgage banking segment increasing [202]. - Shareholders' equity decreased by $15.2 million to $384.5 million at March 31, 2019, primarily due to dividend declarations and stock repurchases [205]. Loan Portfolio and Quality - The mix of loan types shifted, with conventional loans comprising 68.4% of total originations in Q1 2019, down from 69.1% in Q1 2018 [173]. - Total non-accrual loans increased by $243,000, or 3.7%, to $6.8 million as of March 31, 2019 [210]. - Total loans past due decreased by $656,000, or 9.4%, to $6.3 million at March 31, 2019, compared to $7.0 million at December 31, 2018 [221]. - The allowance for loan losses to non-accrual loans ratio at the end of the period was 184.77% [227]. Capital Management - WaterStone Bank exceeded all regulatory capital requirements and is considered "well capitalized" as of March 31, 2019 [247]. - The company repurchased 7,497,453 shares at an average price of $13.80, with authorization to purchase an additional 230,300 shares [246]. - Total contractual obligations amounted to $1,497.4 million, with demand deposits at $128.5 million and time deposits at $733.5 million [249]. Interest Rate Risk - Interest rate risk management strategies include emphasizing variable rate loans and shortening the expected average life of the investment portfolio [258]. - A 100 basis point increase in interest rates is projected to decrease net interest income by 0.65%, while a decrease of 100 basis points would increase it by 2.18% [262].

Loan Portfolio - As of December 31, 2018, WaterStone Bank's loan portfolio comprised 35.5% one- to four-family residential loans, 43.3% multi-family residential loans, and 16.4% commercial real estate loans[37]. - Total loans reached $1,379.1 million, with a net loan amount of $1,365.9 million after accounting for an allowance for loan losses of $13.2 million[41]. - As of December 31, 2018, one- to four-family residential mortgage loans totaled $490.0 million, representing 35.5% of total loans[44]. - Multi-family loans amounted to $597.1 million, accounting for 43.3% of total loans at the same date[48]. - The total amount of commercial loans was $225.5 million, representing 16.4% of total loans[41]. - Outstanding home equity loans and lines of credit totaled $20.0 million, representing 1.5% of total loans outstanding[51]. - Construction and land loans amounted to $13.4 million, or 1.0% of total loans, with $66.3 million originated for investment during 2018, accounting for 17.2% of all loans originated for investment[52]. - Commercial real estate loans totaled $225.5 million, or 16.4% of total loans, with $58.2 million originated for investment during 2018, representing 15.1% of all loans originated for investment[57]. Loan Origination - Waterstone Financial's mortgage banking subsidiary, Waterstone Mortgage Corporation, originated approximately $2.51 billion in mortgage loans held for sale during the year ended December 31, 2018[25]. - Waterstone Mortgage Corporation originated $2.60 billion in mortgage loans held for sale during the year ended December 31, 2018, an increase of $52.2 million, or 2.0%, from the previous year[108]. - Total loans originated for investment in 2018 amounted to $385.1 million, compared to $315.2 million in 2017[63]. - Multi-family loans originated for investment during 2018 totaled $123.1 million, or 32.0% of all loans originated for investment[48]. Financial Performance - Total mortgage banking income decreased by $6.7 million, or 5.5%, to $115.4 million during the year ended December 31, 2018, compared to $122.1 million in 2017[109]. - The allowance for loan losses at the end of 2018 was $13.25 million, down from $14.08 million at the end of 2017, reflecting a provision (credit) for loan losses of $(1.06) million[99]. - The net charge-offs for the year ended December 31, 2018, were $(232,000), compared to $786,000 in 2017, indicating a significant reduction in charge-offs[99]. - The total charge-offs for the year ended December 31, 2018, were $84,000, significantly lower than $1.48 million in 2017[99]. Asset Quality - Total non-accrual loans increased by $487,000, or 8.0%, to $6.6 million as of December 31, 2018 compared to $6.1 million as of December 31, 2017[74]. - The ratio of non-accrual loans to total loans receivable was 0.48% at December 31, 2018, compared to 0.47% at December 31, 2017[74]. - Troubled debt restructurings totaled $6.7 million at December 31, 2018, compared to $5.1 million at December 31, 2017[80]. - Total non-performing assets amounted to $8.7 million as of December 31, 2018[74]. - Total loans past due increased by $1.1 million, or 18.8%, to $6.95 million at December 31, 2018, from $5.85 million at December 31, 2017[87]. Capital and Liquidity - As of December 31, 2018, WaterStone Bank had a capital to assets ratio of 20.01%, down from 21.44% in 2017[165]. - WaterStone Bank was classified as well-capitalized with a common equity Tier 1 ratio of 26.05% and a total risk-based capital ratio of 26.95%[177]. - The capital conservation buffer requirement was fully implemented at 2.5% on January 1, 2019, which is necessary for capital distributions and discretionary bonuses[170]. - WaterStone Bank's Required Liquidity Ratio was 8.0% as of December 31, 2018, and the bank was in compliance with this requirement[180]. Regulatory Environment - WaterStone Bank is subject to extensive regulation by the WDFI and the Federal Deposit Insurance Corporation, impacting its operational capabilities[140]. - The Dodd-Frank Act increased the minimum target Deposit Insurance Fund ratio to 1.35% of estimated insured deposits, which was exceeded in November 2018[161]. - Loans to one borrower are limited to 20% of the savings bank's capital plus an additional 5% for fully secured loans, with a maximum of $500,000 for certain purposes[149]. - The Federal Deposit Insurance Corporation has the authority to increase insurance assessments, which could adversely affect WaterStone Bank's operating expenses[162]. Investment Portfolio - Waterstone Financial's investment subsidiary, Wauwatosa Investments, Inc., manages the majority of the consolidated investment portfolio[27]. - The mortgage-backed securities portfolio had a weighted average yield of 2.58% and a weighted average remaining life of 4.2 years at December 31, 2018[116]. - Total securities available for sale amounted to $188.272 million as of December 31, 2018, with a weighted average yield of 2.63%[125]. - The municipal obligations portfolio totaled $55.9 million at December 31, 2018, with a weighted average yield of 2.37% and a weighted average remaining life of 5.2 years[118].