IMPORTANT NOTICE: We’ve seen an increase in fraudulent calls claiming to be from various departments at WaterStone Bank. We will never ask for any account detail information over the phone. If you receive such a call, hang up immediately and contact our Customer Support Center at 414-761-1000.
Wauwatosa, Wis. — 9/24/2024 — On September 24, 2024, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.15 per common share. The dividend is payable on November 1, 2024, to shareholders of record at the close of business on October 8, 2024.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Wauwatosa, Wis. – August 16, 2024 – WaterStone Bank is proud to announce three new Community Presidents at its Germantown, West Allis–National, and Pewaukee branches.
Roxane Adams has been named Community President of the Germantown branch. With 16 years of experience in healthcare management, including roles as Project Lead and Branch Manager, Roxane brings a wealth of expertise that will drive growth and deepen community engagement in Germantown. She is eager to implement her guiding principle: “Work together, win together.”
An active supporter of Milwaukee-area festivals and museums, Roxane also enjoys boating, riding her Harley Davidson motorcycle, and snowmobiling in Northern Wisconsin.
Maria Castro joins the West Allis-National branch as its new Community President. Maria brings a decade of community banking experience, where she served as Assistant Branch Manager, following several years in restaurant management. Her diverse background in banking and hospitality has equipped her with exceptional leadership skills and a customer-centric approach.
A dedicated volunteer for Project Clean and Green, Maria’s commitment to improving Milwaukee neighborhoods aligns perfectly with WaterStone Bank’s mission to uplift the communities it serves. In her free time, Maria enjoys experimenting with new recipes, discovering hidden food spots, exploring walking trails, and traveling. She lives by the motto, “Sometimes you win, sometimes you learn,” and is deeply immersed in the culture and community of the Silver City neighborhood, where she resides.
Korey Smith steps into the role of Community President at the Pewaukee branch, bringing a rich and varied background, including service in the U.S. Marine Corps. His career highlights include launching Wisconsin’s first Peloton and Fabletics stores and serving as Director of Operations at Woodlands School in Milwaukee.
Korey is actively involved in the community through F.E.A.R. MKE, a group dedicated to fitness and running. In his personal life, Korey enjoys running, golfing, attending local events with his wife, and sharing his love for Funko Pops and video games with his son. Currently residing in Wales, Korey is eager to lead and connect with the Pewaukee community.
"We are excited to welcome these new Community Presidents to our team,” said Julie Glynn, Executive Vice President and Chief Retail Officer. “Their extensive experience, dedication to community service, and passion for personal growth make them an ideal fit for WaterStone Bank. We look forward to the positive impact they’ll bring to our retail division and the communities we serve.”
About WaterStone Bank
Founded in 1921, WaterStone Bank today offers a full suite of personal and business banking products. The community bank serves southeastern Wisconsin with branches in Brookfield, Fox Point, Franklin, Germantown, Greenfield, Milwaukee, Oak Creek, Oconomowoc, Pewaukee, Waukesha, Wauwatosa and West Allis. WaterStone Bank is the parent company to Waterstone Mortgage, a lender in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
Wauwatosa, WI – 7/25/2024 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $5.7 million, or $0.31 per diluted share, for the quarter ended June 30, 2024 compared to net income of $4.0 million, or $0.20 per diluted share for the quarter ended June 30, 2023. Net income per diluted share was $0.47 for the six months ended June 30, 2024, compared to net income per diluted share of $0.30 for the six months ended June 30, 2023.
“The results this quarter reflect our continued efforts over the past year to improve efficiencies at the Mortgage Banking segment.” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "While our results have improved, we continue to face many challenges within the Mortgage Banking segment, as the mortgage banking industry continues to face unknown variables driven by consumer demand, affordable inventory, and interest rates. The Community Banking segment continues to deal with margin pressure, as short-term funding rates remain elevated due to the restrictive monetary policy of the Federal Reserve. Throughout this challenging period, we have maintained a robust share repurchase program that continues to return strong value to shareholders through repurchase activity that is accretive to book value."
Highlights of the Quarter Ended June 30, 2024
Waterstone Financial, Inc. (Consolidated)
Community Banking Segment
Mortgage Banking Segment
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
View the full report in the below pdf.
Wauwatosa, Wis. — 6/18/2024 — On June 18, 2024, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.15 per common share. The dividend is payable on August 1, 2024, to shareholders of record at the close of business on July 8, 2024.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Wauwatosa, WI – 4/30/2024 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $3.0 million, or $0.16 per diluted share, for the quarter ended March 31, 2024 compared to net income of $2.2 million, or $0.10 per diluted share for the quarter ended March 31, 2023. The current year reflects a $0.04 per share one-time charge related to a change in Wisconsin state tax law, as described below.
“We are pleased that the Mortgage Banking segment demonstrated improved performance, as volumes and margin have bounced off of the lows from the past two years.” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "While our results of operations have improved form the prior year, the Mortgage Banking segment continues to face industry-wide headwinds in the form of low levels of housing inventory and affordability constraints driven by elevated mortgage rates. The Community Banking segment continues to contend with margin compression, driven by higher funding costs, as interest rates remain at recent high levels. In spite of the challenging environment, we continue to maintain strong asset quality and remained focused on returning capital to our shareholders through our dividend and share repurchases."
Highlights of the Quarter Ended March 31, 2024
Waterstone Financial, Inc. (Consolidated)
● Consolidated net income of Waterstone Financial, Inc. totaled $3.0 million for the quarter ended March 31, 2024, compared to net income of $2.2 million for the quarter ended March 31, 2023.
● Consolidated return on average assets was 0.56% for the quarter ended March 31, 2024 compared to 0.43% for the quarter ended March 31, 2023.
● Consolidated return on average equity was 3.56% for the quarter ended March 31, 2024 and 2.35% for the quarter ended March 31, 2023.
● Dividends declared during the quarter ended March 31, 2024 totaled $0.15 per common share.
● During the quarter ended March 31, 2024 , we repurchased approximately 417,000 shares at a cost (including the federal excise tax) of $5.3 million, or $12.65 per share. This share repurchase activity was accretive to book value per share in the amount of $0.09 during the quarter ended March 31, 2024.
● Nonperforming assets as a percentage of total assets was 0.23% at March 31, 2024, 0.23% at December 31, 2023, and 0.22% at March 31, 2023.
● Past due loans as a percentage of total loans was 0.64% at March 31, 2024, 0.68% at December 31, 2023, and 0.64% at March 31, 2023.
● Book value per share was $16.98 at March 31, 2024 and $16.94 at December 31, 2023.
● In July 2023, Wisconsin’s Governor signed the Wisconsin state budget, retroactive to January 1, 2023, which included legislation that provides financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on loans to existing Wisconsin-based business or agriculture purpose loans that are $5.0 million or less in balance on January 1, 2023, and to new loans that meet the criteria. On March 18, 2024, the State of Wisconsin Department of Revenue issued an emergency ruling with additional details of the law. This publication enabled us to estimate the impact on our Wisconsin state income tax expense. The impact moving forward should result in no Wisconsin state income taxes being expensed, resulting in a lower estimated effective tax rate. The elimination of Wisconsin state income tax expense resulted in the establishment of a valuation allowance for Wisconsin state income deferred tax assets, resulting in a one-time $1.1 million charge to state income tax expense in the first quarter. Partially offsetting the impact of the charge related to the valuation allowance the Company realized a one-time benefit of approximately $368,000 during the quarter to recognize a reduction in current state income tax provision. The net amount of these two items resulted in a a $0.04 reduction of earnings per share during the quarter ended March 31, 2024.
Community Banking Segment
● Pre-tax income totaled $4.3 million for the quarter ended March 31, 2024, which represents a $2.2 million, or 33.5%, decrease compared to $6.4 million for the quarter ended March 31, 2023.
● Net interest income totaled $11.6 million for the quarter ended March 31, 2024, which represents a $2.4 million, or 17.2%, decrease compared to $14.0 million for the quarter ended March 31, 2023.
● Average loans held for investment totaled $1.66 billion during the quarter ended March 31, 2024, which represents an increase of $133.0 million, or 8.7%, compared to $1.53 billion for the quarter ended March 31, 2023. The increase was primarily due to increases in the single-family, construction, and commercial real estate mortgages. Average loans held for investment increased $4.1 million compared to $1.66 billion for the quarter ended December 31, 2023. The increase was primarily due to an increase in construction mortgages.
● Net interest margin decreased 73 basis points to 2.15% for the quarter ended March 31, 2024 compared to 2.88% for the quarter ended March 31, 2023, which was a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin decreased 10 basis points compared to 2.25% for the quarter ended December 31, 2023, driven by an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates.
● Past due loans at the community banking segment totaled $8.1 million at March 31, 2024, $7.9 million at December 31, 2023, and $7.5 million at March 31, 2023.
● The segment had a provision for credit losses related to funded loans of $35,000 for the quarter ended March 31, 2024 compared to a negative provision for credit losses related to funded loans of $96,000 for the quarter ended March 31, 2023. The current quarter increase was primarily due to adjustments in the qualitative factors related to increases in treasury interest rates during the quarter offset by a decrease to historical loss rates. The provision for credit losses related to unfunded loan commitments was $70,000 for the quarter ended March 31, 2024 compared to a provision for credit losses related to unfunded loan commitments of $484,000 for the quarter ended March 31, 2023. The provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2024 was due primarily to an increase of construction loans that are currently waiting to be funded compared to the prior quarter end.
● The efficiency ratio, a non-GAAP ratio, was 65.17% for the quarter ended March 31, 2024, compared to 54.53% for the quarter ended March 31, 2023.
● Average deposits (excluding escrow accounts) totaled $1.19 billion during the quarter ended March 31, 2024, an increase of $16.5 million, or 1.4%, compared to $1.17 billion during the quarter ended March 31, 2023. Average deposits decreased $19.0 million, or 6.3% annualized, compared to $1.21 billion for the quarter ended December 31, 2023.
Mortgage Banking Segment
● Pre-tax income totaled $369,000 for the quarter ended March 31, 2024, compared to $3.7 million of pre-tax loss for the quarter ended March 31, 2023.
● Loan originations increased $42.4 million, or 9.6%, to $485.1 million during the quarter ended March 31, 2024, compared to $442.7 million during the quarter ended March 31, 2023. Origination volume relative to purchase activity accounted for 93.0% of originations for the quarter ended March 31, 2024 compared to 96.5% of total originations for the quarter ended March 31, 2023.
● Mortgage banking non-interest income increased $2.4 million, or 13.2%, to $20.3 million for the quarter ended March 31, 2024, compared to $18.0 million for the quarter ended March 31, 2023.
● Gross margin on loans sold totaled 4.10% for the quarter ended March 31, 2024, compared to 3.78% for the quarter ended March 31, 2023.
● Total compensation, payroll taxes and other employee benefits decreased $343,000, or 2.3%, to $14.8 million during the quarter ended March 31, 2024 compared to $15.1 million during the quarter ended March 31, 2023. The decrease primarily related to decreased salary expense and health insurance expense driven by reduced employee headcount and lower claims to start the 2024 year.
● Total other noninterest expense decreased $1.8 million, or 74.4%, to $616,000 during the quarter ended March 31, 2024 compared to $2.4 million during the quarter ended March 31, 2023. The decrease primarily related to decreased provision for branch losses, branch overhead, provision for loan sale losses, and reversal of mortgage servicing rights impairment.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
View the full report in the below pdf.
Wauwatosa, Wis. – April 29, 2024 – WaterStone Bank is pleased to announce the promotion of Jennifer Litkowiec to the position of Business Development Officer.
Jennifer joined WaterStone Bank in 2016 as the Community President at the Oak Creek/27th Street branch, where she demonstrated exceptional leadership and commitment to community engagement.
In her new role as Business Development Officer, Jennifer will be highly visible in the community, offering financial strategies and knowledge to support small businesses, as well as strengthening relationships with current business customers. Her expertise and proven track record make her ideally suited to drive the business development efforts forward.
“I’ve always enjoyed the sales aspect of the Community President role—getting to know the customers and their needs, and ensuring they access the right products,” says Jennifer. “This new position gives me more time to look for ways to help them and focus on giving a higher level of customer service.”
For Chief Retail Officer Julie Glynn, Jennifer’s promotion represents expanded possibilities for WaterStone Bank. “We are incredibly excited to have Jennifer in this new role as Business Development Officer. Her experience and passion for helping business customers and their success will positively impact businesses in our community and open new avenues for growth,” Julie says.
Jennifer has a degree in business, with a minor in marketing, and has worked in the banking industry for almost 20 years. Jennifer is a board member with the Oak Creek National Night Out and Crimestoppers and is active in the South Suburban Chamber of Commerce. Jennifer resides in Cudahy, where she enjoys being a part of the sports booster clubs and extracurricular activities that keep her two teenagers busy.
About WaterStone Bank: WaterStone Bank, established in 1921, is a leading financial institution committed to serving the communities of Milwaukee, Waukesha, and Washington Counties. With a proud history of innovation, integrity, and community service, WaterStone Bank offers a wide range of banking and financial solutions to both individual and business customers. Headquartered in Wauwatosa, Wisconsin, the bank operates 14 branches across the region and is recognized for its commitment to customer service and community involvement. For more information, please visit our website at wsbonline.com.
Wauwatosa, Wis. – 4/23/2024 – Waterstone Financial, Inc. (NASDAQ: WSBF) (the "Company") announced that on April 23, 2024, its Board of Directors authorized the repurchase of up to an additional 2,000,000 shares of the Company’s outstanding shares of common stock under its existing repurchase program. Prior to this authorization, 224,852 shares remained available to repurchase under the existing program. Combined with the shares authorized today, the total 2,224,852 shares available for repurchase represent approximately 11.2% of the Company’s issued and outstanding shares of common stock as of April 23, 2024. The timing of the repurchases will depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market repurchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will be treated as authorized but unissued by the Company. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to repurchase any particular number of shares.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information, please visit our website at wsbonline.com.
Wauwatosa, Wis. — 3/22/2024 — On March 21, 2024, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.15 per common share. The dividend is payable on May 1, 2024, to shareholders of record at the close of business on April 8, 2024.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
Wauwatosa, WI – 1/30/2024 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported a net loss of $40,000, or less than $0.01 per diluted share, for the quarter ended December 31, 2023, compared to net income of $935,000, or $0.04 per diluted share for the quarter ended December 31, 2022. Net income per diluted share was $0.46 for the twelve months ended December 31, 2023, compared to net income per diluted share of $0.89 for the twelve months ended December 31, 2022.
“The current market dynamics continue to present challenges for both our Community Banking and Mortgage Banking segments.” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "The rapid rise in short-term interest rates and an inverted yield curve continue to create downward pressure on the net interest margin of the Community Banking segment. In addition, the housing market continues to be adversely impacted by elevated interest rates, which have resulted in low levels of inventory and a decrease in housing affordability. As is the case for the overall mortgage banking industry, the results of operations within our Mortgage Banking segment have been negatively impacted by declining mortgage origination volumes and compressed margins. Despite these challenges, our strong asset quality and robust level of capital allowed us to continue to provide strong shareholder returns throughout 2023. During the year ended December 31, 2023, we declared dividends of $0.70 per share and repurchased 1.9 million shares of our stock at an average price well below our current book value per share.”
Highlights of the Quarter Ended December 31, 2023
Waterstone Financial, Inc. (Consolidated)
● Consolidated net loss of Waterstone Financial, Inc. totaled $40,000 for the quarter ended December 31, 2023, compared to net income of $935,000 for the quarter ended December 31, 2022.
● Consolidated return on average assets was (0.01)% for the quarter ended December 31, 2023, compared to 0.19% for the quarter ended December 31, 2022. ● Consolidated return on average equity was (0.05)% for the quarter ended December 31, 2023, and 0.99% for the quarter ended December 31, 2022.
● Dividends declared during the quarter ended December 31, 2023, totaled $0.15 per common share.
● During the quarter ended December 31, 2023, we repurchased approximately 545,000 shares at a cost (including the federal excise tax) of $6.2 million, or $11.36 per share. This share repurchase activity was accretive to book value per share in the amount of $0.14 during the quarter ended December 31, 2023.
● During the year ended December 31, 2023, we repurchased approximately 1.9 million shares at a cost (including the federal excise tax) of $26.0 million, or $13.38 per share. This share repurchase activity was accretive to book value per share in the $0.32 during the year ended December 31, 2023.
● Nonperforming assets as percentage of total assets was 0.23% at December 31, 2023, 0.20% at September 30, 2023, and 0.22% at December 31, 2022.
● Past due loans as a percentage of total loans was 0.68% at December 31, 2023, 0.53% at September 30, 2023, and 0.41% at December 31, 2022.
● Book value per share was $16.94 at December 31, 2023, and $16.71 at December 31, 2022.
Community Banking Segment
● Pre-tax income totaled $5.3 million for the quarter ended December 31, 2023, which represents a $1.7 million, or 24.3%, decrease compared to $7.0 million for the quarter ended December 31, 2022.
● Past due loans at the community banking segment totaled $7.9 million at December 31, 2023, $6.7 million at September 30, 2023, and $4.8 million at December 31, 2022.
● Net interest income totaled $12.1 million for the quarter ended December 31, 2023, which represents a $3.7 million, or 23.4%, decrease compared to $15.7 million for the quarter ended December 31, 2022.
● Average loans held for investment totaled $1.66 billion during the quarter ended December 31, 2023, which represents an increase of $247.2 million, or 17.5%, compared to $1.41 billion for the quarter ended December 31, 2022. The increase was primarily due to increases in the single-family, multi-family, and commercial real estate mortgages. Average loans held for investment increased $33.1 million compared to $1.63 billion for the quarter ended September 30, 2023. The increase was primarily due to an increase in single-family and commercial real estate mortgages.
● Net interest margin decreased 104 basis points to 2.25% for the quarter ended December 31, 2023, compared to 3.29% for the quarter ended December 31, 2022, which was a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin decreased one basis point compared to 2.26% for the quarter ended September 30, 2023, driven by an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates.
● The segment had a negative provision for credit losses related to funded loans of $17,000 for the quarter ended December 31, 2023, compared to a provision for credit losses related to funded loans of $290,000 for the quarter ended December 31, 2022. The current quarter decrease was primarily due to historical loss rates continuing to decrease. The negative provision for credit losses related to unfunded loan commitments was $533,000 for the quarter ended December 31, 2023, compared to a provision for credit losses related to unfunded loan commitments of $334,000 for the quarter ended December 31, 2022. The decrease for the quarter ended December 31, 2023, was due primarily to a decrease of loans in the loan commitment pipeline as loan activity decreased during the quarter and loans from the prior quarter pipeline funded.
● The efficiency ratio, a non-GAAP ratio, was 63.26% for the quarter ended December 31, 2023, compared to 54.49% for the quarter ended December 31, 2022.
● Average deposits (excluding escrow accounts) totaled $1.21 billion during the quarter ended December 31, 2023, a decrease of $1.7 million, or 0.1%, compared to $1.21 billion during the quarter ended December 31, 2022. Average deposits increased $10.4 million, or 3.5% annualized, compared to the $1.20 billion for the quarter ended September 30, 2023.
● Other noninterest expense decreased $1.8 million to $628,000 during the quarter ended December 31, 2023, compared to $2.5 million during the quarter ended December 31, 2022. The decrease was driven by fees paid to the mortgage banking segment for the purchase of single-family adjustable-rate mortgage loans. These fees totaled $44,000 during the quarter ended December 31, 2023, compared to $2.0 million during the quarter ended December 31, 2022.
Mortgage Banking Segment
● Pre-tax loss totaled $6.0 million for the quarter ended December 31, 2023, compared to $6.5 million of pre-tax loss for the quarter ended December 31, 2022.
● Loan originations decreased $88.3 million, or 16.1%, to $458.4 million during the quarter ended December 31, 2023, compared to $546.6 million during the quarter ended December 31, 2022. Origination volume relative to purchase activity accounted for 95.7% of originations for the quarter ended December 31, 2023, compared to 95.6% of total originations for the quarter ended December 31, 2022.
● Mortgage banking non-interest income decreased $2.0 million, or 11.3%, to $16.0 million for the quarter ended December 31, 2023, compared to $18.1 million for the quarter ended December 31, 2022.
● Gross margin on loans sold totaled 3.51% for the quarter ended December 31, 2023, compared to 3.41% for the quarter ended December 31, 2022.
● Total compensation, payroll taxes and other employee benefits decreased $2.5 million, or 14.5%, to $14.9 million during the quarter ended December 31, 2023, compared to $17.4 million during the quarter ended December 31, 2022. The decrease primarily related to decreased commission expense and salary expense driven by decreased loan origination volume and reduced employee headcount.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
View the full report in the below pdf.
Wauwatosa, Wis. — 12/21/2023 — On December 21, 2023, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.15 per common share. The dividend is payable on February 1, 2024, to shareholders of record at the close of business on January 8, 2024.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
Wauwatosa, Wis. – November 2, 2023 – WaterStone Bank is proud to announce that Marlene Molter, Senior Vice President of Human Resources, has been named an Inclusive Influencer by the Women’s Fund of Greater Milwaukee. The endorsement recognizes individuals dedicated to fostering inclusivity, advocating for those whose voices are often overlooked, and celebrating the uniqueness of all individuals.
Molter, a dedicated leader at WaterStone Bank, exemplifies the values of inclusivity, collaboration, and advocacy. Her commitment to promoting policies that encourage the hiring, recruitment and training of underrepresented groups creates an environment that has been pivotal in shaping the culture at WaterStone. In addition, her work to establish and maintain mentoring programs for workforce development and local high school students ensures equal opportunities for all groups to advance in their careers, benefitting the greater Milwaukee community as a whole.
“The honor is a testament to Marlene’s contribution to our community and her commitment to making a difference,” says Julie Glynn, Executive Vice President and Chief Retail Officer at WaterStone Bank. “Marlene’s effort to ensure that every individual’s voice is heard and valued inspires others to follow suit. This recognition is well deserved, and we congratulate her.”
About WaterStone Bank: WaterStone Bank, established in 1921, is a leading financial institution committed to serving the communities of Milwaukee, Waukesha, and Washington Counties. With a proud history of innovation, integrity, and community service, WaterStone Bank offers a wide range of banking and financial solutions to both individual and business customers. Headquartered in Wauwatosa, Wisconsin, the bank operates 14 branches across the region and is recognized for its commitment to customer service and community involvement. For more information, please visit our website at wsbonline.com.
Wauwatosa, WI – 10/24/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $3.3 million, or $0.16 per diluted share for the quarter ended September 30, 2023, compared to $5.3 million, or $0.25 per diluted share for the quarter ended September 30, 2022. Net income per diluted share was $0.46 for the nine months ended September 30, 2023, compared to net income per diluted share of $0.83 for the nine months ended September 30, 2022.
“We continue to navigate the challenges that have resulted from a rapid rise in interest rates and an inverted yield curve,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking Segment continues to maintain strong asset quality metrics and we achieved growth in both loans held for investment and deposits during the quarter. The Mortgage Banking segment results continue to be negatively impacted by a challenging industry as inventory, housing affordability, and escalating interest rates have slowed mortgage origination volumes and compressed margins. We continue to try and find efficiencies in this environment. During the quarter, we were pleased to return $9.6 million back to shareholders through share repurchases and dividends declared.”
Highlights of the Quarter Ended September 30, 2023
Waterstone Financial, Inc. (Consolidated)
● Consolidated net income of Waterstone Financial, Inc. totaled $3.3 million for the quarter ended September 30, 2023, compared to $5.3 million for the quarter ended September 30, 2022.
● Consolidated return on average assets was 0.58% for the quarter ended September 30, 2023, compared to 1.08% for the quarter ended September 30, 2022.
● Consolidated return on average equity was 3.63% for the quarter ended September 30, 2023, and 5.38% for the quarter ended September 30, 2022.
● Dividends declared during the quarter ended September 30, 2023, totaled $0.15 per common share.
● We repurchased approximately 516,000 shares at a cost (including the excise tax) of $6.7 million, or $12.94 per share, during the quarter ended September 30, 2023.
● Nonperforming assets as percentage of total assets was 0.20% at September 30, 2023, 0.19% at June 30, 2023, and 0.27% at September 30, 2022.
● Past due loans as a percentage of total loans were 0.53% at September 30, 2023, 0.50% at June 30, 2023, and 0.48% at September 30, 2022.
● Book value per share was $16.60 on September 30, 2023, and $16.71 at December 31, 2022. Book value per share increased approximately $0.10 during the quarter ended September 30, 2023, and approximately $0.18 during the year ended September 30, 2023, due to our share repurchase activity.
Community Banking Segment
● Pre-tax income totaled $5.7 million for the quarter ended September 30, 2023, which represents a $2.9 million, or 33.8%, decrease compared to $8.5 million for the quarter ended September 30, 2022.
● Past due loans at the community banking segment were $6.7 million at September 30, 2023, $5.7 million at June 30, 2023, and $4.6 million at September 30, 2022.
● Net interest income totaled $12.4 million for the quarter ended September 30, 2023, which represents a $3.1 million, or 19.8%, decrease compared to $15.5 million for the quarter ended September 30, 2022.
● Average loans held for investment totaled $1.63 billion during the quarter ended September 30, 2023, which represents an increase of $316.3 million, or 24.1%, compared to $1.31 billion for the quarter ended September 30, 2022. The increase was primarily due to increases in the single-family and multi-family mortgages. Average loans held for investment increased $40.3 million compared to $1.59 billion for the quarter ended June 30, 2023. The increase was primarily due to an increase in the single-family, multi-family, construction, and commercial real estate mortgages.
● Net interest margin decreased 108 basis points to 2.26% for the quarter ended September 30, 2023, compared to 3.34% for the quarter ended September 30, 2022, which was a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin decreased 21 basis points compared to 2.47% for the quarter ended June 30, 2023, driven by an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates.
● The segment had a provision for credit losses related to funded loans of $206,000 for the quarter ended September 30, 2023, compared to a provision for credit losses related to funded loans of $262,000 for the quarter ended September 30, 2022. The current quarter increase was primarily due to an increase in originations and loan balance. The provision for credit losses related to unfunded loan commitments was $239,000 for the quarter ended September 30, 2023, compared to a negative provision for credit losses related to unfunded loan commitments of $28,000 for the quarter ended September 30, 2022. The increase for the quarter ended September 30, 2023, was due primarily to an increase of loans in the loan commitment pipeline as loan activity increased during the quarter.
● The efficiency ratio, a non-GAAP ratio, was 54.43% for the quarter ended September 30, 2023, compared to 47.16% for the quarter ended September 30, 2022.
● Average deposits (excluding escrow accounts) totaled $1.20 billion during the quarter ended September 30, 2023, an increase of $6.0 million, or 0.5%, compared to $1.19 billion during the quarter ended September 30, 2022. Average deposits increased $15.4 million, or 5.2% annualized, compared to the $1.18 billion for the quarter ended June 30, 2023.
● Other noninterest expense decreased $774,000 to $703,000 during the quarter ended September 30, 2023, compared to $1.5 million during the quarter ended September 30, 2022. The decrease was driven by fees paid to the mortgage banking segment for the purchase of single-family adjustable-rate mortgage loans. These fees totaled $188,000 during the quarter ended September 30, 2023, compared to $1.0 million during the quarter ended September 30, 2022.
Mortgage Banking Segment
● Pre-tax loss totaled $2.1 million for the quarter ended September 30, 2023, compared to $1.8 million of pre-tax loss for the quarter ended September 30, 2022.
● Loan originations decreased $132.3 million, or 18.1%, to $597.6 million during the quarter ended September 30, 2023, compared to $729.9 million during the quarter ended September 30, 2022. Origination volume relative to purchase activity accounted for 95.4% of originations for the quarter ended September 30, 2023, compared to 94.2% of total originations for the quarter ended September 30, 2022.
● Mortgage banking non-interest income decreased $5.9 million, or 21.4%, to $21.5 million for the quarter ended September 30, 2023, compared to $27.3 million for the quarter ended September 30, 2022.
● Gross margin on loans sold decreased to 3.62% for the quarter ended September 30, 2023, compared to 3.70% for the quarter ended September 30, 2022.
● Total compensation, payroll taxes and other employee benefits decreased $4.7 million, or 21.4%, to $17.2 million during the quarter ended September 30, 2023, compared to $21.9 million during the quarter ended September 30, 2022. The decrease primarily related to decreased commission expense and salary expense driven by decreased loan origination volume and reduced employee headcount.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
View the full report in the below pdf.
Wauwatosa, Wis. – 10/16/2023 – WaterStone Bank is pleased to introduce its new Community President, bringing fresh leadership to the branch on State Street in Wauwatosa.
Joshua Braun has been appointed Community President of WaterStone Bank’s Wauwatosa branch. Before assuming his current role, Braun worked as a Mortgage Underwriter, serving WaterStone Mortgage until 2018 and contributing to Landmark Credit Union before that.
Braun’s entrepreneurial spirit and managerial experience set him apart, with a background of running a successful catering business that honed the skills he brings to his leadership role at WaterStone. Braun believes that the heart of his professional fulfillments lies in interactions with the public. “I have always worked in a position that put me in front of clients,” says Braun, calling those opportunities to assist customers “the most rewarding in my professional life.”
Braun looks forward to working with employees and patrons in Wauwatosa, not only to build on the strong reputation of that office, but “to make this the location that our clients love to come to, and employees want to work at!”
One of Braun’s guiding principles is encapsulated in his favorite motto: “Everything that has value in life is a product of consistency. Success, health, fitness, wealthy, friendships, relationships and all other aspirations are all about consistency.”
Currently calling Greenfield home, Braun is an active father of three. A sports enthusiast, Braun enjoys both playing and spectating, and has a deep appreciation for cinema, music and cooking, especially exploring local restaurants and embracing new culinary experiences.
Wauwatosa, Wis. — 09/26/2023 — Waterstone Financial, Inc. (Waterstone) today announced a strategic decision to reduce its dividend payout as part of a broader initiative to optimize capital allocation. This move is aimed at enhancing shareholder value through stock buybacks, which we believe will generate long-term benefits for both Waterstone and its shareholders. Today the Board of Directors declared a quarterly dividend of $0.15 per common share. The dividend will be payable November 1, 2023, to shareholders of record at the close of business on October 9, 2023.
The decision reflects Waterstone’s commitment to allocating capital more efficiently. The reduction in the dividend will be reallocated to efforts to repurchase shares at pricing levels that remain below tangible book value per share. “Reallocating capital towards stock buybacks is a prudent strategic move, given the current market dynamics and our strong financial position,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “This decision aligns with our continued commitment to enhancing shareholder value.”
Based on yesterday's closing price, this dividend results in an annualized yield of 5.17%. While we continue to provide significant shareholder returns through buybacks and dividends, we also maintain a capital to assets ratio of 15.9% as of June 30, 2023; well above regulatory requirements and our peers. The continuance of a strong capital position is prudent given the uncertain interest rate and economic environments.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
WAUWATOSA, Wis. – 8/15/2023 – WaterStone Bank announced today the expansion of its Military Valor Program (MVP) to now encompass certified caregivers of active-duty service members, military veterans, Reserve, and National Guard service members. The expansion reaffirms WaterStone Bank’s commitment to honoring the sacrifices of those who serve and recognizing the pivotal role played by caregivers in the lives of our nation’s heroes.
The Military Valor Program was originally designed to provide a comprehensive range of financial services tailored to the needs of active-duty military personnel and veterans. Building upon the program’s legacy, we are thrilled to extend its benefits to include certified caregivers who provide unwavering support to wounded, ill, or injured service members.
“At WaterStone Bank, we are committed to standing alongside those who dedicate themselves to the service of our nation. By extending the MVP Program to caregivers, we seek to acknowledge their vital role and provide them with the necessary tools to navigate their financial journey,” said Doug Gordon, CEO of WaterStone Bank. “We believe that this expansion underscores our dedication to fostering a community of support that goes beyond financial services.”
With this expansion, WaterStone Bank is poised to make a lasting impact in the lives of military and veteran caregivers, demonstrating once again our commitment to giving back to those who give so much.
About WaterStone Bank
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook,Twitter, LinkedIn,YouTube, and Instagram.
Wauwatosa, Wis. – 7/31/23 – WaterStone Bank announced today it will once again be hosting a school supply drive this summer to benefit children served by the Sojourner Family Peace Center. The Sojourner Family Peace Center is the largest nonprofit provider of domestic violence prevention and intervention services in Wisconsin.
Returning as the Sojourner Back-to-School sponsor for the fourth year, WaterStone Bank will be collecting new backpacks, water bottles, Clorox Wipes, Ziploc Bags, and tissues at all 14 branch locations from Wednesday, August 2 through Saturday, August 12. Individuals interested in supporting the drive are encouraged to visit their local WaterStone Bank branch to drop off donations. Sojourner also has an Amazon wish list available for those who wish to donate larger items or donate virtually.
“The first day of school is such an exciting time – the promise of new ideas, new friends, and new adventures,” said Sojourner President and CEO Carmen Pitre. “For many children, it means new backpacks, notebooks, and pencils to make it through the year. But children in families fleeing domestic violence often have to leave most of their belongings behind. We’re grateful for our partnership with WaterStone Bank and the generosity of our community to bring the joy of new supplies to children who would otherwise go without. When children have the tools they need, the sky’s the limit on what they can accomplish, and the items donated in this drive will allow each child’s abilities to soar.”
Each year, Sojourner hosts a Back-to-School Drive to make sure kids are prepared for school while they are experiencing tremendous transition. Sojourner partners with MPS social workers to ensure all Sojourner families have access to the supplies that will help make their student successful.
The WaterStone Bank Foundation was established in 2002 with the Waukesha County Community Foundation in order to ensure the bank’s ability to continually give back to the communities in which it serves. WaterStone Bank supports organizations that fall under its four core giving areas: community development, education, women and children, and veterans initiatives.
About WaterStone Bank
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook,Twitter, LinkedIn,YouTube, and Instagram.
About Sojourner
Sojourner Family Peace Center is the largest nonprofit provider of domestic violence prevention and intervention services in Wisconsin, serving nearly 8,000 clients each year. Established in 1975, Sojourner provides an array of support aimed at helping families affected by domestic violence achieve safety, justice, and well-being. Sojourner’s primary goals are to ensure the safety of victims of family violence and provide a pathway out of violence for victims and abusers through opportunities to make positive and lasting changes for themselves and their children. For more information, visit www.familypeacecenter.org or call the 24-hour hotline: (414) 933-2722.
Wauwatosa, WI – 7/25/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $4.0 million, or $0.20 per diluted share for the quarter ended June 30, 2023 compared to $8.0 million, or $0.36 per diluted share for the quarter ended June 30, 2022. Net income per diluted share was $0.30 for the six months ended June 30, 2023 compared to net income per diluted share of $0.58 for the six months ended June 30, 2022.
“The Community Banking segment’s continued strong asset quality metrics and growing loan portfolio stand out as bring spots in an otherwise challenging environment,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “While we achieved marginally better performance compared to recent quarters, the Mortgage Banking segment loss continues to reflect an industry that is challenged by low levels of housing inventory and higher mortgage rates. Both dynamics have resulted in lower volumes and margins for the mortgage banking inventory. In spite of the challenges in the market, we announced a 2,000,000 share repurchase program during the quarter, as we believe in the long-term success of the Company and providing a high level of total return to our shareholders.”
Highlights of the Quarter Ended June 30, 2023
Waterstone Financial, Inc. (Consolidated)
● Consolidated net income of Waterstone Financial, Inc. totaled $4.0 million for the quarter ended June 30, 2023, compared to $8.0 million for the quarter ended June 30, 2022.
● Consolidated return on average assets was 0.74% for the quarter ended June 30, 2023 compared to 1.61% for the quarter ended June 30, 2022.
● Consolidated return on average equity was 4.41% for the quarter ended June 30, 2023 and 7.93% for the quarter ended June 30, 2022.
● Dividends declared during the quarter ended June 30, 2023 totaled $0.20 per common share.
● We repurchased approximately 511,000 shares at a cost (including the excise tax) of $7.3 million, or $14.32 per share, during the quarter ended June 30, 2023.
● We authorized a new share repurchase program during the quarter that allows to repurchase up to 2,000,000 million shares issued and outstanding.
● Nonperforming assets as percentage of total assets was 0.19% at June 30, 2023, 0.22% at March 31, 2023, and 0.39% at June 30, 2022.
● Past due loans as a percentage of total loans was 0.50% at June 30, 2023, 0.64% at March 31, 2023, and 0.60% at June 30, 2022.
● Book value per share was $16.64 at June 30, 2023 and $16.71 at December 31, 2022.
Community Banking Segment
● Pre-tax income totaled $6.4 million for the quarter ended June 30, 2023, which represents a $1.6 million, or 19.9%, decrease compared to $8.0 million for the quarter ended June 30, 2022.
● Past due loans at the community banking segment was $5.7 million at June 30, 2023, $7.5 million at March 31, 2023, and $5.8 million at June 30, 2022.
● Net interest income totaled $13.2 million for the quarter ended June 30, 2023, which represents a $472,000, or 3.4%, decrease compared to $13.7 million for the quarter ended June 30, 2022.
● Average loans held for investment totaled $1.59 billion during the quarter ended June 30, 2023, which represents an increase of $339.6 million, or 27.2%, compared to $1.25 billion for the quarter ended June 30, 2022. The increase was primarily due to increases in the single-family and multi-family mortgages. Average loans held for investment increased $55.5 million compared to $1.53 billion for the quarter ended March 31, 2023. The increase was primarily due to an increase in the single-family mortgages.
● The community banking segment purchased $59.9 million adjustable-rate loans that were originated by the mortgage banking segment during the quarter ended June 30, 2023.
● Net interest margin decreased 55 basis points to 2.47% for the quarter ended June 30, 2023 compared to 3.02% for the quarter ended June 30, 2022, which was a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin decreased 41 basis points compared to 2.88% for the quarter ended March 31, 2023, driven by an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates.
● The segment had a provision for credit losses related to funded loans of $619,000 for the quarter ended June 30, 2023 compared to a provision for credit losses related to funded loans of $170,000 for the quarter ended June 30, 2022. The current quarter increase was primarily due to an increase in originations and loan balance. The negative provision for credit losses related to unfunded loan commitments was $462,000 for the quarter ended June 30, 2023 compared to a negative provision for credit losses related to unfunded loan commitments of $211,000 for the quarter ended June 30, 2022. The decrease for the quarter ended June 30, 2023 was due primarily to a decrease of loans in the loan commitment pipeline as loan funding activity increased during the quarter.
● The efficiency ratio, a non-GAAP ratio, was 55.81% for the quarter ended June 30, 2023, compared to 48.43% for the quarter ended June 30, 2022. ● Average deposits (excluding escrow accounts) totaled $1.18 billion during the quarter ended June 30, 2023, a decrease of $24.3 million, or 2.0%, compared to $1.21 billion during the quarter ended June 30, 2022. Average deposits increased $9.7 million, or 3.3% annualized, compared to the $1.17 billion for the quarter ended March 31, 2023.
● Other noninterest expense increased $635,000 to $1.6 million during the quarter ended June 30, 2023 compared to $1.0 million during the quarter ended June 30, 2022. The increase was driven by fees paid to the mortgage banking segment for the purchase of single-family adjustable rate mortgage loans. These fees totaled $1.1 million during the quarter ended June 30, 2023 compared to $504,000 during the quarter ended June 30, 2022.
Mortgage Banking Segment
● Pre-tax loss totaled $1.4 million for the quarter ended June 30, 2023, compared to $2.3 million of pre-tax income for the quarter ended June 30, 2022.
● Loan originations decreased $155.4 million, or 20.0%, to $623.3 million during the quarter ended June 30, 2023, compared to $778.8 million during the quarter ended June 30, 2022. Origination volume relative to purchase activity accounted for 96.4% of originations for the quarter ended June 30, 2023 compared to 90.4% of total originations for the quarter ended June 30, 2022.
● Mortgage banking non-interest income decreased $7.1 million, or 23.5%, to $23.0 million for the quarter ended June 30, 2023, compared to $30.1 million for the quarter ended June 30, 2022.
● Gross margin on loans sold decreased to 3.73% for the quarter ended June 30, 2023, compared to 3.85% for the quarter ended June 30, 2022.
● Total compensation, payroll taxes and other employee benefits decreased $3.4 million, or 15.9%, to $17.9 million during the quarter ended June 30, 2023 compared to $21.3 million during the quarter ended June 30, 2022. The decrease primarily related to decreased commission expense and salary expense driven by decreased loan origination volume and reduced employee headcount.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
View the full report in the below pdf.
Wauwatosa, Wis. – 7/25/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF), announced today that Douglas S. Gordon has notified Waterstone of his intention to retire as Chief Executive Officer (“CEO”) of Waterstone Financial, Inc. (the “Company”) and its wholly owned subsidiary, WaterStone Bank (the “Bank”), effective December 31, 2023. Gordon will continue to serve on the Board of Directors of the Company and the Bank. He will also continue his service on the Board of Directors of Waterstone Mortgage, a wholly owned subsidiary of the Bank.
The Board of Directors of the Company and the Bank also announced the election of William F. Bruss, to serve as the next CEO of the Company and the Bank effective January 1, 2024. Bruss currently serves as the President of the Company and the Bank.
“As I retire from my position as CEO of this esteemed financial institution, I am filled with a sense of gratitude and accomplishment,” said Gordon, CEO. “Over the years, we have grown and expanded our operations, while remaining committed to our values of integrity, customer service, and community involvement. It has been an honor to lead such a dedicated and talented team, and I am proud of all that we have achieved together. As I move on to my Board position, I am confident that with Bill [Bruss] and his team, Waterstone is in good hands; and will continue to thrive and serve the financial needs of our customers.”
“On behalf of the Board of Directors and our Shareholders, I would like to thank Doug [Gordon] for his years of loyal service and leadership to this organization,” said Pat Lawton, Chairman of the Board. “During his tenure, Doug led us through a successful conversion to a publicly held institution, enabling the Bank to grow from $1.4 billion to over $2.2 billion in assets and grow a mortgage banking operation that has achieved in excess of $4 billion in annual mortgage originations. Most importantly, Doug has attracted and retained an outstanding group of leaders and staff that are dedicated to our mission.”
“I am honored to have been given the opportunity to lead Waterstone,” said Bruss. “I appreciate the confidence that Doug and the Board have shown in me. I am excited to continue our legacy of banking and supporting the communities we serve and look forward to working with our talented and dedicated Waterstone family, as we build upon the strong foundation and culture at both WaterStone Bank and Waterstone Mortgage and continue to implement our strategic plans.”
Lawton said that the Board has planned for this transition for several years and that his breadth of experience at the Company, along with the leadership that he has demonstrated over the years, made Bruss the ideal successor to Gordon. “Bill has served in a variety of leadership positions with the Company and is highly respected within the organization,” said Lawton. “We are proud of what the Company has accomplished and are optimistic that the future will be even better.”
Bruss, who has been an employee of the Bank since 1997 and an executive officer of the Company since 2005, will continue to serve in the position of President of the Company and the Bank through December 31, 2023. He has served in a variety of executive positions within the Company and the Bank over his tenure with the organization, including President of the Company and the Bank (January 2022-Present); Executive Vice President of the Company and the Bank (2015-2021); Chief Operating Officer (2013 through 2022); and General Counsel and Secretary (2005-Present). Bruss holds a Bachelor of Arts from St. Olaf College, and a Juris Doctor from Marquette University.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
We are excited to share that Waterstone Financial, Inc., is featured in Nasdaq’s 2023 Spotlight on Community Banks! Publicly traded since 2014, WaterStone Bank continues its legacy of stability and community involvement, while delivering value to shareholders.
WaterStone Bank, established in 1921 and headquartered in Wauwatosa, Wisconsin, offers a full suite of personal and business banking products and services. WaterStone Bank has a customer first approach by providing highly personalized customer service through enhanced digital services and new product offerings. WaterStone Bank is committed to serving the community through its devotion to a wide range of charitable initiatives in the greater Milwaukee community.
WaterStone Bank has been listed on Nasdaq since 2014 and trades under the ticker symbol “WSBF”...
Click the link below to read the full article and CEO Doug Gordon's insights on what makes WaterStone Bank unique.
Wauwatosa, Wis. – 6/29/2023 – On June 29, 2023, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF), declared a regular quarterly cash dividend of $0.20 per common share. The dividend is payable on August 2, 2023, to shareholders of record at the close of business on July 10, 2023.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
WAUWATOSA, Wis. – 5/24/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF) (the "Company") announced that on May 24, 2023, its Board of Directors authorized a share repurchase program pursuant to which the Company intends to repurchase up to 2,000,000 of its issued and outstanding shares, representing approximately 9.3% of its issued and outstanding shares of common stock. The repurchase program will commence on or about May 26, 2023. This share repurchase program follows the Board of Directors termination of the previous repurchase program during which the Company repurchased a total of 3,500,000 shares of its common stock at a weighted average price (including the excise tax) of $17.25 per share. The timing of the repurchases will depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market repurchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will be treated as authorized but unissued by the Company. The repurchase program may be suspended, terminated or modified at any time and for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to repurchase any particular number of shares.
About Waterstone Financial, Inc:
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook, Twitter, LinkedIn, YouTube, and Instagram.
WaterStone Bank is thrilled to announce that our company has been honored with the prestigious 2023 Top Workplace Award, as presented by the Milwaukee Journal Sentinel in collaboration with Energage consulting firm. This award is based solely on employee feedback, making it one of the most credible employer recognition programs.
“This outstanding achievement is a testament to the tremendous efforts and unwavering commitment of each and every member of our team” said Doug Gordon, CEO of WaterStone Bank. Together, we have created an exceptional work environment that fosters collaboration, growth, and success. “We extend our deepest appreciation to our employees for their hard work and dedication. Congratulations on this well-deserved accomplishment!”
In addition to being known for excellent customer service and robust charitable giving, WaterStone Bank provides employees with a flexible work environment, opportunities for personal and professional development, and exemplary benefits.
WaterStone Bank is proud to announce that Shanda Caveney, Community President of our Oak Creek Howell Ave. branch, has been chosen as the 2022 Oak Creek Citizen of the Year.
Shanda, who was nominated for the award in recognition of her tireless efforts as a dedicated volunteer, has been an integral part of WaterStone Bank since 2012. Her commitment to making a positive impact started at a young age, when she was named Oak Creek Junior High School’s Good Citizen in 1990. “I’ve been this person before I started working here. But now I can do even more, helping with donations and making those personal connections. I build trust with businesses and nonprofits,” says Shanda, who, in one of her community roles, worked behind the scenes to identify financial irregularities when she took over as treasurer for a nonprofit organization in 2017. “I keep an eye on things—I’m not going to just let something slide.”
“Shanda’s commitment to improving the lives of those around her is truly admirable, and it is inspiring to see someone make such a positive impact,” said WaterStone Bank CEO Doug Gordon.
Shanda’s dedication and commitment to the community are a true embodiment of WaterStone Bank’s core values of community service and giving back. We congratulate Shanda on this well-deserved recognition.
The award will be presented July 14, 2023, at the annual awards dinner.
Wauwatosa, Wis. – 5/3/2023 – WaterStone Bank recently named three new Community Presidents at its Brookfield, Germantown, and Oconomowoc branches.
Aimee Good has been hired as Community President at WaterStone Bank’s Germantown branch. With 12 years of management experience at Ulta Beauty, Inc., including a role as District Leader, Good’s background provides key direction in overseeing customer loyalty initiatives and developing internal talent at WaterStone Bank.
Good looks forward to forming relationships with customers at Germantown. “I want our customers to know that it is my goal to ensure quality customer service and to build lasting relationships,” Good says. “I am excited about being part of a local organization.”
A supporter of the arts and lover of antiques, Good frequently attends art shows and festivals. Born and raised in Milwaukee, which she calls “the best big, little city,” Good lives on the South side, and is excited to explore her new workplace: “I am looking forward to giving back to the community.”
Heather E. Fletcher takes the role of Community President at Oconomowoc. Fletcher comes to WaterStone Bank after 11 years in management at Walgreens, where she served as a Project Lead for hiring, recruiting candidates, and facilitating the hiring process.
Fletcher, who holds a degree in business management, is pleased with the switch to banking. “I’m enjoying the pace of the day-to-day interactions,” says Fletcher, who appreciates being on a first-name basis with her customers.
Fletcher enjoys traveling, and has visited 29 states in the U.S. She has a goal of reaching all 50 and keeps her passport ready for travel abroad. Fletcher lives in Franklin, which gives her access to Brewers games, Summerfest and her favorite spot, Seven Bridges Trail in Grant Park.
Caleb Quakkelaar has been promoted to Community President at WaterStone Bank in Brookfield. Following graduation from Marquette University, Quakkelaar served in the U.S. Army Reserves from 2013-16. His career with WaterStone Bank began in 2021, when he was hired as a Universal Banker at the Waukesha branch. The promotion is Quakkelaar’s second in his time with WaterStone Bank.
Quakkelaar’s first goal as the new lead in Brookfield is becoming involved with volunteering and community events in the area. In particular, he says, he wants to focus on “developing a network of contacts to partner with [to] expand WaterStone Bank’s involvement with the people, businesses and nonprofits in the area.”
Quakkelaar lives in Waukesha. In his free time, he enjoys camping, hiking and an annual trip to Colorado for hunting elk and black bear.
About WaterStone Bank
Founded in 1921, WaterStone Bank today offers a full suite of personal and business banking products. The community bank serves southeastern Wisconsin with branches in Brookfield, Fox Point, Franklin, Germantown, Greenfield, Milwaukee, Oak Creek, Oconomowoc, Pewaukee, Waukesha, Wauwatosa and West Allis. WaterStone Bank is the parent company to Waterstone Mortgage, a lender in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook, Twitter, LinkedIn, YouTube, and Instagram
Wauwatosa, WI – 4/25/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $2.2 million, or $0.10 per diluted share for the quarter ended March 31, 2023, compared to $5.3 million, or $0.23 per diluted share for the quarter ended March 31, 2022.
"The Community Banking segment achieved an 18% increase in year over year pre-tax income, while our Mortgage Banking segment, as well as the entire mortgage industry, continue to be challenged by higher mortgage rates and a nationwide housing inventory shortage,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “Despite the mortgage industry headwinds, we will continue to position our mortgage segment to take advantage of future improvements in the industry.”
Highlights of the Quarter Ended March 31, 2023
Waterstone Financial, Inc. (Consolidated)
● | Consolidated net income of Waterstone Financial, Inc. totaled $2.2 million for the quarter ended March 31, 2023, compared to $5.3 million for the quarter ended March 31, 2022. |
● | Consolidated return on average assets was 0.43% for the quarter ended March 31, 2023, compared to 1.00% for the quarter ended March 31, 2022. |
● | Consolidated return on average equity was 2.35% for the quarter ended March 31, 2023, and 5.00% for the quarter ended March 31, 2022. |
● | Dividends declared during the quarter ended March 31, 2023, totaled $0.20 per common share. |
● | We repurchased approximately 373,000 shares at a cost of $5.8 million, or $15.65 per share, during the quarter ended March 31, 2023. |
● | Nonperforming assets as percentage of total assets was 0.22% at March 31, 2023, 0.22% at December 31, 2022, and 0.34% at March 31, 2022. |
● | Past due loans as percentage of total loans was 0.64% at March 31, 2023, 0.41% at December 31, 2022, and 0.53% at March 31, 2022. |
● | Book value per share was $16.73 at March 31, 2023 and $16.71 at December 31, 2022. |
Community Banking Segment
● | Pre-tax income totaled $6.4 million for the quarter ended March 31, 2023, which represents a $1.0 million, or 18.5%, increase compared to $5.4 million for the quarter ended March 31, 2022. |
● | Net interest income totaled $14.0 million for the quarter ended March 31, 2023, which represents a $2.4 million, or 20.2%, increase compared to $11.7 million for the quarter ended March 31, 2022. |
● | Average loans held for investment totaled $1.53 billion during the quarter ended March 31, 2023, which represents an increase of $326.6 million, or 27.1%, compared to $1.20 billion for the quarter ended March 31, 2022. The increase was primarily due to increases in the single-family and multi-family mortgages. Average loans held for investment increased $118.3 million compared to $1.41 billion for the quarter ended December 31, 2022. The increase was primarily due to increases in the single-family and multi-family mortgages. |
● | The community banking segment purchased $27.4 million adjustable-rate loans that were originated by the mortgage banking segment during the quarter ended March 31, 2023. |
● | Net interest margin increased 50 basis points to 2.88% for the quarter ended March 31, 2023, compared to 2.38% for the quarter ended March 31, 2022, which was a result of a decrease in the average balance of cash, as funds were utilized to fund loans held for investment, and purchase investment securities. In addition, yields increased on loans receivable, loans held for sale, mortgage related securities, debt securities, federal funds sold and short-term investments category. Net interest margin decreased 41 basis points compared to 3.29% for the quarter ended December 31, 2022, driven by an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. |
● | The segment had a negative provision for credit losses - loans of $96,000 for the quarter ended March 31, 2023, compared to a provision for credit losses - loans of $17,000 for the quarter ended March 31, 2022. The current quarter decrease was primarily due to a decrease in loan loss rates. The provision for credit losses - unfunded commitments was $484,000 for the quarter ended March 31, 2023, compared to a negative provision for credit losses - unfunded commitments of $157,000 for the quarter ended March 31, 2022. The increase for the quarter ended March 31, 2023, was due primarily to three significant construction loans that have not funded. |
● | The efficiency ratio, a non-GAAP ratio, was 54.53% for the quarter ended March 31, 2023, compared to 59.59% for the quarter ended March 31, 2022. |
● | Average deposits (excluding escrow accounts) totaled $1.17 billion during the quarter ended March 31, 2023, a decrease of $56.9 million, or 4.6%, compared to $1.23 billion during the quarter ended March 31, 2022. Average deposits decreased $37.3 million, or 12.3% annualized, compared to the $1.21 billion for the quarter ended December 31, 2022. |
● | Other noninterest expense increased $296,000 to $896,000 during the quarter ended March 31, 2023, compared to $600,000 during the quarter ended March 31, 2022. The increase was driven by fees paid to the mortgage banking segment for the purchase of single-family adjustable-rate mortgage loans. These fees totaled $383,000 during the quarter ended March 31, 2023, compared to $181,000 during the quarter ended March 31, 2022. |
Mortgage Banking Segment
● | Pre-tax loss totaled $3.7 million for the quarter ended March 31, 2023, compared to $1.4 million of pre-tax income for the quarter ended March 31, 2022. |
● | Loan originations decreased $265.8 million, or 37.5%, to $442.7 million during the quarter ended March 31, 2023, compared to $708.5 million during the quarter ended March 31, 2022. Origination volume relative to purchase activity accounted for 96.5% of originations for the quarter ended March 31, 2023, compared to 77.3% of total originations for the quarter ended March 31, 2022. |
● | Mortgage banking non-interest income decreased $10.7 million, or 37.2%, to $18.0 million for the quarter ended March 31, 2023, compared to $28.6 million for the quarter ended March 31, 2022. |
● | Gross margin on loans sold decreased to 3.78% for the quarter ended March 31, 2023, compared to 4.00% for the quarter ended March 31, 2022. |
● | During the quarter ended March 31, 2023, the Company sold mortgage servicing rights related to $318.3 million in loans receivable and with a book value of $2.8 million for $3.4 million resulting in a gain on sale of $601,000. There was no comparable sale during the quarter ended March 31, 2022. As of March 31, 2023, the Company maintained servicing rights related to $116.6 million in loans previously sold to third parties. |
● | Total compensation, payroll taxes and other employee benefits decreased $5.3 million, or 26.1%, to $15.1 million during the quarter ended March 31, 2023, compared to $20.4 million during the quarter ended March 31, 2022. The decrease primarily related to decreased commission expense and salary expense driven by decreased loan origination volume and reduced employee headcount. |
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
Wauwatosa, Wis. — 3/22/2023 — On March 22, 2023, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.20 per common share. The dividend is payable on May 2, 2023, to shareholders of record at the close of business on April 10, 2023.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com.
Wauwatosa, Wis. – 3/3/2023 – WaterStone Bank announces Megan Weigand as its new Assistant Vice President Regional Manager.
After joining WaterStone Bank in 2011 as a Teller at our Wauwatosa branch, Weigand progressed to Assistant Branch Manager. Within a few years, she was promoted to Community President at the Fox Point and, later, Waukesha branches, before earning her current role.
Weigand, who holds a degree in business management, is pleased to have the chance to use her years of experience with WaterStone Bank to better serve customers. “My goal is to be able to be a resource and mentor for the branches in my region,” says Weigand. She credits her success to working hard, an attribute that made her a candidate for WaterStone Bank’s long-standing policy of promoting employees from within whenever possible.
Weigand, a resident of Menomonee Falls, enjoys spending time outdoors with family during the Wisconsin summers. An enthusiastic supporter of the Packers and Bucks, she also loves cheering on her daughter in dance competitions.
About WaterStone Bank
Founded in 1921, WaterStone Bank today offers a full suite of personal and business banking products. The community bank serves southeastern Wisconsin with branches in Brookfield, Fox Point, Franklin, Germantown, Greenfield, Milwaukee, Oak Creek, Oconomowoc, Pewaukee, Waukesha, Wauwatosa and West Allis. WaterStone Bank is the parent company to Waterstone Mortgage, a lender in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook, Twitter, LinkedIn, YouTube, and Instagram.
Wauwatosa, Wis. – 2/10/2023 – WaterStone Bank has promoted an Assistant Branch Manager to the role of Community President.
Lynn Kuester now serves as Community President of the bank’s Fox Point/North Shore branch (8607 N. Port Washington Rd.). Lynn joined WaterStone Bank in 2021 as the Assistant Branch Manager of the Oak Creek 27th Street branch. She brings a variety of business experience as a Marketing Manager, Account Director, and Bar/Restaurant Owner where she regularly leveraged her knowledge and experience to grow revenue.
In her free time, Lynn enjoys spending time cooking, gardening, and watching movies. She currently resides in the lower East side of Milwaukee, where she volunteers every summer at the Brady Street Festival. She also serves as the Past President and Director of the Brady Street Area Association. Lynn looks forward to serving the North Shore community in her role as Community President.
About WaterStone Bank
WaterStone Bank, established in 1921, offers a full suite of personal and business banking products. The community bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to wsbonline.com. Follow WaterStone Bank on Facebook, Twitter, LinkedIn, YouTube, and Instagram.
Wauwatosa, WI – 1/26/2023 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $935,000, or $0.04 per diluted share for the quarter ended December 31, 2022 compared to $12.6 million, or $0.53 per diluted share for the quarter ended December 31, 2021. Net income per diluted share was $0.89 for the twelve months ended December 31, 2022 compared to net income per diluted share of $2.96 for the twelve months ended December 31, 2021.
"The quarter was mixed as the community banking segment continued to achieve excellent loan growth while the mortgage banking segment lagged with lower volumes and declining margins,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “Net interest income grew in the quarter as we added $156.0 million to the loan portfolio and efficiently used our cash as interest rates continued to rise. The mortgage banking segment continues to face significant challenges as a result of increases in mortgage rates year-over-year and the decline in affordable housing inventories. We are focused on controlling expenses and being prepared to capitalize when the mortgage market improves.”
Highlights of the Quarter Ended December 31, 2022
Waterstone Financial, Inc. (Consolidated)
Community Banking Segment
Mortgage Banking Segment
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies, including significant disruption to financial market and other economic activity caused by the outbreak of COVID-19; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
WAUWATOSA, WI – 12/15/2022 – On December 15, 2022, the Board of Directors of Waterstone Financial, Inc. (NASDAQ: WSBF) declared a regular quarterly cash dividend of $0.20 per common share. The dividend is payable on February 1, 2023, to shareholders of record at the close of business on January 9, 2023.
About Waterstone Financial, Inc
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
WAUWATOSA, Wis. – 11/10/2022 – WaterStone Bank announced today that they received accreditation to join the Association of Military Banks of America (AMBA) and confirmed their commitment to help bank Veterans by joining the Veterans Benefits Banking Program (VBBP) as a participating financial institution.
According to a recent Federal Reserve report there were approximately 250,000 unbanked or underbanked Veterans in the United States. To combat this issue, the AMBA and Veterans Affairs teamed up to create the VBBP. It works to connect Veterans with financial institutions who understand their financial needs and are dedicated to supporting them with the highest level of service.
WaterStone Bank is passionate about the military and veterans. “WaterStone believes in giving back to our veterans for all they have done for our country and the freedoms we enjoy as a result of their efforts. These brave women and men deserve all the support we can give,” said Doug Gordon, CEO of WaterStone Bank.
WaterStone provides active-duty service members, military veterans, reserve, and national guard service members financial support and exclusive benefits through the Military Valor Program (MVP). WaterStone Bank is dedicated to being a top financial resource in the communities it serves and knows the impact that having a local banking option can make in a Veteran’s life.
About WaterStone Bank
WaterStone Bank, established in 1921, offers a full suite of personal and business banking products. The community bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com. Follow WaterStone Bank on Facebook, Twitter, LinkedIn, YouTube, and Instagram.
WAUWATOSA, WI – 10/26/2022 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $5.3 million, or $0.25 per diluted share for the quarter ended September 30, 2022 compared to $19.0 million, or $0.79 per diluted share for the quarter ended September 30, 2021. Net income per diluted share was $0.83 for the nine months ended September 30, 2022 compared to net income per diluted share of $2.43 for the nine months ended September 30, 2021.
"We were pleased with the execution of the community banking segment as loan growth remained strong through the quarter,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “We were able to grow our net interest income and expand margin at the community banking segment as we deployed our cash to fund loans. The results of the mortgage banking segment were disappointing and reflect the significant headwinds that the industry continues to face due to an increase in rates and resulting decline in demand. We continue to execute on cost containment measures, while we also seek opportunities to add production talent.”
Highlights of the Quarter Ended September 30, 2022
Waterstone Financial, Inc. (Consolidated)
● | Consolidated net income of Waterstone Financial, Inc. totaled $5.3 million for the quarter ended September 30, 2022, compared to $19.0 million for the quarter ended September 30, 2021. |
● | Consolidated return on average assets was 1.08% for the quarter ended September 30, 2022 compared to 3.38% for the quarter ended September 30, 2021. |
● | Consolidated return on average equity was 5.38% for the quarter ended September 30, 2022 and 17.25% for the quarter ended September 30, 2021. |
● | Dividends declared during the quarter ended September 30, 2022 totaled $0.20 per common share. |
● | We repurchased approximately 425,000 shares at a cost of $7.3 million, or $17.05 per share, during the quarter ended September 30, 2022. |
● | Nonperforming assets as percentage of total assets was 0.27% at September 30, 2022, 0.39% at June 30, 2022, and 0.18% at September 30, 2021. |
● | Past due loans as percentage of total loans was 0.48% at September 30, 2022, 0.60% at June 30, 2022, and 0.92% at September 30, 2021. |
● | Book value per share was $16.86 at September 30, 2022 and $17.45 at December 31, 2021. The decrease reflects an $0.80 per share impact resulting from an increase in the unrealized loss on available for sale securities. |
Community Banking Segment
● | Pre-tax income totaled $8.5 million for the quarter ended September 30, 2022, which represents a $309,000, or 3.5%, decrease compared to $8.9 million for the quarter ended September 30, 2021. |
● | Net interest income totaled $15.5 million for the quarter ended September 30, 2022, which represents a $1.4 million, or 10.1%, increase compared to $14.1 million for the quarter ended September 30, 2021. |
● | Average loans held for investment totaled $1.31 billion during the quarter ended September 30, 2022, which represents an increase of $55.4 million, or 4.4%, compared to $1.26 billion for the quarter ended September 30, 2021. Average loans held for investment increased $63.7 million compared to $1.25 billion for the quarter ended June 30, 2022. |
● | Net interest margin increased 66 basis points to 3.34% for the quarter ended September 30, 2022 compared to 2.68% for the quarter ended September 30, 2021, which was a result of a decrease in the average balance of cash, as funds were utilized to fund loans held for investment, purchase investment securities and pay down borrowings. In addition, yields increased on loans receivable, loans held for sale, mortgage related securities, debt securities, federal funds sold and short term investments category. Net interest margin increased 32 basis points compared to 3.02% for the quarter ended June 30, 2022, driven by an increase in weighted average yield on loans and weighted average yield on average debt securities, federal funds sold and short term investments. In addition, excess cash was utilized to fund loans held for investment and pay down borrowings. |
● | The segment had a provision for credit losses of $234,000 for the quarter ended September 30, 2022 compared to a negative provision for loan losses of $750,000 for the quarter ended September 30, 2021. The increase was primarily due to an increase in loans held for investment during the quarter. |
● | The efficiency ratio was 47.16% for the quarter ended September 30, 2022, compared to 48.74% for the quarter ended September 30, 2021. |
● | Average deposits (excluding escrow accounts) totaled $1.19 billion during the quarter ended September 30, 2022, a decrease of $62.7 million, or 5.0%, compared to $1.25 billion during the quarter ended September 30, 2021. Average deposits decreased $14.9 million, or 4.9% annualized compared to the $1.21 billion for the quarter ended June 30, 2022. |
● | Other noninterest expense increased $1.1 million to $1.5 million during the quarter ended September 30, 2022 compared to $422,000 during the quarter ended September 30, 2021. The increase was driven by fees paid to the mortgage banking segment for the purchase of single-family adjustable rate mortgage loans. These fees are eliminated in the consolidated statements of income. |
Mortgage Banking Segment
● | Pre-tax loss totaled $1.8 million for the quarter ended September 30, 2022, compared to $15.6 million for the quarter ended September 30, 2021. |
● | There was a $4.0 million gain on sale of mortgage servicing rights during the three months ended September 30, 2021 compared to none during the three months ended September 30, 2022. |
● | Loan originations decreased $286.4 million, or 26.9%, to $778.8 million during the quarter ended September 30, 2022, compared to $1.06 billion during the quarter ended September 30, 2021. Origination volume relative to purchase activity accounted for 90.4% of originations for the quarter ended September 30, 2022 compared to 73.8% of total originations for the quarter ended September 30, 2021. |
● | Mortgage banking non-interest income decreased $24.0 million, or 46.8%, to $27.3 million for the quarter ended September 30, 2022, compared to $51.3 million for the quarter ended September 30, 2021. |
● | Gross margin on loans sold decreased to 3.80% for the quarter ended September 30, 2022, compared to 4.54% for the quarter ended September 30, 2021. |
● | Total compensation, payroll taxes and other employee benefits decreased $7.1 million, or 24.6%, to $21.8 million during the quarter ended September 30, 2022 compared to $29.0 million during the quarter ended September 30, 2021. The decrease primarily related to decreased commission expense and branch manager compensation driven by decreased loan origination volume and branch profitability as gross margins decreased. |
● | Other noninterest expense increased $301,000 to $2.6 million during the quarter ended September 30, 2022 compared to $2.3 million during the quarter ended September 30, 2021. The increase related to an increase in provision of loan sale losses. |
● | During the nine months ended September 30, 2022 the segment has added 11 branches and a total of 130 loan origination personnel. Losses associated with these new branches totaled approximately $683,000 for the quarter ended September 30, 2022 and $1.2 million for the nine months ended September 30, 2022. These branch losses are net of corporate revenue of approximately $492,000 for the quarter ended September 30, 2022 and $599,000 for the nine months ended September 30, 2022. |
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies, including significant disruption to financial market and other economic activity caused by the outbreak of COVID-19; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
| For The Three Months Ended September 30, |
|
| For The Nine Months Ended September 30, |
| ||||||||||
|
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2021 |
| ||||
|
| (In Thousands, except per share amounts) |
| |||||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
| $ | 16,235 |
|
| $ | 16,131 |
|
| $ | 44,281 |
|
| $ | 49,214 |
|
Mortgage-related securities |
|
| 903 |
|
|
| 471 |
|
|
| 2,326 |
|
|
| 1,448 |
|
Debt securities, federal funds sold and short-term investments |
|
| 987 |
|
|
| 904 |
|
|
| 2,964 |
|
|
| 2,637 |
|
Total interest income |
|
| 18,125 |
|
|
| 17,506 |
|
|
| 49,571 |
|
|
| 53,299 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
| 981 |
|
|
| 947 |
|
|
| 2,511 |
|
|
| 3,542 |
|
Borrowings |
|
| 1,746 |
|
|
| 2,445 |
|
|
| 5,717 |
|
|
| 7,414 |
|
Total interest expense |
|
| 2,727 |
|
|
| 3,392 |
|
|
| 8,228 |
|
|
| 10,956 |
|
Net interest income |
|
| 15,398 |
|
|
| 14,114 |
|
|
| 41,343 |
|
|
| 42,343 |
|
Provision (credit) for credit losses (1) |
|
| 332 |
|
|
| (700 | ) |
|
| 304 |
|
|
| (2,520 | ) |
Net interest income after provision for loan losses |
|
| 15,066 |
|
|
| 14,814 |
|
|
| 41,039 |
|
|
| 44,863 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on loans and deposits |
|
| 529 |
|
|
| 1,136 |
|
|
| 1,705 |
|
|
| 2,483 |
|
Increase in cash surrender value of life insurance |
|
| 354 |
|
|
| 312 |
|
|
| 1,394 |
|
|
| 1,297 |
|
Mortgage banking income |
|
| 26,064 |
|
|
| 46,547 |
|
|
| 83,749 |
|
|
| 150,587 |
|
Other |
|
| 457 |
|
|
| 4,941 |
|
|
| 1,612 |
|
|
| 6,812 |
|
Total noninterest income |
|
| 27,404 |
|
|
| 52,936 |
|
|
| 88,460 |
|
|
| 161,179 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, payroll taxes, and other employee benefits |
|
| 26,174 |
|
|
| 34,229 |
|
|
| 77,502 |
|
|
| 102,278 |
|
Occupancy, office furniture, and equipment |
|
| 2,296 |
|
|
| 2,488 |
|
|
| 6,540 |
|
|
| 7,346 |
|
Advertising |
|
| 1,137 |
|
|
| 835 |
|
|
| 3,004 |
|
|
| 2,570 |
|
Data processing |
|
| 1,084 |
|
|
| 986 |
|
|
| 3,430 |
|
|
| 2,871 |
|
Communications |
|
| 302 |
|
|
| 331 |
|
|
| 900 |
|
|
| 988 |
|
Professional fees |
|
| 393 |
|
|
| 550 |
|
|
| 1,203 |
|
|
| 804 |
|
Real estate owned |
|
| 1 |
|
|
| 1 |
|
|
| 6 |
|
|
| (11 | ) |
Loan processing expense |
|
| 1,120 |
|
|
| 1,135 |
|
|
| 3,685 |
|
|
| 3,670 |
|
Other |
|
| 3,187 |
|
|
| 2,768 |
|
|
| 9,408 |
|
|
| 9,104 |
|
Total noninterest expenses |
|
| 35,694 |
|
|
| 43,323 |
|
|
| 105,678 |
|
|
| 129,620 |
|
Income before income taxes |
|
| 6,776 |
|
|
| 24,427 |
|
|
| 23,821 |
|
|
| 76,422 |
|
Income tax expense |
|
| 1,506 |
|
|
| 5,427 |
|
|
| 5,269 |
|
|
| 18,184 |
|
Net income |
| $ | 5,270 |
|
| $ | 19,000 |
|
| $ | 18,552 |
|
| $ | 58,238 |
|
Income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.25 |
|
| $ | 0.80 |
|
| $ | 0.84 |
|
| $ | 2.45 |
|
Diluted |
| $ | 0.25 |
|
| $ | 0.79 |
|
| $ | 0.83 |
|
| $ | 2.43 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 21,342 |
|
|
| 23,785 |
|
|
| 22,193 |
|
|
| 23,790 |
|
Diluted |
|
| 21,454 |
|
|
| 23,960 |
|
|
| 22,323 |
|
|
| 23,987 |
|
(1) The Company adopted ASU 2016-13 as of January 1, 2022. The 2021 amount presented is calculated under the prior accounting standard.
WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
| September 30, |
|
| December 31, |
| ||
|
| 2022 |
|
| 2021 |
| ||
|
| (Unaudited) |
|
|
|
|
| |
Assets |
| (In Thousands, except per share amounts) |
| |||||
Cash |
| $ | 37,231 |
|
| $ | 343,016 |
|
Federal funds sold |
|
| 16,007 |
|
|
| 13,981 |
|
Interest-earning deposits in other financial institutions and other short term investments |
|
| 19,703 |
|
|
| 19,725 |
|
Cash and cash equivalents |
|
| 72,941 |
|
|
| 376,722 |
|
Securities available for sale (at fair value) |
|
| 197,298 |
|
|
| 179,016 |
|
Loans held for sale (at fair value) |
|
| 186,049 |
|
|
| 312,738 |
|
Loans receivable |
|
| 1,354,465 |
|
|
| 1,205,785 |
|
Less: Allowance for credit losses ("ACL") - loans (1) |
|
| 17,452 |
|
|
| 15,778 |
|
Loans receivable, net |
|
| 1,337,013 |
|
|
| 1,190,007 |
|
|
|
|
|
|
|
|
|
|
Office properties and equipment, net |
|
| 21,491 |
|
|
| 22,273 |
|
Federal Home Loan Bank stock (at cost) |
|
| 15,750 |
|
|
| 24,438 |
|
Cash surrender value of life insurance |
|
| 66,099 |
|
|
| 65,368 |
|
Real estate owned, net |
|
| 148 |
|
|
| 148 |
|
Prepaid expenses and other assets |
|
| 78,262 |
|
|
| 45,148 |
|
Total assets |
| $ | 1,975,051 |
|
| $ | 2,215,858 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
| $ | 246,487 |
|
| $ | 214,409 |
|
Money market and savings deposits |
|
| 346,960 |
|
|
| 392,314 |
|
Time deposits |
|
| 593,681 |
|
|
| 626,663 |
|
Total deposits |
|
| 1,187,128 |
|
|
| 1,233,386 |
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
| 319,951 |
|
|
| 477,127 |
|
Advance payments by borrowers for taxes |
|
| 24,084 |
|
|
| 4,094 |
|
Other liabilities |
|
| 67,714 |
|
|
| 68,478 |
|
Total liabilities |
|
| 1,598,877 |
|
|
| 1,783,085 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock |
|
| - |
|
|
| - |
|
Common stock |
|
| 223 |
|
|
| 248 |
|
Additional paid-in capital |
|
| 130,731 |
|
|
| 174,505 |
|
Retained earnings |
|
| 277,514 |
|
|
| 273,398 |
|
Unearned ESOP shares |
|
| (13,353 | ) |
|
| (14,243 | ) |
Accumulated other comprehensive loss, net of taxes |
|
| (18,941 | ) |
|
| (1,135 | ) |
Total shareholders' equity |
|
| 376,174 |
|
|
| 432,773 |
|
Total liabilities and shareholders' equity |
| $ | 1,975,051 |
|
| $ | 2,215,858 |
|
|
|
|
|
|
|
|
|
|
Share Information |
|
|
|
|
|
|
|
|
Shares outstanding |
|
| 22,318 |
|
|
| 24,795 |
|
Book value per share |
| $ | 16.86 |
|
| $ | 17.45 |
|
|
|
|
|
|
|
|
| |
(1) The Company adopted ASU 2016-13 as of January 1, 2022. The 2021 amount presented is calculated under the prior accounting standard.
WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
SUMMARY OF KEY QUARTERLY FINANCIAL DATA
(Unaudited)
|
| At or For the Three Months Ended |
| |||||||||||||||||
|
| September 30, |
|
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
| |||||
|
| (Dollars in Thousands, except per share amounts) |
| |||||||||||||||||
Condensed Results of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
| $ | 15,398 |
|
| $ | 14,081 |
|
| $ | 11,864 |
|
| $ | 13,172 |
|
| $ | 14,114 |
|
Provision (credit) for credit losses (1) |
|
| 332 |
|
|
| 48 |
|
|
| (76 | ) |
|
| (1,470 | ) |
|
| (700 | ) |
Total noninterest income |
|
| 27,404 |
|
|
| 31,238 |
|
|
| 29,818 |
|
|
| 42,016 |
|
|
| 52,936 |
|
Total noninterest expense |
|
| 35,694 |
|
|
| 35,050 |
|
|
| 34,935 |
|
|
| 40,974 |
|
|
| 43,323 |
|
Income before income taxes |
|
| 6,776 |
|
|
| 10,221 |
|
|
| 6,823 |
|
|
| 15,684 |
|
|
| 24,427 |
|
Income tax expense |
|
| 1,506 |
|
|
| 2,231 |
|
|
| 1,532 |
|
|
| 3,131 |
|
|
| 5,427 |
|
Net income |
| $ | 5,270 |
|
| $ | 7,990 |
|
| $ | 5,291 |
|
| $ | 12,553 |
|
| $ | 19,000 |
|
Income per share – basic |
| $ | 0.25 |
|
| $ | 0.36 |
|
| $ | 0.23 |
|
| $ | 0.53 |
|
| $ | 0.80 |
|
Income per share – diluted |
| $ | 0.25 |
|
| $ | 0.36 |
|
| $ | 0.23 |
|
| $ | 0.53 |
|
| $ | 0.79 |
|
Dividends declared per share |
| $ | 0.20 |
|
| $ | 0.20 |
|
| $ | 0.20 |
|
| $ | 0.70 |
|
| $ | 0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets - QTD |
|
| 1.08 | % |
|
| 1.61 | % |
|
| 1.00 | % |
|
| 2.22 | % |
|
| 3.38 | % |
Return on average equity - QTD |
|
| 5.38 | % |
|
| 7.93 | % |
|
| 5.00 | % |
|
| 11.14 | % |
|
| 17.25 | % |
Net interest margin - QTD |
|
| 3.34 | % |
|
| 3.02 | % |
|
| 2.38 | % |
|
| 2.47 | % |
|
| 2.68 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets - YTD |
|
| 1.22 | % |
|
| 1.30 | % |
|
| 1.00 | % |
|
| 3.20 | % |
|
| 3.54 | % |
Return on average equity - YTD |
|
| 6.09 | % |
|
| 6.42 | % |
|
| 5.00 | % |
|
| 16.38 | % |
|
| 18.08 | % |
Net interest margin - YTD |
|
| 2.90 | % |
|
| 2.69 | % |
|
| 2.38 | % |
|
| 2.68 | % |
|
| 2.75 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total loans |
|
| 0.48 | % |
|
| 0.60 | % |
|
| 0.53 | % |
|
| 0.59 | % |
|
| 0.92 | % |
Nonaccrual loans to total loans |
|
| 0.37 | % |
|
| 0.59 | % |
|
| 0.55 | % |
|
| 0.46 | % |
|
| 0.32 | % |
Nonperforming assets to total assets |
|
| 0.27 | % |
|
| 0.39 | % |
|
| 0.34 | % |
|
| 0.26 | % |
|
| 0.18 | % |
Allowance for credit losses to loans receivable (1) |
|
| 1.29 | % |
|
| 1.35 | % |
|
| 1.40 | % |
|
| 1.31 | % |
|
| 1.37 | % |
(1) The Company adopted ASU 2016-13 as of January 1, 2022. The 2021 amounts presented are calculated under the prior accounting standard.
WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS
(Unaudited)
|
| At or For the Three Months Ended |
| |||||||||||||||||
|
| September 30, |
|
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
| |||||
Average balances |
| (Dollars in Thousands) |
| |||||||||||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and held for sale |
| $ | 1,492,462 |
|
| $ | 1,433,452 |
|
| $ | 1,361,839 |
|
| $ | 1,517,984 |
|
| $ | 1,573,194 |
|
Mortgage related securities |
|
| 172,807 |
|
|
| 168,000 |
|
|
| 138,863 |
|
|
| 119,709 |
|
|
| 108,743 |
|
Debt securities, federal funds sold and short term investments |
|
| 162,211 |
|
|
| 269,823 |
|
|
| 519,116 |
|
|
| 475,574 |
|
|
| 409,559 |
|
Total interest-earning assets |
|
| 1,827,480 |
|
|
| 1,871,275 |
|
|
| 2,019,818 |
|
|
| 2,113,267 |
|
|
| 2,091,496 |
|
Noninterest-earning assets |
|
| 114,274 |
|
|
| 117,248 |
|
|
| 128,813 |
|
|
| 131,703 |
|
|
| 137,454 |
|
Total assets |
| $ | 1,941,754 |
|
| $ | 1,988,523 |
|
| $ | 2,148,631 |
|
| $ | 2,244,970 |
|
| $ | 2,228,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand accounts |
| $ | 75,058 |
|
| $ | 70,674 |
|
| $ | 69,736 |
|
| $ | 70,762 |
|
| $ | 68,478 |
|
Money market, savings, and escrow accounts |
|
| 398,643 |
|
|
| 412,321 |
|
|
| 404,413 |
|
|
| 398,210 |
|
|
| 391,599 |
|
Certificates of deposit |
|
| 586,012 |
|
|
| 584,244 |
|
|
| 610,681 |
|
|
| 643,546 |
|
|
| 663,343 |
|
Total interest-bearing deposits |
|
| 1,059,713 |
|
|
| 1,067,239 |
|
|
| 1,084,830 |
|
|
| 1,112,518 |
|
|
| 1,123,420 |
|
Borrowings |
|
| 296,111 |
|
|
| 326,068 |
|
|
| 440,252 |
|
|
| 481,971 |
|
|
| 475,000 |
|
Total interest-bearing liabilities |
|
| 1,355,824 |
|
|
| 1,393,307 |
|
|
| 1,525,082 |
|
|
| 1,594,489 |
|
|
| 1,598,420 |
|
Noninterest-bearing demand deposits |
|
| 153,591 |
|
|
| 154,070 |
|
|
| 152,900 |
|
|
| 153,303 |
|
|
| 153,436 |
|
Noninterest-bearing liabilities |
|
| 43,683 |
|
|
| 36,962 |
|
|
| 41,232 |
|
|
| 49,982 |
|
|
| 40,148 |
|
Total liabilities |
|
| 1,553,098 |
|
|
| 1,584,339 |
|
|
| 1,719,214 |
|
|
| 1,797,774 |
|
|
| 1,792,004 |
|
Equity |
|
| 388,656 |
|
|
| 404,184 |
|
|
| 429,417 |
|
|
| 447,196 |
|
|
| 436,946 |
|
Total liabilities and equity |
| $ | 1,941,754 |
|
| $ | 1,988,523 |
|
| $ | 2,148,631 |
|
| $ | 2,244,970 |
|
| $ | 2,228,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield/Costs (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and held for sale |
|
| 4.32 | % |
|
| 4.07 | % |
|
| 4.02 | % |
|
| 3.96 | % |
|
| 4.07 | % |
Mortgage related securities |
|
| 2.07 | % |
|
| 1.96 | % |
|
| 1.76 | % |
|
| 1.68 | % |
|
| 1.72 | % |
Debt securities, federal funds sold and short term investments |
|
| 2.41 | % |
|
| 1.56 | % |
|
| 0.72 | % |
|
| 0.77 | % |
|
| 0.88 | % |
Total interest-earning assets |
|
| 3.93 | % |
|
| 3.52 | % |
|
| 3.02 | % |
|
| 3.11 | % |
|
| 3.32 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand accounts |
|
| 0.08 | % |
|
| 0.09 | % |
|
| 0.08 | % |
|
| 0.08 | % |
|
| 0.08 | % |
Money market and savings accounts |
|
| 0.21 | % |
|
| 0.19 | % |
|
| 0.21 | % |
|
| 0.22 | % |
|
| 0.24 | % |
Certificates of deposit |
|
| 0.51 | % |
|
| 0.37 | % |
|
| 0.37 | % |
|
| 0.40 | % |
|
| 0.42 | % |
Total interest-bearing deposits |
|
| 0.37 | % |
|
| 0.28 | % |
|
| 0.29 | % |
|
| 0.31 | % |
|
| 0.33 | % |
Borrowings |
|
| 2.34 | % |
|
| 1.95 | % |
|
| 2.20 | % |
|
| 2.09 | % |
|
| 2.04 | % |
Total interest-bearing liabilities |
|
| 0.80 | % |
|
| 0.67 | % |
|
| 0.84 | % |
|
| 0.85 | % |
|
| 0.84 | % |
COMMUNITY BANKING SEGMENT
SUMMARY OF KEY QUARTERLY FINANCIAL DATA
(Unaudited)
|
| At or For the Three Months Ended |
| |||||||||||||||||
|
| September 30, |
|
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
| |||||
|
| (Dollars in Thousands) |
| |||||||||||||||||
Condensed Results of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
| $ | 15,507 |
|
| $ | 13,710 |
|
| $ | 11,652 |
|
| $ | 13,197 |
|
| $ | 14,090 |
|
Provision (credit) for credit losses (1) |
|
| 234 |
|
|
| (41 | ) |
|
| (140 | ) |
|
| (1,500 | ) |
|
| (750 | ) |
Total noninterest income |
|
| 1,116 |
|
|
| 1,640 |
|
|
| 1,432 |
|
|
| 1,459 |
|
|
| 1,726 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, payroll taxes, and other employee benefits |
|
| 4,424 |
|
|
| 4,596 |
|
|
| 5,212 |
|
|
| 5,085 |
|
|
| 5,360 |
|
Occupancy, office furniture and equipment |
|
| 955 |
|
|
| 876 |
|
|
| 937 |
|
|
| 960 |
|
|
| 909 |
|
Advertising |
|
| 213 |
|
|
| 244 |
|
|
| 227 |
|
|
| 278 |
|
|
| 233 |
|
Data processing |
|
| 539 |
|
|
| 531 |
|
|
| 608 |
|
|
| 531 |
|
|
| 531 |
|
Communications |
|
| 108 |
|
|
| 63 |
|
|
| 94 |
|
|
| 100 |
|
|
| 122 |
|
Professional fees |
|
| 123 |
|
|
| 118 |
|
|
| 114 |
|
|
| 151 |
|
|
| 130 |
|
Real estate owned |
|
| 1 |
|
|
| - |
|
|
| 5 |
|
|
| 14 |
|
|
| 1 |
|
Loan processing expense |
|
| - | |||||||||||||||||