Maryland
(State or Other Jurisdiction
of Incorporation)
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001-36271
(Commission File Number)
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90-1026709
(I.R.S. Employer Identification No.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Waterstone Financial, Inc.
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Date: October 24, 2014
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Name: Allan R. Hosack
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Title: Chief Financial Officer
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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||||||||||||||||||||
SUMMARY OF KEY QUARTERLY FINANCIAL DATA
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||||||||||||||||||||
(unaudited)
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||||||||||||||||||||
2014
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2013
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|||||||||||||||||||
Q3
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Q2
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Q1
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Q4
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Q3
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||||||||||||||||
(Dollars in Thousands)
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||||||||||||||||||||
Performance Ratios:
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||||||||||||||||||||
Return on average assets
|
1.05
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%
|
0.85
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%
|
0.42
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%
|
0.46
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%
|
0.79
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%
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||||||||||
Return on average equity
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4.23
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%
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3.27
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%
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1.87
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%
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3.58
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%
|
6.04
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%
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||||||||||
Net interest margin
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2.55
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%
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2.53
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%
|
2.31
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%
|
2.43
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%
|
2.51
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%
|
||||||||||
Efficiency ratio
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77.62
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%
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81.65
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%
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88.32
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%
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88.04
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%
|
79.77
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%
|
||||||||||
Condensed Results of Operations:
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||||||||||||||||||||
Net interest income
|
$
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10,914
|
$
|
10,610
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$
|
9,700
|
$
|
9,561
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$
|
9,578
|
||||||||||
Provision for loan losses
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315
|
285
|
250
|
572
|
1,000
|
|||||||||||||||
Total noninterest income
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23,911
|
23,196
|
17,058
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17,029
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21,030
|
|||||||||||||||
Total noninterest expense
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27,030
|
27,603
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23,632
|
23,410
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24,416
|
|||||||||||||||
Income before income taxes
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7,480
|
5,918
|
2,876
|
2,608
|
5,192
|
|||||||||||||||
Income tax expense
|
2,715
|
2,148
|
993
|
671
|
1,973
|
|||||||||||||||
Net income
|
$
|
4,765
|
$
|
3,770
|
$
|
1,883
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$
|
1,937
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$
|
3,219
|
||||||||||
Asset Quality Data:
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||||||||||||||||||||
Total non accrual loans
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$
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43,136
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$
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46,021
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$
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47,317
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$
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50,961
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$
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57,422
|
||||||||||
Real estate owned
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25,837
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22,117
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22,543
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22,663
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23,147
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|||||||||||||||
Total nonperforming assets
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$
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68,973
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$
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68,138
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$
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69,860
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$
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73,624
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$
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80,569
|
||||||||||
Loans past due less than 90 days
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$
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5,280
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$
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17,337
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$
|
16,829
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$
|
13,231
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$
|
13,538
|
||||||||||
Loans past due 90 days or more
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29,345
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26,548
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25,611
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30,780
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35,343
|
|||||||||||||||
Total past due loans
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$
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34,625
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$
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43,885
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$
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42,440
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$
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44,011
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$
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48,881
|
||||||||||
Allowance for loan losses
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20,439
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21,227
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23,391
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24,264
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24,708
|
|||||||||||||||
Net charge offs
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1,103
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2,449
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1,123
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1,016
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4,059
|
|||||||||||||||
Average Balance Sheet Data:
|
||||||||||||||||||||
Total assets
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1,797,932
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1,788,404
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1,806,023
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1,660,026
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1,610,910
|
|||||||||||||||
Loans receivable and held for sale
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1,277,634
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1,299,046
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1,162,205
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1,165,624
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1,211,089
|
|||||||||||||||
Mortgage-related securities
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183,356
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166,748
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125,871
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126,490
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126,447
|
|||||||||||||||
Total interest-earning assets
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1,700,077
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1,680,225
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1,706,289
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1,557,874
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1,513,985
|
|||||||||||||||
Interest-bearing deposits
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836,817
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807,831
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887,679
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916,248
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855,975
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|||||||||||||||
Borrowings
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438,644
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453,211
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444,823
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464,035
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485,488
|
|||||||||||||||
Total interest-bearing liabilities
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1,275,461
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1,261,042
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1,332,502
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1,445,487
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1,341,463
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|||||||||||||||
Total shareholders' equity
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446,615
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461,965
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407,977
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214,539
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211,307
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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||||||||
(Unaudited)
|
||||||||
September 30, 2014
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December 31, 2013
|
|||||||
Assets
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(In Thousands, except share data)
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|||||||
Cash
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$
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110,848
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428,832
|
|||||
Federal funds sold
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25,732
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93
|
||||||
Interest-earning deposits in other financial institutions and other short term investments
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4,702
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244
|
||||||
Cash and cash equivalents
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141,282
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429,169
|
||||||
Securities available for sale (at fair value)
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279,373
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213,418
|
||||||
Loans held for sale (at fair value)
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144,193
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97,021
|
||||||
Loans receivable
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1,111,719
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1,092,676
|
||||||
Less: Allowance for loan losses
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20,439
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24,264
|
||||||
Loans receivable, net
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1,091,280
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1,068,412
|
||||||
Office properties and equipment, net
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26,274
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27,090
|
||||||
Federal Home Loan Bank stock (at cost)
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17,500
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17,500
|
||||||
Cash surrender value of life insurance
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50,640
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39,378
|
||||||
Real estate owned
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25,837
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22,663
|
||||||
Prepaid expenses and other assets
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22,946
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32,388
|
||||||
Total assets
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$
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1,799,325
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1,947,039
|
|||||
Liabilities and Shareholders' Equity
|
||||||||
Liabilities:
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||||||||
Demand deposits
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$
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90,600
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93,275
|
|||||
Money market and savings deposits
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119,974
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513,716
|
||||||
Time deposits
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664,577
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637,750
|
||||||
Total deposits
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875,151
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1,244,741
|
||||||
Short-term borrowings
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-
|
21,197
|
||||||
Long-term borrowings
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434,000
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434,000
|
||||||
Advance payments by borrowers for taxes
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23,129
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2,482
|
||||||
Other liabilities
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18,532
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30,147
|
||||||
Total liabilities
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1,350,812
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1,732,567
|
||||||
Shareholders' equity:
|
||||||||
Common stock (par value $.01 per share)
|
344
|
341
|
||||||
Additional paid-in capital
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313,841
|
110,480
|
||||||
Retained earnings
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156,611
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151,195
|
||||||
Unearned ESOP shares
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(22,848
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)
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(854
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)
|
||||
Accumulated other comprehensive (loss) income, net of taxes
|
565
|
(1,429
|
)
|
|||||
Treasury shares (2,724,353 shares), at cost
|
-
|
(45,261
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)
|
|||||
Total shareholders' equity
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448,513
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214,472
|
||||||
Total liabilities and shareholders' equity
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$
|
1,799,325
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1,947,039
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
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||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three months ended
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Nine months ended
|
|||||||||||||||
September 30,
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September 30,
|
|||||||||||||||
2014
|
2013
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2014
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2013
|
|||||||||||||
(In Thousands, except per share amounts)
|
||||||||||||||||
Interest income:
|
||||||||||||||||
Loans
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$
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14,942
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14,425
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43,178
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44,500
|
|||||||||||
Mortgage-related securities
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835
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455
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2,142
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1,311
|
||||||||||||
Debt securities, federal funds sold and short-term investments
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823
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653
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2,474
|
1,806
|
||||||||||||
Total interest income
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16,600
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15,533
|
47,794
|
47,617
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
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1,337
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1,237
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3,522
|
4,055
|
||||||||||||
Borrowings
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4,349
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4,718
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13,048
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13,917
|
||||||||||||
Total interest expense
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5,686
|
5,955
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16,570
|
17,972
|
||||||||||||
Net interest income
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10,914
|
9,578
|
31,224
|
29,645
|
||||||||||||
Provision for loan losses
|
315
|
1,000
|
850
|
3,960
|
||||||||||||
Net interest income after provision for loan losses
|
10,599
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8,578
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30,374
|
25,685
|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on loans and deposits
|
317
|
316
|
904
|
1,029
|
||||||||||||
Increase in cash surrender value of life insurance
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630
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528
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1,082
|
929
|
||||||||||||
Mortgage banking income
|
22,053
|
18,173
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58,743
|
65,616
|
||||||||||||
(Loss) gain on sale of available for sale securities
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-
|
-
|
-
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(9
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)
|
|||||||||||
Other
|
911
|
2,013
|
3,436
|
3,205
|
||||||||||||
Total noninterest income
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23,911
|
21,030
|
64,165
|
70,770
|
||||||||||||
Noninterest expenses:
|
||||||||||||||||
Compensation, payroll taxes, and other employee benefits
|
18,169
|
16,575
|
51,418
|
53,001
|
||||||||||||
Occupancy, office furniture, and equipment
|
2,577
|
2,218
|
7,883
|
5,995
|
||||||||||||
Advertising
|
678
|
718
|
2,252
|
2,339
|
||||||||||||
Data processing
|
582
|
516
|
1,701
|
1,476
|
||||||||||||
Communications
|
430
|
398
|
1,250
|
1,148
|
||||||||||||
Professional fees
|
441
|
626
|
1,471
|
1,762
|
||||||||||||
Real estate owned
|
665
|
(163
|
)
|
1,918
|
(9
|
)
|
||||||||||
FDIC insurance premiums
|
336
|
516
|
1,046
|
1,569
|
||||||||||||
Other
|
3,152
|
3,012
|
9,325
|
8,453
|
||||||||||||
Total noninterest expenses
|
27,030
|
24,416
|
78,264
|
75,734
|
||||||||||||
Income before income taxes
|
7,480
|
5,192
|
16,275
|
20,721
|
||||||||||||
Income tax expense
|
2,715
|
1,973
|
5,857
|
7,950
|
||||||||||||
Net income
|
$
|
4,765
|
3,219
|
10,418
|
12,771
|
|||||||||||
Income per share:
|
||||||||||||||||
Basic
|
$
|
0.14
|
0.09
|
0.31
|
0.37
|
|||||||||||
Diluted
|
$
|
0.14
|
0.09
|
0.31
|
0.37
|