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: April 24, 2015
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/s/ Allan R. Hosack |
Name: Allan R. Hosack
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Title: Chief FinancialOfficer
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•
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Mortgage banking segment net income totaled $1.4 million for the quarter ended March 31, 2015 compared to $31,000 for the quarter ended March 31, 2014. The quarter ended March 31, 2015 represents the third consecutive quarter in which the mortgage banking segment has outperformed the prior year comparative quarter. Mortgage banking operations were positively impacted by a higher volume of loans originated during the first quarter of 2015 compared to the first quarter of 2014. Along with the improved volumes, the segment's efficiency ratio dropped to 88.8% for the quarter ended March 31, 2015 compared to 99.7% for the quarter ended March 31, 2014 due to ongoing expense control efforts.
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•
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Community banking segment net income totaled $1.6 million for the quarter ended March 31, 2015 compared to $1.8 million for the quarter ended March 31, 2014.
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•
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Total non-performing assets decreased $4.1 million or 7.3% to $52.6 million at March 31, 2015 from $56.7 million at December 31, 2014 and decreased $17.3 million or 24.7% from $69.9 million at March 31, 2014.
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•
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Past due loans decreased by $7.4 million, or 21.7%, to $26.7 million at March 31, 2015 from $34.1 million at December 31, 2014 and decreased $15.7 million, or 37.0% from $42.4 million at March 31, 2014. Loans past due less than 90 days decreased by $2.3 million, or 26.1%, to $6.7 million at March 31, 2015 from $9.0 million at December 31, 2014 and decreased $10.2 million, or 60.4%, from 16.8 million at March 31, 2014.
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•
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Commenced a share purchase program, under which 381,800 shares have been repurchased at an average price of $12.97 per share on the open market as of March 31, 2015.
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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||||||||
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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||||||||
Three months ended March 31,
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||||||||
2015
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2014
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|||||||
(In Thousands, except per share amounts)
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Interest income:
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||||||||
Loans
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$
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13,313
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13,669
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|||||
Mortgage-related securities
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839
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559
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Debt securities, federal funds sold and short-term investments
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866
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825
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Total interest income
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15,018
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15,053
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Interest expense:
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||||||||
Deposits
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1,353
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1,060
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Borrowings
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4,229
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4,293
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||||||
Total interest expense
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5,582
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5,353
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Net interest income
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9,436
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9,700
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Provision for loan losses
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335
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250
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Net interest income after provision for loan losses
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9,101
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9,450
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Noninterest income:
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Service charges on loans and deposits
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406
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254
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Increase in cash surrender value of life insurance
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207
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146
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Mortgage banking income
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21,039
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14,503
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Gain on sale of available for sale securities
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44
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-
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Other
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337
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2,155
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Total noninterest income
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22,033
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17,058
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Noninterest expenses:
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Compensation, payroll taxes, and other employee benefits
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18,078
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15,059
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Occupancy, office furniture, and equipment
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2,443
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2,685
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Advertising
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653
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736
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Data processing
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575
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559
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Communications
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370
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422
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Professional fees
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497
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508
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Real estate owned
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543
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548
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FDIC insurance premiums
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336
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406
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Other
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2,933
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2,709
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Total noninterest expenses
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26,428
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23,632
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Income before income taxes
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4,706
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2,876
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Income tax expense
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1,690
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993
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Net income
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$
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3,016
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1,883
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Income per share:
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Basic
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$
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0.09
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0.05
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Diluted
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$
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0.09
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0.05
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Weighted average shares outstanding:
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Basic
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32,369
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34,264
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Diluted
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32,650
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34,503
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Performace Ratios:
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Return on average assets
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0.69
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%
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0.42
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%
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Return on average equity
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2.71
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%
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1.87
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%
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Net interest margin
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2.31
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%
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2.31
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%
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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March 31,
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December 31,
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2015
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2014
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(Unaudited)
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Assets
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(In Thousands, except share data)
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Cash
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$
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100,116
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145,846
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Federal funds sold
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32,468
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21,268
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Interest-earning deposits in other financial institutions and other short term investments
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9,809
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5,706
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Cash and cash equivalents
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142,393
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172,820
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Securities available for sale (at fair value)
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275,107
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273,443
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Loans held for sale (at fair value)
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164,848
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125,073
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Loans receivable
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1,064,758
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1,094,990
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Less: Allowance for loan losses
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17,767
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18,706
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Loans receivable, net
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1,046,991
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1,076,284
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Office properties and equipment, net
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25,070
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25,562
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Federal Home Loan Bank stock (at cost)
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17,500
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17,500
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Cash surrender value of life insurance
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51,055
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50,848
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Real estate owned, net
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19,579
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18,706
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Prepaid expenses and other assets
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23,505
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23,144
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Total assets
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$
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1,766,048
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1,783,380
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Liabilities and Shareholders' Equity
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Liabilities:
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Demand deposits
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$
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96,806
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92,162
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Money market and savings deposits
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118,727
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119,163
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Time deposits
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639,201
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652,635
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Total deposits
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854,734
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863,960
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Short-term borrowings
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50,000
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-
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Long-term borrowings
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384,000
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434,000
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Advance payments by borrowers for taxes
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9,058
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4,991
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Other liabilities
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18,935
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30,192
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Total liabilities
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1,316,727
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1,333,143
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Shareholders' equity:
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Common stock
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346
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344
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Additional paid-in capital
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315,343
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313,894
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Retained earnings
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158,709
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157,304
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Unearned ESOP shares
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(22,255
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)
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(22,552
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)
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Accumulated other comprehensive income, net of taxes
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2,524
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1,247
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Cost of shares repurchased
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(5,346
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)
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-
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Total shareholders' equity
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449,321
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450,237
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Total liabilities and shareholders' equity
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$
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1,766,048
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1,783,380
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Share Information
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Shares Outstanding
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34,565
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34,420
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Book Value per share - excluding unallocated ESOP shares
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$
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13.80
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13.89
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Book Value per share - including unallocated ESOP shares
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$
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13.00
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13.08
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Closing market price
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$
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12.84
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13.15
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Price to book ratio - excluding unallocated ESOP shares
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93.05
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%
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95.73
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%
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Price to book ratio - including unallocated ESOP shares
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98.77
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%
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100.53
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%
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Asset Quality Data
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Total non accrual loans
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$
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33,005
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38,011
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Real estate owned
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19,579
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18,706
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Total nonperforming assets
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$
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52,584
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56,717
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Total non accrual to total loans
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3.10
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%
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3.47
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%
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Total nonperforming assets to total assets
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2.98
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%
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3.18
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%
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Allowance for loan losses
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$
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17,767
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18,706
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Allowance for loan losses as a % to non-accrual loans
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53.83
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%
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49.21
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%
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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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At or For the Three Months Ended
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March 31,
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December 31,
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September 30,
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June 30,
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March 31,
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December 31,
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||||||||||||||||||
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2015
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2014
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2014
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2014
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2014
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2013
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(Dollars in Thousands)
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Condensed Results of Operations:
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Net interest income
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$
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9,436
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10,083
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10,914
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10,610
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9,700
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$
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9,561
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Provision for loan losses
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335
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300
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315
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285
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250
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572
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Total noninterest income
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22,033
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20,403
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23,911
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23,196
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17,058
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17,029
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Total noninterest expense
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26,428
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26,553
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27,030
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27,603
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23,632
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23,410
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Income before income taxes
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4,706
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3,633
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7,480
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5,918
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2,876
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2,608
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||||||||||||||||||
Income tax expense
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1,690
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1,319
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2,715
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2,148
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993
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671
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Net income
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$
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3,016
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2,314
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4,765
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3,770
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1,883
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$
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1,937
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Income per share – basic
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$
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0.09
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0.08
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0.14
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0.11
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0.05
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$
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0.06
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Income per share – diluted
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$
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0.09
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0.08
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0.14
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0.11
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0.05
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$
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0.06
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WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
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SUMMARY OF SHARES REPURCHASED
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For the quarter ended March 31, 2015
|
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Total shares repurchased
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381,800
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Total cost of shares (including commision)
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$
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4,952,803
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Avergage cost per share
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$
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12.97
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