Maryland
|
90-1026709
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
11200 W. Plank Court Wauwatosa, Wisconsin
|
53226
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading
Symbol
|
Name of each exchange on which registered
|
||
Common Stock, $0.01 Par Value
|
WSBF
|
The NASDAQ Stock Market, LLC
|
Large accelerated filer □
|
Accelerated filer T
|
Non-accelerated filer □
|
Smaller reporting company □
|
Emerging growth company □
|
Page No.
|
|
PART I. FINANCIAL INFORMATION
|
|
Item l. Financial Statements
|
|
Consolidated Statements of Financial Condition as of March 31, 2020 (unaudited) and December 31, 2019
|
3 |
Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 (unaudited)
|
4 |
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019
(unaudited)
|
5 |
Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2020 and 2019
(unaudited)
|
6 |
Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (unaudited)
|
7 |
Notes to Consolidated Financial Statements (unaudited)
|
8-34 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
|
35-51 |
Item 3. Quantitative and Qualitative Disclosures about Market Risk
|
52 |
Item 4. Controls and Procedures
|
53 |
PART II. OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
53 |
Item 1A. Risk Factors | 53-54 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 54 |
Item 3. Defaults Upon Senior Securities | 55 |
Item 4. Mine Safety Disclosures | 55 |
Item 5. Other Information
|
55 |
Item 6. Exhibits
|
55 |
Signatures
|
56 |
(Unaudited)
|
||||||||
March 31, 2020
|
December 31, 2019
|
|||||||
Assets
|
(Dollars In Thousands, except share and per share data)
|
|||||||
Cash
|
$
|
41,864
|
$
|
52,814
|
||||
Federal funds sold
|
9,473
|
12,704
|
||||||
Interest-earning deposits in other financial institutions and other short term investments
|
7,787
|
8,782
|
||||||
Cash and cash equivalents
|
59,124
|
74,300
|
||||||
Securities available for sale (at fair value)
|
171,489
|
178,476
|
||||||
Loans held for sale (at fair value)
|
262,736
|
220,123
|
||||||
Loans receivable
|
1,409,378
|
1,388,031
|
||||||
Less: Allowance for loan losses
|
13,226
|
12,387
|
||||||
Loans receivable, net
|
1,396,152
|
1,375,644
|
||||||
Office properties and equipment, net
|
24,621
|
25,028
|
||||||
Federal Home Loan Bank stock (at cost)
|
22,950
|
21,150
|
||||||
Cash surrender value of life insurance
|
70,018
|
69,665
|
||||||
Real estate owned, net
|
702
|
748
|
||||||
Prepaid expenses and other assets
|
48,884
|
31,213
|
||||||
Total assets
|
$
|
2,056,676
|
$
|
1,996,347
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Demand deposits
|
$
|
135,234
|
$
|
130,063
|
||||
Money market and savings deposits
|
221,464
|
197,942
|
||||||
Time deposits
|
729,370
|
739,771
|
||||||
Total deposits
|
1,086,068
|
1,067,776
|
||||||
Borrowings
|
522,180
|
483,562
|
||||||
Advance payments by borrowers for taxes
|
12,966
|
4,212
|
||||||
Other liabilities
|
63,636
|
47,111
|
||||||
Total liabilities
|
1,684,850
|
1,602,661
|
||||||
Shareholders’ equity:
|
||||||||
Preferred stock (par value $.01 per share)
|
||||||||
Authorized - 50,000,000 shares at March 31, 2020 and at December 31, 2019, no shares issued
|
-
|
-
|
||||||
Common stock (par value $.01 per share)
|
||||||||
Authorized - 100,000,000 shares at March 31, 2020 and at December 31, 2019
|
||||||||
Issued - 26,274,974 at March 31, 2020 and 27,148,411 at December 31, 2019
|
||||||||
Outstanding - 26,274,974 at March 31, 2020 and 27,148,411 at December 31, 2019
|
263
|
271
|
||||||
Additional paid-in capital
|
198,579
|
211,997
|
||||||
Retained earnings
|
187,812
|
197,393
|
||||||
Unearned ESOP shares
|
(16,320
|
)
|
(16,617
|
)
|
||||
Accumulated other comprehensive income, net of taxes
|
1,492
|
642
|
||||||
Total shareholders’ equity
|
371,826
|
393,686
|
||||||
Total liabilities and shareholders’ equity
|
$
|
2,056,676
|
$
|
1,996,347
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands, except per share amounts)
|
||||||||
Interest income:
|
||||||||
Loans
|
$
|
17,687
|
$
|
17,104
|
||||
Mortgage-related securities
|
702
|
759
|
||||||
Debt securities, federal funds sold and short-term investments
|
1,063
|
1,309
|
||||||
Total interest income
|
19,452
|
19,172
|
||||||
Interest expense:
|
||||||||
Deposits
|
4,318
|
3,990
|
||||||
Borrowings
|
2,608
|
2,246
|
||||||
Total interest expense
|
6,926
|
6,236
|
||||||
Net interest income
|
12,526
|
12,936
|
||||||
Provision (credit) for loan losses
|
785
|
(680
|
)
|
|||||
Net interest income after provision (credit) for loan losses
|
11,741
|
13,616
|
||||||
Noninterest income:
|
||||||||
Service charges on loans and deposits
|
481
|
379
|
||||||
Increase in cash surrender value of life insurance
|
353
|
344
|
||||||
Mortgage banking income
|
30,406
|
23,359
|
||||||
Other
|
224
|
175
|
||||||
Total noninterest income
|
31,464
|
24,257
|
||||||
Noninterest expenses:
|
||||||||
Compensation, payroll taxes, and other employee benefits
|
24,401
|
20,639
|
||||||
Occupancy, office furniture, and equipment
|
2,741
|
2,776
|
||||||
Advertising
|
900
|
958
|
||||||
Data processing
|
1,006
|
769
|
||||||
Communications
|
338
|
328
|
||||||
Professional fees
|
1,832
|
695
|
||||||
Real estate owned
|
11
|
32
|
||||||
Loan processing expense
|
1,076
|
805
|
||||||
Other
|
2,903
|
2,347
|
||||||
Total noninterest expenses
|
35,208
|
29,349
|
||||||
Income before income taxes
|
7,997
|
8,524
|
||||||
Income tax expense
|
1,928
|
1,982
|
||||||
Net income
|
$
|
6,069
|
$
|
6,542
|
||||
Income per share:
|
||||||||
Basic
|
$
|
0.24
|
$
|
0.25
|
||||
Diluted
|
$
|
0.24
|
$
|
0.24
|
||||
Weighted average shares outstanding:
|
||||||||
Basic
|
25,405
|
26,499
|
||||||
Diluted
|
25,612
|
26,720
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Net income
|
$
|
6,069
|
$
|
6,542
|
||||
Other comprehensive income, net of tax:
|
||||||||
Net unrealized holding gains on available for sale securities:
|
||||||||
Net unrealized holding gains arising during the period, net of tax expense of $(319) and $(565) respectively
|
850
|
1,510
|
||||||
Total other comprehensive income
|
850
|
1,510
|
||||||
Comprehensive income
|
$
|
6,919
|
$
|
8,052
|
Common Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Unearned
ESOP
Shares
|
Accumulated
Other
Comprehensive Income (Loss)
|
Total
Shareholders'
Equity
|
|||||||||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||||||||||
For the three months ended March 31, 2019
|
(In Thousands, except per share amounts)
|
|||||||||||||||||||||||||||
Balances at December 31, 2018
|
28,463
|
$
|
$285
|
$
|
232,406
|
$
|
187,153
|
$
|
(17,804
|
)
|
$
|
(2,361
|
)
|
$
|
399,679
|
|||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
-
|
-
|
-
|
6,542
|
-
|
-
|
6,542
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
1,510
|
1,510
|
|||||||||||||||||||||
Total comprehensive income
|
8,052
|
|||||||||||||||||||||||||||
ESOP shares committed to be released to Plan participants
|
-
|
-
|
140
|
-
|
297
|
-
|
437
|
|||||||||||||||||||||
Cash dividend declared, $0.62 per share
|
-
|
-
|
-
|
(16,392
|
)
|
-
|
-
|
(16,392
|
)
|
|||||||||||||||||||
Stock compensation activity, net of tax
|
23
|
-
|
292
|
-
|
-
|
-
|
292
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
369
|
-
|
-
|
-
|
369
|
|||||||||||||||||||||
Purchase of common stock returned to authorized but unissued
|
(482
|
)
|
(5
|
)
|
(7,964
|
)
|
-
|
-
|
-
|
(7,969
|
)
|
|||||||||||||||||
Balances at March 31, 2019
|
28,004
|
$
|
280
|
$
|
225,243
|
$
|
177,303
|
$
|
(17,507
|
)
|
$
|
(851
|
)
|
$
|
384,468
|
|||||||||||||
For the three months ended March 31, 2020
|
(In Thousands, except per share amounts)
|
|||||||||||||||||||||||||||
Balances at December 31, 2019
|
27,148
|
$
|
$271
|
$
|
211,997
|
$
|
197,393
|
$
|
(16,617
|
)
|
$
|
642
|
$
|
393,686
|
||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
-
|
-
|
-
|
6,069
|
-
|
-
|
6,069
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
850
|
850
|
|||||||||||||||||||||
Total comprehensive income
|
6,919
|
|||||||||||||||||||||||||||
ESOP shares committed to be released to Plan participants
|
-
|
-
|
152
|
-
|
297
|
-
|
449
|
|||||||||||||||||||||
Cash dividend declared, $0.62 per share
|
-
|
-
|
-
|
(15,650
|
)
|
-
|
-
|
(15,650
|
)
|
|||||||||||||||||||
Stock based compensation activity
|
39
|
1
|
452
|
-
|
-
|
-
|
453
|
|||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
214
|
-
|
-
|
-
|
214
|
|||||||||||||||||||||
Purchase of common stock returned to authorized but unissued
|
(912
|
)
|
(9
|
)
|
(14,236
|
)
|
-
|
-
|
-
|
(14,245
|
)
|
|||||||||||||||||
Balances at March 31, 2020
|
26,275
|
$
|
263
|
$
|
198,579
|
$
|
187,812
|
$
|
(16,320
|
)
|
$
|
1,492
|
$
|
371,826
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Operating activities:
|
||||||||
Net income
|
$
|
6,069
|
$
|
6,542
|
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Provision (credit) for loan losses
|
785
|
(680
|
)
|
|||||
Provision for depreciation
|
646
|
608
|
||||||
Deferred taxes
|
40
|
1,187
|
||||||
Stock based compensation
|
214
|
369
|
||||||
Net amortization of premium/discount on debt and mortgage related securities
|
58
|
69
|
||||||
Amortization of unearned ESOP shares
|
449
|
437
|
||||||
Amortization and impairment of mortgage servicing rights
|
104
|
67
|
||||||
Gain on sale of loans held for sale
|
(31,837
|
)
|
(23,551
|
)
|
||||
Loans originated for sale
|
(687,694
|
)
|
(491,239
|
)
|
||||
Proceeds on sales of loans originated for sale
|
676,918
|
533,395
|
||||||
Increase in accrued interest receivable
|
(147
|
)
|
(357
|
)
|
||||
Increase in cash surrender value of life insurance
|
(353
|
)
|
(344
|
)
|
||||
(Decrease) increase in accrued interest on deposits and borrowings
|
(38
|
)
|
33
|
|||||
Decrease in prepaid tax expense
|
96
|
122
|
||||||
Net gain related to real estate owned
|
(5
|
)
|
(12
|
)
|
||||
Change in other assets and other liabilities
|
(2,968
|
)
|
(8,882
|
)
|
||||
Net cash (used in) provided by operating activities
|
(37,663
|
)
|
17,764
|
|||||
Investing activities:
|
||||||||
Net increase in loans receivable
|
(21,293
|
)
|
(756
|
)
|
||||
Net change in FHLB stock
|
(1,800
|
)
|
-
|
|||||
Purchases of:
|
||||||||
Mortgage related securities
|
(686
|
)
|
(2,745
|
)
|
||||
Debt securities
|
(2,500
|
)
|
-
|
|||||
Premises and equipment, net
|
(241
|
)
|
(330
|
)
|
||||
Proceeds from:
|
||||||||
Principal repayments on mortgage-related securities
|
9,729
|
5,997
|
||||||
Maturities of debt securities
|
1,555
|
250
|
||||||
Sales of real estate owned
|
59
|
528
|
||||||
Net cash (used in) provided by investing activities
|
(15,177
|
)
|
2,944
|
|||||
Financing activities:
|
||||||||
Net increase in deposits
|
18,292
|
(1,154
|
)
|
|||||
Net change in short term borrowings
|
38,618
|
13,405
|
||||||
Cash paid for advance payments by borrowers for taxes
|
(3,040
|
)
|
(3,922
|
)
|
||||
Cash dividends on common stock
|
(2,414
|
)
|
(2,628
|
)
|
||||
Purchase of common stock returned to authorized but unissued
|
(14,245
|
)
|
(7,969
|
)
|
||||
Proceeds from stock option exercises
|
453
|
292
|
||||||
Net cash provided by (used in) financing activities
|
37,664
|
(1,976
|
)
|
|||||
(Decrease) increase in cash and cash equivalents
|
(15,176
|
)
|
18,732
|
|||||
Cash and cash equivalents at beginning of period
|
74,300
|
86,101
|
||||||
Cash and cash equivalents at end of period
|
$
|
59,124
|
$
|
104,833
|
||||
Supplemental information:
|
||||||||
Cash paid or credited during the period for:
|
||||||||
Income tax payments
|
$
|
1,791
|
$
|
1,238
|
||||
Interest payments
|
6,964
|
6,203
|
||||||
Noncash activities:
|
||||||||
Loans receivable transferred to real estate owned
|
-
|
30
|
||||||
Dividends declared but not paid in other liabilities
|
16,737
|
17,562
|
●
|
Duration, extent and severity of COVID-19;
|
●
|
Effect of government assistance; and
|
●
|
Unemployment and effect on economies and markets.
|
March 31, 2020
|
||||||||||||||||
Amortized cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Mortgage-backed securities
|
$
|
30,857
|
$
|
1,243
|
$
|
-
|
$
|
32,100
|
||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government sponsored enterprise issued
|
75,108
|
2,765
|
-
|
77,873
|
||||||||||||
Mortgage-related securities
|
105,965
|
4,008
|
-
|
109,973
|
||||||||||||
Municipal securities
|
50,282
|
1,680
|
-
|
51,962
|
||||||||||||
Other debt securities
|
12,500
|
26
|
(2,972
|
)
|
9,554
|
|||||||||||
Debt securities
|
62,782
|
1,706
|
(2,972
|
)
|
61,516
|
|||||||||||
$
|
168,747
|
$
|
5,714
|
$
|
(2,972
|
)
|
$
|
171,489
|
December 31, 2019
|
||||||||||||||||
Amortized cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Mortgage-backed securities
|
$
|
33,773
|
$
|
422
|
$
|
(45
|
)
|
$
|
34,150
|
|||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government sponsored enterprise issued
|
81,232
|
776
|
(254
|
)
|
81,754
|
|||||||||||
Mortgage-related securities
|
115,005
|
1,198
|
(299
|
)
|
115,904
|
|||||||||||
Municipal securities
|
51,898
|
1,795
|
(1
|
)
|
53,692
|
|||||||||||
Other debt securities
|
10,000
|
-
|
(1,120
|
)
|
8,880
|
|||||||||||
Debt securities
|
61,898
|
1,795
|
(1,121
|
)
|
62,572
|
|||||||||||
$
|
176,903
|
$
|
2,993
|
$
|
(1,420
|
)
|
$
|
178,476
|
Amortized
Cost
|
Fair
Value
|
|||||||
(In Thousands)
|
||||||||
Debt and other securities
|
||||||||
Due within one year
|
$
|
3,497
|
$
|
3,502
|
||||
Due after one year through five years
|
35,518
|
36,203
|
||||||
Due after five years through ten years
|
13,126
|
13,984
|
||||||
Due after ten years
|
10,641
|
7,827
|
||||||
Mortgage-related securities
|
105,965
|
109,973
|
||||||
$
|
168,747
|
$
|
171,489
|
March 31, 2020
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||||||||||
Government sponsored enterprise issued
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Municipal securities
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Other debt securities
|
-
|
-
|
7,028
|
(2,972
|
)
|
7,028
|
(2,972
|
)
|
||||||||||||||||
$
|
-
|
$
|
-
|
$
|
7,028
|
$
|
(2,972
|
)
|
$
|
7,028
|
$
|
(2,972
|
)
|
December 31, 2019
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
Fair value
|
Unrealized loss
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$
|
2,929
|
$
|
(20
|
)
|
$
|
2,849
|
$
|
(25
|
)
|
$
|
5,778
|
$
|
(45
|
)
|
|||||||||
Collateralized mortgage obligations:
|
||||||||||||||||||||||||
Government sponsored enterprise issued
|
21,723
|
(136
|
)
|
7,180
|
(118
|
)
|
28,903
|
(254
|
)
|
|||||||||||||||
Municipal securities
|
100
|
(1
|
)
|
-
|
-
|
100
|
(1
|
)
|
||||||||||||||||
Other debt securities
|
-
|
-
|
8,880
|
(1,120
|
)
|
8,880
|
(1,120
|
)
|
||||||||||||||||
$
|
24,752
|
$
|
(157
|
)
|
$
|
18,909
|
$
|
(1,263
|
)
|
$
|
43,661
|
$
|
(1,420
|
)
|
March 31, 2020
|
December 31, 2019
|
|||||||
(In Thousands)
|
||||||||
Mortgage loans:
|
||||||||
Residential real estate:
|
||||||||
One- to four-family
|
$
|
$479,259
|
$
|
$480,280
|
||||
Multi-family
|
588,555
|
584,859
|
||||||
Home equity
|
17,649
|
18,071
|
||||||
Construction and land
|
44,655
|
37,033
|
||||||
Commercial real estate
|
246,370
|
236,703
|
||||||
Consumer
|
890
|
832
|
||||||
Commercial loans
|
32,000
|
30,253
|
||||||
$
|
$1,409,378
|
$
|
$1,388,031
|
As of March 31, 2020
|
||||||||||||||||||||||||
1-59 Days Past Due (1)
|
60-89 Days Past Due (2)
|
90 Days or Greater
|
Total Past Due
|
Current (3)
|
Total Loans
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
One- to four-family
|
$
|
5,462
|
$
|
80
|
$
|
4,658
|
$
|
10,200
|
$
|
469,059
|
$
|
479,259
|
||||||||||||
Multi-family
|
-
|
-
|
356
|
356
|
588,199
|
588,555
|
||||||||||||||||||
Home equity
|
334
|
-
|
43
|
377
|
17,272
|
17,649
|
||||||||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
44,655
|
44,655
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
70
|
70
|
246,300
|
246,370
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
890
|
890
|
||||||||||||||||||
Commercial loans
|
22
|
-
|
-
|
22
|
31,978
|
32,000
|
||||||||||||||||||
Total
|
$
|
5,818
|
$
|
80
|
$
|
5,127
|
$
|
11,025
|
$
|
1,398,353
|
$
|
1,409,378
|
As of December 31, 2019
|
||||||||||||||||||||||||
1-59 Days Past Due (1)
|
60-89 Days Past Due (2)
|
90 Days or Greater
|
Total Past Due
|
Current (3)
|
Total Loans
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
One- to four-family
|
$
|
1,179
|
$
|
638
|
$
|
3,969
|
$
|
5,786
|
$
|
474,494
|
$
|
480,280
|
||||||||||||
Multi-family
|
-
|
-
|
360
|
360
|
584,499
|
584,859
|
||||||||||||||||||
Home equity
|
-
|
10
|
-
|
10
|
18,061
|
18,071
|
||||||||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
37,033
|
37,033
|
||||||||||||||||||
Commercial real estate
|
-
|
-
|
303
|
303
|
236,400
|
236,703
|
||||||||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
832
|
832
|
||||||||||||||||||
Commercial loans
|
6
|
-
|
-
|
6
|
30,247
|
30,253
|
||||||||||||||||||
Total
|
$
|
1,185
|
$
|
648
|
$
|
4,632
|
$
|
6,465
|
$
|
1,381,566
|
$
|
1,388,031
|
One- to
Four- Family
|
Multi-Family
|
Home Equity
|
Construction and Land
|
Commercial Real Estate
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
Three months ended March 31, 2020
|
||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$
|
4,907
|
$
|
4,138
|
$
|
201
|
$
|
610
|
$
|
2,145
|
$
|
14
|
$
|
372
|
$
|
12,387
|
||||||||||||||||
Provision (credit) for loan losses
|
(234
|
)
|
160
|
32
|
76
|
654
|
10
|
87
|
785
|
|||||||||||||||||||||||
Charge-offs
|
(6
|
)
|
-
|
-
|
-
|
-
|
(1
|
)
|
-
|
(7
|
)
|
|||||||||||||||||||||
Recoveries
|
47
|
3
|
6
|
1
|
4
|
-
|
-
|
61
|
||||||||||||||||||||||||
Balance at end of period
|
$
|
4,714
|
$
|
4,301
|
$
|
239
|
$
|
687
|
$
|
2,803
|
$
|
23
|
$
|
459
|
$
|
13,226
|
Three months ended March 31, 2019
|
||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$
|
5,742
|
$
|
4,153
|
$
|
325
|
$
|
400
|
$
|
2,126
|
$
|
20
|
$
|
483
|
$
|
13,249
|
||||||||||||||||
Provision (credit) for loan losses
|
(550
|
)
|
174
|
(47
|
)
|
(47
|
)
|
(122
|
)
|
(13
|
)
|
(75
|
)
|
(680
|
)
|
|||||||||||||||||
Charge-offs
|
(24
|
)
|
-
|
(8
|
)
|
-
|
-
|
-
|
-
|
(32
|
)
|
|||||||||||||||||||||
Recoveries
|
13
|
4
|
6
|
-
|
1
|
-
|
-
|
24
|
||||||||||||||||||||||||
Balance at end of period
|
$
|
5,181
|
$
|
4,331
|
$
|
276
|
$
|
353
|
$
|
2,005
|
$
|
7
|
$
|
408
|
$
|
12,561
|
One- to
Four- Family
|
Multi-
Family
|
Home
Equity
|
Construction
and Land
|
Commercial
Real Estate
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
Allowance related to loans individually evaluated for impairment
|
$
|
29
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2
|
$
|
-
|
$
|
-
|
$
|
31
|
||||||||||||||||
Allowance related to loans collectively evaluated for impairment
|
4,685
|
4,301
|
239
|
687
|
2,801
|
23
|
459
|
13,195
|
||||||||||||||||||||||||
Balance at end of period
|
$
|
4,714
|
$
|
4,301
|
$
|
239
|
$
|
687
|
$
|
2,803
|
$
|
23
|
$
|
459
|
$
|
13,226
|
||||||||||||||||
Loans individually evaluated for impairment
|
$
|
8,439
|
$
|
647
|
$
|
387
|
$
|
-
|
$
|
346
|
$
|
-
|
$
|
-
|
$
|
9,819
|
||||||||||||||||
Loans collectively evaluated for impairment
|
470,820
|
587,908
|
17,262
|
44,655
|
246,024
|
890
|
32,000
|
1,399,559
|
||||||||||||||||||||||||
Total gross loans
|
$
|
479,259
|
$
|
588,555
|
$
|
17,649
|
$
|
44,655
|
$
|
246,370
|
$
|
890
|
$
|
32,000
|
$
|
1,409,378
|
One- to
Four-Family
|
Multi-
Family
|
Home
Equity
|
Construction
and Land
|
Commercial
Real Estate
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
Allowance related to loans individually evaluated for impairment
|
$
|
32
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
7
|
$
|
-
|
$
|
-
|
$
|
39
|
||||||||||||||||
Allowance related to loans collectively evaluated for impairment
|
4,875
|
4,138
|
201
|
610
|
2,138
|
14
|
372
|
12,348
|
||||||||||||||||||||||||
Balance at end of period
|
$
|
4,907
|
$
|
4,138
|
$
|
201
|
$
|
610
|
$
|
2,145
|
$
|
14
|
$
|
372
|
$
|
12,387
|
||||||||||||||||
Loans individually evaluated for impairment
|
$
|
8,725
|
$
|
667
|
$
|
84
|
$
|
-
|
$
|
581
|
$
|
-
|
$
|
-
|
$
|
10,057
|
||||||||||||||||
Loans collectively evaluated for impairment
|
471,555
|
584,192
|
17,987
|
37,033
|
236,122
|
832
|
30,253
|
1,377,974
|
||||||||||||||||||||||||
Total gross loans
|
$
|
480,280
|
$
|
584,859
|
$
|
18,071
|
$
|
37,033
|
$
|
236,703
|
$
|
832
|
$
|
30,253
|
$
|
1,388,031
|
One
to Four- Family
|
Multi-Family
|
Home
Equity
|
Construction
and Land
|
Commercial
Real Estate
|
Consumer
|
Commercial
|
Total
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
At March 31, 2020
|
||||||||||||||||||||||||||||||||
Substandard
|
$
|
8,438
|
$
|
647
|
$
|
576
|
$
|
-
|
$
|
346
|
$
|
-
|
$
|
743
|
$
|
10,750
|
||||||||||||||||
Watch
|
5,205
|
-
|
-
|
-
|
1,397
|
-
|
699
|
7,301
|
||||||||||||||||||||||||
Pass
|
465,616
|
587,908
|
17,073
|
44,655
|
244,627
|
890
|
30,558
|
1,391,327
|
||||||||||||||||||||||||
$
|
479,259
|
$
|
588,555
|
$
|
17,649
|
$
|
44,655
|
$
|
246,370
|
$
|
890
|
$
|
32,000
|
$
|
1,409,378
|
|||||||||||||||||
At December 31, 2019
|
||||||||||||||||||||||||||||||||
Substandard
|
$
|
8,725
|
$
|
668
|
$
|
285
|
$
|
-
|
$
|
581
|
$
|
-
|
$
|
754
|
$
|
11,013
|
||||||||||||||||
Watch
|
5,975
|
-
|
3
|
-
|
1,412
|
-
|
847
|
8,237
|
||||||||||||||||||||||||
Pass
|
465,580
|
584,191
|
17,783
|
37,033
|
234,710
|
832
|
28,652
|
1,368,781
|
||||||||||||||||||||||||
$
|
480,280
|
$
|
584,859
|
$
|
18,071
|
$
|
37,033
|
$
|
236,703
|
$
|
832
|
$
|
30,253
|
$
|
1,388,031
|
As of March 31, 2020
|
||||||||||||||||
Recorded
Investment
|
Unpaid
Principal
|
Reserve
|
Cumulative
Charge-Offs
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Total Impaired with Reserve
|
||||||||||||||||
One- to four-family
|
$
|
215
|
$
|
215
|
$
|
29
|
$
|
-
|
||||||||
Multi-family
|
-
|
-
|
-
|
-
|
||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
2
|
411
|
2
|
409
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
217
|
626
|
31
|
409
|
|||||||||||||
Total Impaired with no Reserve
|
||||||||||||||||
One- to four-family
|
8,224
|
9,242
|
-
|
1,018
|
||||||||||||
Multi-family
|
647
|
1,470
|
-
|
823
|
||||||||||||
Home equity
|
387
|
387
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
344
|
344
|
-
|
-
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
9,602
|
11,443
|
-
|
1,841
|
|||||||||||||
Total Impaired
|
||||||||||||||||
One- to four-family
|
8,439
|
9,457
|
29
|
1,018
|
||||||||||||
Multi-family
|
647
|
1,470
|
-
|
823
|
||||||||||||
Home equity
|
387
|
387
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
346
|
755
|
2
|
409
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
$
|
9,819
|
$
|
12,069
|
$
|
31
|
$
|
2,250
|
As of December 31, 2019
|
||||||||||||||||
Recorded
Investment
|
Unpaid
Principal
|
Reserve
|
Cumulative
Charge-Offs
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Total Impaired with Reserve
|
||||||||||||||||
One- to four-family
|
$
|
217
|
$
|
217
|
$
|
32
|
$
|
-
|
||||||||
Multi-family
|
-
|
-
|
-
|
-
|
||||||||||||
Home equity
|
-
|
-
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
7
|
416
|
7
|
409
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
224
|
633
|
39
|
409
|
|||||||||||||
Total Impaired with no Reserve
|
||||||||||||||||
One- to four-family
|
8,508
|
9,531
|
-
|
1,023
|
||||||||||||
Multi-family
|
667
|
1,491
|
-
|
824
|
||||||||||||
Home equity
|
84
|
84
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
574
|
574
|
-
|
-
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
9,833
|
11,680
|
-
|
1,847
|
|||||||||||||
Total Impaired
|
||||||||||||||||
One- to four-family
|
8,725
|
9,748
|
32
|
1,023
|
||||||||||||
Multi-family
|
667
|
1,491
|
-
|
824
|
||||||||||||
Home equity
|
84
|
84
|
-
|
-
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
581
|
990
|
7
|
409
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
$
|
10,057
|
$
|
12,313
|
$
|
39
|
$
|
2,256
|
Three months ended March 31,
|
||||||||||||||||
2020
|
2019
|
|||||||||||||||
Average
Recorded
Investment
|
Interest
Paid
|
Average
Recorded
Investment
|
Interest
Paid
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Total Impaired with Reserve
|
||||||||||||||||
One- to four-family
|
$
|
216
|
$
|
4
|
$
|
354
|
$
|
6
|
||||||||
Multi-family
|
-
|
-
|
349
|
10
|
||||||||||||
Home equity
|
-
|
-
|
86
|
2
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
5
|
10
|
2,481
|
26
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
||||||||||||
221
|
14
|
3,270
|
44
|
|||||||||||||
Total Impaired with no Reserve
|
||||||||||||||||
One- to four-family
|
8,265
|
98
|
7,652
|
114
|
||||||||||||
Multi-family
|
656
|
17
|
945
|
20
|
||||||||||||
Home equity
|
388
|
4
|
138
|
1
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
349
|
4
|
388
|
4
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
16
|
-
|
||||||||||||
9,658
|
123
|
9,139
|
139
|
|||||||||||||
Total Impaired
|
||||||||||||||||
One- to four-family
|
8,481
|
102
|
8,006
|
120
|
||||||||||||
Multi-family
|
656
|
17
|
1,294
|
30
|
||||||||||||
Home equity
|
388
|
4
|
224
|
3
|
||||||||||||
Construction and land
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial real estate
|
354
|
14
|
2,869
|
30
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial
|
-
|
-
|
16
|
-
|
||||||||||||
$
|
9,879
|
137
|
12,409
|
183
|
As of March 31, 2020
|
||||||||||||||||||||||||
Accruing
|
Non-accruing
|
Total
|
||||||||||||||||||||||
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
One- to four-family
|
$
|
2,740
|
2
|
$
|
619
|
4
|
$
|
3,359
|
6
|
|||||||||||||||
Multi-family
|
-
|
-
|
291
|
2
|
291
|
2
|
||||||||||||||||||
Commercial real estate
|
277
|
1
|
2
|
1
|
279
|
2
|
||||||||||||||||||
$
|
3,017
|
3
|
$
|
912
|
7
|
$
|
3,929
|
10
|
As of December 31, 2019
|
||||||||||||||||||||||||
Accruing
|
Non-accruing
|
Total
|
||||||||||||||||||||||
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
One- to four-family
|
$
|
2,740
|
2
|
$
|
685
|
5
|
$
|
3,425
|
7
|
|||||||||||||||
Multi-family
|
-
|
-
|
308
|
2
|
308
|
2
|
||||||||||||||||||
Commercial real estate
|
278
|
1
|
7
|
1
|
285
|
2
|
||||||||||||||||||
$
|
3,018
|
3
|
$
|
1,000
|
8
|
$
|
4,018
|
11
|
As of March 31, 2020
|
||||||||||||||||||||||||
Performing in
accordance with
modified terms
|
In Default
|
Total
|
||||||||||||||||||||||
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Interest reduction and principal forbearance
|
$
|
3,610
|
6
|
$
|
2
|
1
|
$
|
3,612
|
7
|
|||||||||||||||
Interest reduction
|
317
|
3
|
-
|
-
|
317
|
3
|
||||||||||||||||||
$
|
3,927
|
9
|
$
|
2
|
1
|
$
|
3,929
|
10
|
As of December 31, 2019
|
||||||||||||||||||||||||
Performing in
accordance with
modified terms
|
In Default
|
Total
|
||||||||||||||||||||||
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Interest reduction and principal forbearance
|
$
|
3,246
|
6
|
$
|
448
|
2
|
$
|
3,694
|
8
|
|||||||||||||||
Interest reduction
|
324
|
3
|
-
|
-
|
324
|
3
|
||||||||||||||||||
$
|
3,570
|
9
|
$
|
448
|
2
|
$
|
4,018
|
11
|
March 31, 2020
|
December 31, 2019
|
|||||||
(Dollars in Thousands)
|
||||||||
Non-accrual loans:
|
||||||||
Residential real estate:
|
||||||||
One- to four-family
|
$
|
5,698
|
$
|
5,985
|
||||
Multi-family
|
647
|
667
|
||||||
Home equity
|
387
|
70
|
||||||
Construction and land
|
-
|
-
|
||||||
Commercial real estate
|
70
|
303
|
||||||
Commercial
|
-
|
-
|
||||||
Consumer
|
-
|
-
|
||||||
Total non-accrual loans
|
$
|
6,802
|
$
|
7,025
|
||||
Total non-accrual loans to total loans receivable
|
0.48
|
%
|
0.51
|
%
|
||||
Total non-accrual loans to total assets
|
0.33
|
%
|
0.35
|
%
|
March 31, 2020
|
December 31, 2019
|
|||||||
(In Thousands)
|
||||||||
One- to four-family
|
$
|
-
|
$
|
46
|
||||
Multi-family
|
-
|
-
|
||||||
Construction and land
|
1,256
|
1,256
|
||||||
Commercial real estate
|
-
|
-
|
||||||
Total real estate owned
|
1,256
|
1,302
|
||||||
Valuation allowance at end of period
|
(554
|
)
|
(554
|
)
|
||||
Total real estate owned, net
|
$
|
702
|
$
|
748
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Real estate owned at beginning of the period
|
$
|
748
|
2,152
|
|||||
Transferred from loans receivable
|
-
|
30
|
||||||
Sales (net of gains / losses)
|
(46
|
)
|
(533
|
)
|
||||
Write downs
|
-
|
-
|
||||||
Other
|
-
|
-
|
||||||
Real estate owned at the end of the period
|
$
|
702
|
1,649
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Mortgage servicing rights at beginning of the period
|
$
|
282
|
$
|
109
|
||||
Additions
|
58
|
97
|
||||||
Amortization
|
(51
|
)
|
(10
|
)
|
||||
Sales
|
-
|
-
|
||||||
Mortgage servicing rights at end of the period
|
289
|
196
|
||||||
Valuation allowance during the period
|
(53
|
)
|
(57
|
)
|
||||
Mortgage servicing rights at end of the period, net
|
$
|
236
|
$
|
139
|
Estimate for the period ending December 31:
|
(In Thousands)
|
|||
2020
|
$
|
48
|
||
2021
|
47
|
|||
2022
|
40
|
|||
2023
|
35
|
|||
2024
|
29
|
|||
Thereafter
|
37
|
|||
Total
|
$
|
236
|
(In Thousands)
|
||||
Within one year
|
$
|
704,255
|
||
More than one to two years
|
20,874
|
|||
More than two to three years
|
2,504
|
|||
More than three to four years
|
868
|
|||
More than four through five years
|
869
|
|||
$
|
729,370
|
March 31, 2020
|
December 31, 2019
|
|||||||||||||||
Balance
|
Weighted Average Rate
|
Balance
|
Weighted Average Rate
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Short term:
|
||||||||||||||||
Repurchase agreement
|
$
|
12,180
|
3.87
|
%
|
$
|
13,562
|
4.66
|
%
|
||||||||
Federal Home Loan Bank, Chicago
|
40,000
|
0.22
|
%
|
-
|
-
|
|||||||||||
Long term:
|
||||||||||||||||
Federal Home Loan Bank, Chicago advances maturing:
|
||||||||||||||||
2027
|
50,000
|
1.73
|
%
|
50,000
|
1.73
|
%
|
||||||||||
2028
|
255,000
|
2.37
|
%
|
255,000
|
2.37
|
%
|
||||||||||
2029
|
165,000
|
1.61
|
%
|
165,000
|
1.61
|
%
|
||||||||||
$
|
522,180
|
1.94
|
%
|
$
|
483,562
|
2.11
|
%
|
March 31, 2020
|
||||||||||||||||||||||||||||||||
Actual
|
For Capital
Adequacy
Purposes
|
Minimum Capital
Adequacy with
Capital Buffer
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
$
|
382,887
|
23.87
|
%
|
$
|
128,310
|
8.00
|
%
|
$
|
168,406
|
10.50
|
%
|
$
|
N/A
|
N/A
|
|||||||||||||||||
WaterStone Bank
|
360,470
|
22.48
|
%
|
128,310
|
8.00
|
%
|
168,406
|
10.50
|
%
|
160,387
|
10.00
|
%
|
||||||||||||||||||||
Tier 1 Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
369,661
|
23.05
|
%
|
96,232
|
6.00
|
%
|
136,329
|
8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
WaterStone Bank
|
347,244
|
21.65
|
%
|
96,232
|
6.00
|
%
|
136,329
|
8.50
|
%
|
128,310
|
8.00
|
%
|
||||||||||||||||||||
Common Equity Tier 1 Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
369,661
|
23.05
|
%
|
72,174
|
4.50
|
%
|
112,271
|
7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
WaterStone Bank
|
347,244
|
21.65
|
%
|
72,174
|
4.50
|
%
|
112,271
|
7.00
|
%
|
104,251
|
6.50
|
%
|
||||||||||||||||||||
Tier 1 Capital (to average assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
369,661
|
18.37
|
%
|
80,491
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
WaterStone Bank
|
347,244
|
17.26
|
%
|
80,491
|
4.00
|
%
|
N/A
|
N/A
|
100,614
|
5.00
|
%
|
|||||||||||||||||||||
State of Wisconsin (to total assets)
|
||||||||||||||||||||||||||||||||
WaterStone Bank
|
347,244
|
16.92
|
%
|
123,158
|
6.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
December 31, 2019
|
||||||||||||||||||||||||||||||||
Actual
|
For Capital Adequacy Purposes
|
Minimum Capital Adequacy with Capital Buffer
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||||||||||
Total Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
$
|
404,748
|
26.17
|
%
|
$
|
123,731
|
8.00
|
%
|
$
|
162,398
|
10.50
|
%
|
$
|
N/A
|
N/A
|
|||||||||||||||||
WaterStone Bank
|
353,357
|
22.85
|
%
|
123,716
|
8.00
|
%
|
162,378
|
10.50
|
%
|
154,646
|
10.00
|
%
|
||||||||||||||||||||
Tier 1 Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
392,361
|
25.37
|
%
|
92,799
|
6.00
|
%
|
131,465
|
8.50
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
WaterStone Bank
|
340,970
|
22.05
|
%
|
92,787
|
6.00
|
%
|
131,449
|
8.500
|
%
|
123,716
|
8.00
|
%
|
||||||||||||||||||||
Common Equity Tier 1 Capital (to risk-weighted assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
392,361
|
25.37
|
%
|
69,599
|
4.50
|
%
|
108,265
|
7.00
|
%
|
N/A
|
N/A
|
|||||||||||||||||||||
WaterStone Bank
|
340,970
|
22.05
|
%
|
69,590
|
4.50
|
%
|
108,252
|
7.00
|
%
|
100,520
|
6.50
|
%
|
||||||||||||||||||||
Tier 1 Capital (to average assets)
|
||||||||||||||||||||||||||||||||
Consolidated Waterstone Financial, Inc.
|
392,361
|
19.69
|
%
|
79,691
|
4.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||||||
WaterStone Bank
|
340,970
|
17.11
|
%
|
79,691
|
4.00
|
%
|
N/A
|
N/A
|
99,614
|
5.00
|
%
|
|||||||||||||||||||||
State of Wisconsin (to total assets)
|
||||||||||||||||||||||||||||||||
WaterStone Bank
|
340,970
|
17.11
|
%
|
119,590
|
6.00
|
%
|
N/A
|
N/A
|
N/A
|
N/A
|
March 31, 2020
|
December 31, 2019
|
|||||||
(In Thousands)
|
||||||||
Financial instruments whose contract amounts represent potential credit risk:
|
||||||||
Commitments to extend credit under amortizing loans (1)
|
$
|
17,185
|
$
|
13,389
|
||||
Commitments to extend credit under home equity lines of credit (2)
|
12,817
|
13,776
|
||||||
Unused portion of construction loans (3)
|
81,912
|
90,439
|
||||||
Unused portion of business lines of credit
|
18,367
|
14,623
|
||||||
Standby letters of credit
|
820
|
885
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
Net income
|
$
|
6,069
|
6,542
|
|||||
Weighted average shares outstanding
|
25,405
|
26,499
|
||||||
Effect of dilutive potential common shares
|
207
|
221
|
||||||
Diluted weighted average shares outstanding
|
25,612
|
26,720
|
||||||
Basic earnings per share
|
$
|
0.24
|
0.25
|
|||||
Diluted earnings per share
|
$
|
0.24
|
0.24
|
Fair Value Measurements Using
|
||||||||||||||||
March 31, 2020
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Mortgage-backed securities
|
$
|
32,100
|
$
|
-
|
$
|
32,100
|
$
|
-
|
||||||||
Collateralized mortgage obligations
|
||||||||||||||||
Government sponsored enterprise issued
|
77,873
|
-
|
77,873
|
-
|
||||||||||||
Municipal securities
|
51,962
|
-
|
51,962
|
-
|
||||||||||||
Other debt securities
|
9,554
|
-
|
9,554
|
-
|
||||||||||||
Loans held for sale
|
262,736
|
-
|
262,736
|
-
|
||||||||||||
Mortgage banking derivative assets
|
8,018
|
-
|
-
|
8,018
|
||||||||||||
Interest rate swap assets
|
3,765
|
-
|
3,765
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Mortgage banking derivative liabilities
|
9,465
|
-
|
-
|
9,465
|
||||||||||||
Interest rate swap liabilities
|
3,765
|
-
|
3,765
|
-
|
Fair Value Measurements Using
|
||||||||||||||||
December 31, 2019
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
Mortgage-backed securities
|
$
|
34,150
|
-
|
34,150
|
-
|
|||||||||||
Collateralized mortgage obligations
|
||||||||||||||||
Government sponsored enterprise issued
|
81,754
|
-
|
81,754
|
-
|
||||||||||||
Municipal securities
|
53,692
|
-
|
53,692
|
-
|
||||||||||||
Other debt securities
|
8,880
|
-
|
8,880
|
-
|
||||||||||||
Loans held for sale
|
220,123
|
-
|
220,123
|
-
|
||||||||||||
Mortgage banking derivative assets
|
1,835
|
-
|
-
|
1,835
|
||||||||||||
Interest rate swap assets
|
680
|
-
|
680
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Mortgage banking derivative liabilities
|
-
|
-
|
-
|
-
|
||||||||||||
Interest rate swap liabilities
|
680
|
-
|
680
|
-
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Mortgage derivative, net balance at the beginning of the period
|
$
|
1,835
|
898
|
|||||
Mortgage derivative (loss) gain, net
|
(3,282
|
)
|
1,238
|
|||||
Mortgage derivative, net balance at the end of the period
|
$
|
(1,447
|
)
|
2,136
|
Fair Value Measurements Using
|
||||||||||||||||
March 31, 2020
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Impaired loans, net (1)
|
$
|
186
|
$
|
-
|
$
|
-
|
$
|
186
|
||||||||
Real estate owned
|
702
|
-
|
-
|
702
|
||||||||||||
Impaired mortgage servicing rights
|
236
|
-
|
-
|
236
|
Fair Value Measurements Using
|
||||||||||||||||
December 31, 2019
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Impaired loans, net (1)
|
$
|
185
|
$
|
-
|
$
|
-
|
$
|
185
|
||||||||
Real estate owned
|
748
|
-
|
-
|
748
|
||||||||||||
Impaired mortgage servicing rights
|
206
|
-
|
-
|
206
|
Significant Unobservable
Input Value
|
||||||||||||||||||
Fair Value at
March 31, 2020
|
Valuation
Technique
|
Significant
Unobservable
Inputs
|
Minimum
Value
|
Maximum
Value
|
Weighted Average
|
|||||||||||||
Mortgage banking derivatives
|
$
|
(1,447
|
)
|
Pricing models
|
Pull through rate
|
-
|
92.0
|
%
|
71.0
|
%
|
||||||||
Impaired loans
|
217
|
Market approach
|
Discount rates applied to appraisals
|
15.0
|
%
|
15.0
|
%
|
15.0
|
%
|
|||||||||
Real estate owned
|
702
|
Market approach
|
Discount rates applied to appraisals
|
35.0
|
%
|
65.0
|
%
|
58.0
|
%
|
|||||||||
Mortgage servicing rights
|
236
|
Pricing models
|
Prepayment rate
|
2.0
|
%
|
36.4
|
%
|
26.7
|
%
|
|||||||||
Discount rate
|
11.0
|
%
|
12.4
|
%
|
11.2
|
%
|
||||||||||||
Cost to service
|
$
|
81.68
|
$
|
246.86
|
$
|
92.08
|
March 31, 2020
|
December 31, 2019
|
|||||||||||||||||||||||||||||||||||||||
Carrying
amount
|
Fair Value
|
Carrying
amount
|
Fair Value
|
|||||||||||||||||||||||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
59,124
|
$
|
59,124
|
$
|
51,624
|
$
|
7,500
|
$
|
-
|
$
|
74,300
|
$
|
74,300
|
$
|
65,800
|
$
|
8,500
|
$
|
-
|
||||||||||||||||||||
Securities available-for-sale
|
171,489
|
171,489
|
-
|
171,489
|
-
|
178,476
|
178,476
|
-
|
178,476
|
-
|
||||||||||||||||||||||||||||||
Loans held for sale
|
262,736
|
262,736
|
-
|
262,736
|
-
|
220,123
|
220,123
|
-
|
220,123
|
-
|
||||||||||||||||||||||||||||||
Loans receivable
|
1,409,378
|
1,433,906
|
-
|
-
|
1,433,906
|
1,388,031
|
1,426,224
|
-
|
-
|
1,426,224
|
||||||||||||||||||||||||||||||
FHLB stock
|
22,950
|
22,950
|
-
|
22,950
|
-
|
21,150
|
21,150
|
-
|
21,150
|
-
|
||||||||||||||||||||||||||||||
Accrued interest receivable
|
5,491
|
5,491
|
5,491
|
-
|
-
|
5,344
|
5,344
|
5,344
|
-
|
-
|
||||||||||||||||||||||||||||||
Mortgage servicing rights
|
236
|
236
|
-
|
-
|
236
|
282
|
282
|
-
|
-
|
282
|
||||||||||||||||||||||||||||||
Mortgage banking derivative assets
|
8,018
|
8,018
|
-
|
-
|
8,018
|
1,835
|
1,835
|
-
|
-
|
1,835
|
||||||||||||||||||||||||||||||
Interest rate swap asset
|
3,765
|
3,765
|
-
|
3,765
|
-
|
680
|
680
|
-
|
680
|
-
|
||||||||||||||||||||||||||||||
Financial Liabilities
|
||||||||||||||||||||||||||||||||||||||||
Deposits
|
1,086,068
|
1,086,828
|
356,698
|
730,130
|
-
|
1,067,776
|
1,070,083
|
328,005
|
742,078
|
-
|
||||||||||||||||||||||||||||||
Advance payments by borrowers for taxes
|
12,966
|
12,966
|
12,966
|
-
|
-
|
4,212
|
4,212
|
4,212
|
-
|
-
|
||||||||||||||||||||||||||||||
Borrowings
|
522,180
|
529,695
|
-
|
529,695
|
-
|
483,562
|
483,846
|
-
|
483,846
|
-
|
||||||||||||||||||||||||||||||
Accrued interest payable
|
1,521
|
1,521
|
1,521
|
-
|
-
|
1,559
|
1,559
|
1,559
|
-
|
-
|
||||||||||||||||||||||||||||||
Mortgage banking derivative liabilities
|
9,465
|
9,465
|
-
|
-
|
9,465
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Interest rate swap liability
|
3,765
|
3,765
|
-
|
3,765
|
-
|
680
|
680
|
-
|
680
|
-
|
As of or for the three months ended March 31, 2020
|
||||||||||||||||
Community
Banking
|
Mortgage
Banking
|
Holding Company and
Other
|
Consolidated
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Net interest income
|
$
|
12,908
|
(379
|
)
|
(3
|
)
|
12,526
|
|||||||||
Provision for loan losses
|
750
|
35
|
-
|
785
|
||||||||||||
Net interest income after provision for loan losses
|
12,158
|
(414
|
)
|
(3
|
)
|
11,741
|
||||||||||
Noninterest income
|
1,028
|
30,798
|
(362
|
)
|
31,464
|
|||||||||||
Noninterest expenses:
|
||||||||||||||||
Compensation, payroll taxes, and other employee benefits
|
5,168
|
19,387
|
(154
|
)
|
24,401
|
|||||||||||
Occupancy, office furniture and equipment
|
1,014
|
1,727
|
-
|
2,741
|
||||||||||||
Advertising
|
248
|
652
|
-
|
900
|
||||||||||||
Data processing
|
605
|
395
|
6
|
1,006
|
||||||||||||
Communications
|
97
|
241
|
-
|
338
|
||||||||||||
Professional fees
|
198
|
1,620
|
14
|
1,832
|
||||||||||||
Real estate owned
|
11
|
-
|
-
|
11
|
||||||||||||
Loan processing expense
|
-
|
1,076
|
-
|
1,076
|
||||||||||||
Other
|
580
|
2,552
|
(229
|
)
|
2,903
|
|||||||||||
Total noninterest expenses
|
7,921
|
27,650
|
(363
|
)
|
35,208
|
|||||||||||
Income before income taxes
|
5,265
|
2,734
|
(2
|
)
|
7,997
|
|||||||||||
Income tax expense
|
1,154
|
768
|
6
|
1,928
|
||||||||||||
Net income (loss)
|
$
|
4,111
|
1,966
|
(8
|
)
|
6,069
|
||||||||||
Total assets
|
$
|
2,018,092
|
311,570
|
(272,986
|
)
|
2,056,676
|
As of or for the three months ended March 31, 2019
|
||||||||||||||||
Community
Banking
|
Mortgage
Banking
|
Holding Company and
Other
|
Consolidated
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Net interest income
|
$
|
13,132
|
(208
|
)
|
12
|
12,936
|
||||||||||
Provision for loan losses
|
(700
|
)
|
20
|
-
|
(680
|
)
|
||||||||||
Net interest income after provision for loan losses
|
13,832
|
(228
|
)
|
12
|
13,616
|
|||||||||||
Noninterest income
|
881
|
23,571
|
(195
|
)
|
24,257
|
|||||||||||
Noninterest expenses:
|
||||||||||||||||
Compensation, payroll taxes, and other employee benefits
|
4,756
|
16,060
|
(177
|
)
|
20,639
|
|||||||||||
Occupancy, office furniture and equipment
|
972
|
1,804
|
-
|
2,776
|
||||||||||||
Advertising
|
181
|
777
|
-
|
958
|
||||||||||||
Data processing
|
457
|
308
|
4
|
769
|
||||||||||||
Communications
|
82
|
246
|
-
|
328
|
||||||||||||
Professional fees
|
268
|
426
|
1
|
695
|
||||||||||||
Real estate owned
|
32
|
-
|
-
|
32
|
||||||||||||
Loan processing expense
|
-
|
805
|
-
|
805
|
||||||||||||
Other
|
489
|
1,912
|
(54
|
)
|
2,347
|
|||||||||||
Total noninterest expenses
|
7,237
|
22,338
|
(226
|
)
|
29,349
|
|||||||||||
Income (loss) before income taxes
|
7,476
|
1,005
|
43
|
8,524
|
||||||||||||
Income tax expense (benefit)
|
1,687
|
286
|
9
|
1,982
|
||||||||||||
Net income (loss)
|
$
|
5,789
|
719
|
34
|
6,542
|
|||||||||||
Total assets
|
$
|
1,903,985
|
162,862
|
(138,182
|
)
|
1,928,665
|
Three months ended March 31, 2020
|
Three months ended March 31, 2019
|
|||||||
(In Thousands)
|
||||||||
Operating lease cost
|
$
|
824
|
$
|
758
|
||||
Variable cost
|
109
|
260
|
||||||
Short-term lease cost
|
193
|
233
|
||||||
Total
|
$
|
1,126
|
$
|
1,251
|
Three months ended March 31, 2020
|
||||
(Dollars in Thousands)
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
||||
Operating cash flows from operating leases
|
$
|
931
|
||
Initial recognition of right of use asset
|
34
|
|||
Initial recognition of lease liabilities
|
34
|
|||
Weighted average remaining lease term - operating leases, in years
|
2.94
|
|||
Weighted average discount rate - operating leases
|
5.9
|
%
|
Maturity analysis
|
Operating leases
|
|||
(In Thousands)
|
||||
One year or less
|
$
|
3,026
|
||
More than one year through two years
|
2,249
|
|||
More than two years through three years
|
1,609
|
|||
More than three years through four years
|
1,106
|
|||
More than four years through five years
|
325
|
|||
More than five years
|
961
|
|||
Total lease payments
|
9,276
|
|||
Present value discount
|
(1,080
|
)
|
||
Lease liability
|
$
|
8,196
|
●
|
Statements of our goals, intentions and expectations;
|
|
●
|
Statements regarding our business plans, prospects, growth and operating strategies;
|
|
●
|
Statements regarding the quality of our loan and investment portfolio; and
|
|
●
|
Estimates of our risks and future costs and benefits.
|
●
|
general economic conditions, either nationally or in our market area, including employment prospects, that are different than expected;
|
|
●
|
the effect of any pandemic; including COVID-19;
|
|
●
|
competition among depository and other financial institutions;
|
|
●
|
inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of
financial instruments or the origination levels in our lending business, or increase the level of defaults, losses or prepayments on loans we have made and make whether held in portfolio or sold in the secondary markets;
|
|
●
|
adverse changes in the securities or secondary mortgage markets;
|
|
●
|
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital
requirements;
|
|
●
|
changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
|
|
●
|
our ability to manage market risk, credit risk and operational risk in the current economic conditions;
|
|
●
|
our ability to enter new markets successfully and capitalize on growth opportunities;
|
|
●
|
our ability to successfully integrate acquired entities;
|
|
●
|
decreased demand for our products and services;
|
|
●
|
changes in tax policies or assessment policies;
|
|
●
|
the inability of third-party providers to perform their obligations to us;
|
|
●
|
changes in consumer demand, spending, borrowing and savings habits;
|
|
●
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the
Securities and Exchange Commission or the Public Company Accounting Oversight Board;
|
|
●
|
our ability to retain key employees;
|
|
●
|
cyber attacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized
access to confidential information and destroy data or disable our systems;
|
|
●
|
technological changes that may be more difficult or expensive than expected;
|
|
●
|
the ability of third-party providers to perform their obligations to us;
|
|
●
|
the effects of any federal government shutdown;
|
|
●
|
the ability of the U.S. Government to manage federal debt limits;
|
|
●
|
significant increases in our loan losses; and
|
|
●
|
changes in the financial condition, results of operations or future prospects of issuers of securities that we own.
|
●
|
The CARES Act allows for a temporary delay in the adoption of accounting guidance under Accounting
Standards Codification Topic 326, “Financial Instruments – Credit Losses (“CECL”) until the earlier of December 31, 2020 or the 60th day after the end of the COVID-19 national emergency. During the quarter ended March 31, 2020,
pursuant to the recently-enacted CARES Act and guidance from the Securities and Exchange Commission (“SEC”) and Financial Accounting Standards Board (“FASB”), we elected to delay adoption of CECL. Our first quarter financial statements
include an allowance for loan losses that was prepared under the existing incurred loss methodology.
|
●
|
Under the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19
modifications. A financial institution may then suspend the requirements under accounting principles generally accepted in the United States (US GAAP) for loan modifications related to COVID-19 that would otherwise be categorized as a
troubled debt restructuring (“TDR”). This includes a suspension of the requirement to determine impairment of these modifications for accounting purposes. In keeping with regulatory guidance to work with borrowers during this
unprecedented situation, the Company is executing a payment deferral program for our lending clients that are adversely affected by the pandemic. As of April 30, 2020, the Company had modified 164 loans aggregating $99.7 million
consisting of payment of interest (deferral of principal) for a period ranging from 90 to 180 days. In addition, as of that same date the Company had modified 13 loans aggregating $7.2 million consisting of the deferral of principal
and interest for a period of 90 days. In accordance with interagency guidance issued in April 2020, these short term deferrals are not considered troubled debt restructurings.
|
●
|
The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans
under a new loan program call the Paycheck Protection Program (“PPP”). As a qualified SBA lender, we were automatically authorized to originate PPP loans. The Company is actively participating in assisting our customers with
applications for resources through the program. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement.
The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP.
As of April 30, 2020, we have submitted and received SBA approval for 245 loans totaling $29.4 million. As of that same date, we have funded 172 loans totaling $24.9 million.
|
Three months ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(Dollars in Thousands, except per share amounts)
|
||||||||
Net income
|
$
|
6,069
|
6,542
|
|||||
Earnings per share - basic
|
0.24
|
0.25
|
||||||
Earnings per share - diluted
|
0.24
|
0.24
|
||||||
Annualized return on average assets
|
1.21
|
%
|
1.39
|
%
|
||||
Annualized return on average equity
|
6.24
|
%
|
6.65
|
%
|
||||
Three months ended March 31,
|
||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||
Average Balance
|
Interest
|
Yield/Cost
|
Average Balance
|
Interest
|
Yield/Cost
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable and held for sale (1)
|
$
|
1,562,097
|
$
|
17,687
|
4.55
|
%
|
$
|
1,477,991
|
$
|
17,104
|
4.69
|
%
|
||||||||||||
Mortgage related securities (2)
|
112,089
|
702
|
2.52
|
%
|
115,674
|
759
|
2.66
|
%
|
||||||||||||||||
Debt securities, federal funds sold and short-term investments (2)(3)
|
206,485
|
1,134
|
2.21
|
%
|
194,669
|
1,385
|
2.89
|
%
|
||||||||||||||||
Total interest-earning assets
|
1,880,671
|
19,523
|
4.18
|
%
|
1,788,334
|
19,248
|
4.37
|
%
|
||||||||||||||||
Noninterest-earning assets
|
132,283
|
125,396
|
||||||||||||||||||||||
Total assets
|
$
|
2,012,954
|
$
|
1,913,730
|
||||||||||||||||||||
Liabilities and equity
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand accounts
|
$
|
39,886
|
8
|
0.08
|
%
|
$
|
36,268
|
8
|
0.09
|
%
|
||||||||||||||
Money market and savings accounts
|
218,942
|
427
|
0.78
|
%
|
176,237
|
275
|
0.63
|
%
|
||||||||||||||||
Time deposits
|
734,147
|
3,883
|
2.13
|
%
|
735,471
|
3,707
|
2.04
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
992,975
|
4,318
|
1.75
|
%
|
947,976
|
3,990
|
1.71
|
%
|
||||||||||||||||
Borrowings
|
495,595
|
2,608
|
2.12
|
%
|
438,905
|
2,246
|
2.08
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
1,488,570
|
6,926
|
1.87
|
%
|
1,386,881
|
6,236
|
1.82
|
%
|
||||||||||||||||
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
92,627
|
97,951
|
||||||||||||||||||||||
Other noninterest-bearing liabilities
|
40,609
|
30,027
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
133,236
|
127,978
|
||||||||||||||||||||||
Total liabilities
|
1,621,806
|
1,514,859
|
||||||||||||||||||||||
Equity
|
391,148
|
398,871
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
2,012,954
|
$
|
1,913,730
|
||||||||||||||||||||
Net interest income / Net interest rate spread (4)
|
12,597
|
2.31
|
%
|
13,012
|
2.55
|
%
|
||||||||||||||||||
Less: taxable equivalent adjustment
|
71
|
0.02
|
%
|
76
|
0.02
|
%
|
||||||||||||||||||
Net interest income / Net interest rate spread, as reported
|
$
|
12,526
|
2.29
|
%
|
$
|
12,936
|
2.53
|
%
|
||||||||||||||||
Net interest-earning assets (5)
|
$
|
392,101
|
$
|
401,453
|
||||||||||||||||||||
Net interest margin (6)
|
2.68
|
%
|
2.93
|
%
|
||||||||||||||||||||
Tax equivalent effect
|
0.01
|
%
|
0.02
|
%
|
||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (6)
|
2.69
|
%
|
2.95
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
126.34
|
%
|
128.95
|
%
|
Three months ended March 31,
|
||||||||||||
2020 versus 2019
|
||||||||||||
Increase (Decrease) due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
(In Thousands)
|
||||||||||||
Interest income:
|
||||||||||||
Loans receivable and held for sale (1)(2)
|
$
|
1,226
|
$
|
(643
|
)
|
$
|
583
|
|||||
Mortgage related securities (3)
|
(21
|
)
|
(36
|
)
|
(57
|
)
|
||||||
Debt securities, federal funds sold and short-term investments (3)(4)
|
87
|
(338
|
)
|
(251
|
)
|
|||||||
Total interest-earning assets
|
1,292
|
(1,017
|
)
|
275
|
||||||||
Interest expense:
|
||||||||||||
Demand accounts
|
-
|
-
|
-
|
|||||||||
Money market and savings accounts
|
77
|
75
|
152
|
|||||||||
Time deposits
|
(7
|
)
|
183
|
176
|
||||||||
Total interest-earning deposits
|
70
|
258
|
328
|
|||||||||
Borrowings
|
315
|
47
|
362
|
|||||||||
Total interest-bearing liabilities
|
385
|
305
|
690
|
|||||||||
Net change in net interest income
|
$
|
907
|
$
|
(1,322
|
)
|
$
|
(415
|
)
|
●
|
Interest income on loans increased $583,000 due primarily to an increase of $84.1 million, or 5.7%, in average loans offset by a 14 basis point
decrease in average yield on loans. The increase in average loan balance was driven by a $16.8 million, or 1.2%, increase in the average balance of loans held in portfolio and by an increase of $67.3 million, or 66.5%, in the average balance
of loans held for sale.
|
●
|
Interest income from mortgage-related securities decreased $57,000 primarily as the yield decreased 14 basis points. Additionally, the average
balance decreased $3.6 million.
|
●
|
Interest income from other interest-earning assets (comprised of debt securities, federal funds sold and short-term investments) decreased $246,000
due to a 66 basis point decrease in the average yield. The decrease in average yield was primarily driven by the decrease in federal funds rate over the past year and as higher yielding securities have matured. The average balance increased
$11.8 million to $206.5 million due to a higher cash balance on hand along with a higher balance of FHLB stock. Offsetting those increases, municipal securities balances decreased as maturities occurred throughout the past 12 months were not
replaced due to market conditions.
|
●
|
Interest expense on time deposits increased $176,000, or 4.7%, primarily due to a nine basis point increase of average cost of time deposits.
Offsetting the increase in cost of time deposits, the average balance of time deposits decreased $1.3 million compared to the prior year period.
|
●
|
Interest expense on money market and savings accounts increased $152,000, or 55.3%, due primarily to a 15 basis point increase in average cost of
money market and savings accounts along with an increase in average balance of $42.7 million. Money market accounts have been a focus over the year and aggressively attracted new customers through various new offerings.
|
●
|
Interest expense on borrowings increased $362,000, or 16.1%, due to an increase in the average cost of borrowings that resulted from the maturity
and replacement of fixed-rate borrowings since the beginning of the prior year. The average cost of borrowings totaled 2.12% during the quarter ended March 31, 2020, compared to 2.08% during the quarter ended March 31, 2019. In addition to
the increase in rate, average borrowing volume increased $56.7 million to $495.6 million during the quarter ended March 31, 2020.
|
Three months ended March 31,
|
||||||||||||||||
2020
|
2019
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Service charges on loans and deposits
|
$
|
481
|
$
|
379
|
$
|
102
|
26.9
|
%
|
||||||||
Increase in cash surrender value of life insurance
|
353
|
344
|
9
|
2.6
|
%
|
|||||||||||
Mortgage banking income
|
30,406
|
23,359
|
7,047
|
30.2
|
%
|
|||||||||||
Other
|
224
|
175
|
49
|
28.0
|
%
|
|||||||||||
Total noninterest income
|
$
|
31,464
|
$
|
24,257
|
$
|
7,207
|
29.7
|
%
|
●
|
The increase in mortgage banking income was primarily the result of an increase in loan origination volume. Total loan origination volume on a
consolidated basis increased $196.5 million, or 40.0%, to $687.7 million during the three months ended March 31, 2020 compared to $491.2 million during the three months ended March 31, 2019. Gross margin on loans originated and sold decreased
10.1% at the mortgage banking segment. Gross margin on loans originated and sold is the ratio of mortgage banking income (excluding the change in interest rate lock fair value) divided by total loan originations. See "Comparison of Mortgage
Banking Segment Results of Operations for the Three Months Ended March 31, 2020 and 2019" above for additional discussion of the increase in mortgage banking income.
|
●
|
Service charges on loans and deposits increased primarily due to loan extension fees (fees collected outside of modifications related to COVID-19).
|
●
|
The increase in cash surrender value of life insurance was due primarily to an increase in balance.
|
●
|
The increase in other noninterest income was due primarily to increases in mortgage servicing fee income, wealth management revenue, and rental
income.
|
Three months ended March 31,
|
||||||||||||||||
2020
|
2019
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Compensation, payroll taxes, and other employee benefits
|
$
|
24,401
|
$
|
20,639
|
$
|
3,762
|
18.2
|
%
|
||||||||
Occupancy, office furniture and equipment
|
2,741
|
2,776
|
(35
|
)
|
(1.3
|
)%
|
||||||||||
Advertising
|
900
|
958
|
(58
|
)
|
(6.1
|
)%
|
||||||||||
Data processing
|
1,006
|
769
|
237
|
30.8
|
%
|
|||||||||||
Communications
|
338
|
328
|
10
|
3.0
|
%
|
|||||||||||
Professional fees
|
1,832
|
695
|
1,137
|
163.6
|
%
|
|||||||||||
Real estate owned
|
11
|
32
|
(21
|
)
|
(65.6
|
)%
|
||||||||||
Loan processing expense
|
1,076
|
805
|
271
|
33.7
|
%
|
|||||||||||
Other
|
2,903
|
2,347
|
556
|
23.7
|
%
|
|||||||||||
Total noninterest expenses
|
$
|
35,208
|
$
|
29,349
|
$
|
5,859
|
20.0
|
%
|
||||||||
●
|
Compensation, payroll taxes and other employee benefits expense at our mortgage banking segment increased $3.3 million, or 20.7%, to $19.4 million
during the three months ended March 31, 2020. The increase in compensation expense was primarily a result of an increase in commission expense as fundings increased and branch manager pay increased as branches were more profitable.
|
●
|
Compensation, payroll taxes and other employee benefits expense at the community banking segment increased $412,000, or 8.7%, to $5.2 million
during the three months ended March 31, 2020. The increase was due primarily to an increase in health insurance expense with more claims, salaries expense due to annual raises, and variable compensation as executives are eligible for a
greater payout.
|
●
|
Occupancy, office furniture and equipment expense at the mortgage banking segment decreased $77,000 to $1.7 million during the three months ended
March 31, 2020, primarily resulting from lower rent expense offset by an increase in computer equipment expense to accomodate remote working.
|
●
|
Occupancy, office furniture and equipment expense at the community banking segment increased $42,000 to $1.0 million during the three months ended
March 31, 2020. The increase was due primarily to building depreciation and repairs expense.
|
●
|
Advertising expense decreased $58,000, or 6.1%, to $900,000 during the three months ended March 31, 2020. This was primarily due to marketing
decreases at the mortgage banking segment as volumes were largely driven by lower rates. Advertising at the community banking segment increased to promote the new branch that opened at the end of 2019.
|
●
|
Data processing expense increased $237,000, or 30.8%, to $1.0 million during the three months ended March 31, 2020. This was primarily due to new
contracts at both the community banking and mortgage banking segments as technology investments continue to increase.
|
●
|
Professional fees increased $1.1 million, or 163.6%, to $1.8 million during the three months ended March 31, 2020. This was primarily due to an
increase in legal expenses at the mortgage banking segment for a $1.1 million legal award ruling and ongoing litigation costs.
|
●
|
Real estate owned expense decreased $21,000, resulting in $11,000 of expense during the three months ended March 31, 2020, compared to $32,000 of
expense during the three months ended March 31, 2019. The decrease is a result of fewer properties to manage and minimal net gains from sales in both periods.
|
●
|
Loan processing expense increased $271,000, or 33.7%, to $1.1 million during the three months ended March 31, 2020. This was primarily due to an
increase in loan costs associated with the application volumes as mortgage rates declined.
|
●
|
Other noninterest expense increased $556,000, or 23.7%, to $2.9 million during the three months ended March 31, 2020. The increase at the mortgage
banking segment was primarily due to an increased provision for loan sale losses as there was additional uncertainity regarding selling loans to third party investors from COVID-19 pandemic challenges. In addition, other noninterest expenses
increased at the community banking segment due primarily to increased loan costs partially offset by a decrease in FDIC insurance expense as the FDIC issued a credit for the three months ended March 31, 2020.
|
For the
|
For the
|
|||||||||||
Three months ended March 31,
|
Year Ended
|
|||||||||||
2020
|
2019
|
December 31, 2019
|
||||||||||
(In Thousands)
|
||||||||||||
Real estate loans originated for investment:
|
||||||||||||
Residential
|
||||||||||||
One- to four-family
|
$
|
30,515
|
$
|
12,334
|
95,461
|
|||||||
Multi-family
|
26,979
|
14,769
|
110,136
|
|||||||||
Home equity
|
1,850
|
1,194
|
5,804
|
|||||||||
Construction and land
|
11,710
|
1,367
|
59,814
|
|||||||||
Commercial real estate
|
15,137
|
4,172
|
49,710
|
|||||||||
Total real estate loans originated for investment
|
86,191
|
33,836
|
320,925
|
|||||||||
Consumer loans originated for investment
|
275
|
-
|
55
|
|||||||||
Commercial business loans originated for investment
|
4,390
|
3,437
|
7,517
|
|||||||||
Total loans originated for investment
|
$
|
90,856
|
$
|
37,273
|
328,497
|
|||||||
At March 31,
|
At December 31,
|
|||||||
2020
|
2019
|
|||||||
(Dollars in Thousands)
|
||||||||
Non-accrual loans:
|
||||||||
Residential
|
||||||||
One- to four-family
|
$
|
5,698
|
$
|
5,985
|
||||
Multi-family
|
647
|
667
|
||||||
Home equity
|
387
|
70
|
||||||
Construction and land
|
-
|
-
|
||||||
Commercial real estate
|
70
|
303
|
||||||
Commercial
|
-
|
-
|
||||||
Consumer
|
-
|
-
|
||||||
Total non-accrual loans
|
6,802
|
7,025
|
||||||
Real estate owned
|
||||||||
One- to four-family
|
-
|
46
|
||||||
Multi-family
|
-
|
-
|
||||||
Construction and land
|
1,256
|
1,256
|
||||||
Commercial real estate
|
-
|
-
|
||||||
Total real estate owned
|
1,256
|
1,302
|
||||||
Valuation allowance at end of period
|
(554
|
)
|
(554
|
)
|
||||
Total real estate owned, net
|
702
|
748
|
||||||
Total nonperforming assets
|
$
|
7,504
|
$
|
7,773
|
||||
Total non-accrual loans to total loans
|
0.48
|
%
|
0.51
|
%
|
||||
Total non-accrual loans to total assets
|
0.33
|
%
|
0.35
|
%
|
||||
Total nonperforming assets to total assets
|
0.36
|
%
|
0.39
|
%
|
At or for the Three Months
|
||||||||
Ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(In Thousands)
|
||||||||
Balance at beginning of period
|
$
|
7,025
|
6,555
|
|||||
Additions
|
1,206
|
503
|
||||||
Transfers to real estate owned
|
-
|
(30
|
)
|
|||||
Charge-offs
|
-
|
(8
|
)
|
|||||
Returned to accrual status
|
(821
|
)
|
(127
|
)
|
||||
Principal paydowns and other
|
(608
|
)
|
(95
|
)
|
||||
Balance at end of period
|
$
|
6,802
|
6,798
|
As of March 31, 2020
|
||||||||||||
Accruing
|
Non-accruing
|
Total
|
||||||||||
(In Thousands)
|
||||||||||||
One- to four-family
|
$
|
2,740
|
$
|
619
|
$
|
3,359
|
||||||
Multi-family
|
-
|
291
|
291
|
|||||||||
Commercial real estate
|
277
|
2
|
279
|
|||||||||
$
|
3,017
|
$
|
912
|
$
|
3,929
|
|||||||
As of December 31, 2019
|
||||||||||||
Accruing
|
Non-accruing
|
Total
|
||||||||||
(In Thousands)
|
||||||||||||
One- to four-family
|
$
|
2,740
|
$
|
685
|
$
|
3,425
|
||||||
Multi-family
|
-
|
308
|
308
|
|||||||||
Commercial real estate
|
278
|
7
|
285
|
|||||||||
$
|
3,018
|
$
|
1,000
|
$
|
4,018
|
At March 31,
|
At December 31,
|
|||||||
2020
|
2019
|
|||||||
(Dollars in Thousands)
|
||||||||
Loans past due less than 90 days
|
$
|
5,898
|
$
|
1,833
|
||||
Loans past due 90 days or more
|
5,127
|
4,632
|
||||||
Total loans past due
|
$
|
11,025
|
$
|
6,465
|
||||
Total loans past due to total loans receivable
|
0.78
|
%
|
0.47
|
%
|
●
|
Applying an updated adjustment factor (as described previously) to an existing appraisal;
|
|
●
|
Confirming that the physical condition of the real estate has not significantly changed since the last valuation date;
|
|
●
|
Comparing the estimated current value of the collateral to that of updated sales values experienced on similar collateral;
|
|
●
|
Comparing the estimated current value of the collateral to that of updated values seen on current appraisals of similar collateral; and
|
|
●
|
Comparing the estimated current value to that of updated listed sales prices on our real estate owned and that of similar properties (not owned by
the Company).
|
At or for the Three Months
|
||||||||
Ended March 31,
|
||||||||
2020
|
2019
|
|||||||
(Dollars in Thousands)
|
||||||||
Balance at beginning of period
|
$
|
12,387
|
$
|
13,249
|
||||
Provision for loan losses
|
785
|
(680
|
)
|
|||||
Charge-offs:
|
||||||||
Mortgage
|
||||||||
One- to four-family
|
6
|
24
|
||||||
Multi-family
|
-
|
-
|
||||||
Home equity
|
-
|
8
|
||||||
Commercial real estate
|
-
|
-
|
||||||
Construction and land
|
-
|
-
|
||||||
Consumer
|
1
|
-
|
||||||
Commercial
|
-
|
-
|
||||||
Total charge-offs
|
7
|
32
|
||||||
Recoveries:
|
||||||||
Mortgage
|
||||||||
One- to four-family
|
47
|
13
|
||||||
Multi-family
|
3
|
4
|
||||||
Home equity
|
6
|
6
|
||||||
Commercial real estate
|
4
|
1
|
||||||
Construction and land
|
1
|
-
|
||||||
Consumer
|
-
|
-
|
||||||
Commercial
|
-
|
-
|
||||||
Total recoveries
|
61
|
24
|
||||||
Net recoveries
|
(54
|
)
|
8
|
|||||
Allowance at end of period
|
$
|
13,226
|
$
|
12,561
|
||||
Ratios:
|
||||||||
Allowance for loan losses to non-accrual loans at end of period
|
194.44
|
%
|
184.77
|
%
|
||||
Allowance for loan losses to loans receivable at end of period
|
0.94
|
%
|
0.91
|
%
|
||||
Net (recoveries) charge-offs to average loans outstanding (annualized)
|
(0.02
|
)%
|
0.00
|
%
|
||||
Provision for loan losses to net recoveries
|
(1,453.70
|
)%
|
(8,500.00
|
)%
|
||||
Net (recoveries) charge-offs to beginning of the period allowance (annualized)
|
(1.75
|
)%
|
0.24
|
%
|
More than
|
More than
|
|||||||||||||||||||
One Year
|
Three Years
|
Over
|
||||||||||||||||||
One Year
|
Through
|
Through
|
Five
|
|||||||||||||||||
Total
|
or Less
|
Three Years
|
Five Years
|
Years
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Demand deposits (3)
|
$
|
135,234
|
$
|
135,234
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Money market and savings deposits (3)
|
221,464
|
221,464
|
-
|
-
|
-
|
|||||||||||||||
Time deposit (3)
|
729,370
|
704,255
|
23,378
|
1,737
|
-
|
|||||||||||||||
Repurchase agreements (3)
|
12,180
|
12,180
|
-
|
-
|
-
|
|||||||||||||||
Federal Home Loan Bank advances (1)
|
510,000
|
40,000
|
-
|
-
|
470,000
|
|||||||||||||||
Operating leases (2)
|
10,238
|
3,308
|
4,173
|
1,774
|
983
|
|||||||||||||||
$
|
1,618,486
|
$
|
1,116,441
|
$
|
27,551
|
$
|
3,511
|
$
|
470,983
|
More than
|
More than
|
|||||||||||||||||||
One Year
|
Three Years
|
Over
|
||||||||||||||||||
One Year
|
Through
|
Through
|
Five
|
|||||||||||||||||
Total
|
or Less
|
Three Years
|
Five Years
|
Years
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Real estate loan commitments (1)
|
$
|
17,185
|
$
|
17,185
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Unused portion of home equity lines of credit (2)
|
12,817
|
12,817
|
-
|
-
|
-
|
|||||||||||||||
Unused portion of construction loans (3)
|
81,912
|
81,912
|
-
|
-
|
-
|
|||||||||||||||
Unused portion of business lines of credit
|
18,367
|
18,367
|
-
|
-
|
-
|
|||||||||||||||
Standby letters of credit
|
820
|
820
|
-
|
-
|
-
|
|||||||||||||||
Total Other Commitments
|
$
|
131,101
|
$
|
131,101
|
$
|
-
|
$
|
-
|
$
|
-
|
Immediate Change in Rates
|
||||||||||||||||
+300
|
+200
|
+100
|
-100
|
|||||||||||||
(Dollar Amounts in Thousands)
|
||||||||||||||||
As of September 30, 2019
|
||||||||||||||||
Dollar Change
|
$
|
658
|
1,438
|
1,098
|
(363
|
)
|
||||||||||
Percentage Change
|
1.21
|
%
|
2.65
|
2.02
|
(0.67
|
)
|
●
|
Credit Risk. Our risks of timely
loan repayment and the value of collateral supporting the loans are affected by the strength of our borrower’s business. Concern about the spread of COVID-19 has caused and is likely to continue to cause business shutdowns, limitations on
commercial activity and financial transactions, labor shortages, supply chain interruptions, increased unemployment and commercial property vacancy rates, reduced profitability and ability for property owners to make mortgage payments, and
overall economic and financial market instability, all of which may cause our customers to be unable to make scheduled loan payments. If the effects of COVID-19 result in widespread and sustained repayment shortfalls on loans in our
portfolio, we could incur significant delinquencies, foreclosures and credit losses, particularly if the available collateral is insufficient to cover our exposure. The future effects of COVID-19 on economic activity could negatively affect
the collateral values associated with our existing loans, the ability to liquidate the real estate collateral securing our residential and commercial real estate loans, our ability to maintain loan origination volume and to obtain
additional financing, the future demand for or profitability of our lending and services, and the financial condition and credit risk of our customers. Further, in the event of delinquencies, regulatory changes and policies designed to
protect borrowers may slow or prevent us from making our business decisions or may result in a delay in our taking certain remediation actions, such as foreclosure. In addition, we have unfunded commitments to extend credit to customers.
During a challenging economic environment like now, our customers are more dependent on our credit commitments and increased borrowings under these commitments could adversely impact our liquidity. Furthermore, in an effort to support our
communities during the pandemic, we are participating in the Paycheck Protection Program (“PPP”) under the CARES Act whereby loans to small businesses are made and those loans are subject to the regulatory requirements that would require
forbearance of loan payments for a specified time or that would limit our ability to pursue all available remedies in the event of a loan default. If the borrower under the PPP loan fails to qualify for loan forgiveness, we are at the
heightened risk of holding these loans at unfavorable interest rates as compared to the loans to customers that we would have otherwise extended credit.
|
●
|
Strategic Risk. Our success may be affected by a variety of external factors that may affect the price or marketability of our products and services, changes in
interest rates that may increase our funding costs, reduced demand for our financial products due to economic conditions and the various response of governmental and nongovernmental authorities. In recent weeks, the COVID-19 pandemic has
significantly increased economic and demand uncertainty and has led to disruption and volatility in the global capital markets. Furthermore, many of the governmental actions have been directed toward curtailing household and business
activity to contain COVID-19. These actions have been rapidly expanding in scope and intensity. For example, in many of our markets, local governments have acted to temporarily close or restrict the operations of most businesses. The future
effects of COVID-19 on economic activity could negatively affect the future banking products we provide, including a decline in originating of loans.
|
●
|
Operational Risk. Current and
future restrictions on our workforce’s access to our facilities could limit our ability to meet customer servicing expectations and have a material adverse effect on our operations. We rely on business processes and branch activity that
largely depend on people and technology, including access to information technology systems as well as information, applications, payment systems and other services provided by third parties. In response to COVID-19, we have modified our
business practices with a portion of our employees working remotely from their homes to have our operations uninterrupted as much as possible. Further, technology in employees’ homes may not be as robust as in our offices and could cause
the networks, information systems, applications, and other tools available to employees to be more limited or less reliable than in our offices. The continuation of these work-from-home measures also introduces additional operational risk,
including increased cybersecurity risk. These cyber risks include greater phishing, malware, and other cybersecurity attacks, vulnerability to disruptions of our information technology infrastructure and telecommunications systems for
remote operations, increased risk of unauthorized dissemination of confidential information, limited ability to restore the systems in the event of a systems failure or interruption, greater risk of a security breach resulting in
destruction or misuse of valuable information, and potential impairment of our ability to perform critical functions, including wiring funds, all of which could expose us to risks of data or financial loss, litigation and liability and
could seriously disrupt our operations and the operations of any impacted customers.
|
●
|
Interest Rate Risk. Our net
interest income, lending activities, deposits and profitability could be negatively affected by volatility in interest rates caused by uncertainties stemming from COVID-19. In March 2020, the Federal Reserve lowered the target range for the
federal funds rate to a range from 0 to 0.25 percent, citing concerns about the impact of COVID-19 on markets and stress in the energy sector. A prolonged period of extremely volatile and unstable market conditions would likely increase
our funding costs and negatively affect market risk mitigation strategies. Higher income volatility from changes in interest rates and spreads to benchmark indices could cause a loss of future net interest income and a decrease in current
fair market values of our assets. Fluctuations in interest rates will impact both the level of income and expense recorded on most of our assets and liabilities and the market value of all interest-earning assets and interest-bearing
liabilities, which in turn could have a material adverse effect on our net income, operating results, or financial condition.
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plan(a) |
||||||||||||
January 1, 2020 - January 31, 2020
|
15,300
|
$
|
17.56
|
15,300
|
1,333,150
|
|||||||||||
February 1, 2020 - February 29, 2020
|
249,048
|
17.75
|
249,048
|
1,084,102
|
||||||||||||
March 1, 2020 - March 31, 2020
|
647,620
|
14.76
|
647,620
|
436,482
|
||||||||||||
Total
|
911,968
|
$
|
15.62
|
911,968
|
436,482
|
(a)
|
On May 30, 2019, the Board of Directors announced the completion of the then-existing stock repurchase plan and authorized the repurchase of 2,000,000
shares of common stock pursuant to a new share repurchase plan. This plan has no expiration date.
|
Exhibit No.
|
Description
|
Filed Herewith
|
|||
Sarbanes-Oxley Act Section 302 Certification signed by the Chief Executive Officer of Waterstone Financial, Inc.
|
X
|
||||
Sarbanes-Oxley Act Section 302 Certification signed by the Chief Financial Officer of Waterstone Financial, Inc.
|
X
|
||||
Certification pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by the Chief
Executive Officer of Waterstone Financial, Inc.
|
X
|
||||
Certification pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by the Chief
Financial Officer of Waterstone Financial, Inc.
|
X
|
||||
101
|
The following financial statements from Waterstone Financial, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in
Extensive Business Reporting Language (XBRL): (i) consolidated statements of financial condition, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in
shareholders' equity, (v) consolidated statements of cash flows and (vi) the notes to consolidated financial statements.
|
X
|
WATERSTONE FINANCIAL, INC.
(Registrant)
|
||||
Date: May 13, 2020
|
||||
/s/ Douglas S. Gordon
|
||||
Douglas S. Gordon
|
||||
Chief Executive Officer
Principal Executive Officer
|
||||
Date: May 13, 2020
|
||||
/s/ Mark R. Gerke
|
||||
Mark R. Gerke
|
||||
Chief Financial Officer
Principal Financial Officer
|
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred
during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over
financial reporting. |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred
during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over
financial reporting. |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
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