Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2015

WAUWATOSA, Wis., July 24, 2015 /PRNewswire/ -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $5.3 million for the quarter ended June 30, 2015, compared to $3.0 million for the quarter ended March 31, 2015 and $3.8 million for the quarter ended June 30, 2014. For the quarter ended June 30, 2015, net income per diluted share was $0.17 as compared to $0.09 for the quarter ended March 31, 2015 and $0.11 for the quarter ended June 30, 2014.  Net income totaled $8.3 million, or $0.26 per diluted share for the six months ended June 30, 2015, compared to $5.7 million, or $0.16 per diluted share for the six months ended June 30, 2014.

2nd Quarter 2015 Highlights and Net Income for the Six Months Ended June 30, 2015

• Mortgage banking segment net income totaled $2.9 million for the quarter ended June 30, 2015 compared to $1.0 million for the quarter ended June 30, 2014. The quarter ended June 30, 2015 represents the fourth 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 second quarter of 2015 compared to the second quarter of 2014. Loans originated for sale on the secondary market increased 26.3% to $596 million during the quarter ended June 30, 2015, compared to $472 million during the quarter ended June 30, 2014. Mortgage banking segment net income totaled $4.3 million for the six months ended June 30, 2015, compared to $1.0 million for the six months ended June 30, 2014.
• Community banking segment net income totaled $2.4 million for the quarter ended June 30, 2015 compared to $2.8 million for the quarter ended June 30, 2014. The quarter ended June 30, 2015 included $1.1 million in writedowns to the carrying value of real estate owned, reflecting a plan to facilitate the liquidation of aged properties. The quarter ended June 30, 2014 included $440,000 in writedowns to real estate owned. Community banking segment net income totaled $4.0 million for the six months ended June 30, 2015, compared to $4.6 million for the six months ended June 30, 2014.
• Total non-performing assets decreased $9.5 million, or 18.1%, to $43.0 million at June 30, 2015 from $52.6 million at March 31, 2015 and decreased $25.1 million, or 36.8%, from $68.1 million at June 30, 2014.
• Past due loans decreased by $3.0 million, or 11.2%, to $23.7 million at June 30, 2015 from $26.7 million at March 31, 2015 and decreased $20.1 million, or 45.9% from $43.9 million at June 30, 2014. Loans past due less than 90 days decreased by $1.1 million, or 16.1%, to $5.6 million at June 30, 2015 from $6.7 million at March 31, 2015 and decreased $11.7 million, or 67.7%, from $17.4 million at June 30, 2014.
• Total loans receivable increased $29.8 million, or 2.8%, to $1.09 billion at June 30, 2015 from $1.06 billion at March 31, 2015.
• Continued a share purchase program, under which 3,895,015 shares were repurchased at an average price of $12.89 per share on the open market during the quarter ended June 30, 2015.

"The momentum of our Mortgage Banking growth continued into the second quarter wherein the division originated a record number of new purchase loans," said Douglas Gordon, President and Chief Executive Officer of the Company.  "Loan growth in our Banking segment was also very strong and nonperforming assets continue to decline, strengthening our balance sheet."

About Waterstone Financial, Inc.

Waterstone Financial, Inc. (NASDAQ: WSBF) is a single-bank, holding company headquartered in Wauwatosa, WI. With $1.7 billion in assets at June 30, 2015, Waterstone has nine community bank branches in the metropolitan Milwaukee market, a loan production office in Minneapolis, Minnesota, and mortgage banking offices in seventeen states around the country. Additional financial detail related to WaterStone Bank, SSB can be found on the FDIC web site (www.fdic.gov) under the "Industry Analysis" tab.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as "may," "expects," "anticipates," "estimates" or "believes." Such statements are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. These factors include (i) exposure to the deterioration in the commercial and residential real estate markets which could result in increased charge-offs and increases in the allowance for loan losses, (ii) various other factors, including changes in economic conditions affecting borrowers, new information regarding outstanding loans and identification of additional problem loans, which could require an increase in the allowance for loan losses, (iii) Waterstone's ability to maintain required levels of capital and other current and future regulatory requirements, (iv) the impact of recent and future legislative initiatives on the financial markets, and (v) those factors referenced in Item 1A. Risk Factors in Waterstone's most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone's subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone's belief as of the date of this press release.

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SOURCE Waterstone Financial, Inc.