Exhibit 99.1
 
 
WATERSTONE FINANCIAL, INC.
WATERSTONE BANK
11200 W. PLANK CT.
WAUWATOSA, WI 53226
 
Contact:  Mark R. Gerke
Chief Financial Officer
414.459.4012
markgerke@wsbonline.com
 
 

Waterstone Financial, Inc. Announces Results of Operations for the Quarter Ended March 31, 2018
.
WAUWATOSA, WI – 04/24/2018 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.0 million, or $0.25 per diluted share for the quarter ended March 31, 2018 compared to $6.6 million, or $0.24 per diluted share for the quarter ended March 31, 2017.
"We accomplished a record first quarter net income led by a 23.9% increase in earnings of our Community Banking segment," said Douglas Gordon, CEO of Waterstone Financial, Inc. "The positive impact of continued strong loan growth and an increase in net interest margin were compounded by a reduction of the federal income tax rate, which lead to our first quarter success.  The Mortgage Banking segment faced continued margin compression into the first quarter of 2018, as competition remains strong within the industry to maintain market share.  As a result of our strong earnings and ample capital, we were able to declare dividends totaling $0.62 per share to our shareholders during the first quarter and provide liquidity to shareholders through stock repurchase activity."

Highlights of the Quarter Ended March 31, 2018

Waterstone Financial, Inc. (Consolidated)

·
Consolidated net income of Waterstone Financial, Inc. totaled $7.0 million for the quarter ended March 31, 2018, compared to $6.6 million for the quarter ended March 31, 2017.
·
Consolidated return on average assets totaled 1.57% for the quarter ended March 31, 2018 compared to 1.54% for the quarter ended March 31, 2017.
·
The effective income tax rate amounted to 23.2% for the quarter ended March 31, 2018 compared to 34.2% for the quarter ended March 31, 2017 primarily as a result of the Tax Cuts and Jobs Act reducing the federal rate from 35% to 21%.
·
Dividends declared totaled $0.62 per share during the quarter ended March 31, 2018.
·
Repurchased a total 192,800 shares on the open market during the quarter ended March 31, 2018 at an average price of $17.13 per share.
 
Community Banking Segment

·
Pre-tax income of the segment totaled $7.5 million for the quarter ended March 31, 2018, which represents a 9.2% increase compared to $6.8 million for the quarter ended March 31, 2017.
·
Continued improvement in the overall risk profile of our loan portfolio resulted in a negative provision for loan losses of $900,000 for the quarter ended March 31, 2018 compared to a negative provision of $1.3 million for the quarter ended March 31, 2017. 
·
Net interest income of the segment totaled $13.3 million for the quarter ended March 31, 2018, which represents a 13.9% increase compared to $11.7 million for the quarter ended March 31, 2017. The increase in net interest income, which was driven by loan growth along with a decrease in borrowing costs, drove our net interest margin to 3.18% for the quarter ended March 31, 2018 compared to 2.97% for the quarter ended March 31, 2017.
·
Average loans held for investment totaled $1.30 billion during the quarter ended March 31, 2018, which represents an increase of $110.8 million, or 9.3% over the comparable quarter in the prior year.
·
Total loans held for investment increased $22.9 million, or 1.8%, to $1.31 billion at March 31, 2018 compared to $1.29 billion at December 31, 2017.
·
Total deposits increased $6.8 million, or 0.7%, to $974.2 million at March 31, 2018 compared to $967.4 million at December 31, 2017.
·
Driven by margin expansion and continued cost control efforts, the efficiency ratio for the community banking segment improved to 53.9% for the quarter ended March 31, 2018, compared to 55.7% for the quarter ended March 31, 2017.
·
Nonperforming assets as percentage of total assets decreased to 0.54% as of March 31, 2018, compared to 0.59% at December 31, 2017 and 0.76% at March 31, 2017.

Mortgage Banking Segment

·
Pre-tax income of the segment totaled $1.6 million for the quarter ended March 31, 2018, which represents a 48.4% decrease compared to $3.1 million for the quarter ended March 31, 2017.
·
Loan originations increased $21.2 million, or 4.3%, to $516.0 million during the quarter ended March 31, 2018, compared to $494.9 million during the quarter ended March 31, 2017.  Origination volume relative to purchase activity accounted for 85% of originations for the quarter ended March 31, 2018 compared to 86% of total originations for the quarter ended March 31, 2017.
·
Gross margins on loans sold decreased approximately 6% during the quarter ended March 31, 2018, compared to the quarter ended March 31, 2017.

- 5 -

The following information was filed by Waterstone Financial, Inc. (WSBF) on Tuesday, April 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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