Waterstone Financial reports decreased income in fourth quarter

Special to The Freeman

March 21, 2014

WAUWATOSA – On Friday, Waterstone Financial, Inc. reported a decrease in its fourth quarter income compared to the same period in 2012, resulting partly from reduced profitability of the mortgage banking segment.

The Wauwatosa company, which is also the holding company for Waterstone Bank, reported pre-tax income of $2.6 million and net income of $1.9 million for the fourth quarter of 2013, compared to pre-tax income of $5.7 million and net income of $18.1 million for the fourth quarter of 2012.

Also Friday, the company reported a 3 percent increase in pre-tax income for the year ended Dec. 31, 2013 compared to 2012. Pre-tax and net income totaled $23.3 million and $14.7 million, respectively, for the year ended Dec. 31, 2013 compared to $22.7 million and $34.9 million for 2012.

“Financial performance for 2013 reflects continued asset quality improvement for the community banking segment partially offset by reduced profitability for the mortgage banking segment,” said Doug Gordon, president and chief executive officer, in a statement. “In addition, Waterstone Financial, Inc. completed its second-step conversion in January of 2014 which resulted in our becoming a stock holding company with a gross capital raise of $253 million. Strong participation in the capital raise by WaterStone Bank depositors is gratifying and will enable us to execute growth strategies to further improve profitability and franchise value.”

Waterstone Financial, Inc. is a single-bank, thrift holding company with $1.9 billion in assets at Dec. 31, 2013.

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