WATERSTONE FINANCIAL, INC. Forward-Looking Information
This Quarterly Report on Form 10-Q may contain various forward-looking statements, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect" and similar expressions and verbs in the future tense. These forward-looking statements include, but are not limited to:
? 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.
These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
? general economic conditions, either nationally or in our market area,
including employment prospects, that are different than expected;
? the effects of any pandemic, including COVID-19, and related government
actions;
? 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 effects of global or national war, conflict or acts of terrorism;
? 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.
40--------------------------------------------------------------------------------
Table of Contents
See also the factors referred to in reports filed by the Company with the
The risks included here are not exhaustive. Other sections of this report may include additional factors which could adversely affect our business and financial performance. New risks emerge from time to time and it is not possible for management to predict all such risks, nor can it assess the impact of all such risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
Overview
The following discussion and analysis is presented to assist the reader in
understanding and evaluating the Company's financial condition and results of
operations. It is intended to complement the unaudited consolidated financial
statements, footnotes, and supplemental financial data appearing elsewhere in
this Quarterly Report on Form 10-Q and should be read in conjunction therewith.
The detailed discussion in the sections below focuses on the results of
operations for the three and nine months ended
As described in the notes to the unaudited consolidated financial statements, we
have two reportable segments: community banking and mortgage banking. The
community banking segment provides consumer and business banking products and
services to customers primarily within
Our community banking segment generates the significant majority of our
consolidated net interest income and requires the significant majority of our
provision for loan losses. Our mortgage banking segment generates the
significant majority of our noninterest income and a majority of our noninterest
expenses. We have provided below a discussion of the material results of
operations for each segment on a separate basis for the three and nine months
ended
Significant Items
There were no significant items that impacted earnings for the three and nine
months ended
Comparison of Community Banking Segment Results of Operations for the Three
Months Ended
Net income totaled
There was a provision for credit losses of
Total noninterest income decreased
41
--------------------------------------------------------------------------------
Table of Contents
Compensation, payroll taxes, and other employee benefits expense
decreased
Comparison of Mortgage Banking Segment Results of Operations for the Three
Months Ended
Net loss totaled
Additionally, our overall margin can be affected by the mix of both loan type
(conventional loans versus governmental) and loan purpose (purchase versus
refinance). Conventional loans include loans that conform to Fannie Mae and
Freddie Mac standards, whereas governmental loans are those loans guaranteed by
the federal government, such as a
Total compensation, payroll taxes and other employee benefits decreased
© Edgar Online, source
