Waterstone Financial, Inc. Announces Share Repurchase Program

Rhea-AI Summary

Waterstone Financial (NASDAQ: WSBF) announced a new share repurchase program on July 21, 2020, authorizing the buyback of up to 2,000,000 shares, approximately 7.7% of its outstanding stock. This follows a previous program where 2,000,000 shares were repurchased at an average price of $15.65. The program is set to commence around July 29, 2020, and will be influenced by market conditions and available funds. Shares repurchased will be treated as authorized but unissued, and the program may be suspended or modified based on various factors.

Positive

• Authorization of a $31.3M share repurchase program, potentially enhancing shareholder value.
• Following the previous buyback, the company demonstrates confidence in its financial position.

Negative

• The repurchase program is contingent on market conditions which may delay execution.
• Potential opportunity costs if capital used for buybacks could have been invested elsewhere.

WAUWATOSA, Wis., July 21, 2020 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF) (the "Company") announced that on July 21, 2020, its Board of Directors authorized a share repurchase program pursuant to which the Company intends to repurchase up to 2,000,000 of its issued and outstanding shares, representing approximately 7.7% of its issued and outstanding shares of common stock. The repurchase program will commence on or about July 29, 2020.  This share repurchase program follows the completion of the previous repurchase program during which the Company repurchased a total of 2,000,000 shares of its common stock at a weighted average price of $15.65 per share.  The timing of the repurchases will depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market repurchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will be treated as authorized but unissued by the Company.  The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to repurchase any particular number of shares.

About Waterstone Financial, Inc.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Oak Creek/27^th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin along with a commercial lending office in Minneapolis, Minnesota. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.

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.

Mark Gerke
Chief Financial Officer
414.459.4012
markgerke@wsbonline.com

FAQ

What is the share repurchase program announced by Waterstone Financial?

Waterstone Financial announced a repurchase program on July 21, 2020, allowing for the buyback of up to 2 million shares, about 7.7% of its outstanding shares.

When will Waterstone Financial's share repurchase program begin?

The share repurchase program is set to commence on or about July 29, 2020.

How many shares did Waterstone Financial buy back in the previous program?

In the previous program, Waterstone Financial repurchased 2 million shares at a weighted average price of $15.65 per share.

What factors will influence Waterstone Financial's share repurchase program?

The timing of the repurchases will depend on market conditions, available funds, and alternative uses of capital.

Are there any risks associated with the share repurchase program?

Yes, the program may be suspended or modified due to market conditions and other factors deemed appropriate.