Waterstone Financial (WSBF) 8-K Results of Operations and Financial Condition

Exhibit 99.1

WATERSTONE FINANCIAL, INC.

WATERSTONE BANK

11200 W. PLANK CT.

WAUWATOSA, WI 53226

Contact:  Allan Hosack

Chief Financial Officer

414.459.4010

allanhosack@wsbonline.com

Exhibit 99.1

Waterstone Financial, Inc. Announces Results of Operations for the Quarter Ended March 31, 2015.

WAUWATOSA, WI – 4/24/2015 – Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income for the quarter ended March 31, 2015 of $3.0 million, compared to $1.9 million for the quarter ended March 31, 2014. For the quarter ended March 31, 2015, net income per diluted share was $0.09 as compared to $0.05 for the quarter ended March 31, 2014.

1st Quarter 2015 Highlights

• Mortgage banking segment net income totaled $1.4 million for the quarter ended March 31, 2015 compared to $31,000 for the quarter ended March 31, 2014.  The quarter ended March 31, 2015 represents the third 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 first quarter of 2015 compared to the first quarter of 2014.  Along with the improved volumes, the segment's efficiency ratio dropped to 88.8% for the quarter ended March 31, 2015 compared to 99.7% for the quarter ended March 31, 2014 due to ongoing expense control efforts.

• Community banking segment net income totaled $1.6 million for the quarter ended March 31, 2015 compared to $1.8 million for the quarter ended March 31, 2014.

• Total non-performing assets decreased $4.1 million or 7.3% to $52.6 million at March 31, 2015 from $56.7 million at December 31, 2014 and decreased $17.3 million or 24.7% from $69.9 million at March 31, 2014.

• Past due loans decreased by $7.4 million, or 21.7%, to $26.7 million at March 31, 2015 from $34.1 million at December 31, 2014 and decreased $15.7 million, or 37.0% from $42.4 million at March 31, 2014.  Loans past due less than 90 days decreased by $2.3 million, or 26.1%, to $6.7 million at March 31, 2015 from $9.0 million at December 31, 2014 and decreased $10.2 million, or 60.4%, from 16.8 million at March 31, 2014.

• Commenced a share purchase program, under which 381,800 shares have been repurchased at an average price of $12.97 per share on the open market as of March 31, 2015.

"Our Mortgage Banking segment experienced strong growth in loan origination volumes from our expanding branch network translating into significant revenue gains while our focus on cost containment added more to the bottom line during the quarter said Douglas Gordon, President and Chief Executive Officer of the Company.   We also opened the doors of WaterStone Investment Services, a wealth management division in our Community Banking segment, allowing us to provide a more comprehensive service offering to our customers."

About Waterstone Financial, Inc.

Waterstone Financial, Inc. (NASDAQ: WSBF) is a single-bank, holding company headquartered in Wauwatosa, WI.  With $1.8 billion in assets at March 31, 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.

- 5 -

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.

- 6 -

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three months ended March 31,
	2015			2014
	(In Thousands, except per share amounts)
Interest income:
Loans	$	13,313			13,669
Mortgage-related securities		839			559
Debt securities, federal funds sold and short-term investments		866			825
Total interest income		15,018			15,053
Interest expense:
Deposits		1,353			1,060
Borrowings		4,229			4,293
Total interest expense		5,582			5,353
Net interest income		9,436			9,700
Provision for loan losses		335			250
Net interest income after provision for loan losses		9,101			9,450
Noninterest income:
Service charges on loans and deposits		406			254
Increase in cash surrender value of life insurance		207			146
Mortgage banking income		21,039			14,503
Gain on sale of available for sale securities		44			-
Other		337			2,155
Total noninterest income		22,033			17,058
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		18,078			15,059
Occupancy, office furniture, and equipment		2,443			2,685
Advertising		653			736
Data processing		575			559
Communications		370			422
Professional fees		497			508
Real estate owned		543			548
FDIC insurance premiums		336			406
Other		2,933			2,709
Total noninterest expenses		26,428			23,632
Income before income taxes		4,706			2,876
Income tax expense		1,690			993
Net income	$	3,016			1,883
Income per share:
Basic	$	0.09			0.05
Diluted	$	0.09			0.05
Weighted average shares outstanding:
Basic		32,369			34,264
Diluted		32,650			34,503
Performace Ratios:
Return on average assets		0.69	%		0.42	%
Return on average equity		2.71	%		1.87	%
Net interest margin		2.31	%		2.31	%

- 7 -

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
	March 31,			December 31,
	2015			2014
	(Unaudited)
Assets	(In Thousands, except share data)
Cash	$	100,116			145,846
Federal funds sold		32,468			21,268
Interest-earning deposits in other financial institutions and other short term investments		9,809			5,706
Cash and cash equivalents		142,393			172,820
Securities available for sale (at fair value)		275,107			273,443
Loans held for sale (at fair value)		164,848			125,073
Loans receivable		1,064,758			1,094,990
Less: Allowance for loan losses		17,767			18,706
Loans receivable, net		1,046,991			1,076,284
Office properties and equipment, net		25,070			25,562
Federal Home Loan Bank stock (at cost)		17,500			17,500
Cash surrender value of life insurance		51,055			50,848
Real estate owned, net		19,579			18,706
Prepaid expenses and other assets		23,505			23,144
Total assets	$	1,766,048			1,783,380
Liabilities and Shareholders' Equity
Liabilities:
Demand deposits	$	96,806			92,162
Money market and savings deposits		118,727			119,163
Time deposits		639,201			652,635
Total deposits		854,734			863,960
Short-term borrowings		50,000			-
Long-term borrowings		384,000			434,000
Advance payments by borrowers for taxes		9,058			4,991
Other liabilities		18,935			30,192
Total liabilities		1,316,727			1,333,143
Shareholders' equity:
Common stock		346			344
Additional paid-in capital		315,343			313,894
Retained earnings		158,709			157,304
Unearned ESOP shares		(22,255	)		(22,552	)
Accumulated other comprehensive income, net of taxes		2,524			1,247
Cost of shares repurchased		(5,346	)		-
Total shareholders' equity		449,321			450,237
Total liabilities and shareholders' equity	$	1,766,048			1,783,380
Share Information
Shares Outstanding		34,565			34,420
Book Value per share - excluding unallocated ESOP shares	$	13.80			13.89
Book Value per share - including unallocated ESOP shares	$	13.00			13.08
Closing market price	$	12.84			13.15
Price to book ratio - excluding unallocated ESOP shares		93.05	%		95.73	%
Price to book ratio - including unallocated ESOP shares		98.77	%		100.53	%
Asset Quality Data
Total non accrual loans	$	33,005			38,011
Real estate owned		19,579			18,706
Total nonperforming assets	$	52,584			56,717
Total non accrual to total loans		3.10	%		3.47	%
Total nonperforming assets to total assets		2.98	%		3.18	%
Allowance for loan losses	$	17,767			18,706
Allowance for loan losses as a % to non-accrual loans		53.83	%		49.21	%

- 8 -

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
SUMMARY OF KEY QUARTERLY FINANCIAL DATA
			(Unaudited)
	At or For the Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
	2015		2014		2014		2014		2014		2013
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income	$	9,436		10,083		10,914		10,610		9,700	$	9,561
Provision for loan losses		335		300		315		285		250		572
Total noninterest income		22,033		20,403		23,911		23,196		17,058		17,029
Total noninterest expense		26,428		26,553		27,030		27,603		23,632		23,410
Income before income taxes		4,706		3,633		7,480		5,918		2,876		2,608
Income tax expense		1,690		1,319		2,715		2,148		993		671
Net income	$	3,016		2,314		4,765		3,770		1,883	$	1,937
Income per share – basic	$	0.09		0.08		0.14		0.11		0.05	$	0.06
Income per share – diluted	$	0.09		0.08		0.14		0.11		0.05	$	0.06

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
SUMMARY OF SHARES REPURCHASED
For the quarter ended March 31, 2015
Total shares repurchased		381,800
Total cost of shares (including commision)	$	4,952,803
Avergage cost per share	$	12.97

A total of 1,024,713 shares have been repurchased as of April 22, 2015.

- 9 -