On February 11, 2016, Allan Hosack notified Waterstone Financial, Inc. (the "Company") of his intention to resign as Chief Financial Officer of the Company and its wholly owned subsidiary, WaterStone Bank SSB (the "Bank"). Mr. Hosack has agreed to continue in his role through February 29, 2016, to facilitate completion of the Company's year-end financial audit. The Company also announced that it has appointed Mark Gerke as Interim Chief Financial Officer of the Company and WaterStone Bank SSB. Mr. Gerke, age 41, has served as Vice President, Controller and Principal Accounting Officer of the Company since February 2014, and as Vice President and Controller of the Bank since October 2005. From 1998 to 2005, Mr. Gerke served in various positions with the public accounting firm Ernst & Young LLP, including as Senior Manager in assurance services before joining the Bank. Mr. Gerke is a Certified Public Accountant and holds degrees in accounting and business administration from the University of Wisconsin – Green Bay.
On February 12, 2016, the Company issued a press release announcing Mr. Hosack's resignation.
In the ordinary course of business, the Bank makes loans available to its directors, officers and employees. After six months of continuous employment, full-time employees of the Bank were previously entitled to receive a mortgage loan at a reduced interest rate, consistent with applicable laws and regulations. In December 2005, the board of directors discontinued the employee loan program for employee loans originated after March 31, 2006. Employee loans at reduced interest rates originated on or before March 31, 2006 continue on their same terms. Employees are subject to income tax on the difference between interest paid pursuant to their employee rate and interest that would have been paid pursuant to the non-employee rate.
The chart below lists information with respect to Mr. Gerke's participation in the employee mortgage loan program during the year ended December 31, 2015.
Largest Aggregate Balance 01/01/15 to 12/31/15 | Interest Rate | Non-employee Interest Rate | Principal Balance 12/31/15 | Principal Paid 01/01/15 to 12/31/15 | Interest Paid 01/01/15 to 12/31/15 |
| $ 222,850 | 1.73% | 6.50% | $ 210,967 | $ 11,883 | $ 3,727 |
Item 9.01 Financial Statements and Exhibits
