Business Context and Reporting Period
This Form 8-K Current Report was filed by Waterstone Financial, Inc. on February 18, 2014. The filing discloses the appointment of a new senior officer and details regarding a compensatory arrangement involving an employee mortgage loan program.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, margin, debt, or liquidity metrics for the Company. The only financial data presented relates to a specific employee loan arrangement for Mark Gerke during the year ended December 31, 2013:
- Largest Aggregate Balance (2013): $241,319
- Principal Balance (12/31/13): $232,895
- Principal Paid (2013): $8,424
- Interest Paid (2013): $4,138
- Employee Interest Rate: 1.68%
- Non-employee Interest Rate: 6.50%
Material Changes
On February 18, 2014, the Company appointed Mark Gerke as Vice President, Controller, and Principal Accounting Officer, effective immediately. Mr. Gerke previously served as Vice President and Controller of the Company's wholly-owned subsidiary, WaterStone Bank SSB, since October 2005.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, outlook, or management commentary regarding future financial performance. It notes that the Bank's employee loan program for new loans was discontinued in December 2005 for loans originated after March 31, 2006. Existing loans originated on or before that date continue on their original terms. Employees are subject to income tax on the difference between the interest paid under the employee rate and the non-employee rate.
Investor Verification Checklist
- Verify the effective date and specific responsibilities of Mark Gerke's new role as Principal Accounting Officer.
- Confirm the tax implications for Mr. Gerke regarding the interest rate differential on his mortgage loan.
- Review the Company's most recent 10-K or 10-Q for consolidated financial performance metrics, as this 8-K does not contain them.