Waterstone Financial, Inc. Announces Results of Operations for the Quarter Ended March 31, 2025
Waterstone Financial (NASDAQ: WSBF) reported Q1 2025 net income of $3.0 million ($0.17 per diluted share), matching the same period in 2024 ($0.16 per diluted share). The Community Banking segment showed strong performance with a 6.9% increase in net interest income and a 32 bps improvement in net interest margin.
Key highlights include:
- Community Banking pre-tax income increased 41.7% to $6.1 million
- Net interest margin rose to 2.47%
- Average core retail deposits grew 7.4% to $1.28 billion
- Company repurchased 237,000 shares at $13.37 per share
- Quarterly dividend maintained at $0.15 per share
The Mortgage Banking segment faced challenges, reporting a pre-tax loss of $2.2 million due to decreased loan origination volumes (-20.1%) and elevated legal expenses from a settlement. Book value per share increased to $17.70 from $17.53 in December 2024.
Waterstone Financial (NASDAQ: WSBF) ha riportato un utile netto nel primo trimestre 2025 di 3,0 milioni di dollari (0,17 dollari per azione diluita), in linea con lo stesso periodo del 2024 (0,16 dollari per azione diluita). Il segmento Community Banking ha mostrato una solida performance con un aumento del 6,9% del reddito netto da interessi e un miglioramento di 32 punti base nel margine di interesse netto.
Punti salienti principali:
- Il reddito ante imposte del Community Banking è cresciuto del 41,7% raggiungendo 6,1 milioni di dollari
- Il margine di interesse netto è salito al 2,47%
- I depositi retail core medi sono aumentati del 7,4% a 1,28 miliardi di dollari
- La società ha riacquistato 237.000 azioni a 13,37 dollari per azione
- Il dividendo trimestrale è stato mantenuto a 0,15 dollari per azione
Il segmento Mortgage Banking ha affrontato difficoltà, registrando una perdita ante imposte di 2,2 milioni di dollari a causa della diminuzione dei volumi di erogazione prestiti (-20,1%) e di elevate spese legali dovute a un accordo. Il valore contabile per azione è salito a 17,70 dollari da 17,53 dollari a dicembre 2024.
Waterstone Financial (NASDAQ: WSBF) reportó un ingreso neto en el primer trimestre de 2025 de 3,0 millones de dólares (0,17 dólares por acción diluida), igualando el mismo período de 2024 (0,16 dólares por acción diluida). El segmento de Banca Comunitaria mostró un sólido desempeño con un aumento del 6,9% en los ingresos netos por intereses y una mejora de 32 puntos básicos en el margen de interés neto.
Puntos clave:
- El ingreso antes de impuestos de Banca Comunitaria aumentó un 41,7% hasta 6,1 millones de dólares
- El margen de interés neto subió al 2,47%
- Los depósitos minoristas centrales promedio crecieron un 7,4% hasta 1,28 mil millones de dólares
- La compañía recompró 237,000 acciones a 13,37 dólares por acción
- El dividendo trimestral se mantuvo en 0,15 dólares por acción
El segmento de Banca Hipotecaria enfrentó desafíos, reportando una pérdida antes de impuestos de 2,2 millones de dólares debido a la disminución en los volúmenes de originación de préstamos (-20,1%) y altos gastos legales por un acuerdo. El valor contable por acción aumentó a 17,70 dólares desde 17,53 dólares en diciembre de 2024.
Waterstone Financial (NASDAQ: WSBF)은 2025년 1분기 순이익으로 300만 달러(희석 주당 0.17달러)를 보고했으며, 이는 2024년 같은 기간(희석 주당 0.16달러)과 동일합니다. 커뮤니티 뱅킹 부문은 순이자수익이 6.9% 증가하고 순이자마진이 32bp 개선되는 등 강한 실적을 보였습니다.
주요 내용은 다음과 같습니다:
- 커뮤니티 뱅킹 세전이익이 41.7% 증가하여 610만 달러 기록
- 순이자마진 2.47%로 상승
- 평균 핵심 소매 예금 7.4% 증가하여 12억 8천만 달러 달성
- 회사는 주당 13.37달러에 237,000주를 재매입
- 분기 배당금은 주당 0.15달러로 유지
모기지 뱅킹 부문은 대출 신규 취급량 감소(-20.1%)와 합의로 인한 높은 법률 비용으로 인해 220만 달러의 세전 손실을 기록하는 등 어려움을 겪었습니다. 주당 장부 가치는 2024년 12월 17.53달러에서 17.70달러로 상승했습니다.
Waterstone Financial (NASDAQ : WSBF) a annoncé un bénéfice net au premier trimestre 2025 de 3,0 millions de dollars (0,17 dollar par action diluée), égalant la même période en 2024 (0,16 dollar par action diluée). Le segment Community Banking a affiché une solide performance avec une augmentation de 6,9 % du revenu net d’intérêts et une amélioration de 32 points de base de la marge nette d’intérêt.
Faits saillants clés :
- Le revenu avant impôts du Community Banking a augmenté de 41,7 % pour atteindre 6,1 millions de dollars
- La marge nette d’intérêt est montée à 2,47 %
- Les dépôts de détail de base moyens ont augmenté de 7,4 % pour atteindre 1,28 milliard de dollars
- L’entreprise a racheté 237 000 actions à 13,37 dollars chacune
- Le dividende trimestriel a été maintenu à 0,15 dollar par action
Le segment Mortgage Banking a rencontré des difficultés, enregistrant une perte avant impôts de 2,2 millions de dollars en raison de la baisse des volumes d’octroi de prêts (-20,1 %) et des frais juridiques élevés liés à un règlement. La valeur comptable par action est passée de 17,53 dollars en décembre 2024 à 17,70 dollars.
Waterstone Financial (NASDAQ: WSBF) meldete für das erste Quartal 2025 einen Nettogewinn von 3,0 Millionen US-Dollar (0,17 US-Dollar je verwässerter Aktie), was dem gleichen Zeitraum 2024 (0,16 US-Dollar je verwässerter Aktie) entspricht. Das Segment Community Banking zeigte eine starke Leistung mit einem Anstieg der Nettozinserträge um 6,9 % und einer Verbesserung der Nettozinsmarge um 32 Basispunkte.
Wichtige Highlights:
- Das Vorsteuerergebnis im Community Banking stieg um 41,7 % auf 6,1 Millionen US-Dollar
- Die Nettozinsmarge stieg auf 2,47 %
- Die durchschnittlichen Kern-Retail-Einlagen wuchsen um 7,4 % auf 1,28 Milliarden US-Dollar
- Das Unternehmen kaufte 237.000 Aktien zu je 13,37 US-Dollar zurück
- Die Quartalsdividende blieb bei 0,15 US-Dollar je Aktie
Das Segment Mortgage Banking hatte Schwierigkeiten und meldete einen Vorsteuerverlust von 2,2 Millionen US-Dollar aufgrund rückläufiger Kreditneugeschäfte (-20,1 %) und erhöhter Rechtskosten durch eine Vergleichsvereinbarung. Der Buchwert je Aktie stieg von 17,53 US-Dollar im Dezember 2024 auf 17,70 US-Dollar.
- Community Banking pre-tax income increased 41.7% to $6.1 million
- Net interest income grew 6.9% in Community Banking segment
- Net interest margin improved by 32 basis points to 2.47%
- Core retail deposits increased 7.4% to $1.28 billion
- Book value per share increased to $17.70 from $17.53
- Negative provision for credit losses indicates improved loan quality
- Mortgage Banking segment reported $2.2 million pre-tax loss
- Loan origination volumes decreased 20.1% to $387.7 million
- Mortgage banking non-interest income declined 22.6% to $15.7 million
- Increased legal expenses due to settlement of lawsuit
- Nonperforming assets increased to 0.35% from 0.23% year-over-year
Insights
Waterstone maintained stable earnings despite segment contrast; Community Banking strength offset Mortgage Banking's losses.
Waterstone Financial's Q1 2025 results reveal balanced overall performance with net income steady at $3.0 million year-over-year, while earnings per share improved slightly to $0.17 from $0.16. This stability masks significant divergence between business segments.
The Community Banking segment delivered exceptional performance with pre-tax income surging 41.7% to $6.1 million. This growth stems from net interest income increasing 6.9% to $12.4 million and net interest margin expanding 32 basis points to 2.47%. The efficiency ratio improved substantially to 59.66% from 65.17%, indicating better cost control. These metrics reflect successful navigation of the challenging interest rate environment.
Asset quality metrics show minor deterioration but remain healthy. Nonperforming assets increased to 0.35% of total assets from 0.23% year-over-year, while past due loans improved quarter-over-quarter from 0.95% to 0.67%. The negative provision for credit losses (-$314,000) reflects confidence in loan portfolio quality.
Conversely, the Mortgage Banking segment faced significant headwinds, posting a $2.2 million pre-tax loss compared to $369,000 profit last year. Loan originations fell 20.1% to $387.7 million, mortgage banking income decreased 22.6% to $15.7 million, and margins compressed. Legal expenses spiked 164% to $1.4 million for settlement of a previously disclosed lawsuit.
Capital management remained shareholder-friendly with $3.2 million in share repurchases (approximately 237,000 shares) and the $0.15 quarterly dividend maintained. Book value per share increased to $17.70, enhancing shareholder equity.
Overall profitability metrics show marginal improvement with return on average assets at 0.57% and return on average equity at 3.61%, reflecting the bank's ability to sustain performance despite challenges in mortgage operations.
Interest margin expansion and credit quality showcase operational resilience amid mortgage market contraction and one-time legal costs.
In the current banking landscape, Waterstone's 32 basis point net interest margin expansion to 2.47% represents significant accomplishment. This improvement occurred despite ongoing interest rate challenges that have compressed margins for many regional banks. The widening spread between loan yields and funding costs demonstrates effective asset-liability management.
The bank's deposit strategy shows success with core retail deposits growing 7.4% to $1.28 billion year-over-year. This growth, primarily in certificates of deposit, indicates the bank maintained competitive rates to attract stable funding. The inclusion of $84.1 million in brokered CDs provides liquidity flexibility but typically at higher cost than core deposits.
Credit quality metrics remain strong despite modest deterioration. The negative loan loss provision signals confidence in underwriting standards and reflects historically low loan losses. The slight increase in nonperforming assets remains well below industry warning levels.
The mortgage banking segment's performance reflects broader industry conditions. The 20.1% decline in origination volume mirrors market-wide trends as higher rates continue suppressing refinance activity. Even with purchase activity representing 87.5% of originations (down from 93% last year), the segment couldn't maintain profitability. The 22.6% drop in mortgage banking income exceeded the origination volume decline, indicating pressure on gain-on-sale margins.
The legal settlement represents a significant one-time expense that distorts quarterly comparison. With $1.3 million previously accrued for this matter as of Q4 2024, the settlement primarily affected timing rather than materially impacting overall annual performance.
Cost management efforts in mortgage operations show appropriate response to market conditions, with compensation expenses reduced 18.3% to $12.1 million, directly aligning with lower production volumes.
WAUWATOSA, Wis., April 22, 2025 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of
"The Community Banking segment continues to perform well in a challenging interest rate environment,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "We increased net interest income
Highlights of the Quarter Ended March 31, 2025
Waterstone Financial, Inc. (Consolidated)
- Consolidated net income of Waterstone Financial, Inc. totaled
$3.0 million for the quarters ended March 31, 2025 and March 31, 2024. - Consolidated return on average assets (annualized) was
0.57% for the quarter ended March 31, 2025 and0.56% for the quarter ended March 31, 2024. - Consolidated return on average equity (annualized) was
3.61% for the quarter ended March 31, 2025 and3.56% for the quarter ended March 31, 2024. - Dividends declared during the quarter ended March 31, 2025 totaled
$0.15 per common share. - During the quarter ended March 31, 2025, we repurchased approximately 237,000 shares at a cost (including the federal excise tax) of
$3.2 million , or$13.37 per share. - Nonperforming assets as a percentage of total assets was
0.35% at March 31, 2025,0.28% at December 31, 2024, and0.23% at March 31, 2024. - Past due loans as a percentage of total loans was
0.67% at March 31, 2025,0.95% at December 31, 2024, and0.64% at March 31, 2024. - Book value per share was
$17.70 at March 31, 2025 and$17.53 at December 31, 2024.
Community Banking Segment
- Pre-tax income totaled
$6.1 million for the quarter ended March 31, 2025, which represents a$1.8 million , or41.7% , increase compared to$4.3 million for the quarter ended March 31, 2024. - Net interest income totaled
$12.4 million for the quarter ended March 31, 2025, which represents a$805,000 , or6.9% , increase compared to$11.6 million for the quarter ended March 31, 2024. - Average loans held for investment totaled
$1.67 billion during the quarter ended March 31, 2025, which represents an increase of$10.7 million , or0.6% , compared to$1.66 billion for the quarter ended March 31, 2024. The increase was primarily due to increases in the commercial real estate and multi-family mortgages. Average loans held for investment decreased$6.8 million compared to$1.68 billion for the quarter ended December 31, 2024. The decrease was primarily due to decreases in construction and multi-family mortgages. - Net interest margin increased 32 basis points to
2.47% for the quarter ended March 31, 2025 compared to2.15% for the quarter ended March 31, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decrease in cost of borrowings offset by an increase in weighted average cost of deposits. Net interest margin increased five basis points compared to2.42% for the quarter ended December 31, 2024, primarily driven by decreases in weighted average cost of deposits and borrowings. - Past due loans at the community banking segment totaled
$7.6 million at March 31, 2025,$12.8 million at December 31, 2024, and$8.1 million at March 31, 2024. - The segment had a negative provision for credit losses related to funded loans of
$314,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to funded loans of$35,000 for the quarter ended March 31, 2024. The current quarter decrease was primarily due to decreases in historical loss rates and loan portfolio balances offset by an increase in the commercial real estate loan qualitative factors primarily related to increases in economic risks and internal asset quality risks. The negative provision for credit losses related to unfunded loan commitments was$204,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to unfunded loan commitments of$70,000 for the quarter ended March 31, 2024. The negative provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2025 was due primarily to a decrease in construction loans that are currently waiting to be funded compared to the prior quarter end and decrease in historical loss rates. - The efficiency ratio, a non-GAAP ratio, was
59.66% for the quarter ended March 31, 2025, compared to65.17% for the quarter ended March 31, 2024. - Average core retail deposits (excluding brokered and escrow accounts) totaled
$1.28 billion during the quarter ended March 31, 2025, an increase of$87.6 million , or7.4% , compared to$1.19 billion during the quarter ended March 31, 2024. Average deposits increased$2.9 million , or0.9% annualized, compared to$1.27 billion for the quarter ended December 31, 2024. The increases were primarily due to an increase in certificates of deposit balances. The segment had$84.1 million in brokered certificate of deposits at March 31, 2025.
Mortgage Banking Segment
- Pre-tax loss totaled
$2.2 million for the quarter ended March 31, 2025, compared to a$369,000 of pre-tax income for the quarter ended March 31, 2024. - Loan originations decreased
$97.4 million , or20.1% , to$387.7 million during the quarter ended March 31, 2025, compared to$485.1 million during the quarter ended March 31, 2024. Origination volume relative to purchase activity accounted for87.5% of originations for the quarter ended March 31, 2025 compared to93.0% of total originations for the quarter ended March 31, 2024. - Mortgage banking non-interest income decreased
$4.6 million , or22.6% , to$15.7 million for the quarter ended March 31, 2025, compared to$20.3 million for the quarter ended March 31, 2024. - Gross margin on loans sold totaled
3.98% for the quarter ended March 31, 2025, compared to4.10% for the quarter ended March 31, 2024. - Professional fees increased
$853,000 , or164.0% , to$1.4 million for the quarter ended March 31, 2025, compared to$520,000 for the quarter ended March 31, 2024. The increase was primarily related to legal services and the finalization of a settlement related to a previously disclosed legal matter during the three months ended March 31, 2025. The Company maintained a$1.3 million accrual related to this legal matter as of December 31, 2024. - Total compensation, payroll taxes and other employee benefits decreased
$2.7 million , or18.3% , to$12.1 million during the quarter ended March 31, 2025 compared to$14.8 million during the quarter ended March 31, 2024. The decrease primarily related to decreased commission expense, branch manager pay, salary expense, and sign-on incentives driven by reduced employee headcount and a decrease in loan origination volumes and branch profitability.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states.
With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide.
For more information about WaterStone Bank, visit wsbonline.com.
Forward-Looking Statements
This press release contains statements or information that may constitute 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.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk 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.
Non-GAAP Financial Measures
Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.
Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||
| For The Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (In Thousands, except per share amounts) | ||||||||
| Interest income: | ||||||||
| Loans | $ | 25,078 | $ | 24,484 | ||||
| Mortgage-related securities | 1,191 | 1,098 | ||||||
| Debt securities, federal funds sold and short-term investments | 1,486 | 1,323 | ||||||
| Total interest income | 27,755 | 26,905 | ||||||
| Interest expense: | ||||||||
| Deposits | 11,332 | 8,970 | ||||||
| Borrowings | 3,847 | 6,798 | ||||||
| Total interest expense | 15,179 | 15,768 | ||||||
| Net interest income | 12,576 | 11,137 | ||||||
| Provision (credit) for credit losses | (558 | ) | 67 | |||||
| Net interest income after provision (credit) for loan losses | 13,134 | 11,070 | ||||||
| Noninterest income: | ||||||||
| Service charges on loans and deposits | 593 | 424 | ||||||
| Increase in cash surrender value of life insurance | 481 | 348 | ||||||
| Mortgage banking income | 15,728 | 20,068 | ||||||
| Other | 295 | 408 | ||||||
| Total noninterest income | 17,097 | 21,248 | ||||||
| Noninterest expenses: | ||||||||
| Compensation, payroll taxes, and other employee benefits | 17,047 | 19,876 | ||||||
| Occupancy, office furniture, and equipment | 1,929 | 2,108 | ||||||
| Advertising | 723 | 914 | ||||||
| Data processing | 1,212 | 1,206 | ||||||
| Communications | 235 | 226 | ||||||
| Professional fees | 1,736 | 743 | ||||||
| Real estate owned | (10 | ) | 13 | |||||
| Loan processing expense | 920 | 1,046 | ||||||
| Other | 2,558 | 1,418 | ||||||
| Total noninterest expenses | 26,350 | 27,550 | ||||||
| Income before income taxes | 3,881 | 4,768 | ||||||
| Income tax expense | 845 | 1,730 | ||||||
| Net income | $ | 3,036 | $ | 3,038 | ||||
| Income per share: | ||||||||
| Basic | $ | 0.17 | $ | 0.16 | ||||
| Diluted | $ | 0.17 | $ | 0.16 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 18,267 | 19,021 | ||||||
| Diluted | 18,280 | 19,036 | ||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| Assets | (In Thousands, except per share amounts) | |||||||
| Cash | $ | 37,459 | $ | 35,182 | ||||
| Federal funds sold | 5,550 | 4,302 | ||||||
| Interest-earning deposits in other financial institutions and other short term investments | 280 | 277 | ||||||
| Cash and cash equivalents | 43,289 | 39,761 | ||||||
| Securities available for sale (at fair value) | 213,615 | 208,549 | ||||||
| Loans held for sale (at fair value) | 116,290 | 135,909 | ||||||
| Loans receivable | 1,663,519 | 1,680,576 | ||||||
| Less: Allowance for credit losses ("ACL") - loans | 17,905 | 18,247 | ||||||
| Loans receivable, net | 1,645,614 | 1,662,329 | ||||||
| Office properties and equipment, net | 19,223 | 19,389 | ||||||
| Federal Home Loan Bank stock (at cost) | 18,351 | 20,295 | ||||||
| Cash surrender value of life insurance | 75,093 | 74,612 | ||||||
| Real estate owned, net | 135 | 505 | ||||||
| Prepaid expenses and other assets | 43,757 | 48,259 | ||||||
| Total assets | $ | 2,175,367 | $ | 2,209,608 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities: | ||||||||
| Demand deposits | $ | 170,183 | $ | 171,115 | ||||
| Money market and savings deposits | 296,203 | 283,243 | ||||||
| Time deposits | 914,814 | 905,539 | ||||||
| Total deposits | 1,381,200 | 1,359,897 | ||||||
| Borrowings | 395,853 | 446,519 | ||||||
| Advance payments by borrowers for taxes | 12,628 | 5,630 | ||||||
| Other liabilities | 44,326 | 58,427 | ||||||
| Total liabilities | 1,834,007 | 1,870,473 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 193 | 193 | ||||||
| Additional paid-in capital | 90,470 | 91,214 | ||||||
| Retained earnings | 277,521 | 277,196 | ||||||
| Unearned ESOP shares | (10,386 | ) | (10,682 | ) | ||||
| Accumulated other comprehensive loss, net of taxes | (16,438 | ) | (18,786 | ) | ||||
| Total shareholders' equity | 341,360 | 339,135 | ||||||
| Total liabilities and shareholders' equity | $ | 2,175,367 | $ | 2,209,608 | ||||
| Share Information | ||||||||
| Shares outstanding | 19,281 | 19,343 | ||||||
| Book value per share | $ | 17.70 | $ | 17.53 | ||||
| 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, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| (Dollars in Thousands, except per share amounts) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest income | $ | 12,576 | $ | 12,835 | $ | 11,517 | $ | 10,679 | $ | 11,137 | ||||||||||
| Provision (credit) for credit losses | (558 | ) | 367 | (377 | ) | (225 | ) | 67 | ||||||||||||
| Total noninterest income | 17,097 | 19,005 | 22,552 | 26,497 | 21,248 | |||||||||||||||
| Total noninterest expense | 26,350 | 25,267 | 28,560 | 30,259 | 27,550 | |||||||||||||||
| Income before income taxes | 3,881 | 6,206 | 5,886 | 7,142 | 4,768 | |||||||||||||||
| Income tax expense | 845 | 996 | 1,158 | 1,430 | 1,730 | |||||||||||||||
| Net income | $ | 3,036 | $ | 5,210 | $ | 4,728 | $ | 5,712 | $ | 3,038 | ||||||||||
| Income per share – basic | $ | 0.17 | $ | 0.28 | $ | 0.26 | $ | 0.31 | $ | 0.16 | ||||||||||
| Income per share – diluted | $ | 0.17 | $ | 0.28 | $ | 0.26 | $ | 0.31 | $ | 0.16 | ||||||||||
| Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | ||||||||||
| Performance Ratios (annualized): | ||||||||||||||||||||
| Return on average assets - QTD | 0.57 | % | 0.94 | % | 0.83 | % | 1.02 | % | 0.56 | % | ||||||||||
| Return on average equity - QTD | 3.61 | % | 6.05 | % | 5.55 | % | 6.84 | % | 3.56 | % | ||||||||||
| Net interest margin - QTD | 2.47 | % | 2.42 | % | 2.13 | % | 2.01 | % | 2.15 | % | ||||||||||
| Return on average assets - YTD | 0.57 | % | 0.84 | % | 0.81 | % | 0.79 | % | 0.56 | % | ||||||||||
| Return on average equity - YTD | 3.61 | % | 5.48 | % | 5.30 | % | 5.17 | % | 3.56 | % | ||||||||||
| Net interest margin - YTD | 2.47 | % | 2.17 | % | 2.09 | % | 2.08 | % | 2.15 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Past due loans to total loans | 0.67 | % | 0.95 | % | 0.63 | % | 0.76 | % | 0.64 | % | ||||||||||
| Nonaccrual loans to total loans | 0.45 | % | 0.34 | % | 0.32 | % | 0.33 | % | 0.29 | % | ||||||||||
| Nonperforming assets to total assets | 0.35 | % | 0.28 | % | 0.25 | % | 0.25 | % | 0.23 | % | ||||||||||
| Allowance for credit losses - loans to loans receivable | 1.08 | % | 1.09 | % | 1.07 | % | 1.10 | % | 1.10 | % | ||||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Average balances | (Dollars in Thousands) | |||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||
| Loans receivable and held for sale | $ | 1,768,617 | $ | 1,819,574 | $ | 1,870,627 | $ | 1,859,608 | $ | 1,805,102 | ||||||||||
| Mortgage related securities | 170,947 | 168,521 | 170,221 | 171,895 | 172,077 | |||||||||||||||
| Debt securities, federal funds sold and short term investments | 123,004 | 124,658 | 115,270 | 107,992 | 110,431 | |||||||||||||||
| Total interest-earning assets | 2,062,568 | 2,112,753 | 2,156,118 | 2,139,495 | 2,087,610 | |||||||||||||||
| Noninterest-earning assets | 105,030 | 100,627 | 104,600 | 104,019 | 103,815 | |||||||||||||||
| Total assets | $ | 2,167,598 | $ | 2,213,380 | $ | 2,260,718 | $ | 2,243,514 | $ | 2,191,425 | ||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Demand accounts | $ | 87,393 | $ | 92,247 | $ | 89,334 | $ | 91,300 | $ | 87,393 | ||||||||||
| Money market, savings, and escrow accounts | 300,686 | 306,478 | 304,116 | 293,483 | 281,171 | |||||||||||||||
| Certificates of deposit - retail | 818,612 | 810,340 | 786,228 | 758,252 | 739,543 | |||||||||||||||
| Certificates of deposit - brokered | 97,101 | 59,254 | - | - | - | |||||||||||||||
| Total interest-bearing deposits | 1,303,792 | 1,268,319 | 1,179,678 | 1,143,035 | 1,108,107 | |||||||||||||||
| Borrowings | 397,053 | 464,964 | 600,570 | 622,771 | 602,724 | |||||||||||||||
| Total interest-bearing liabilities | 1,700,845 | 1,733,283 | 1,780,248 | 1,765,806 | 1,710,831 | |||||||||||||||
| Noninterest-bearing demand deposits | 80,372 | 87,889 | 91,532 | 93,637 | 92,129 | |||||||||||||||
| Noninterest-bearing liabilities | 44,905 | 49,645 | 49,787 | 48,315 | 45,484 | |||||||||||||||
| Total liabilities | 1,826,122 | 1,870,817 | 1,921,567 | 1,907,758 | 1,848,444 | |||||||||||||||
| Equity | 341,476 | 342,563 | 339,151 | 335,756 | 342,981 | |||||||||||||||
| Total liabilities and equity | $ | 2,167,598 | $ | 2,213,380 | $ | 2,260,718 | $ | 2,243,514 | $ | 2,191,425 | ||||||||||
| Average Yield/Costs (annualized) | ||||||||||||||||||||
| Loans receivable and held for sale | 5.75 | % | 5.75 | % | 5.65 | % | 5.54 | % | 5.46 | % | ||||||||||
| Mortgage related securities | 2.83 | % | 2.67 | % | 2.66 | % | 2.63 | % | 2.57 | % | ||||||||||
| Debt securities, federal funds sold and short term investments | 4.90 | % | 4.85 | % | 5.05 | % | 4.82 | % | 4.82 | % | ||||||||||
| Total interest-earning assets | 5.46 | % | 5.46 | % | 5.39 | % | 5.27 | % | 5.18 | % | ||||||||||
| Demand accounts | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | ||||||||||
| Money market and savings accounts | 2.10 | % | 2.00 | % | 1.94 | % | 1.89 | % | 1.79 | % | ||||||||||
| Certificates of deposit - retail | 4.33 | % | 4.53 | % | 4.54 | % | 4.41 | % | 4.19 | % | ||||||||||
| Certificates of deposit - brokered | 4.18 | % | 4.18 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Total interest-bearing deposits | 3.52 | % | 3.58 | % | 3.53 | % | 3.42 | % | 3.26 | % | ||||||||||
| Borrowings | 3.93 | % | 4.11 | % | 4.77 | % | 4.92 | % | 4.54 | % | ||||||||||
| Total interest-bearing liabilities | 3.62 | % | 3.72 | % | 3.95 | % | 3.95 | % | 3.71 | % | ||||||||||
| COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest income | $ | 12,403 | $ | 12,886 | $ | 12,250 | $ | 11,234 | $ | 11,598 | ||||||||||
| Provision (credit) for credit losses | (518 | ) | 331 | (302 | ) | (279 | ) | 105 | ||||||||||||
| Total noninterest income | 1,348 | 1,595 | 1,227 | 1,491 | 990 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 5,212 | 4,883 | 5,326 | 5,116 | 5,360 | |||||||||||||||
| Occupancy, office furniture and equipment | 1,076 | 825 | 904 | 983 | 1,000 | |||||||||||||||
| Advertising | 171 | 204 | 311 | 229 | 174 | |||||||||||||||
| Data processing | 712 | 691 | 720 | 687 | 693 | |||||||||||||||
| Communications | 100 | 89 | 80 | 72 | 65 | |||||||||||||||
| Professional fees | 347 | 196 | 190 | 177 | 208 | |||||||||||||||
| Real estate owned | (10 | ) | 12 | - | 1 | 13 | ||||||||||||||
| Loan processing expense | - | - | - | - | - | |||||||||||||||
| Other | 596 | 563 | 602 | 672 | 691 | |||||||||||||||
| Total noninterest expense | 8,204 | 7,463 | 8,133 | 7,937 | 8,204 | |||||||||||||||
| Income before income taxes | 6,065 | 6,687 | 5,646 | 5,067 | 4,279 | |||||||||||||||
| Income tax expense | 1,427 | 1,399 | 941 | 718 | 1,639 | |||||||||||||||
| Net income | $ | 4,638 | $ | 5,288 | $ | 4,705 | $ | 4,349 | $ | 2,640 | ||||||||||
| Efficiency ratio - QTD (non-GAAP) | 59.66 | % | 51.54 | % | 60.35 | % | 62.37 | % | 65.17 | % | ||||||||||
| Efficiency ratio - YTD (non-GAAP) | 59.66 | % | 59.58 | % | 62.58 | % | 63.77 | % | 65.17 | % | ||||||||||
| MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest income (loss) | $ | 152 | $ | (92 | ) | $ | (760 | ) | $ | (552 | ) | $ | (541 | ) | ||||||
| Provision (credit) for credit losses | (40 | ) | 36 | (75 | ) | 54 | (38 | ) | ||||||||||||
| Total noninterest income | 15,731 | 17,455 | 21,386 | 25,081 | 20,328 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 12,054 | 13,781 | 15,930 | 16,886 | 14,756 | |||||||||||||||
| Occupancy, office furniture and equipment | 853 | 754 | 953 | 1,046 | 1,108 | |||||||||||||||
| Advertising | 552 | 523 | 615 | 758 | 740 | |||||||||||||||
| Data processing | 498 | 542 | 570 | 549 | 508 | |||||||||||||||
| Communications | 135 | 135 | 152 | 168 | 161 | |||||||||||||||
| Professional fees | 1,373 | 917 | 379 | 569 | 520 | |||||||||||||||
| Real estate owned | - | - | - | - | - | |||||||||||||||
| Loan processing expense | 920 | 486 | 697 | 861 | 1,046 | |||||||||||||||
| Other | 1,751 | 814 | 1,261 | 1,641 | 617 | |||||||||||||||
| Total noninterest expense | 18,136 | 17,952 | 20,557 | 22,478 | 19,456 | |||||||||||||||
| (Loss) income before income taxes (benefit) expense | (2,213 | ) | (625 | ) | 144 | 1,997 | 369 | |||||||||||||
| Income tax (benefit) expense | (588 | ) | (428 | ) | 194 | 684 | 71 | |||||||||||||
| Net (loss) income | $ | (1,625 | ) | $ | (197 | ) | $ | (50 | ) | $ | 1,313 | $ | 298 | |||||||
| Efficiency ratio - QTD (non-GAAP) | 114.18 | % | 103.39 | % | 99.67 | % | 91.64 | % | 98.33 | % | ||||||||||
| Efficiency ratio - YTD (non-GAAP) | 114.18 | % | 97.74 | % | 96.23 | % | 94.62 | % | 98.33 | % | ||||||||||
| Loan originations | $ | 387,729 | $ | 470,650 | $ | 558,729 | $ | 634,109 | $ | 485,109 | ||||||||||
| Purchase | 87.5 | % | 82.1 | % | 88.9 | % | 92.7 | % | 93.0 | % | ||||||||||
| Refinance | 12.5 | % | 17.9 | % | 11.1 | % | 7.3 | % | 7.0 | % | ||||||||||
| Gross margin on loans sold(1) | 3.98 | % | 3.74 | % | 3.83 | % | 3.93 | % | 4.10 | % | ||||||||||
(1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations
FAQ
What was Waterstone Financial's (WSBF) earnings per share in Q1 2025?
How much did WSBF's net interest margin improve in Q1 2025?
What was the impact of WSBF's share repurchase program in Q1 2025?
How did WSBF's mortgage banking segment perform in Q1 2025?
What is WSBF's current quarterly dividend payment?
