Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2024
Waterstone Financial, Inc. (NASDAQ: WSBF) reported improved financial results for Q2 2024. Net income increased to $5.7 million ($0.31 per diluted share), up from $4.0 million ($0.20 per diluted share) in Q2 2023. The company's consolidated return on average assets rose to 1.02% from 0.74% year-over-year, while return on average equity improved to 6.84% from 4.41%.
The Community Banking segment faced challenges with net interest income decreasing by 15.1% to $11.2 million, and net interest margin declining by 46 basis points to 2.01%. However, average loans held for investment increased by 5.1% to $1.67 billion.
The Mortgage Banking segment showed significant improvement, with pre-tax income of $2.0 million compared to a $1.4 million loss in Q2 2023. Loan originations increased by 1.7% to $634.1 million, with purchase activity accounting for 92.7% of originations.
Waterstone Financial, Inc. (NASDAQ: WSBF) ha riportato risultati finanziari migliorati per il secondo trimestre del 2024. Il reddito netto è aumentato a 5,7 milioni di dollari (0,31 dollari per azione diluita), rispetto ai 4,0 milioni di dollari (0,20 dollari per azione diluita) del secondo trimestre del 2023. Il ritorno consolidato sugli attivi medi dell'azienda è salito all'1,02% rispetto allo 0,74% dell'anno precedente, mentre il ritorno sul capitale netto medio è migliorato al 6,84% rispetto al 4,41%.
Il segmento della Banca Comunitaria ha affrontato delle sfide, con un reddito da interessi netti in calo del 15,1% a 11,2 milioni di dollari, e un margine d'interesse netto sceso di 46 punti base al 2,01%. Tuttavia, i prestiti medi detenuti per investimento sono aumentati del 5,1% a 1,67 miliardi di dollari.
Il segmento della Banca per Mutui ha mostrato un miglioramento significativo, con un reddito ante imposte di 2,0 milioni di dollari rispetto a una perdita di 1,4 milioni di dollari nel secondo trimestre del 2023. Le origini di prestito sono aumentate dell'1,7% a 634,1 milioni di dollari, con le attività di acquisto che rappresentano il 92,7% delle origini.
Waterstone Financial, Inc. (NASDAQ: WSBF) reportó resultados financieros mejorados para el segundo trimestre de 2024. El ingreso neto aumentó a 5.7 millones de dólares (0.31 dólares por acción diluida), en comparación con 4.0 millones de dólares (0.20 dólares por acción diluida) en el segundo trimestre de 2023. El retorno consolidado sobre los activos promedio de la empresa subió al 1.02% desde el 0.74% del año anterior, mientras que el retorno sobre el capital promedio mejoró al 6.84% desde el 4.41%.
El segmento de Banca Comunitaria enfrentó desafíos, con un ingreso de intereses netos disminuyendo un 15.1% a 11.2 millones de dólares, y un margen de interés neto que cayó 46 puntos básicos al 2.01%. Sin embargo, los préstamos promedio mantenidos para inversión aumentaron un 5.1% a 1.67 mil millones de dólares.
El segmento de Banca Hipotecaria mostró una mejora significativa, con un ingreso antes de impuestos de 2.0 millones de dólares comparado con una pérdida de 1.4 millones de dólares en el segundo trimestre de 2023. Las originaciones de préstamos aumentaron un 1.7% a 634.1 millones de dólares, siendo la actividad de adquisición responsable del 92.7% de las originaciones.
Waterstone Financial, Inc. (NASDAQ: WSBF)가 2024년 2분기 재무 실적이 개선되었다고 보고했습니다. 순이익은 570만 달러(희석주당 0.31달러)로 증가했으며, 이는 2023년 2분기의 400만 달러(희석주당 0.20달러)에서 증가한 수치입니다. 회사의 평균 자산에 대한 통합 수익률은 연간 기준으로 0.74%에서 1.02%로 상승하였고, 평균 자기자본 수익률은 4.41%에서 6.84%로 개선되었습니다.
커뮤니티 뱅킹 부문은 순이자수익이 15.1% 감소하여 1,120만 달러에 이르렀고, 순이자마진이 46베이시스포인트 하락하여 2.01%에 불과했습니다. 그러나 투자용으로 보유된 평균 대출은 5.1% 증가하여 16억 7천만 달러에 도달했습니다.
모기지 뱅킹 부문은 2023년 2분기에 140만 달러 손실과 비교하여 세전 수익이 200만 달러로 크게 개선되었습니다. 대출 origination이 1.7% 증가하여 6억 3천410만 달러에 달하며, 구매 활동이 origination의 92.7%를 차지했습니다.
Waterstone Financial, Inc. (NASDAQ: WSBF) a annoncé des résultats financiers améliorés pour le deuxième trimestre de 2024. Le revenu net a augmenté à 5,7 millions de dollars (0,31 dollar par action diluée), contre 4,0 millions de dollars (0,20 dollar par action diluée) au deuxième trimestre de 2023. Le rendement consolidé sur les actifs moyens de l'entreprise est passé de 0,74% à 1,02% d'une année sur l'autre, tandis que le rendement sur les capitaux propres moyens s'est amélioré de 4,41% à 6,84%.
Le segment de la Banque Communautaire a rencontré des défis, avec une diminution de le revenu d'intérêts nets de 15,1% à 11,2 millions de dollars, et une baisse de la marge d'intérêts nets de 46 points de base à 2,01%. Cependant, le montant moyen des prêts détenus pour investissement a augmenté de 5,1% à 1,67 milliard de dollars.
Le segment de la Banque Hypothécaire a montré une amélioration significative, avec un revenu avant impôts de 2,0 millions de dollars par rapport à une perte de 1,4 million de dollars au deuxième trimestre de 2023. Les origines de prêts ont augmenté de 1,7% à 634,1 millions de dollars, l'activité d'achat représentant 92,7% des origines.
Waterstone Financial, Inc. (NASDAQ: WSBF) meldete verbesserte Finanzergebnisse für das zweite Quartal 2024. Der Nettogewinn stieg auf 5,7 Millionen Dollar (0,31 Dollar pro verwässerter Aktie), verglichen mit 4,0 Millionen Dollar (0,20 Dollar pro verwässerter Aktie) im zweiten Quartal 2023. Die konsolidierte Rendite auf das durchschnittliche Vermögen des Unternehmens stieg von 0,74% auf 1,02% im Jahresvergleich, während die Rendite auf das durchschnittliche Eigenkapital von 4,41% auf 6,84% verbessert wurde.
Das Segment der Gemeinschaftsbanken hatte mit Herausforderungen zu kämpfen, da das Nettozinseinkommen um 15,1% auf 11,2 Millionen Dollar zurückging und die Nettozinsspanne um 46 Basispunkte auf 2,01% fiel. Dennoch stiegen die durchschnittlichen Darlehen, die zur Investition gehalten werden, um 5,1% auf 1,67 Milliarden Dollar.
Das Segment der Hypothekenbanken zeigte signifikante Verbesserungen mit einem Ertrag vor Steuern von 2,0 Millionen Dollar im Vergleich zu einem Verlust von 1,4 Millionen Dollar im zweiten Quartal 2023. Darlehensoriginierungen erhöhten sich um 1,7% auf 634,1 Millionen Dollar, wobei die Kaufaktivitäten 92,7% der Originierungen ausmachten.
- Net income increased to $5.7 million in Q2 2024, up from $4.0 million in Q2 2023
- Consolidated return on average assets improved to 1.02% from 0.74% year-over-year
- Return on average equity rose to 6.84% from 4.41% year-over-year
- Mortgage Banking segment turned profitable with $2.0 million pre-tax income compared to $1.4 million loss in Q2 2023
- Loan originations in Mortgage Banking segment increased by 1.7% to $634.1 million
- Gross margin on loans sold improved to 3.93% from 3.73% year-over-year
- Average loans held for investment in Community Banking segment increased by 5.1% to $1.67 billion
- Net interest income in Community Banking segment decreased by 15.1% to $11.2 million
- Net interest margin in Community Banking segment declined by 46 basis points to 2.01%
- Nonperforming assets as a percentage of total assets increased to 0.25% from 0.19% year-over-year
- Past due loans as a percentage of total loans increased to 0.76% from 0.50% year-over-year
- Efficiency ratio in Community Banking segment worsened to 62.37% from 55.81% year-over-year
Insights
Waterstone Financial's Q2 2024 results demonstrate a mixed performance with notable improvements in some areas. The company reported a 42.5% increase in net income to
Key financial metrics show positive trends:
- Return on average assets increased to
1.02% from0.74% year-over-year - Return on average equity rose to
6.84% from4.41% - Book value per share grew to
$17.20 from$16.94 at the end of 2023
However, challenges persist. The Community Banking segment saw a
The Mortgage Banking segment turned profitable, reporting pre-tax income of
Waterstone's active share repurchase program, which bought back 481,000 shares at
While the company has made strides in efficiency, investors should monitor the rising nonperforming assets and past due loans, which could signal potential credit quality issues if the trend continues.
Waterstone Financial's Q2 2024 results offer insights into the broader mortgage and banking industry trends. The company's performance reflects the ongoing challenges and adaptations in a high-interest rate environment.
In the mortgage sector, we're seeing a shift in consumer behavior:
- Purchase activity accounted for
92.7% of originations, down from96.4% a year ago, indicating a slight uptick in refinancing despite high rates - Gross margin on loans sold improved to
3.93% from3.73% , suggesting better pricing power or cost management
The sale of mortgage servicing rights for a small gain (
In the banking segment, the increase in average loans held for investment by
The
Overall, Waterstone's results suggest that regional banks with diversified operations (both community banking and mortgage banking) may be better positioned to navigate the current economic landscape, leveraging strengths in different segments to offset challenges.
WAUWATOSA, Wis., July 25, 2024 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of
“The results this quarter reflect our continued efforts over the past year to improve efficiencies at the Mortgage Banking segment,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "While our results have improved, we continue to face many challenges within the Mortgage Banking segment, as the mortgage banking industry continues to face unknown variables driven by consumer demand, affordable inventory, and interest rates. The Community Banking segment continues to deal with margin pressure, as short-term funding rates remain elevated due to the restrictive monetary policy of the Federal Reserve. Throughout this challenging period, we have maintained a robust share repurchase program that continues to return strong value to shareholders through repurchase activity that is accretive to book value."
Highlights of the Quarter Ended June 30, 2024
Waterstone Financial, Inc. (Consolidated)
| ● | Consolidated net income of Waterstone Financial, Inc. totaled |
| ● | Consolidated return on average assets was |
| ● | Consolidated return on average equity was |
| ● | Dividends declared during the quarter ended June 30, 2024, totaled |
| ● | During the quarter ended June 30, 2024, we repurchased approximately 481,000 shares at a cost (including the federal excise tax) of |
| ● | Nonperforming assets as a percentage of total assets was |
| ● | Past due loans as a percentage of total loans was |
| ● | Book value per share was |
Community Banking Segment
| ● | Pre-tax income totaled | |
| ● | Net interest income totaled | |
| ● | Average loans held for investment totaled | |
| ● | Net interest margin decreased 46 basis points to | |
| ● | Past due loans at the community banking segment totaled | |
| ● | The segment had a negative provision for credit losses related to funded loans of | |
| ● | The efficiency ratio, a non-GAAP ratio, was | |
| ● | Average deposits (excluding escrow accounts) totaled | |
Mortgage Banking Segment
| ● | Pre-tax income totaled |
| ● | Loan originations increased |
| ● | Mortgage banking non-interest income increased |
| ● | Gross margin on loans sold totaled |
| ● | During the quarter ended June 30, 2024, the Company sold mortgage servicing rights related to |
| ● | Total compensation, payroll taxes and other employee benefits decreased |
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, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. 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 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.
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| For The Three Months Ended June 30, | For The Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| (In Thousands, except per share amounts) | |||||||||||||||||
| Interest income: | |||||||||||||||||
| Loans | $ | 25,601 | $ | 22,150 | $ | 50,085 | $ | 42,035 | |||||||||
| Mortgage-related securities | 1,125 | 969 | 2,223 | 1,912 | |||||||||||||
| Debt securities, federal funds sold and short-term investments | 1,294 | 1,128 | 2,617 | 2,190 | |||||||||||||
| Total interest income | 28,020 | 24,247 | 54,925 | 46,137 | |||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 9,716 | 5,955 | 18,686 | 10,043 | |||||||||||||
| Borrowings | 7,625 | 5,617 | 14,423 | 9,624 | |||||||||||||
| Total interest expense | 17,341 | 11,572 | 33,109 | 19,667 | |||||||||||||
| Net interest income | 10,679 | 12,675 | 21,816 | 26,470 | |||||||||||||
| Provision (credit) for credit losses | (225 | ) | 186 | (158 | ) | 646 | |||||||||||
| Net interest income after provision (credit) for loan losses | 10,904 | 12,489 | 21,974 | 25,824 | |||||||||||||
| Noninterest income: | |||||||||||||||||
| Service charges on loans and deposits | 465 | 611 | 889 | 1,041 | |||||||||||||
| Increase in cash surrender value of life insurance | 804 | 714 | 1,152 | 1,039 | |||||||||||||
| Mortgage banking income | 24,838 | 21,914 | 44,906 | 38,684 | |||||||||||||
| Other | 390 | 286 | 798 | 1,315 | |||||||||||||
| Total noninterest income | 26,497 | 23,525 | 47,745 | 42,079 | |||||||||||||
| Noninterest expenses: | |||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 21,762 | 22,395 | 41,638 | 42,447 | |||||||||||||
| Occupancy, office furniture, and equipment | 2,029 | 2,046 | 4,137 | 4,309 | |||||||||||||
| Advertising | 987 | 944 | 1,901 | 1,833 | |||||||||||||
| Data processing | 1,242 | 1,090 | 2,448 | 2,212 | |||||||||||||
| Communications | 240 | 225 | 466 | 476 | |||||||||||||
| Professional fees | 758 | 618 | 1,501 | 1,034 | |||||||||||||
| Real estate owned | 1 | 1 | 14 | 2 | |||||||||||||
| Loan processing expense | 861 | 932 | 1,907 | 1,950 | |||||||||||||
| Other | 2,379 | 2,671 | 3,797 | 5,766 | |||||||||||||
| Total noninterest expenses | 30,259 | 30,922 | 57,809 | 60,029 | |||||||||||||
| Income before income taxes | 7,142 | 5,092 | 11,910 | 7,874 | |||||||||||||
| Income tax expense | 1,430 | 1,085 | 3,160 | 1,712 | |||||||||||||
| Net income | $ | 5,712 | $ | 4,007 | $ | 8,750 | $ | 6,162 | |||||||||
| Income per share: | |||||||||||||||||
| Basic | $ | 0.31 | $ | 0.20 | $ | 0.47 | $ | 0.30 | |||||||||
| Diluted | $ | 0.31 | $ | 0.20 | $ | 0.47 | $ | 0.30 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 18,524 | 20,384 | 18,772 | 20,635 | |||||||||||||
| Diluted | 18,568 | 20,431 | 18,802 | 20,702 | |||||||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Assets | (In Thousands, except per share amounts) | |||||||
| Cash | $ | 36,177 | $ | 30,667 | ||||
| Federal funds sold | 4,873 | 5,493 | ||||||
| Interest-earning deposits in other financial institutions and other short-term investments | 266 | 261 | ||||||
| Cash and cash equivalents | 41,316 | 36,421 | ||||||
| Securities available for sale (at fair value) | 204,835 | 204,907 | ||||||
| Loans held for sale (at fair value) | 222,756 | 164,993 | ||||||
| Loans receivable | 1,678,767 | 1,664,215 | ||||||
| Less: Allowance for credit losses ("ACL") - loans | 18,414 | 18,549 | ||||||
| Loans receivable, net | 1,660,353 | 1,645,666 | ||||||
| Office properties and equipment, net | 19,663 | 19,995 | ||||||
| Federal Home Loan Bank stock (at cost) | 23,220 | 20,880 | ||||||
| Cash surrender value of life insurance | 69,191 | 67,859 | ||||||
| Real estate owned, net | 145 | 254 | ||||||
| Prepaid expenses and other assets | 48,135 | 52,414 | ||||||
| Total assets | $ | 2,289,614 | $ | 2,213,389 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities: | ||||||||
| Demand deposits | $ | 182,628 | $ | 187,107 | ||||
| Money market and savings deposits | 274,685 | 273,233 | ||||||
| Time deposits | 766,610 | 730,284 | ||||||
| Total deposits | 1,223,923 | 1,190,624 | ||||||
| Borrowings | 660,824 | 611,054 | ||||||
| Advance payments by borrowers for taxes | 21,136 | 6,607 | ||||||
| Other liabilities | 48,785 | 61,048 | ||||||
| Total liabilities | 1,954,668 | 1,869,333 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 195 | 203 | ||||||
| Additional paid-in capital | 92,964 | 103,908 | ||||||
| Retained earnings | 272,778 | 269,606 | ||||||
| Unearned ESOP shares | (11,276 | ) | (11,869 | ) | ||||
| Accumulated other comprehensive loss, net of taxes | (19,715 | ) | (17,792 | ) | ||||
| Total shareholders' equity | 334,946 | 344,056 | ||||||
| Total liabilities and shareholders' equity | $ | 2,289,614 | $ | 2,213,389 | ||||
| Share Information | ||||||||
| Shares outstanding | 19,479 | 20,315 | ||||||
| Book value per share | $ | 17.20 | $ | 16.94 | ||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| (Dollars in Thousands, except per share amounts) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest income | $ | 10,679 | $ | 11,137 | $ | 11,756 | $ | 11,989 | $ | 12,675 | ||||||||||
| Provision (credit) for credit losses | (225 | ) | 67 | (435 | ) | 445 | 186 | |||||||||||||
| Total noninterest income | 26,497 | 21,248 | 16,876 | 22,230 | 23,525 | |||||||||||||||
| Total noninterest expense | 30,259 | 27,550 | 29,662 | 30,021 | 30,922 | |||||||||||||||
| Income (loss) before income taxes (benefit) | 7,142 | 4,768 | (595 | ) | 3,753 | 5,092 | ||||||||||||||
| Income tax expense (benefit) | 1,430 | 1,730 | (555 | ) | 500 | 1,085 | ||||||||||||||
| Net income (loss) | $ | 5,712 | $ | 3,038 | $ | (40 | ) | $ | 3,253 | $ | 4,007 | |||||||||
| Income (loss) per share – basic | $ | 0.31 | $ | 0.16 | $ | (0.00 | ) | $ | 0.16 | $ | 0.20 | |||||||||
| Income (loss) per share – diluted | $ | 0.31 | $ | 0.16 | $ | (0.00 | ) | $ | 0.16 | $ | 0.20 | |||||||||
| Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.20 | ||||||||||
| Performance Ratios (annualized): | ||||||||||||||||||||
| Return on average assets - QTD | 1.02 | % | 0.56 | % | (0.01 | )% | 0.58 | % | 0.74 | % | ||||||||||
| Return on average equity - QTD | 6.84 | % | 3.56 | % | (0.05 | )% | 3.63 | % | 4.41 | % | ||||||||||
| Net interest margin - QTD | 2.01 | % | 2.15 | % | 2.25 | % | 2.26 | % | 2.47 | % | ||||||||||
| Return on average assets - YTD | 0.79 | % | 0.56 | % | 0.44 | % | 0.59 | % | 0.59 | % | ||||||||||
| Return on average equity - YTD | 5.17 | % | 3.56 | % | 2.62 | % | 3.46 | % | 3.37 | % | ||||||||||
| Net interest margin - YTD | 2.08 | % | 2.15 | % | 2.46 | % | 2.53 | % | 2.67 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Past due loans to total loans | 0.76 | % | 0.64 | % | 0.68 | % | 0.53 | % | 0.50 | % | ||||||||||
| Nonaccrual loans to total loans | 0.33 | % | 0.29 | % | 0.29 | % | 0.25 | % | 0.26 | % | ||||||||||
| Nonperforming assets to total assets | 0.25 | % | 0.23 | % | 0.23 | % | 0.20 | % | 0.19 | % | ||||||||||
| Allowance for credit losses - loans to loans receivable | 1.10 | % | 1.11 | % | 1.11 | % | 1.12 | % | 1.14 | % | ||||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Average balances | (Dollars in Thousands) | |||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||
| Loans receivable and held for sale | $ | 1,859,608 | $ | 1,805,102 | $ | 1,797,988 | $ | 1,797,233 | $ | 1,759,001 | ||||||||||
| Mortgage related securities | 171,895 | 172,077 | 172,863 | 174,202 | 171,938 | |||||||||||||||
| Debt securities, federal funds sold and short-term investments | 107,992 | 110,431 | 106,504 | 132,935 | 123,195 | |||||||||||||||
| Total interest-earning assets | 2,139,495 | 2,087,610 | 2,077,355 | 2,104,370 | 2,054,134 | |||||||||||||||
| Noninterest-earning assets | 104,019 | 103,815 | 105,073 | 105,714 | 108,320 | |||||||||||||||
| Total assets | $ | 2,243,514 | $ | 2,191,425 | $ | 2,182,428 | $ | 2,210,084 | $ | 2,162,454 | ||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Demand accounts | $ | 91,300 | $ | 87,393 | $ | 91,868 | $ | 90,623 | $ | 69,147 | ||||||||||
| Money market, savings, and escrow accounts | 293,483 | 281,171 | 302,121 | 306,806 | 305,576 | |||||||||||||||
| Certificates of deposit | 758,252 | 739,543 | 735,418 | 719,708 | 695,310 | |||||||||||||||
| Total interest-bearing deposits | 1,143,035 | 1,108,107 | 1,129,407 | 1,117,137 | 1,070,033 | |||||||||||||||
| Borrowings | 622,771 | 602,724 | 549,210 | 584,764 | 551,545 | |||||||||||||||
| Total interest-bearing liabilities | 1,765,806 | 1,710,831 | 1,678,617 | 1,701,901 | 1,621,578 | |||||||||||||||
| Noninterest-bearing demand deposits | 93,637 | 92,129 | 102,261 | 106,042 | 130,291 | |||||||||||||||
| Noninterest-bearing liabilities | 48,315 | 45,484 | 56,859 | 46,805 | 46,446 | |||||||||||||||
| Total liabilities | 1,907,758 | 1,848,444 | 1,837,737 | 1,854,748 | 1,798,315 | |||||||||||||||
| Equity | 335,756 | 342,981 | 344,691 | 355,336 | 364,139 | |||||||||||||||
| Total liabilities and equity | $ | 2,243,514 | $ | 2,191,425 | $ | 2,182,428 | $ | 2,210,084 | $ | 2,162,454 | ||||||||||
| Average Yield/Costs (annualized) | ||||||||||||||||||||
| Loans receivable and held for sale | 5.54 | % | 5.46 | % | 5.36 | % | 5.26 | % | 5.05 | % | ||||||||||
| Mortgage related securities | 2.63 | % | 2.57 | % | 2.48 | % | 2.41 | % | 2.26 | % | ||||||||||
| Debt securities, federal funds sold and short-term investments | 4.82 | % | 4.82 | % | 4.94 | % | 4.45 | % | 3.67 | % | ||||||||||
| Total interest-earning assets | 5.27 | % | 5.18 | % | 5.10 | % | 4.97 | % | 4.73 | % | ||||||||||
| Demand accounts | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.09 | % | ||||||||||
| Money market and savings accounts | 1.89 | % | 1.79 | % | 1.64 | % | 1.54 | % | 1.42 | % | ||||||||||
| Certificates of deposit | 4.41 | % | 4.19 | % | 3.76 | % | 3.43 | % | 2.80 | % | ||||||||||
| Total interest-bearing deposits | 3.42 | % | 3.26 | % | 2.90 | % | 2.64 | % | 2.23 | % | ||||||||||
| Borrowings | 4.92 | % | 4.54 | % | 4.83 | % | 4.71 | % | 4.08 | % | ||||||||||
| Total interest-bearing liabilities | 3.95 | % | 3.71 | % | 3.53 | % | 3.35 | % | 2.86 | % | ||||||||||
| COMMUNITY BANKING SEGMENT | ||||||||||||||||||||
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest income | $ | 11,234 | $ | 11,598 | $ | 12,056 | $ | 12,431 | $ | 13,238 | ||||||||||
| Provision (credit) for credit losses | (279 | ) | 105 | (550 | ) | 445 | 158 | |||||||||||||
| Total noninterest income | 1,491 | 990 | 894 | 966 | 1,540 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 5,116 | 5,360 | 5,397 | 4,618 | 4,683 | |||||||||||||||
| Occupancy, office furniture and equipment | 983 | 1,000 | 916 | 852 | 873 | |||||||||||||||
| Advertising | 229 | 174 | 363 | 200 | 230 | |||||||||||||||
| Data processing | 687 | 693 | 626 | 672 | 602 | |||||||||||||||
| Communications | 72 | 65 | 75 | 70 | 72 | |||||||||||||||
| Professional fees | 177 | 208 | 186 | 176 | 146 | |||||||||||||||
| Real estate owned | 1 | 13 | 1 | 1 | 1 | |||||||||||||||
| Loan processing expense | - | - | - | - | - | |||||||||||||||
| Other | 672 | 691 | 628 | 703 | 1,641 | |||||||||||||||
| Total noninterest expense | 7,937 | 8,204 | 8,192 | 7,292 | 8,248 | |||||||||||||||
| Income before income taxes | 5,067 | 4,279 | 5,308 | 5,660 | 6,372 | |||||||||||||||
| Income tax expense | 718 | 1,639 | 1,234 | 1,121 | 1,182 | |||||||||||||||
| Net income | $ | 4,349 | $ | 2,640 | $ | 4,074 | $ | 4,539 | $ | 5,190 | ||||||||||
| Efficiency ratio - QTD (non-GAAP) | 62.37 | % | 65.17 | % | 63.26 | % | 54.43 | % | 55.81 | % | ||||||||||
| Efficiency ratio - YTD (non-GAAP) | 63.77 | % | 65.17 | % | 56.86 | % | 54.94 | % | 55.17 | % | ||||||||||
| MORTGAGE BANKING SEGMENT | ||||||||||||||||||||
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| At or For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||
| Condensed Results of Operations: | ||||||||||||||||||||
| Net interest loss | $ | (552 | ) | $ | (541 | ) | $ | (367 | ) | $ | (550 | ) | $ | (622 | ) | |||||
| Provision for credit losses | 54 | (38 | ) | 115 | - | 28 | ||||||||||||||
| Total noninterest income | 25,081 | 20,328 | 16,028 | 21,452 | 23,041 | |||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 16,886 | 14,756 | 14,881 | 17,186 | 17,929 | |||||||||||||||
| Occupancy, office furniture and equipment | 1,046 | 1,108 | 1,105 | 1,141 | 1,173 | |||||||||||||||
| Advertising | 758 | 740 | 667 | 716 | 714 | |||||||||||||||
| Data processing | 549 | 508 | 583 | 551 | 480 | |||||||||||||||
| Communications | 168 | 161 | 194 | 173 | 153 | |||||||||||||||
| Professional fees | 569 | 520 | 704 | 564 | 466 | |||||||||||||||
| Real estate owned | - | - | - | - | - | |||||||||||||||
| Loan processing expense | 861 | 1,046 | 756 | 722 | 932 | |||||||||||||||
| Other | 1,641 | 617 | 2,701 | 1,935 | 1,914 | |||||||||||||||
| Total noninterest expense | 22,478 | 19,456 | 21,591 | 22,988 | 23,761 | |||||||||||||||
| Income (loss) before income taxes (benefit) | 1,997 | 369 | (6,045 | ) | (2,086 | ) | (1,370 | ) | ||||||||||||
| Income tax expense (benefit) | 684 | 71 | (1,827 | ) | (657 | ) | (126 | ) | ||||||||||||
| Net income (loss) | $ | 1,313 | $ | 298 | $ | (4,218 | ) | $ | (1,429 | ) | $ | (1,244 | ) | |||||||
| Efficiency ratio - QTD (non-GAAP) | 91.64 | % | 98.33 | % | 137.86 | % | 109.98 | % | 105.99 | % | ||||||||||
| Efficiency ratio - YTD (non-GAAP) | 94.62 | % | 98.33 | % | 116.99 | % | 111.63 | % | 112.49 | % | ||||||||||
| Loan originations | $ | 634,109 | $ | 485,109 | $ | 458,363 | $ | 597,562 | $ | 623,342 | ||||||||||
| Purchase | 92.7 | % | 93.0 | % | 95.7 | % | 95.4 | % | 96.4 | % | ||||||||||
| Refinance | 7.3 | % | 7.0 | % | 4.3 | % | 4.6 | % | 3.6 | % | ||||||||||
| Gross margin on loans sold(1) | 3.93 | % | 4.10 | % | 3.51 | % | 3.62 | % | 3.73 | % | ||||||||||
(1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations.
Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com
FAQ
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