Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2025
Waterstone Financial (NASDAQ: WSBF) reported strong Q2 2025 financial results with net income of $7.7 million, or $0.43 per diluted share, up from $5.7 million ($0.31 per share) in Q2 2024. The company's Community Banking segment saw a 21.4% increase in net interest income to $13.6 million, while maintaining strong asset quality.
Key highlights include a net interest margin increase of 59 basis points to 2.60%, core retail deposits growth of 7.5% to $1.31 billion, and continued share repurchases of approximately 508,000 shares at $12.80 per share. The Mortgage Banking segment generated $2.0 million in pre-tax income with loan originations of $588.8 million, though slightly down from Q2 2024.
The company maintained strong asset quality with nonperforming assets at 0.37% of total assets and increased book value per share to $18.19 from $17.53 at year-end 2024.
Waterstone Financial (NASDAQ: WSBF) ha riportato solidi risultati finanziari per il secondo trimestre 2025 con un utile netto di 7,7 milioni di dollari, pari a 0,43 dollari per azione diluita, in aumento rispetto ai 5,7 milioni di dollari (0,31 dollari per azione) del secondo trimestre 2024. Il segmento Community Banking della società ha registrato un aumento del 21,4% del reddito netto da interessi, raggiungendo 13,6 milioni di dollari, mantenendo al contempo una solida qualità degli attivi.
I punti salienti includono un incremento del margine di interesse netto di 59 punti base a 2,60%, una crescita del 7,5% dei depositi retail core a 1,31 miliardi di dollari e un continuo riacquisto di azioni per circa 508.000 azioni a 12,80 dollari per azione. Il segmento Mortgage Banking ha generato un utile ante imposte di 2,0 milioni di dollari con erogazioni di prestiti pari a 588,8 milioni di dollari, leggermente inferiori rispetto al secondo trimestre 2024.
La società ha mantenuto una solida qualità degli attivi con attività non performanti pari allo 0,37% del totale degli attivi e ha aumentato il valore contabile per azione a 18,19 dollari, rispetto ai 17,53 dollari di fine 2024.
Waterstone Financial (NASDAQ: WSBF) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 7,7 millones de dólares, o 0,43 dólares por acción diluida, frente a los 5,7 millones de dólares (0,31 dólares por acción) en el segundo trimestre de 2024. El segmento de Banca Comunitaria de la compañía experimentó un aumento del 21,4% en los ingresos netos por intereses hasta 13,6 millones de dólares, manteniendo una fuerte calidad de activos.
Los aspectos destacados incluyen un aumento del margen neto de intereses en 59 puntos básicos hasta el 2,60%, un crecimiento del 7,5% en los depósitos minoristas principales hasta 1.310 millones de dólares y continuas recompras de acciones por aproximadamente 508.000 acciones a 12,80 dólares por acción. El segmento de Banca Hipotecaria generó 2,0 millones de dólares en ingresos antes de impuestos con originaciones de préstamos por 588,8 millones de dólares, aunque ligeramente por debajo del segundo trimestre de 2024.
La compañía mantuvo una sólida calidad de activos con activos no productivos en 0,37% del total de activos y aumentó el valor contable por acción a 18,19 dólares desde 17,53 dólares a finales de 2024.
워터스톤 파이낸셜 (NASDAQ: WSBF)은 2025년 2분기에 순이익 770만 달러, 주당 희석 이익 0.43달러를 기록하며 2024년 2분기 570만 달러(주당 0.31달러) 대비 증가한 강력한 실적을 발표했습니다. 회사의 커뮤니티 뱅킹 부문은 순이자수익이 21.4% 증가하여 1,360만 달러를 기록했으며, 자산 품질도 견고하게 유지했습니다.
주요 내용으로는 순이자마진이 59 베이시스 포인트 상승하여 2.60%를 기록했고, 핵심 소매 예금이 7.5% 증가하여 13억 1천만 달러에 달했으며, 약 50만 8천 주를 주당 12.80달러에 지속적으로 자사주 매입했습니다. 모기지 뱅킹 부문은 200만 달러의 세전 이익을 창출했으며, 대출 실행액은 5억 8,880만 달러로 2024년 2분기보다 다소 감소했습니다.
회사는 부실 자산 비율을 총자산의 0.37%로 낮게 유지하며, 2024년 말 17.53달러에서 주당 장부가치를 18.19달러로 높였습니다.
Waterstone Financial (NASDAQ : WSBF) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un revenu net de 7,7 millions de dollars, soit 0,43 dollar par action diluée, en hausse par rapport à 5,7 millions de dollars (0,31 dollar par action) au deuxième trimestre 2024. Le segment Community Banking de la société a enregistré une augmentation de 21,4 % du revenu net d’intérêts à 13,6 millions de dollars, tout en maintenant une forte qualité des actifs.
Les points clés incluent une hausse de la marge nette d’intérêts de 59 points de base à 2,60 %, une croissance des dépôts de détail de base de 7,5 % à 1,31 milliard de dollars, ainsi que des rachats d’actions continus d’environ 508 000 actions à 12,80 dollars par action. Le segment Mortgage Banking a généré un revenu avant impôts de 2,0 millions de dollars avec des originations de prêts de 588,8 millions de dollars, légèrement en baisse par rapport au deuxième trimestre 2024.
La société a maintenu une forte qualité des actifs avec des actifs non performants représentant 0,37 % du total des actifs et a augmenté la valeur comptable par action à 18,19 dollars contre 17,53 dollars à la fin de l’année 2024.
Waterstone Financial (NASDAQ: WSBF) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 7,7 Millionen US-Dollar bzw. 0,43 US-Dollar je verwässerter Aktie, gegenüber 5,7 Millionen US-Dollar (0,31 US-Dollar je Aktie) im zweiten Quartal 2024. Das Community Banking Segment des Unternehmens verzeichnete einen Anstieg der Nettozinserträge um 21,4% auf 13,6 Millionen US-Dollar bei weiterhin hoher Vermögensqualität.
Zu den wichtigsten Highlights gehören eine Steigerung der Nettozinsspanne um 59 Basispunkte auf 2,60%, ein Wachstum der Kern-Einzelhandels-Einlagen um 7,5% auf 1,31 Milliarden US-Dollar sowie fortgesetzte Aktienrückkäufe von etwa 508.000 Aktien zu je 12,80 US-Dollar. Das Mortgage Banking Segment erzielte einen Vorsteuergewinn von 2,0 Millionen US-Dollar bei Kreditvergaben von 588,8 Millionen US-Dollar, was leicht unter dem Niveau des zweiten Quartals 2024 lag.
Das Unternehmen hielt eine starke Vermögensqualität mit notleidenden Krediten in Höhe von 0,37% der Gesamtaktiva aufrecht und steigerte den Buchwert je Aktie auf 18,19 US-Dollar von 17,53 US-Dollar zum Jahresende 2024.
- Net income increased 35% year-over-year to $7.7 million
- Net interest margin improved significantly by 59 basis points to 2.60%
- Core retail deposits grew 7.5% year-over-year to $1.31 billion
- Strong asset quality with minimal loan losses and negative provision for credit losses
- Book value per share increased to $18.19 from $17.53 at year-end 2024
- Active share repurchase program enhancing shareholder value
- Mortgage Banking loan originations decreased 7.1% year-over-year to $588.8 million
- Mortgage banking non-interest income declined 9.7% to $22.6 million
- Slight increase in nonperforming assets ratio to 0.37% from 0.25% year-over-year
- Average loans held for investment showed minimal growth, declining 0.1% year-over-year
Insights
Waterstone delivered strong Q2 with 38.6% EPS growth, improved interest margins, and healthy asset quality despite mortgage segment challenges.
Waterstone Financial's Q2 2025 results demonstrate a significant improvement in profitability, with net income increasing to
The Community Banking segment was the standout performer, with pre-tax income surging
Asset quality remains robust with minimal credit losses. The bank recorded a negative loan loss provision of
The Mortgage Banking segment delivered stable pre-tax income of
Core retail deposits grew
Shareholder returns remain a priority with
WAUWATOSA, Wis., July 22, 2025 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of
“We are pleased with our performance during the quarter, which resulted in our highest quarterly earnings per share since the quarter ended December 31, 2021,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking segment achieved
Highlights of the Quarter Ended June 30, 2025
Waterstone Financial, Inc. (Consolidated)
- Consolidated net income of Waterstone Financial, Inc. totaled
$7.7 million for the quarter ended June 30, 2025 compared to net income of$5.7 million for the quarter ended June 30, 2024. - Consolidated return on average assets (annualized) was
1.39% for the quarter ended June 30, 2025 and1.02% for the quarter ended June 30, 2024. - Consolidated return on average equity (annualized) was
9.04% for the quarter ended June 30, 2025 and6.84% for the quarter ended June 30, 2024. - Dividends declared during the quarter ended June 30, 2025 totaled
$0.15 per common share. - During the quarter ended June 30, 2025, we repurchased approximately 508,000 shares at a cost (including the federal excise tax) of
$6.5 million , or$12.80 per share. The share repurchases increased book value approximately$0.14 during the quarter ended June 30, 2025. - Nonperforming assets as a percentage of total assets was
0.37% at June 30, 2025,0.35% at March 31, 2025, and0.25% at June 30, 2024. - Past due loans as a percentage of total loans was
0.69% at June 30, 2025,0.67% at March 31, 2025, and0.76% at June 30, 2024. - Book value per share was
$18.19 at June 30, 2025 and$17.53 at December 31, 2024.
Community Banking Segment
- Pre-tax income totaled
$7.6 million for the quarter ended June 30, 2025, which represents a$2.6 million , or50.4% , increase compared to$5.1 million for the quarter ended June 30, 2024. - Net interest income totaled
$13.6 million for the quarter ended June 30, 2025, which represents a$2.4 million , or21.4% , increase compared to$11.2 million for the quarter ended June 30, 2024. - Average loans held for investment totaled
$1.67 billion during the quarter ended June 30, 2025, which represents a decrease of$1.5 million , or0.1% , compared to the quarter ended June 30, 2024. The decrease was primarily due to a decrease in single-family mortgages offset by increases in commercial real estate and multi-family mortgages. Average loans held for investment decreased$8.1 million compared to$1.67 billion for the quarter ended March 31, 2025. The decrease was primarily due to decrease in single-family mortgages. - Net interest margin increased 59 basis points to
2.60% for the quarter ended June 30, 2025 compared to2.01% for the quarter ended June 30, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased 13 basis points compared to2.47% for the quarter ended March 31, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in cost of borrowings and weighted average cost of deposits. - Past due loans at the community banking segment totaled
$8.9 million at June 30, 2025,$7.6 million at March 31, 2025, and$9.3 million at June 30, 2024. - The segment had a negative provision for credit losses related to funded loans of
$125,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to funded loans of$197,000 for the quarter ended June 30, 2024. The current quarter decrease was primarily due to decreases in multi-family qualitative risk factors, offset by an increase in the single-family loan qualitative factors primarily related to increases in internal asset quality risk factors and an increase in construction loan balances. The provision for credit losses related to unfunded loan commitments was$106,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to unfunded loan commitments of$82,000 for the quarter ended June 30, 2024. The provision for credit losses related to unfunded loan commitments for the quarter ended June 30, 2025 was due primarily to an increase in the loans approved that are currently waiting to close compared to the prior quarter end. - The efficiency ratio, a non-GAAP ratio, was
50.40% for the quarter ended June 30, 2025, compared to62.37% for the quarter ended June 30, 2024. - Average core retail deposits (excluding brokered and escrow accounts) totaled
$1.31 billion during the quarter ended June 30, 2025, an increase of$91.7 million , or7.5% , compared to$1.22 billion during the quarter ended June 30, 2024. Average deposits increased$32.9 million , or10.3% annualized, compared to$1.28 billion for the quarter ended March 31, 2025. The increases were primarily due to increases in checking, money market, and certificates of deposit balances. The segment had an average of$72.5 million in brokered certificate of deposits during the quarter ended June 30, 2025.
Mortgage Banking Segment
- Pre-tax income totaled
$2.0 million for the quarters ended June 30, 2025 and June 30, 2024. - Loan originations decreased
$45.3 million , or7.1% , to$588.8 million during the quarter ended June 30, 2025, compared to$634.1 million during the quarter ended June 30, 2024. Origination volume relative to purchase activity accounted for91.7% of originations for the quarter ended June 30, 2025 compared to92.7% of total originations for the quarter ended June 30, 2024. - Mortgage banking non-interest income decreased
$2.4 million , or9.7% , to$22.6 million for the quarter ended June 30, 2025, compared to$25.1 million for the quarter ended June 30, 2024. - Gross margin on loans sold totaled
3.84% for the quarter ended June 30, 2025, compared to3.93% for the quarter ended June 30, 2024. - Total compensation, payroll taxes and other employee benefits decreased
$574,000 , or3.4% , to$16.3 million during the quarter ended June 30, 2025 compared to$16.9 million during the quarter ended June 30, 2024. The decrease primarily related to decreased commission expense and salary expense offset by an increase in health insurance expense.
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, 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 enhances 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, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (In Thousands, except per share amounts) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 25,875 | $ | 25,601 | $ | 50,953 | $ | 50,085 | |||||||
| Mortgage-related securities | 1,253 | 1,125 | 2,444 | 2,223 | |||||||||||
| Debt securities, federal funds sold and short-term investments | 1,557 | 1,294 | 3,043 | 2,617 | |||||||||||
| Total interest income | 28,685 | 28,020 | 56,440 | 54,925 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 10,967 | 9,716 | 22,299 | 18,686 | |||||||||||
| Borrowings | 4,010 | 7,625 | 7,857 | 14,423 | |||||||||||
| Total interest expense | 14,977 | 17,341 | 30,156 | 33,109 | |||||||||||
| Net interest income | 13,708 | 10,679 | 26,284 | 21,816 | |||||||||||
| Provision (credit) for credit losses | (9 | ) | (225 | ) | (567 | ) | (158 | ) | |||||||
| Net interest income after provision (credit) for loan losses | 13,717 | 10,904 | 26,851 | 21,974 | |||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on loans and deposits | 413 | 465 | 1,006 | 889 | |||||||||||
| Increase in cash surrender value of life insurance | 1,014 | 804 | 1,495 | 1,152 | |||||||||||
| Mortgage banking income | 22,559 | 24,838 | 38,287 | 44,906 | |||||||||||
| Other | 343 | 390 | 638 | 798 | |||||||||||
| Total noninterest income | 24,329 | 26,497 | 41,426 | 47,745 | |||||||||||
| Noninterest expenses: | |||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 21,121 | 21,762 | 38,168 | 41,638 | |||||||||||
| Occupancy, office furniture, and equipment | 1,753 | 2,029 | 3,682 | 4,137 | |||||||||||
| Advertising | 746 | 987 | 1,469 | 1,901 | |||||||||||
| Data processing | 1,313 | 1,242 | 2,525 | 2,448 | |||||||||||
| Communications | 257 | 240 | 492 | 466 | |||||||||||
| Professional fees | 500 | 758 | 2,236 | 1,501 | |||||||||||
| Real estate owned | (8 | ) | 1 | (18 | ) | 14 | |||||||||
| Loan processing expense | 817 | 861 | 1,737 | 1,907 | |||||||||||
| Other | 1,878 | 2,379 | 4,436 | 3,797 | |||||||||||
| Total noninterest expenses | 28,377 | 30,259 | 54,727 | 57,809 | |||||||||||
| Income before income taxes | 9,669 | 7,142 | 13,550 | 11,910 | |||||||||||
| Income tax expense | 1,942 | 1,430 | 2,787 | 3,160 | |||||||||||
| Net income | $ | 7,727 | $ | 5,712 | $ | 10,763 | $ | 8,750 | |||||||
| Income per share: | |||||||||||||||
| Basic | $ | 0.43 | $ | 0.31 | $ | 0.59 | $ | 0.47 | |||||||
| Diluted | $ | 0.43 | $ | 0.31 | $ | 0.59 | $ | 0.47 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 17,989 | 18,524 | 18,127 | 18,772 | |||||||||||
| Diluted | 18,004 | 18,568 | 18,143 | 18,802 | |||||||||||
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
| June 30, | December 31, | ||||||
| 2025 | 2024 | ||||||
| (Unaudited) | |||||||
| Assets | (In Thousands, except per share amounts) | ||||||
| Cash | $ | 63,178 | $ | 35,182 | |||
| Federal funds sold | 7,465 | 4,302 | |||||
| Interest-earning deposits in other financial institutions and other short-term investments | 280 | 277 | |||||
| Cash and cash equivalents | 70,923 | 39,761 | |||||
| Securities available for sale (at fair value) | 218,757 | 208,549 | |||||
| Loans held for sale (at fair value) | 161,826 | 135,909 | |||||
| Loans receivable | 1,664,273 | 1,680,576 | |||||
| Less: Allowance for credit losses ("ACL") - loans | 17,800 | 18,247 | |||||
| Loans receivable, net | 1,646,473 | 1,662,329 | |||||
| Office properties and equipment, net | 18,874 | 19,389 | |||||
| Federal Home Loan Bank stock (at cost) | 20,349 | 20,295 | |||||
| Cash surrender value of life insurance | 76,287 | 74,612 | |||||
| Real estate owned, net | 85 | 505 | |||||
| Prepaid expenses and other assets | 42,986 | 48,259 | |||||
| Total assets | $ | 2,256,560 | $ | 2,209,608 | |||
| Liabilities and Shareholders' Equity | |||||||
| Liabilities: | |||||||
| Demand deposits | $ | 174,506 | $ | 171,115 | |||
| Money market and savings deposits | 320,881 | 283,243 | |||||
| Time deposits | 889,320 | 905,539 | |||||
| Total deposits | 1,384,707 | 1,359,897 | |||||
| Borrowings | 465,726 | 446,519 | |||||
| Advance payments by borrowers for taxes | 21,083 | 5,630 | |||||
| Other liabilities | 43,553 | 58,427 | |||||
| Total liabilities | 1,915,069 | 1,870,473 | |||||
| Shareholders' equity: | |||||||
| Preferred stock | - | - | |||||
| Common stock | 188 | 193 | |||||
| Additional paid-in capital | 84,106 | 91,214 | |||||
| Retained earnings | 282,578 | 277,196 | |||||
| Unearned ESOP shares | (10,089 | ) | (10,682 | ) | |||
| Accumulated other comprehensive loss, net of taxes | (15,292 | ) | (18,786 | ) | |||
| Total shareholders' equity | 341,491 | 339,135 | |||||
| Total liabilities and shareholders' equity | $ | 2,256,560 | $ | 2,209,608 | |||
| Share Information | |||||||
| Shares outstanding | 18,776 | 19,343 | |||||
| Book value per share | $ | 18.19 | $ | 17.53 | |||
| 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, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| (Dollars in Thousands, except per share amounts) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest income | $ | 13,708 | $ | 12,576 | $ | 12,835 | $ | 11,517 | $ | 10,679 | |||||||||
| Provision (credit) for credit losses | (9 | ) | (558 | ) | 367 | (377 | ) | (225 | ) | ||||||||||
| Total noninterest income | 24,329 | 17,097 | 19,005 | 22,552 | 26,497 | ||||||||||||||
| Total noninterest expense | 28,377 | 26,350 | 25,267 | 28,560 | 30,259 | ||||||||||||||
| Income before income taxes | 9,669 | 3,881 | 6,206 | 5,886 | 7,142 | ||||||||||||||
| Income tax expense | 1,942 | 845 | 996 | 1,158 | 1,430 | ||||||||||||||
| Net income | $ | 7,727 | $ | 3,036 | $ | 5,210 | $ | 4,728 | $ | 5,712 | |||||||||
| Income per share – basic | $ | 0.43 | $ | 0.17 | $ | 0.28 | $ | 0.26 | $ | 0.31 | |||||||||
| Income per share – diluted | $ | 0.43 | $ | 0.17 | $ | 0.28 | $ | 0.26 | $ | 0.31 | |||||||||
| Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||||||
| Performance Ratios (annualized): | |||||||||||||||||||
| Return on average assets - QTD | 1.39 | % | 0.57 | % | 0.94 | % | 0.83 | % | 1.02 | % | |||||||||
| Return on average equity - QTD | 9.04 | % | 3.61 | % | 6.05 | % | 5.55 | % | 6.84 | % | |||||||||
| Net interest margin - QTD | 2.60 | % | 2.47 | % | 2.42 | % | 2.13 | % | 2.01 | % | |||||||||
| Return on average assets - YTD | 0.99 | % | 0.57 | % | 0.84 | % | 0.81 | % | 0.79 | % | |||||||||
| Return on average equity - YTD | 6.32 | % | 3.61 | % | 5.48 | % | 5.30 | % | 5.17 | % | |||||||||
| Net interest margin - YTD | 2.54 | % | 2.47 | % | 2.17 | % | 2.09 | % | 2.08 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Past due loans to total loans | 0.69 | % | 0.67 | % | 0.95 | % | 0.63 | % | 0.76 | % | |||||||||
| Nonaccrual loans to total loans | 0.49 | % | 0.45 | % | 0.34 | % | 0.32 | % | 0.33 | % | |||||||||
| Nonperforming assets to total assets | 0.37 | % | 0.35 | % | 0.28 | % | 0.25 | % | 0.25 | % | |||||||||
| Allowance for credit losses - loans to loans receivable | 1.07 | % | 1.08 | % | 1.09 | % | 1.07 | % | 1.10 | % | |||||||||
| 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, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Average balances | (Dollars in Thousands) | ||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans receivable and held for sale | $ | 1,812,065 | $ | 1,768,617 | $ | 1,819,574 | $ | 1,870,627 | $ | 1,859,608 | |||||||||
| Mortgage related securities | 173,220 | 170,947 | 168,521 | 170,221 | 171,895 | ||||||||||||||
| Debt securities, federal funds sold and short-term investments | 131,710 | 123,004 | 124,658 | 115,270 | 107,992 | ||||||||||||||
| Total interest-earning assets | 2,116,995 | 2,062,568 | 2,112,753 | 2,156,118 | 2,139,495 | ||||||||||||||
| Noninterest-earning assets | 105,382 | 105,030 | 100,627 | 104,600 | 104,019 | ||||||||||||||
| Total assets | $ | 2,222,377 | $ | 2,167,598 | $ | 2,213,380 | $ | 2,260,718 | $ | 2,243,514 | |||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Demand accounts | $ | 89,548 | $ | 87,393 | $ | 92,247 | $ | 89,334 | $ | 91,300 | |||||||||
| Money market, savings, and escrow accounts | 320,908 | 300,686 | 306,478 | 304,116 | 293,483 | ||||||||||||||
| Certificates of deposit - retail | 830,550 | 818,612 | 810,340 | 786,228 | 758,252 | ||||||||||||||
| Certificates of deposit - brokered | 72,533 | 97,101 | 59,254 | - | - | ||||||||||||||
| Total interest-bearing deposits | 1,313,539 | 1,303,792 | 1,268,319 | 1,179,678 | 1,143,035 | ||||||||||||||
| Borrowings | 437,784 | 397,053 | 464,964 | 600,570 | 622,771 | ||||||||||||||
| Total interest-bearing liabilities | 1,751,323 | 1,700,845 | 1,733,283 | 1,780,248 | 1,765,806 | ||||||||||||||
| Noninterest-bearing demand deposits | 85,665 | 80,372 | 87,889 | 91,532 | 93,637 | ||||||||||||||
| Noninterest-bearing liabilities | 42,669 | 44,905 | 49,645 | 49,787 | 48,315 | ||||||||||||||
| Total liabilities | 1,879,657 | 1,826,122 | 1,870,817 | 1,921,567 | 1,907,758 | ||||||||||||||
| Equity | 342,720 | 341,476 | 342,563 | 339,151 | 335,756 | ||||||||||||||
| Total liabilities and equity | $ | 2,222,377 | $ | 2,167,598 | $ | 2,213,380 | $ | 2,260,718 | $ | 2,243,514 | |||||||||
| Average Yield/Costs (annualized) | |||||||||||||||||||
| Loans receivable and held for sale | 5.73 | % | 5.75 | % | 5.75 | % | 5.65 | % | 5.54 | % | |||||||||
| Mortgage related securities | 2.90 | % | 2.83 | % | 2.67 | % | 2.66 | % | 2.63 | % | |||||||||
| Debt securities, federal funds sold and short-term investments | 4.74 | % | 4.90 | % | 4.85 | % | 5.05 | % | 4.82 | % | |||||||||
| Total interest-earning assets | 5.43 | % | 5.46 | % | 5.46 | % | 5.39 | % | 5.27 | % | |||||||||
| Demand accounts | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | 0.11 | % | |||||||||
| Money market and savings accounts | 2.07 | % | 2.10 | % | 2.00 | % | 1.94 | % | 1.89 | % | |||||||||
| Certificates of deposit – retail | 4.11 | % | 4.33 | % | 4.53 | % | 4.54 | % | 4.41 | % | |||||||||
| Certificates of deposit - brokered | 4.35 | % | 4.18 | % | 4.18 | % | 0.00 | % | 0.00 | % | |||||||||
| Total interest-bearing deposits | 3.35 | % | 3.52 | % | 3.58 | % | 3.53 | % | 3.42 | % | |||||||||
| Borrowings | 3.67 | % | 3.93 | % | 4.11 | % | 4.77 | % | 4.92 | % | |||||||||
| Total interest-bearing liabilities | 3.43 | % | 3.62 | % | 3.72 | % | 3.95 | % | 3.95 | % | |||||||||
| 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, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest income | $ | 13,640 | $ | 12,403 | $ | 12,886 | $ | 12,250 | $ | 11,234 | |||||||||
| Provision (credit) for credit losses | (19 | ) | (518 | ) | 331 | (302 | ) | (279 | ) | ||||||||||
| Total noninterest income | 1,686 | 1,348 | 1,595 | 1,227 | 1,491 | ||||||||||||||
| Noninterest expenses: | |||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 5,027 | 5,212 | 4,883 | 5,326 | 5,116 | ||||||||||||||
| Occupancy, office furniture and equipment | 920 | 1,076 | 825 | 904 | 983 | ||||||||||||||
| Advertising | 219 | 171 | 204 | 311 | 229 | ||||||||||||||
| Data processing | 806 | 712 | 691 | 720 | 687 | ||||||||||||||
| Communications | 99 | 100 | 89 | 80 | 72 | ||||||||||||||
| Professional fees | 196 | 347 | 196 | 190 | 177 | ||||||||||||||
| Real estate owned | (8 | ) | (10 | ) | 12 | - | 1 | ||||||||||||
| Loan processing expense | - | - | - | - | - | ||||||||||||||
| Other | 466 | 596 | 563 | 602 | 672 | ||||||||||||||
| Total noninterest expense | 7,725 | 8,204 | 7,463 | 8,133 | 7,937 | ||||||||||||||
| Income before income taxes | 7,620 | 6,065 | 6,687 | 5,646 | 5,067 | ||||||||||||||
| Income tax expense | 1,400 | 1,427 | 1,399 | 941 | 718 | ||||||||||||||
| Net income | $ | 6,220 | $ | 4,638 | $ | 5,288 | $ | 4,705 | $ | 4,349 | |||||||||
| Efficiency ratio - QTD (non-GAAP) | 50.40 | % | 59.66 | % | 51.54 | % | 60.35 | % | 62.37 | % | |||||||||
| Efficiency ratio - YTD (non-GAAP) | 54.78 | % | 59.66 | % | 59.58 | % | 62.58 | % | 63.77 | % | |||||||||
| 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, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||
| Condensed Results of Operations: | |||||||||||||||||||
| Net interest loss | $ | 53 | $ | 152 | $ | (92 | ) | $ | (760 | ) | $ | (552 | ) | ||||||
| Provision for credit losses | 10 | (40 | ) | 36 | (75 | ) | 54 | ||||||||||||
| Total noninterest income | 22,643 | 15,731 | 17,455 | 21,386 | 25,081 | ||||||||||||||
| Noninterest expenses: | |||||||||||||||||||
| Compensation, payroll taxes, and other employee benefits | 16,312 | 12,054 | 13,781 | 15,930 | 16,886 | ||||||||||||||
| Occupancy, office furniture and equipment | 833 | 853 | 754 | 953 | 1,046 | ||||||||||||||
| Advertising | 527 | 552 | 523 | 615 | 758 | ||||||||||||||
| Data processing | 507 | 498 | 542 | 570 | 549 | ||||||||||||||
| Communications | 158 | 135 | 135 | 152 | 168 | ||||||||||||||
| Professional fees | 303 | 1,373 | 917 | 379 | 569 | ||||||||||||||
| Real estate owned | - | - | - | - | - | ||||||||||||||
| Loan processing expense | 817 | 920 | 486 | 697 | 861 | ||||||||||||||
| Other | 1,230 | 1,751 | 814 | 1,261 | 1,641 | ||||||||||||||
| Total noninterest expense | 20,687 | 18,136 | 17,952 | 20,557 | 22,478 | ||||||||||||||
| (Loss) income before income taxes (benefit) expense | 1,999 | (2,213 | ) | (625 | ) | 144 | 1,997 | ||||||||||||
| Income tax (benefit) expense) | 531 | (588 | ) | (428 | ) | 194 | 684 | ||||||||||||
| Net (loss) income | $ | 1,468 | $ | (1,625 | ) | $ | (197 | ) | $ | (50 | ) | $ | 1,313 | ||||||
| Efficiency ratio - QTD (non-GAAP) | 91.15 | % | 114.18 | % | 103.39 | % | 99.67 | % | 91.64 | % | |||||||||
| Efficiency ratio - YTD (non-GAAP) | 100.63 | % | 114.18 | % | 97.74 | % | 96.23 | % | 94.62 | % | |||||||||
| Loan originations | $ | 588,838 | $ | 387,729 | $ | 470,650 | $ | 558,729 | $ | 634,109 | |||||||||
| Purchase | 91.7 | % | 87.5 | % | 82.1 | % | 88.9 | % | 92.7 | % | |||||||||
| Refinance | 8.3 | % | 12.5 | % | 17.9 | % | 11.1 | % | 7.3 | % | |||||||||
| Gross margin on loans sold(1) | 3.84 | % | 3.98 | % | 3.74 | % | 3.83 | % | 3.93 | % | |||||||||
(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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