Financial Performance - Net income for the community banking segment increased to $6.9 million for Q3 2025, up from $4.7 million in Q3 2024, representing a 46.8% increase[155] - Net interest income rose by $2.4 million to $14.6 million in Q3 2025 compared to $12.3 million in Q3 2024, a growth of 19.5%[155] - The mortgage banking segment reported a net income of $948,000 in Q3 2025, a turnaround from a net loss of $50,000 in Q3 2024[158] - Net income for the nine months ended September 30, 2025, totaled $17.8 million, up from $11.7 million for the same period in 2024[176] - Net income for the nine months ended September 30, 2025, increased to $18.7 million, up from $13.5 million in the same period of 2024, representing a growth of 38.8%[183] - Earnings per share (EPS) for the nine months ended September 30, 2025, rose to $1.04, compared to $0.72 for the same period in 2024, reflecting an increase of 44.4%[183] Income and Expenses - Total noninterest income decreased by $250,000, or 1.1%, to $22.3 million, primarily due to a $19.9 million, or 3.6%, decrease in total loan origination volume[172] - Total noninterest income decreased by $6.6 million, or 9.3%, to $63.7 million for the nine months ended September 30, 2025, compared to $70.3 million for the same period in 2024[194] - Total noninterest expenses decreased by $1.1 million, or 3.8%, to $27.5 million for the three months ended September 30, 2025, compared to $28.6 million for the same period in 2024[173] - Total noninterest expenses decreased by $4.2 million, or 4.8%, to $82.2 million for the nine months ended September 30, 2025, compared to $86.4 million for the same period in 2024[195] - Compensation and employee benefits expense decreased by $290,000 to $5.0 million in Q3 2025, primarily due to lower health insurance claims[157] - Total compensation and employee benefits decreased by $3.5 million, or 7.3%, to $44.1 million for the nine months ended September 30, 2025, primarily due to reduced employee headcount[181] Asset Quality and Credit Losses - The provision for credit losses was negative $269,000 for the three months ended September 30, 2025, compared to negative $377,000 for the same period in 2024, reflecting improved risk factors[170] - The provision for credit losses was a negative $836,000 for the nine months ended September 30, 2025, compared to a negative provision of $535,000 in the same period of 2024, indicating improved asset quality[192] - Total nonperforming assets decreased to $6.1 million at September 30, 2025, from $6.2 million at December 31, 2024, with total non-accrual loans to total loans remaining stable at 0.35%[212] - The allowance for credit losses decreased to $17.7 million at September 30, 2025, with a negative provision of $599,000 for the nine months ended September 30, 2025[204] - Past due loans decreased by $6.6 million, or 43.7%, to $8.5 million at September 30, 2025, from $15.1 million at December 31, 2024[221] Loan Originations and Mortgage Banking - Total mortgage loan originations decreased by $19.3 million, or 3.5%, to $539.4 million in Q3 2025 from $558.7 million in Q3 2024[158] - Mortgage banking noninterest income decreased by $7.4 million, or 11.1%, to $59.4 million for the nine months ended September 30, 2025, due to a decrease in loan production volume[179] - The company originated $1.52 billion in mortgage loans held for sale during the nine months ended September 30, 2025, a decrease of $162.0 million, or 9.7%, from the previous year[179] - Mortgage banking income declined by $7.0 million, or 10.6%, primarily due to a $150.1 million decrease in loan origination volumes, which fell to $1.51 billion[194] Interest Income and Margin - Net interest margin improved to 2.76% in Q3 2025 compared to 2.14% in Q3 2024[165] - Net interest income increased by $7.7 million, or 23.1%, to $41.0 million during the nine months ended September 30, 2025, compared to $33.3 million in 2024[190] - The average yield on loans increased by 22 basis points, contributing to a $903,000 increase in interest income on loans, despite a $48.3 million decrease in average loans receivable[191] - Interest income on loans rose by $35,000, or 0.1%, to $26.6 million, driven by a 19 basis point increase in average yield, despite a $61.0 million decrease in average loans receivable[168] Regulatory and Capital Position - As of September 30, 2025, WaterStone Bank exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines[241] - Shareholders' equity increased by $6.4 million to $345.5 million at September 30, 2025, primarily due to increases in net income and the fair value of the securities portfolio[210] - The Company had approximately $365.8 million of uninsured deposits for approximately 1,462 customers as of September 30, 2025[237] Interest Rate Risk Management - WaterStone Bank's interest rate risk management strategy includes emphasizing variable rate loans and reducing the expected average life of the investment portfolio[245] - The most recent income simulation indicates that a 100 basis point increase in interest rates would decrease forecast net interest income over the next 12 months by 3.60%[249] - Conversely, a 100 basis point decrease in interest rates would increase net interest income by 1.01%[249] - The Asset/Liability Committee meets at least weekly to review asset/liability policies and interest rate risk position[244] - The bank's interest rate risk exposure is regularly monitored and evaluated quarterly[246]

Core Insights - Waterstone Financial, Inc. has successfully implemented a turnaround strategy, leading to growth and profitability in both WaterStone Bank and Waterstone Mortgage Corporation [1] Company Performance - Waterstone Bank and Waterstone Mortgage Corporation are both performing well, indicating that the company's strategy is effective [1]

Core Insights - Waterstone Financial, Inc. (WSBF) shares increased by 5% following the earnings report for Q3 2025, outperforming the S&P 500's 2.9% growth during the same period [1] - The company reported a net income of $7.9 million, a 67.6% increase from $4.7 million in the same quarter last year [2] - Net interest income rose to $14.7 million, reflecting a 28% year-over-year gain [2] Financial Performance - Earnings per share reached 45 cents, a substantial increase of 73.1% from 26 cents per share a year ago [2] - Return on average assets (ROAA) improved to 1.4% from 0.8% year-over-year [3] - Return on average equity (ROAE) increased to 9.1% from 5.6% in the prior-year quarter [3] - Book value per share rose to $18.65 from $17.53 at year-end 2024 [3] Asset Quality - Nonperforming assets as a percentage of total assets slightly increased to 0.27% from 0.25% year-over-year [4] - Past due loans as a percentage of total loans decreased to 0.5% from 0.6% a year earlier [4] Segment Performance Community Banking - Pre-tax income in the Community Banking segment was $8.4 million, a 49.4% increase from $5.6 million in Q3 2024 [5] - Net interest income in this segment rose 19.3% year-over-year to $14.6 million, driven by improved yields on loans and lower cost of funds [5] - The net interest margin expanded to 2.76% from 2.13% in the same period last year [5] - The segment recorded a negative provision for credit losses of $0.1 million, indicating continued credit strength [6] - Efficiency ratio improved to 48.9% from 60.4% in the prior-year quarter [6] Mortgage Banking - Mortgage Banking generated pre-tax income of $1.3 million, up from $0.1 million in the prior-year quarter [7] - Loan originations declined by 3.5% to $539.4 million, but improved gross margins on loans sold and reduced compensation costs boosted profitability [7] - Non-interest income in this segment slightly decreased to $21 million from $21.4 million [7] Management Commentary - CEO William Bruss attributed strong quarterly results to enhanced net interest margin and ongoing asset quality strength [8] - Both Community and Mortgage Banking segments contributed to year-over-year earnings improvement [8] - The increase in book value per share was due to robust earnings, share repurchases, and favorable valuation adjustments [8] Factors Influencing Results - Positive net income growth was driven by higher interest income on loans, margin expansion, and controlled operating expenses [9] - A lower cost of borrowings and deposits enhanced the net interest margin [9] - Mortgage operations benefited from tighter expense management and slightly higher loan sale margins [10] - Community banking saw strength in deposit growth and interest income [10] Other Developments - During the quarter, the company repurchased approximately 270,000 shares at a cost of $3.8 million, contributing to a 61-cent increase in book value per share [11] - The company declared a quarterly dividend of 15 cents per share [11]

Core Insights - Waterstone Financial, Inc. reported a net income of $7.9 million, or $0.45 per diluted share, for the quarter ended September 30, 2025, representing a significant increase from $4.7 million, or $0.26 per diluted share, for the same quarter in 2024 [1][4][17] - The company achieved a consolidated return on average assets of 1.42% and a return on average equity of 9.14% for the quarter ended September 30, 2025, compared to 0.83% and 5.55% respectively for the same quarter in 2024 [4][18] - The Community Banking segment saw a 19.3% increase in net interest income, totaling $14.6 million for the quarter, driven by improved loan yields and reduced funding costs [2][4][21] Financial Performance - Consolidated net income increased by $3.2 million, or 68.1%, from the previous year [4] - Pre-tax income for the quarter was $8.4 million, a 49.4% increase compared to $5.6 million for the same quarter in 2024 [4][17] - The company repurchased approximately 270,000 shares at a cost of $3.8 million, increasing book value per share by $0.07 during the quarter [4][10] Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.27% at September 30, 2025, down from 0.25% a year earlier [4][18] - Past due loans as a percentage of total loans improved to 0.50% from 0.63% year-over-year [4][18] Community Banking Segment - The Community Banking segment's net interest income rose by $2.4 million, or 19.3%, compared to the same quarter in 2024 [2][21] - The efficiency ratio improved to 48.94% for the quarter, down from 60.35% in the same quarter of the previous year [10][21] Mortgage Banking Segment - The Mortgage Banking segment recorded a second consecutive quarter of pre-tax income, attributed to effective expense management and improved margins [2][23] - Mortgage banking non-interest income decreased by $401,000, or 1.9%, to $21.0 million compared to the same quarter in 2024 [10][23]

Financial Performance - Waterstone Financial, Inc. reported net income of $7.9 million, or $0.45 per diluted share, for Q3 2025, a 73.1% increase compared to $4.7 million, or $0.26 per diluted share, for Q3 2024[1] - Net income for Q3 2025 was $7,926,000, representing a 67.5% increase compared to $4,728,000 in Q3 2024[11] - Basic earnings per share increased to $0.45 in Q3 2025, up from $0.26 in Q3 2024[11] Income and Revenue - Total interest income for Q3 2025 was $29,556,000, an increase of 1.25% from $29,191,000 in Q3 2024[11] - Net interest income after provision for credit losses rose to $15,008,000 in Q3 2025, up 26.4% from $11,894,000 in Q3 2024[11] - Noninterest income totaled $22,302,000 in Q3 2025, slightly down from $22,552,000 in Q3 2024[11] Asset and Deposit Growth - Total assets as of September 30, 2025, were $2,269,169,000, compared to $2,209,608,000 as of December 31, 2024[13] - Total deposits increased to $1,385,973,000 as of September 30, 2025, from $1,359,897,000 at the end of 2024[13] - Average core retail deposits increased by $65.4 million, or 5.2%, to $1.31 billion for Q3 2025 compared to $1.25 billion for Q3 2024[4] Efficiency and Returns - Consolidated return on average assets was 1.42% for Q3 2025, up from 0.83% for Q3 2024, while return on average equity increased to 9.14% from 5.55%[3] - The efficiency ratio improved to 48.94% for Q3 2025, down from 60.35% for Q3 2024[4] - The allowance for credit losses on loans was $17,670,000 as of September 30, 2025, down from $18,247,000 at the end of 2024[13] Community Banking Segment - The Community Banking segment achieved a net interest income growth of $2.4 million, or 19.3%, totaling $14.6 million for Q3 2025 compared to $12.3 million for Q3 2024[3] - Net income for the Community Banking segment rose to $6,916,000 in September 2025, an increase from $6,220,000 in June 2025, marking a growth of 11.19%[18] - The efficiency ratio for the Community Banking segment improved to 48.94% in September 2025, down from 50.40% in June 2025, indicating enhanced operational efficiency[18] Mortgage Banking Segment - The Mortgage Banking segment recorded pre-tax income of $1.3 million for Q3 2025, compared to $144,000 for Q3 2024[4] - Loan originations in the Mortgage Banking segment totaled $539,404,000 in September 2025, down from $588,838,000 in June 2025, reflecting a decrease of 8.45%[20] - The gross margin on loans sold in the Mortgage Banking segment was 3.87% in September 2025, slightly up from 3.84% in June 2025[20] Nonperforming Assets - Nonperforming assets as a percentage of total assets decreased to 0.27% at September 30, 2025, down from 0.37% at June 30, 2025, and 0.25% at September 30, 2024[3] Other Financial Metrics - Book value per share increased to $18.65 at September 30, 2025, up from $17.53 at December 31, 2024[3] - Total noninterest income for the Community Banking segment was $1,359,000 in September 2025, compared to $1,686,000 in June 2025, reflecting a decrease of 19.39%[18] - The efficiency ratio for the Mortgage Banking segment was 93.66% in September 2025, compared to 91.15% in June 2025, indicating a decline in efficiency[20]

Core Insights - The article highlights recent research reports on major stocks including Tesla, UnitedHealth, Shopify, and Waterstone Financial, emphasizing their performance and market conditions [2][5][8][11][14]. Tesla, Inc. (TSLA) - Tesla's shares have outperformed the Zacks Automotive - Domestic industry over the past year, with a gain of 85.4% compared to the industry's 72.9% [5]. - The company is facing challenges with declining EV sales, recording its first annual decline in deliveries in 2024, which has continued into 2025 [5][6]. - Operating margins are shrinking, and expenses are rising, with Musk indicating that upcoming quarters may be difficult [6]. - The Energy Generation & Storage unit remains a strength, and the expansion of the Supercharger network is ongoing [6]. - Tesla has launched a robotaxi service, which has received mixed reactions, but the company sees potential for significant cost and scalability advantages [7]. UnitedHealth Group Inc. (UNH) - UnitedHealth's shares have underperformed the Zacks Medical - HMOs industry over the past year, declining by 37% compared to the industry's 31.3% [8]. - The company is experiencing cost pressures, higher medical utilization, and a significant debt burden, which threaten margin stability [8]. - The Medical Care Ratio (MCR) is expected to increase to 89.4% in 2025, and the earnings outlook for 2025 has been trimmed [8]. - Despite challenges, UnitedHealth benefits from balanced growth across its segments, driven by rising healthcare demand and disciplined execution [9][10]. Shopify Inc. (SHOP) - Shopify's shares have outperformed the Zacks Internet - Services industry over the past year, with a gain of 99.2% compared to the industry's 51% [11]. - The company is expanding its merchant base through new tools and AI-driven solutions, enhancing customer engagement and operational efficiency [11][12]. - Shopify's international growth, particularly in Europe, is a key catalyst for its prospects [12]. - However, the company faces gross margin pressure due to increased hosting costs and a new paid trial program, which may impact operating profit [13]. Waterstone Financial, Inc. (WSBF) - Waterstone Financial's shares have outperformed the Zacks Financial - Savings and Loan industry over the past year, with a gain of 14.9% compared to the industry's 10.9% [14]. - The company demonstrated earnings resilience with a 35.2% year-over-year net income growth in Q2 2025, despite challenges in mortgage banking [14]. - Improved return on assets (ROA) and return on equity (ROE) indicate enhanced profitability driven by cost discipline [14]. - The Community Banking segment showed robust income growth, although mortgage banking remains a drag due to declining originations and rising non-accruals [15][16].

Core Viewpoint - Waterstone Financial, Inc. has been upgraded from a "Neutral" to an "Outperform" rating, indicating strength in strategic direction and financial fundamentals, following a positive assessment of its second-quarter 2025 performance [1] Catalysts Behind the Upgrade - The mortgage banking segment reported a net income of $1.5 million in Q2 2025, up from $1.3 million in the same period last year, reflecting improved cost control and pricing strategies [2] - Core banking operations showed solid performance with net interest income increasing to $13.7 million and net interest margin improving to 2.60%, up from 2.01% a year earlier, due to prudent asset-liability management [3] Shareholder Returns - The company declared a regular quarterly cash dividend of 15 cents per share and repurchased shares, demonstrating a commitment to enhancing shareholder returns and a disciplined capital allocation strategy [4] Ongoing Challenges - Noninterest income declined to $24.3 million in Q2 2025 from $26.5 million in Q2 2024, primarily due to lower mortgage banking income, which could limit earnings diversification [5] - Loan growth remained sluggish, indicating cautious lending behavior or soft demand, which may constrain future earnings growth if economic conditions do not improve [6] Conclusion - The upgrade reflects optimism regarding Waterstone Financial's operational stability, mortgage recovery, and capital return strategy, while ongoing challenges such as weak noninterest income and limited loan growth warrant close monitoring [7]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including key financial statements and detailed notes [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This statement details the company's financial position, with total assets increasing by **$47.0 million (2.1%)** | Metric | June 30, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total Assets | $2,256,560 | $2,209,608 | $46,952 | 2.1% | | Cash and cash equivalents | $70,923 | $39,761 | $31,162 | 78.4% | | Securities available for sale | $218,757 | $208,549 | $10,208 | 4.9% | | Loans held for sale | $161,826 | $135,909 | $25,917 | 19.1% | | Loans receivable, net | $1,646,473 | $1,662,329 | $(15,856) | (1.0)% | | Total Liabilities | $1,915,069 | $1,870,473 | $44,596 | 2.4% | | Total Deposits | $1,384,707 | $1,359,897 | $24,810 | 1.8% | | Total Borrowings | $465,726 | $446,519 | $19,207 | 4.3% | | Total Shareholders' Equity | $341,491 | $339,135 | $2,356 | 0.7% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased for both periods ended June 30, 2025, driven by higher net interest income and negative credit loss provision | Metric (In Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | :--------------------------- | :--------------------------- | :----- | :------- | | Total interest income | $28,685 | $28,020 | $665 | 2.4% | $56,440 | $54,925 | $1,515 | 2.8% | | Total interest expense| $14,977 | $17,341 | $(2,364)| (13.6)% | $30,156 | $33,109 | $(2,953)| (8.9)% | | Net interest income | $13,708 | $10,679 | $3,029 | 28.4% | $26,284 | $21,816 | $4,468 | 20.5% | | Provision (credit) for credit losses | $(9) | $(225) | $216 | (96.0)% | $(567) | $(158) | $(409) | 258.9% | | Total noninterest income | $24,329 | $26,497 | $(2,168)| (8.2)% | $41,426 | $47,745 | $(6,319)| (13.2)% | | Total noninterest expenses | $28,377 | $30,259 | $(1,882)| (6.2)% | $54,727 | $57,809 | $(3,082)| (5.3)% | | Net income | $7,727 | $5,712 | $2,015 | 35.3% | $10,763 | $8,750 | $2,013 | 23.0% | | Basic EPS | $0.43 | $0.31 | $0.12 | 38.7% | $0.59 | $0.47 | $0.12 | 25.5% | | Diluted EPS | $0.43 | $0.31 | $0.12 | 38.7% | $0.59 | $0.47 | $0.12 | 25.5% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased for both periods ended June 30, 2025, due to net unrealized holding gains on available-for-sale securities | Metric (In Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net income | $7,727 | $5,712 | $2,015 | 35.3% | $10,763 | $8,750 | $2,013 | 23.0% | | Net unrealized holding gain (loss) on AFS securities, net of tax | $1,146 | $(654) | $1,800 | (275.2)% | $3,494 | $(1,923) | $5,417 | (281.7)% | | Comprehensive income | $8,873 | $5,058 | $3,815 | 75.4% | $14,257 | $6,827 | $7,430 | 108.8% | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased by **$2.4 million** to **$341.5 million** at June 30, 2025, driven by comprehensive income | Metric (In Thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------- | :------------ | :---------------- | :----- | :------- | | Total Shareholders' Equity | $341,491 | $339,135 | $2,356 | 0.7% | | Net income (6 months) | $10,763 | $8,750 | $2,013 | 23.0% | | Other comprehensive income (6 months) | $3,494 | $(1,923) | $5,417 | (281.7)% | | Cash dividend (6 months) | $(5,381) | $(5,578) | $197 | (3.5)% | | Purchase of common stock returned to authorized but unissued (6 months) | $(9,667) | $(11,116) | $1,449 | (13.0)% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$31.2 million** for the six months ended June 30, 2025, despite decreased operating cash flow | Metric (In Thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | :------- | | Net cash used in operating activities | $(11,705) | $(49,456) | $37,751| (76.3)% | | Net cash provided by (used in) investing activities | $10,440 | $(14,225) | $24,665| (173.4)% | | Net cash provided by financing activities | $32,427 | $68,576 | $(36,149)| (52.7)% | | Increase in cash and cash equivalents | $31,162 | $4,895 | $26,267| 536.6% | | Cash and cash equivalents at end of period | $70,923 | $41,316 | $29,607| 71.6% | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, financial instruments, loan portfolio, regulatory capital

Core Insights - Waterstone Financial, Inc. reported a significant increase in earnings per share (EPS) for Q2 2025, rising to 43 cents from 31 cents in Q2 2024, marking a 39% increase [2] - The company's net income for the quarter was $7.7 million, up from $5.7 million in the same period last year [3] - The net interest margin improved to 2.60%, up from 2.01% year-over-year, indicating better yields on interest-earning assets [4] Financial Performance - Revenue from net interest income increased to $13.7 million from $10.9 million year-over-year, while noninterest income decreased to $24.3 million from $26.5 million [2] - Total assets as of June 30, 2025, were $2.22 billion, slightly up from $2.21 billion at the end of 2024 [4] - The loan portfolio saw a decline, with loans receivable at $1.64 billion, down from $1.7 billion in December 2024 [4] Shareholder Actions - The company repurchased approximately 508,000 shares at an average cost of $12.80 per share, increasing book value per share to $18.19 from $17.53 [5] - Dividends declared remained steady at 15 cents per share [5] Management Commentary - The CEO highlighted strong earnings performance, particularly in the community banking segment, which saw a 50.4% increase in pre-tax income to $7.6 million [6] - The community banking segment's growth was attributed to a $2.4 million increase in net interest income and effective expense management [6] Mortgage Banking Insights - Mortgage originations declined by 7.1% year-over-year to $588.8 million, with purchase originations making up 91.7% of the total [7] - Noninterest income from mortgage banking fell by 9.7% to $22.6 million, while gross margin on loans sold decreased to 3.8% from 3.9% [7] - Compensation and employee benefits expenses decreased by 3.4%, aiding earnings despite a decline in mortgage revenue [7]

Core Insights - Waterstone Financial, Inc. reported a net income of $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025, compared to $5.7 million, or $0.31 per diluted share, for the same quarter in 2024 [1][3] - The company achieved its highest quarterly earnings per share since December 31, 2021, driven by growth in net interest income and strong asset quality [2][3] - The Community Banking segment saw a $2.4 million increase in net interest income, primarily due to improved cost of funds [2][3] - The Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded [2][3] Financial Performance - Consolidated net income for the quarter was $7.7 million, a 35.1% increase from $5.7 million in the same quarter of 2024 [3][12] - Return on average assets (annualized) improved to 1.39% from 1.02% year-over-year [3][16] - Return on average equity (annualized) increased to 9.04% from 6.84% year-over-year [3][16] - Dividends declared were $0.15 per common share [3][16] - Book value per share rose to $18.19 from $17.53 at the end of 2024 [3][14] Asset Quality - Nonperforming assets as a percentage of total assets was 0.37% at June 30, 2025, compared to 0.25% at June 30, 2024 [3][17] - Past due loans as a percentage of total loans was 0.69% at June 30, 2025, down from 0.76% at June 30, 2024 [3][17] - The company experienced minimal loan loss activity, resulting in releases from the allowance for credit losses [2][3] Community Banking Segment - Net interest income for the Community Banking segment was $13.6 million, a 21.4% increase from $11.2 million in the same quarter of 2024 [3][12] - Average loans held for investment totaled $1.67 billion, a slight decrease of 0.1% year-over-year [3][12] - Net interest margin increased to 2.60% from 2.01% year-over-year [3][12] Mortgage Banking Segment - Loan originations decreased by $45.3 million, or 7.1%, to $588.8 million compared to $634.1 million in the same quarter of 2024 [9][22] - Mortgage banking non-interest income decreased by $2.4 million, or 9.7%, to $22.6 million [9][22] - Gross margin on loans sold was 3.84%, down from 3.93% in the same quarter of 2024 [9][22]