New Waterstone(US:WSBF)2021-08-03 18:04Financial Performance - Net income for the community banking segment increased to $7.5 million for Q2 2021, up from $4.1 million in Q2 2020, representing an increase of 82.9%[195] - Net income for the three months ended June 30, 2021, was $17.9 million, down from $20.9 million in 2020, resulting in a decrease in earnings per share from $0.86 to $0.75[203] - Net income for the six months ended June 30, 2021, increased by $6.7 million to $14.9 million compared to $8.2 million for the same period in 2020[220] - Earnings per share increased to $1.65 for the six months ended June 30, 2021, compared to $1.08 for the same period in 2020[228] Income and Expenses - Net interest income rose by $816,000 to $14.5 million in Q2 2021 compared to $13.7 million in Q2 2020[195] - Total noninterest income decreased by $14.9 million, or 22.2%, to $52.0 million for the three months ended June 30, 2021, compared to $66.9 million for the same period in 2020[215] - Total noninterest expenses decreased by $4.4 million, or 9.2%, to $43.3 million for the three months ended June 30, 2021, compared to $47.7 million for the same period in 2020[217] - Total noninterest income increased by $9.9 million, or 10.0%, to $108.2 million during the six months ended June 30, 2021, compared to $98.4 million in the same period of 2020[242] Loan Performance - The mortgage banking segment reported a net income of $10.4 million for Q2 2021, down from $16.8 million in Q2 2020, a decrease of 38.7%[199] - Mortgage loan originations decreased by $77.5 million, or 6.8%, to $1.07 billion in Q2 2021 compared to $1.14 billion in Q2 2020[199] - Total loans originated for investment decreased to $127.8 million for the six months ended June 30, 2021, down from $252.0 million for the same period in 2020[252] - Total loans past due decreased by $992,000, or 12.6%, to $6.9 million at June 30, 2021, compared to $7.9 million at December 31, 2020[280] Provisions and Allowances - The company reported a negative provision for loan losses of $750,000 for Q2 2021, compared to a provision of $4.3 million in Q2 2020[196] - The negative provision for loan losses was $750,000 for the three months ended June 30, 2021, compared to a provision of $4.5 million for the same period in 2020[213] - The company recorded a negative provision for loan losses of $1.9 million for the six months ended June 30, 2021, compared to a provision of $5.1 million for the same period in 2020[221] - The allowance for loan losses decreased by $1.4 million to $17.4 million at June 30, 2021, reflecting a negative provision for loan losses of $1.8 million[285] Capital and Assets - The company maintained all capital ratios in excess of regulatory requirements as of June 30, 2021, despite potential adverse impacts from credit losses[192] - Shareholders' equity increased by $18.6 million to $431.7 million at June 30, 2021, primarily due to net income and additional paid-in capital[261] - Total assets increased by $17.4 million, or 0.8%, to $2.20 billion at June 30, 2021, from $2.18 billion at December 31, 2020[247] - Cash and cash equivalents surged by $134.0 million, or 141.4%, to $228.7 million at June 30, 2021, compared to $94.8 million at December 31, 2020[248] Interest Rates and Margins - The net interest margin increased to 2.78% in Q2 2021 from 2.62% in Q2 2020[211] - A 100 basis point increase in interest rates is projected to increase net interest income by 8.08% over the next 12 months, while a decrease of 100 basis points would decrease it by 5.56%[318] - Interest expense on time deposits decreased by $2.6 million, or 75.2%, primarily due to a 141 basis point decrease in average cost[212] Mortgage Banking Segment - Total mortgage banking noninterest income decreased by $13.7 million, or 21.3%, to $50.6 million in Q2 2021 from $64.2 million in Q2 2020[199] - Mortgage banking income decreased by $14.1 million, or 22.1%, primarily due to a decrease in loan origination volume, which fell by $52.2 million, or 4.7%, to $1.06 billion[216] - The company originated $2.18 billion in mortgage loans during the six months ended June 30, 2021, an increase of $328.7 million, or 17.8%, from $1.85 billion in the same period in 2020[224] Liquidity and Commitments - The company maintains liquid assets to meet liquidity needs, adjusting levels based on loan commitments and deposit outflows[292] - The company had outstanding commitments to originate loans receivable of $55.6 million and unfunded commitments under construction loans of $57.5 million as of June 30, 2021[301] - Total contractual obligations as of June 30, 2021, amounted to $1.71 billion, with demand deposits at $208.5 million and time deposits at $671.1 million[306]