New Waterstone(WSBF) - 2024 Q3 - Quarterly Results

Financial Performance - Waterstone Financial, Inc. reported net income of $4.7 million, or $0.26 per diluted share, for Q3 2024, compared to $3.3 million, or $0.16 per diluted share, for Q3 2023[1]. - Net income for the quarter was $4,728,000, representing a 45.4% increase compared to $3,253,000 in the prior year[9]. - Net income for Q3 2024 was $4,728,000, down from $5,712,000 in Q2 2024, representing a decrease of 17.2%[11]. - Basic earnings per share increased to $0.26 from $0.16, a growth of 62.5% year-over-year[9]. - The net income for the Community Banking segment was $4,705,000 for September 30, 2024, an increase from $4,539,000 for the same period last year, reflecting a growth of 3.7%[13]. Asset and Loan Growth - Average loans held for investment increased by $60.9 million, or 3.7%, to $1.69 billion for Q3 2024 compared to $1.63 billion in Q3 2023[3]. - Loans receivable increased to $1,695,403,000 from $1,664,215,000, reflecting a growth of 1.9%[10]. - Average loans receivable and held for sale increased to $1,870,627,000 in Q3 2024 from $1,859,608,000 in Q2 2024, reflecting a growth of 0.92%[12]. - Loan originations in the Mortgage Banking segment decreased by $38.8 million, or 6.5%, to $558.7 million for Q3 2024 compared to $597.6 million in Q3 2023[5]. - Loan originations in the Mortgage Banking segment totaled $558,729,000 for September 30, 2024, a decrease from $634,109,000 for the previous quarter, indicating a decline of 11.9%[14]. Deposit Growth - Average deposits (excluding escrow accounts) rose by $47.9 million, or 4.0%, to $1.25 billion for Q3 2024 compared to $1.20 billion in Q3 2023[4]. - Total deposits rose to $1,263,841,000, compared to $1,190,624,000 at the end of 2023, marking a 6.1% increase[10]. Income and Expense Analysis - Total interest income for the quarter ended September 30, 2024, was $29,191,000, an increase of 10.9% from $26,377,000 for the same period in 2023[9]. - Noninterest income for the quarter was $22,552,000, slightly up from $22,230,000 in the same quarter last year[9]. - Total noninterest expenses decreased to $28,560,000 from $30,021,000, a reduction of 4.9%[9]. - Total noninterest income decreased to $22,552,000 in Q3 2024 from $26,497,000 in Q2 2024, indicating a decline of 14.8%[11]. Efficiency Ratios - The efficiency ratio for Q3 2024 was 60.35%, compared to 54.43% for Q3 2023, indicating a decline in operational efficiency[4]. - The efficiency ratio for the Community Banking segment improved to 60.35% for the quarter ended September 30, 2024, down from 62.37% for the previous quarter, indicating enhanced operational efficiency[13]. - The efficiency ratio for the Mortgage Banking segment was 99.67% for the quarter ended September 30, 2024, compared to 91.64% for the previous quarter, indicating a decline in efficiency[14]. Credit Quality - Nonperforming assets as a percentage of total assets remained stable at 0.25% for Q3 2024, unchanged from Q2 2024, but up from 0.20% in Q3 2023[2]. - The allowance for credit losses on loans was $18,198,000, down from $18,549,000, indicating improved credit quality[10]. - The allowance for credit losses to loans receivable was 1.07% as of September 30, 2024, compared to 1.10% in Q2 2024[11]. - Provision for credit losses in the Community Banking segment was $(302,000) for September 30, 2024, compared to $(550,000) for the same period last year, showing an improvement in credit quality[13]. Segment Performance - The Community Banking segment achieved pre-tax income of $5.6 million for Q3 2024, a slight decrease of $14,000, or 0.2%, from Q3 2023[3]. - Mortgage Banking segment pre-tax income improved to $144,000 for Q3 2024, compared to a pre-tax loss of $2.1 million in Q3 2023[5]. - Community Banking segment reported net interest income of $12,250,000 for September 30, 2024, an increase from $12,056,000 for September 30, 2023, representing a growth of 1.6% year-over-year[13]. - Total noninterest income in the Community Banking segment was $1,227,000 for September 30, 2024, compared to $894,000 for the same period last year, reflecting a significant increase of 37.2%[13]. - Total noninterest income in the Mortgage Banking segment was $21,386,000 for September 30, 2024, an increase from $16,028,000 for the same period last year, marking a growth of 33.5%[14].