New Waterstone(WSBF) - 2025 Q3 - Quarterly Results

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]