Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Year Ended December 31, 2024

Core Viewpoint - Waterstone Financial, Inc. reported a significant turnaround in financial performance for the quarter ended December 31, 2024, achieving a net income of $5.2 million compared to a net loss of $40,000 in the same quarter of the previous year, indicating a strong recovery and growth trajectory for the company [1][3]. Financial Performance - Net income for the quarter was $5.2 million, or $0.28 per diluted share, compared to a net loss of $40,000, or less than $0.01 per diluted share, for the quarter ended December 31, 2023 [1]. - For the year ended December 31, 2024, net income per diluted share was $1.01, up from $0.46 in 2023 [1]. - Pre-tax income increased by $1.4 million, or 26.0%, to $6.7 million for the quarter ended December 31, 2024, compared to $5.3 million for the same quarter in 2023 [3]. - Net interest income rose to $12.9 million, a $830,000 increase, or 6.9%, from $12.1 million in the prior year [3]. Asset Quality and Loan Performance - The consolidated return on average assets was 0.94% for the quarter ended December 31, 2024, compared to (0.01)% for the same quarter in 2023 [3]. - Nonperforming assets as a percentage of total assets was 0.28% at December 31, 2024, compared to 0.23% at December 31, 2023 [3]. - Past due loans as a percentage of total loans increased to 0.95% at December 31, 2024, from 0.68% at December 31, 2023 [3][18]. Shareholder Returns and Capital Management - Dividends declared during the quarter totaled $0.15 per common share [3]. - The company repurchased approximately 194,000 shares at a cost of $2.8 million, or $14.43 per share [3]. - Book value per share increased to $17.53 at December 31, 2024, from $16.94 at December 31, 2023 [3]. Community Banking Segment - The Community Banking segment reported a consolidated net income of $5.2 million for the quarter ended December 31, 2024, compared to a net loss of $40,000 for the same quarter in 2023 [3]. - Average loans held for investment totaled $1.68 billion, an increase of $21.5 million, or 1.3%, compared to $1.66 billion for the quarter ended December 31, 2023 [3]. - The efficiency ratio improved to 51.54% for the quarter ended December 31, 2024, compared to 63.26% for the same quarter in 2023 [8][22]. Mortgage Banking Segment - The Mortgage Banking segment achieved a pre-tax loss of $625,000 for the quarter ended December 31, 2024, a significant improvement from a $6.0 million pre-tax loss in the same quarter of 2023 [8]. - Loan originations increased by $12.3 million, or 2.7%, to $470.7 million during the quarter ended December 31, 2024, compared to $458.4 million in the prior year [8]. - Mortgage banking non-interest income rose by $1.4 million, or 8.9%, to $17.5 million for the quarter ended December 31, 2024, compared to $16.0 million in the previous year [8].