Waterstone Financial, Inc. Announces Results of Operations for the Quarter Ended March 31, 2025

Core Viewpoint - Waterstone Financial, Inc. reported stable net income of $3.0 million for Q1 2025, maintaining earnings per share at $0.17, slightly up from $0.16 in Q1 2024, despite challenges in the Mortgage Banking segment [1][2]. Community Banking Segment - The Community Banking segment saw a 6.9% increase in net interest income, totaling $12.4 million for Q1 2025, compared to $11.6 million in Q1 2024 [3][8]. - The net interest margin improved by 32 basis points to 2.47% in Q1 2025 from 2.15% in Q1 2024, driven by a higher yield on loans and a decrease in borrowing costs [3][8]. - Asset quality remained strong, with nonperforming assets at 0.35% of total assets as of March 31, 2025, compared to 0.23% a year earlier [3][18]. - The company repurchased approximately 237,000 shares at a cost of $3.2 million, enhancing book value per share to $17.70 [3][12]. Mortgage Banking Segment - The Mortgage Banking segment reported a pre-tax loss of $2.2 million for Q1 2025, a significant decline from a pre-tax income of $369,000 in Q1 2024, attributed to a market-wide decrease in loan origination volumes [2][8]. - Loan originations decreased by 20.1% to $387.7 million in Q1 2025 from $485.1 million in Q1 2024, with a notable shift in origination volume towards purchase activity [8][25]. - Noninterest income from mortgage banking fell by 22.6% to $15.7 million in Q1 2025, down from $20.3 million in Q1 2024 [8][25]. Financial Performance Metrics - Return on average assets for Q1 2025 was 0.57%, slightly up from 0.56% in Q1 2024, while return on average equity increased to 3.61% from 3.56% [3][18]. - The efficiency ratio improved to 59.66% in Q1 2025 from 65.17% in Q1 2024, indicating better cost management [8][23]. - Average core retail deposits rose by 7.4% to $1.28 billion in Q1 2025, compared to $1.19 billion in Q1 2024, reflecting strong customer retention [8][18].