Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2025

Core Insights - Waterstone Financial, Inc. reported a net income of $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025, compared to $5.7 million, or $0.31 per diluted share, for the same quarter in 2024 [1][3] - The company achieved its highest quarterly earnings per share since December 31, 2021, driven by growth in net interest income and strong asset quality [2][3] - The Community Banking segment saw a $2.4 million increase in net interest income, primarily due to improved cost of funds [2][3] - The Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded [2][3] Financial Performance - Consolidated net income for the quarter was $7.7 million, a 35.1% increase from $5.7 million in the same quarter of 2024 [3][12] - Return on average assets (annualized) improved to 1.39% from 1.02% year-over-year [3][16] - Return on average equity (annualized) increased to 9.04% from 6.84% year-over-year [3][16] - Dividends declared were $0.15 per common share [3][16] - Book value per share rose to $18.19 from $17.53 at the end of 2024 [3][14] Asset Quality - Nonperforming assets as a percentage of total assets was 0.37% at June 30, 2025, compared to 0.25% at June 30, 2024 [3][17] - Past due loans as a percentage of total loans was 0.69% at June 30, 2025, down from 0.76% at June 30, 2024 [3][17] - The company experienced minimal loan loss activity, resulting in releases from the allowance for credit losses [2][3] Community Banking Segment - Net interest income for the Community Banking segment was $13.6 million, a 21.4% increase from $11.2 million in the same quarter of 2024 [3][12] - Average loans held for investment totaled $1.67 billion, a slight decrease of 0.1% year-over-year [3][12] - Net interest margin increased to 2.60% from 2.01% year-over-year [3][12] Mortgage Banking Segment - Loan originations decreased by $45.3 million, or 7.1%, to $588.8 million compared to $634.1 million in the same quarter of 2024 [9][22] - Mortgage banking non-interest income decreased by $2.4 million, or 9.7%, to $22.6 million [9][22] - Gross margin on loans sold was 3.84%, down from 3.93% in the same quarter of 2024 [9][22]