Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Twelve Months Ended December 31, 2025

Core Insights - Waterstone Financial, Inc. reported a net income of $7.7 million, or $0.44 per diluted share, for the quarter ended December 31, 2025, an increase from $5.2 million, or $0.28 per diluted share, for the same quarter in 2024 [1][5] - The company achieved a consolidated return on average assets of 1.35% and a return on average equity of 8.74% for the quarter ended December 31, 2025, compared to 0.94% and 6.05% respectively for the same quarter in 2024 [5][19] - The Community Banking segment saw a 20.4% increase in net interest income, totaling $15.5 million for the quarter, driven by growth in loan yields and a reduction in funding costs [2][5] Financial Performance - Net income for the quarter ended December 31, 2025, was $7.7 million, up from $5.2 million in the same quarter of 2024 [1][5] - Pre-tax income increased by $2.4 million, or 35.5%, to $9.1 million compared to $6.7 million for the quarter ended December 31, 2024 [5][19] - Book value per share rose to $19.03 at December 31, 2025, from $17.53 at December 31, 2024 [5][18] Community Banking Segment - The Community Banking segment's net interest income increased by $2.6 million, or 20.4%, compared to the same quarter in 2024 [2][5] - Nonperforming assets as a percentage of total assets were 0.29% at December 31, 2025, compared to 0.28% at December 31, 2024 [5][21] - Average core retail deposits increased by $49 million, or 3.8%, to $1.32 billion compared to the same quarter in 2024 [11][19] Mortgage Banking Segment - The Mortgage Banking segment recorded a third consecutive quarter of pre-tax income, attributed to increased refinance activity as interest rates decreased [2][5] - Loan originations increased by $64 million, or 13.6%, to $534.6 million for the quarter ended December 31, 2025, compared to $470.7 million in the same quarter of 2024 [11][27] - Mortgage banking non-interest income rose by $2.7 million, or 15.6%, to $20.2 million for the quarter ended December 31, 2025 [11][27] Shareholder Returns - The company returned a total of $5.3 million to shareholders through buybacks and dividends during the quarter, with a declared dividend of $0.15 per share [2][5] - Approximately 174,000 shares were repurchased at a cost of $2.7 million during the quarter [5][19]