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

    来源: Nasdaq GlobeNewswire / 22 4月 2025 14:16:59   America/Los_Angeles

    WAUWATOSA, Wis., April 22, 2025 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $3.0 million, or $0.17 per diluted share, for the quarter ended March 31, 2025, compared to $3.0 million, or $0.16 per diluted share, for the quarter ended March 31, 2024.

    "The Community Banking segment continues to perform well in a challenging interest rate environment,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. "We increased net interest income 6.9% at the Community Banking segment and net interest margin increased 32 bps compared to the quarter ended March 31, 2024. Asset quality continues to remain strong and low historical loan losses are reflected in the decrease in provision for credit losses during the quarter. The Mortgage Banking segment pre-tax loss reflects a market-wide decrease in loan origination volumes and elevated legal expense associated with the final settlement of a previously disclosed lawsuit. In spite of the results of the Mortgage Banking segment, Waterstone Financial, Inc. exceeded the prior year's same quarter earnings per share, added to book value per share through our share repurchase program and maintained our strong quarterly dividend." 

    Highlights of the Quarter Ended March 31, 2025

    Waterstone Financial, Inc. (Consolidated)

    • Consolidated net income of Waterstone Financial, Inc. totaled $3.0 million for the quarters ended March 31, 2025 and March 31, 2024.
    • Consolidated return on average assets (annualized) was 0.57% for the quarter ended March 31, 2025 and 0.56% for the quarter ended March 31, 2024.
    • Consolidated return on average equity (annualized) was 3.61% for the quarter ended March 31, 2025 and 3.56% for the quarter ended March 31, 2024.
    • Dividends declared during the quarter ended March 31, 2025 totaled $0.15 per common share.
    • During the quarter ended March 31, 2025, we repurchased approximately 237,000 shares at a cost (including the federal excise tax) of $3.2 million, or $13.37 per share.
    • Nonperforming assets as a percentage of total assets was 0.35% at March 31, 2025, 0.28% at December 31, 2024, and 0.23% at March 31, 2024.
    • Past due loans as a percentage of total loans was 0.67% at March 31, 2025, 0.95% at December 31, 2024, and 0.64% at March 31, 2024.
    • Book value per share was $17.70 at March 31, 2025 and $17.53 at December 31, 2024.

    Community Banking Segment

    • Pre-tax income totaled $6.1 million for the quarter ended March 31, 2025, which represents a $1.8 million, or 41.7%, increase compared to $4.3 million for the quarter ended March 31, 2024.
    • Net interest income totaled $12.4 million for the quarter ended March 31, 2025, which represents a $805,000, or 6.9%, increase compared to $11.6 million for the quarter ended March 31, 2024.
    • Average loans held for investment totaled $1.67 billion during the quarter ended March 31, 2025, which represents an increase of $10.7 million, or 0.6%, compared to $1.66 billion for the quarter ended March 31, 2024. The increase was primarily due to increases in the commercial real estate and multi-family mortgages. Average loans held for investment decreased $6.8 million compared to $1.68 billion for the quarter ended December 31, 2024. The decrease was primarily due to decreases in construction and multi-family mortgages.
    • Net interest margin increased 32 basis points to 2.47% for the quarter ended March 31, 2025 compared to 2.15% for the quarter ended March 31, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decrease in cost of borrowings offset by an increase in weighted average cost of deposits. Net interest margin increased five basis points compared to 2.42% for the quarter ended December 31, 2024, primarily driven by decreases in weighted average cost of deposits and borrowings.
    • Past due loans at the community banking segment totaled $7.6 million at March 31, 2025, $12.8 million at December 31, 2024, and $8.1 million at March 31, 2024.
    • The segment had a negative provision for credit losses related to funded loans of $314,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to funded loans of $35,000 for the quarter ended March 31, 2024. The current quarter decrease was primarily due to decreases in historical loss rates and loan portfolio balances offset by an increase in the commercial real estate loan qualitative factors primarily related to increases in economic risks and internal asset quality risks. The negative provision for credit losses related to unfunded loan commitments was $204,000 for the quarter ended March 31, 2025 compared to a provision for credit losses related to unfunded loan commitments of $70,000 for the quarter ended March 31, 2024. The negative provision for credit losses related to unfunded loan commitments for the quarter ended March 31, 2025 was due primarily to a decrease in construction loans that are currently waiting to be funded compared to the prior quarter end and decrease in historical loss rates.
    • The efficiency ratio, a non-GAAP ratio, was 59.66% for the quarter ended March 31, 2025, compared to 65.17% for the quarter ended March 31, 2024.
    • Average core retail deposits (excluding brokered and escrow accounts) totaled $1.28 billion during the quarter ended March 31, 2025, an increase of $87.6 million, or 7.4%, compared to $1.19 billion during the quarter ended March 31, 2024. Average deposits increased $2.9 million, or 0.9% annualized, compared to $1.27 billion for the quarter ended December 31, 2024. The increases were primarily due to an increase in certificates of deposit balances. The segment had $84.1 million in brokered certificate of deposits at March 31, 2025.

    Mortgage Banking Segment

    • Pre-tax loss totaled $2.2 million for the quarter ended March 31, 2025, compared to a $369,000 of pre-tax income for the quarter ended March 31, 2024.
    • Loan originations decreased $97.4 million, or 20.1%, to $387.7 million during the quarter ended March 31, 2025, compared to $485.1 million during the quarter ended March 31, 2024. Origination volume relative to purchase activity accounted for 87.5% of originations for the quarter ended March 31, 2025 compared to 93.0% of total originations for the quarter ended March 31, 2024.
    • Mortgage banking non-interest income decreased $4.6 million, or 22.6%, to $15.7 million for the quarter ended March 31, 2025, compared to $20.3 million for the quarter ended March 31, 2024.
    • Gross margin on loans sold totaled 3.98% for the quarter ended March 31, 2025, compared to 4.10% for the quarter ended March 31, 2024.
    • Professional fees increased $853,000, or 164.0%, to $1.4 million for the quarter ended March 31, 2025, compared to $520,000 for the quarter ended March 31, 2024. The increase was primarily related to legal services and the finalization of a settlement related to a previously disclosed legal matter during the three months ended March 31, 2025. The Company maintained a $1.3 million accrual related to this legal matter as of December 31, 2024.
    • Total compensation, payroll taxes and other employee benefits decreased $2.7 million, or 18.3%, to $12.1 million during the quarter ended March 31, 2025 compared to $14.8 million during the quarter ended March 31, 2024. The decrease primarily related to decreased commission expense, branch manager pay, salary expense, and sign-on incentives driven by reduced employee headcount and a decrease in loan origination volumes and branch profitability.

    About Waterstone Financial, Inc.
    Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states.

    With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide.

    For more information about WaterStone Bank, visit wsbonline.com.

    Forward-Looking Statements

    This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

    Non-GAAP Financial Measures 

    Management uses non-GAAP financial information in its analysis of the Company's performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently. 

    Contact: Mark R. Gerke
    Chief Financial Officer
    414-459-4012
    markgerke@wsbonline.com

    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

    		 
      For The Three Months Ended March 31, 
      2025  2024 
      (In Thousands, except per share amounts) 
    Interest income:        
    Loans $25,078  $24,484 
    Mortgage-related securities  1,191   1,098 
    Debt securities, federal funds sold and short-term investments  1,486   1,323 
    Total interest income  27,755   26,905 
    Interest expense:        
    Deposits  11,332   8,970 
    Borrowings  3,847   6,798 
    Total interest expense  15,179   15,768 
    Net interest income  12,576   11,137 
    Provision (credit) for credit losses  (558)  67 
    Net interest income after provision (credit) for loan losses  13,134   11,070 
    Noninterest income:        
    Service charges on loans and deposits  593   424 
    Increase in cash surrender value of life insurance  481   348 
    Mortgage banking income  15,728   20,068 
    Other  295   408 
    Total noninterest income  17,097   21,248 
    Noninterest expenses:        
    Compensation, payroll taxes, and other employee benefits  17,047   19,876 
    Occupancy, office furniture, and equipment  1,929   2,108 
    Advertising  723   914 
    Data processing  1,212   1,206 
    Communications  235   226 
    Professional fees  1,736   743 
    Real estate owned  (10)  13 
    Loan processing expense  920   1,046 
    Other  2,558   1,418 
    Total noninterest expenses  26,350   27,550 
    Income before income taxes  3,881   4,768 
    Income tax expense  845   1,730 
    Net income $3,036  $3,038 
    Income per share:        
    Basic $0.17  $0.16 
    Diluted $0.17  $0.16 
    Weighted average shares outstanding:        
    Basic  18,267   19,021 
    Diluted  18,280   19,036 


    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

    		 
      March 31,  December 31, 
      2025  2024 
      (Unaudited)     
    Assets (In Thousands, except per share amounts) 
    Cash $37,459  $35,182 
    Federal funds sold  5,550   4,302 
    Interest-earning deposits in other financial institutions and other short term investments  280   277 
    Cash and cash equivalents  43,289   39,761 
    Securities available for sale (at fair value)  213,615   208,549 
    Loans held for sale (at fair value)  116,290   135,909 
    Loans receivable  1,663,519   1,680,576 
    Less: Allowance for credit losses ("ACL") - loans  17,905   18,247 
    Loans receivable, net  1,645,614   1,662,329 
             
    Office properties and equipment, net  19,223   19,389 
    Federal Home Loan Bank stock (at cost)  18,351   20,295 
    Cash surrender value of life insurance  75,093   74,612 
    Real estate owned, net  135   505 
    Prepaid expenses and other assets  43,757   48,259 
    Total assets $2,175,367  $2,209,608 
             
    Liabilities and Shareholders' Equity        
    Liabilities:        
    Demand deposits $170,183  $171,115 
    Money market and savings deposits  296,203   283,243 
    Time deposits  914,814   905,539 
    Total deposits  1,381,200   1,359,897 
             
    Borrowings  395,853   446,519 
    Advance payments by borrowers for taxes  12,628   5,630 
    Other liabilities  44,326   58,427 
    Total liabilities  1,834,007   1,870,473 
             
    Shareholders' equity:        
    Preferred stock  -   - 
    Common stock  193   193 
    Additional paid-in capital  90,470   91,214 
    Retained earnings  277,521   277,196 
    Unearned ESOP shares  (10,386)  (10,682)
    Accumulated other comprehensive loss, net of taxes  (16,438)  (18,786)
    Total shareholders' equity  341,360   339,135 
    Total liabilities and shareholders' equity $2,175,367  $2,209,608 
             
    Share Information        
    Shares outstanding  19,281   19,343 
    Book value per share $17.70  $17.53 


    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)

    		 
      At or For the Three Months Ended 
      March 31,  December 31,  September 30,  June 30,  March 31, 
      2025  2024  2024  2024  2024 
      (Dollars in Thousands, except per share amounts) 
    Condensed Results of Operations:                    
    Net interest income $12,576  $12,835  $11,517  $10,679  $11,137 
    Provision (credit) for credit losses  (558)  367   (377)  (225)  67 
    Total noninterest income  17,097   19,005   22,552   26,497   21,248 
    Total noninterest expense  26,350   25,267   28,560   30,259   27,550 
    Income before income taxes  3,881   6,206   5,886   7,142   4,768 
    Income tax expense  845   996   1,158   1,430   1,730 
    Net income $3,036  $5,210  $4,728  $5,712  $3,038 
    Income per share – basic $0.17  $0.28  $0.26  $0.31  $0.16 
    Income per share – diluted $0.17  $0.28  $0.26  $0.31  $0.16 
    Dividends declared per common share $0.15  $0.15  $0.15  $0.15  $0.15 
                         
    Performance Ratios (annualized):                    
    Return on average assets - QTD  0.57%  0.94%  0.83%  1.02%  0.56%
    Return on average equity - QTD  3.61%  6.05%  5.55%  6.84%  3.56%
    Net interest margin - QTD  2.47%  2.42%  2.13%  2.01%  2.15%
                         
    Return on average assets - YTD  0.57%  0.84%  0.81%  0.79%  0.56%
    Return on average equity - YTD  3.61%  5.48%  5.30%  5.17%  3.56%
    Net interest margin - YTD  2.47%  2.17%  2.09%  2.08%  2.15%
                         
    Asset Quality Ratios:                    
    Past due loans to total loans  0.67%  0.95%  0.63%  0.76%  0.64%
    Nonaccrual loans to total loans  0.45%  0.34%  0.32%  0.33%  0.29%
    Nonperforming assets to total assets  0.35%  0.28%  0.25%  0.25%  0.23%
    Allowance for credit losses - loans to loans receivable  1.08%  1.09%  1.07%  1.10%  1.10%


    WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES
    SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS
    (Unaudited)

    		 
      At or For the Three Months Ended 
      March 31,  December 31,  September 30,  June 30,  March 31, 
      2025  2024  2024  2024  2024 
    Average balances (Dollars in Thousands) 
    Interest-earning assets                    
    Loans receivable and held for sale $1,768,617  $1,819,574  $1,870,627  $1,859,608  $1,805,102 
    Mortgage related securities  170,947   168,521   170,221   171,895   172,077 
    Debt securities, federal funds sold and short term investments  123,004   124,658   115,270   107,992   110,431 
    Total interest-earning assets  2,062,568   2,112,753   2,156,118   2,139,495   2,087,610 
    Noninterest-earning assets  105,030   100,627   104,600   104,019   103,815 
    Total assets $2,167,598  $2,213,380  $2,260,718  $2,243,514  $2,191,425 
                         
    Interest-bearing liabilities                    
    Demand accounts $87,393  $92,247  $89,334  $91,300  $87,393 
    Money market, savings, and escrow accounts  300,686   306,478   304,116   293,483   281,171 
    Certificates of deposit - retail  818,612   810,340   786,228   758,252   739,543 
    Certificates of deposit - brokered  97,101   59,254   -   -   - 
    Total interest-bearing deposits  1,303,792   1,268,319   1,179,678   1,143,035   1,108,107 
    Borrowings  397,053   464,964   600,570   622,771   602,724 
    Total interest-bearing liabilities  1,700,845   1,733,283   1,780,248   1,765,806   1,710,831 
    Noninterest-bearing demand deposits  80,372   87,889   91,532   93,637   92,129 
    Noninterest-bearing liabilities  44,905   49,645   49,787   48,315   45,484 
    Total liabilities  1,826,122   1,870,817   1,921,567   1,907,758   1,848,444 
    Equity  341,476   342,563   339,151   335,756   342,981 
    Total liabilities and equity $2,167,598  $2,213,380  $2,260,718  $2,243,514  $2,191,425 
                         
    Average Yield/Costs (annualized)                    
    Loans receivable and held for sale  5.75%  5.75%  5.65%  5.54%  5.46%
    Mortgage related securities  2.83%  2.67%  2.66%  2.63%  2.57%
    Debt securities, federal funds sold and short term investments  4.90%  4.85%  5.05%  4.82%  4.82%
    Total interest-earning assets  5.46%  5.46%  5.39%  5.27%  5.18%
                         
    Demand accounts  0.11%  0.11%  0.11%  0.11%  0.11%
    Money market and savings accounts  2.10%  2.00%  1.94%  1.89%  1.79%
    Certificates of deposit - retail  4.33%  4.53%  4.54%  4.41%  4.19%
    Certificates of deposit - brokered  4.18%  4.18%  0.00%  0.00%  0.00%
    Total interest-bearing deposits  3.52%  3.58%  3.53%  3.42%  3.26%
    Borrowings  3.93%  4.11%  4.77%  4.92%  4.54%
    Total interest-bearing liabilities  3.62%  3.72%  3.95%  3.95%  3.71%


    COMMUNITY BANKING SEGMENT
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)

    		 
      At or For the Three Months Ended 
      March 31,  December 31,  September 30,  June 30,  March 31, 
      2025  2024  2024  2024  2024 
      (Dollars in Thousands) 
    Condensed Results of Operations:                    
    Net interest income $12,403  $12,886  $12,250  $11,234  $11,598 
    Provision (credit) for credit losses  (518)  331   (302)  (279)  105 
    Total noninterest income  1,348   1,595   1,227   1,491   990 
    Noninterest expenses:                    
    Compensation, payroll taxes, and other employee benefits  5,212   4,883   5,326   5,116   5,360 
    Occupancy, office furniture and equipment  1,076   825   904   983   1,000 
    Advertising  171   204   311   229   174 
    Data processing  712   691   720   687   693 
    Communications  100   89   80   72   65 
    Professional fees  347   196   190   177   208 
    Real estate owned  (10)  12   -   1   13 
    Loan processing expense  -   -   -   -   - 
    Other  596   563   602   672   691 
    Total noninterest expense  8,204   7,463   8,133   7,937   8,204 
    Income before income taxes  6,065   6,687   5,646   5,067   4,279 
    Income tax expense  1,427   1,399   941   718   1,639 
    Net income $4,638  $5,288  $4,705  $4,349  $2,640 
                         
    Efficiency ratio - QTD (non-GAAP)  59.66%  51.54%  60.35%  62.37%  65.17%
    Efficiency ratio - YTD (non-GAAP)  59.66%  59.58%  62.58%  63.77%  65.17%


    MORTGAGE BANKING SEGMENT
    SUMMARY OF KEY QUARTERLY FINANCIAL DATA
    (Unaudited)

    		 
      At or For the Three Months Ended 
      March 31,  December 31,  September 30,  June 30,  March 31, 
      2025  2024  2024  2024  2024 
      (Dollars in Thousands) 
    Condensed Results of Operations:                    
    Net interest income (loss) $152  $(92) $(760) $(552) $(541)
    Provision (credit) for credit losses  (40)  36   (75)  54   (38)
    Total noninterest income  15,731   17,455   21,386   25,081   20,328 
    Noninterest expenses:                    
    Compensation, payroll taxes, and other employee benefits  12,054   13,781   15,930   16,886   14,756 
    Occupancy, office furniture and equipment  853   754   953   1,046   1,108 
    Advertising  552   523   615   758   740 
    Data processing  498   542   570   549   508 
    Communications  135   135   152   168   161 
    Professional fees  1,373   917   379   569   520 
    Real estate owned  -   -   -   -   - 
    Loan processing expense  920   486   697   861   1,046 
    Other  1,751   814   1,261   1,641   617 
    Total noninterest expense  18,136   17,952   20,557   22,478   19,456 
    (Loss) income before income taxes (benefit) expense  (2,213)  (625)  144   1,997   369 
    Income tax (benefit) expense  (588)  (428)  194   684   71 
    Net (loss) income $(1,625) $(197) $(50) $1,313  $298 
                         
    Efficiency ratio - QTD (non-GAAP)  114.18%  103.39%  99.67%  91.64%  98.33%
    Efficiency ratio - YTD (non-GAAP)  114.18%  97.74%  96.23%  94.62%  98.33%
                         
    Loan originations $387,729  $470,650  $558,729  $634,109  $485,109 
    Purchase  87.5%  82.1%  88.9%  92.7%  93.0%
    Refinance  12.5%  17.9%  11.1%  7.3%  7.0%
    Gross margin on loans sold(1)  3.98%  3.74%  3.83%  3.93%  4.10%

    (1) Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations


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