Waterstone Financial (WSBF) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $5.7 million, up from $4.0 million in Q2 2023; six-month net income was $8.8 million, up from $6.2 million year-over-year.

• Earnings per share for Q2 2024 were $0.31 (basic and diluted), compared to $0.20 in Q2 2023; six-month EPS was $0.47, up from $0.30.

• Results reflect improved efficiencies in mortgage banking, but community banking faced margin pressure and higher past due loans.

• Total assets increased 3.4% to $2.29 billion at June 30, 2024, driven by higher loans receivable and loans held for sale.

• Continued robust share repurchase program, with 481,018 shares repurchased at an average price near $11.90 per share.

Financial highlights

• Net interest income for Q2 2024 was $10.7 million, down 15.7% from $12.7 million in Q2 2023; six-month net interest income was $21.8 million, down 17.6% year-over-year.

• Noninterest income rose 12.6% to $26.5 million in Q2 2024, mainly from higher mortgage banking income; six-month noninterest income was $47.7 million, up 13.5%.

• Noninterest expenses decreased 2.1% to $30.3 million in Q2 2024 and 3.7% to $57.8 million for the six months.

• Annualized return on average assets was 1.02% for Q2 2024 and 0.79% for the six months; return on average equity was 6.84% and 5.17%, respectively.

• Book value per share rose to $17.20 at June 30, 2024, from $16.94 at December 31, 2023.

Outlook and guidance

• Management remains cautious due to ongoing challenges in mortgage banking, including consumer demand, inventory, and interest rates.

• Community banking faces continued margin pressure from elevated short-term funding rates.

• No material changes in risk factors or forward-looking statements since the last annual report.