Waterstone Financial (WSBF) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $4.7 million, up from $3.3 million in Q3 2023; nine-month net income rose to $13.5 million from $9.4 million year-over-year.

• Earnings per share for Q3 2024 were $0.26 (basic and diluted), compared to $0.16 in Q3 2023; nine-month EPS was $0.72 versus $0.46 year-over-year.

• Return on average assets was 0.83% and return on average equity was 5.55% for Q3 2024, both higher than the prior year.

• Community banking segment generated most net interest income and saw loan and core deposit growth, maintaining strong asset quality.

• Mortgage banking segment returned to profitability despite lower fundings, aided by cost control.

Financial highlights

• Net interest income for Q3 2024 was $11.5 million, down 3.9% from Q3 2023; nine-month net interest income was $33.3 million, down 13.3% year-over-year.

• Total assets increased 1.4% to $2.24 billion at September 30, 2024, driven by higher loans receivable and securities available for sale.

• Loans receivable rose $31.2 million to $1.70 billion; deposits increased $73.2 million to $1.26 billion since year-end 2023.

• Book value per share increased to $17.58 at September 30, 2024, from $16.94 at December 31, 2023.

• Mortgage banking income for Q3 2024 was $21.3 million, nearly flat year-over-year; nine-month mortgage banking income rose 10.6% to $66.2 million.

Outlook and guidance

• Management remains focused on asset quality, cost control, and shareholder returns amid a competitive funding environment.

• Forward-looking statements highlight risks from interest rate changes, competition, regulation, and economic conditions.