- Waterstone Financial's Q1 2025 net income remained steady at $3.0 million, with earnings per share slightly improving to $0.17.
- The Community Banking segment reported a robust 41.7% increase in pre-tax income, with net interest margin rising by 32 basis points to 2.47%.
- The Mortgage Banking segment encountered challenges with a $2.2 million pre-tax loss, attributed to decreased loan origination volumes and increased legal expenses.
Waterstone Financial, Inc. (WSBF, Financial) announced its financial results for the quarter ended March 31, 2025, reporting a net income of $3.0 million, or $0.17 per diluted share, matching its net income from the same quarter in 2024, which was $3.0 million or $0.16 per diluted share.
The company's Community Banking segment showcased significant growth, with a 41.7% increase in pre-tax income to $6.1 million. Additionally, the segment saw a 6.9% rise in net interest income, amounting to $12.4 million, and an improvement in net interest margin by 32 basis points to 2.47%.
However, the Mortgage Banking segment faced substantial headwinds, posting a pre-tax loss of $2.2 million. This loss was driven by a 20.1% reduction in loan origination volumes, which dropped to $387.7 million, and a decline of 22.6% in non-interest income from mortgage banking to $15.7 million. Legal expenses also spiked due to a settlement, impacting the segment's overall performance.
Waterstone Financial continued its shareholder-friendly capital management strategies, repurchasing approximately 237,000 shares at an average price of $13.37 per share, totaling $3.2 million. The company maintained its quarterly dividend at $0.15 per share, and the book value per share increased to $17.70 from $17.53 at the end of December 2024.
