Waterstone Financial, Inc. reported a net income of $7.9 million for the third quarter of 2025, a significant increase from $4.7 million in the same period last year. This translates to earnings per share of $0.45, up from $0.26 in the prior year. For the nine months ending September 30, 2025, the company achieved a net income of $18.7 million, compared to $13.5 million for the same period in 2024. The increase in profitability is attributed to a rise in net interest income, which reached $14.7 million for the quarter, up from $11.5 million a year earlier, driven by improved yields on loans and a decrease in borrowing costs.
Total assets for Waterstone Financial increased by $59.6 million, or 2.7%, to $2.27 billion as of September 30, 2025, compared to $2.21 billion at the end of 2024. This growth was primarily fueled by increases in cash and cash equivalents, loans held for investment, and securities available for sale. Cash and cash equivalents rose by 35.2% to $53.8 million, while loans receivable increased by $34.3 million to $1.71 billion, reflecting growth in multi-family, commercial real estate, and construction loan categories.
In terms of operational metrics, the company reported a decrease in loans held for sale, which fell to $135.7 million, attributed to seasonal slowdowns. The total deposits increased by $26.1 million to $1.39 billion, driven by growth in demand deposits and money market accounts. Borrowings also rose by 5.0% to $469.1 million, reflecting a strategic shift towards funding through deposits rather than higher-cost borrowings.
The company’s allowance for credit losses decreased to $17.7 million, with a negative provision for credit losses of $599,000 for the nine months ended September 30, 2025. This reduction was primarily due to improved historical loss rates and qualitative factors. Non-accrual loans increased slightly to $6.0 million, representing 0.35% of total loans, while total past due loans decreased significantly to $8.5 million, down from $15.1 million at the end of 2024.
Looking ahead, Waterstone Financial remains focused on managing its interest rate risk and maintaining its capital position. The company is well-capitalized, exceeding all regulatory requirements, and plans to continue leveraging its community banking and mortgage banking segments to drive growth. The management anticipates that ongoing economic conditions and interest rate fluctuations will influence future performance, and they are prepared to adapt their strategies accordingly.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is a community-focused bank providing retail banking, mortgage lending, and investment services. Its primary activities include originating residential and commercial real estate loans, offering deposit products, and managing a diverse securities portfolio. Serving primarily Wisconsin and select states through its bank and mortgage subsidiary, it emphasizes relationship banking, asset quality, and prudent risk management within a competitive financial landscape.
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