Waterstone Financial, Inc. reported a net income of $7.7 million for the three months ended June 30, 2025, a 35.3% increase from $5.7 million in the same period last year. Earnings per share rose to $0.43, compared to $0.31 in the prior year. For the first half of 2025, net income reached $10.8 million, up from $8.8 million in the first half of 2024. The company attributed this growth to a significant increase in net interest income, which rose by 28.4% to $13.7 million in the second quarter, driven by higher yields on loans and a decrease in borrowing costs.
Total assets increased by $47 million, or 2.1%, to $2.26 billion as of June 30, 2025, compared to $2.21 billion at the end of 2024. This growth was primarily fueled by a $31.2 million increase in cash and cash equivalents and a $25.9 million rise in loans held for sale. However, loans receivable decreased by $16.3 million to $1.66 billion, reflecting declines in one-to-four family and multi-family loans, partially offset by increases in commercial real estate and construction loans.
In terms of operational metrics, Waterstone Financial's total deposits increased by $24.8 million to $1.38 billion, with notable growth in demand deposits and money market accounts. Borrowings also rose by $19.2 million to $465.7 million, reflecting a strategic shift towards long-term funding sources. The company maintained a strong capital position, with shareholders' equity increasing to $341.5 million, supported by improved valuations of its securities portfolio.
The company reported a negative provision for credit losses of $9,000 in the second quarter, compared to a negative provision of $225,000 in the same quarter last year. This reflects a favorable trend in asset quality, with non-accrual loans increasing to $8.2 million, representing 0.49% of total loans. The allowance for credit losses decreased to $17.8 million, indicating effective management of credit risk.
Looking ahead, Waterstone Financial anticipates continued growth in net interest income, supported by its strategic focus on managing interest rate risk and optimizing its loan portfolio. The company remains committed to enhancing its operational efficiency and expanding its market presence, particularly in the mortgage banking segment, which has seen fluctuations in loan origination volumes. Overall, the outlook remains positive as the company navigates the evolving economic landscape.
About Waterstone Financial, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.