Waterstone Financial Q2 EPS Tops 43c, Book Value Per Share at $18.19

Waterstone Financial reported Q2 EPS of 43 cents, up from 31 cents last year. Book value per share was $18.19 at June 30. CEO William Bruss attributed the performance to strong asset quality and minimal loan loss activity. The Community Banking segment saw $2.4 million in net interest income growth, while the Mortgage Banking segment recorded pre-tax income due to increased loan origination volumes and normalized professional fees. The company continues to add to book value per share through strong earnings and an active share repurchase program.

Waterstone Financial Inc. (WSBF) reported its second-quarter (Q2) 2025 earnings, highlighting strong performance across its Community Banking and Mortgage Banking segments. The company reported net income of $7.7 million, or $0.43 per diluted share, up from $5.7 million, or $0.31 per share, in the same period last year [1].

The Community Banking segment was a standout performer, with a $2.4 million increase in net interest income to $13.6 million. This growth was primarily driven by a 59 basis point increase in net interest margin to 2.60%, attributed to higher loan yields and lower funding costs [3]. The segment also saw a significant improvement in asset quality, with nonperforming assets at 0.37% of total assets, compared to 0.25% year-ago [3].

The Mortgage Banking segment recorded pre-tax income of $2.0 million, driven by increased loan origination volumes and normalized professional fees following the finalization of a legal settlement in the prior quarter [1]. Loan originations totaled $588.8 million, although this was a slight decline from the previous year [3]. The segment's performance was also impacted by a 9.7% decrease in mortgage banking income to $22.6 million, with margins compressing to 3.84% from 3.93% [3].

Waterstone Financial maintained strong asset quality and experienced minimal loan loss activity, resulting in a negative loan loss provision of $125,000 [3]. The company's efficiency ratio improved substantially to 50.40% from 62.37% last year, reflecting better operational leverage [3].

The company's book value per share increased to $18.19 from $17.53 at year-end 2024, driven by strong earnings and an active share repurchase program. The company repurchased approximately 508,000 shares at $12.80 per share, contributing $0.14 to book value growth [3].

CEO William Bruss attributed the company's performance to strong asset quality and minimal loan loss activity, stating, "We are pleased with our performance during the quarter, which resulted in our highest quarterly earnings per share since the quarter ended December 31, 2021" [1].

References:
[1] https://www.tipranks.com/news/the-fly/waterstone-financial-reports-q2-eps-43c-vs-31c-last-year-thefly
[2] https://finance.yahoo.com/news/waterstone-q2-earnings-snapshot-200800437.html
[3] https://www.stocktitan.net/news/WSBF/waterstone-financial-inc-announces-results-of-operations-for-the-yx6xpn0ge4jn.html