Waterstone Financial Reports Stable Earnings Amid Challenges

Waterstone Financial ( (WSBF) ) has released its Q1 earnings. Here is a breakdown of the information Waterstone Financial presented to its investors.

Waterstone Financial, Inc. is a savings and loan holding company for WaterStone Bank, a community-focused financial institution with a strong presence in southeastern Wisconsin and a national mortgage lending arm. The company is known for its commitment to innovation and community service.

In its latest earnings report for the quarter ending March 31, 2025, Waterstone Financial, Inc. announced a net income of $3.0 million, maintaining the same level as the previous year. The company reported an increase in earnings per share and book value per share, despite challenges in its Mortgage Banking segment.

The Community Banking segment showed robust performance, with a 6.9% increase in net interest income and a 32 basis point rise in net interest margin. Asset quality remained strong, with low loan losses contributing to a decrease in provision for credit losses. However, the Mortgage Banking segment faced a pre-tax loss due to decreased loan origination volumes and elevated legal expenses.

Key financial metrics included a consolidated return on average assets of 0.57% and a return on average equity of 3.61%. The company declared dividends of $0.15 per common share and repurchased approximately 237,000 shares. Nonperforming assets and past due loans saw slight increases, reflecting broader market conditions.

Looking ahead, Waterstone Financial, Inc. remains focused on navigating the challenging interest rate environment while leveraging its strong community banking foundation to support growth and shareholder value.