Waterstone Financial | 10-Q: FY2025 Q3 Revenue: USD 51.86 M

Revenue: As of FY2025 Q3, the actual value is USD 51.86 M.

EPS: As of FY2025 Q3, the actual value is USD 0.45.

EBIT: As of FY2025 Q3, the actual value is USD -4.895 M.

Net interest income for the three months ended September 30, 2025, was $14.6 million, an increase from $12.3 million for the same period in 2024. This increase was primarily due to a decrease in interest expense on borrowings as growth in time deposits allowed for a lower average balance of FHLB advances.

There was a negative provision for credit losses of $276,000 for the three months ended September 30, 2025, compared to a negative provision of $302,000 for the same period in 2024. The negative provision for credit losses related to unfunded loan commitments was $139,000 for the quarter ended September 30, 2025, compared to $84,000 for the quarter ended September 30, 2024.

Compensation, payroll taxes, and other employee benefits expense decreased by $290,000 to $5.0 million compared to the quarter ending September 30, 2024, primarily due to a decrease in health insurance expense as claims decreased.

Net income for the three months ended September 30, 2025, was $948,000, compared to a net loss of $50,000 for the same period in 2024. This improvement was driven by a decrease in loan production volume and an increase in gross margin on loans originated and sold.

The segment originated $539.4 million in mortgage loans held for sale during the three months ended September 30, 2025, a decrease of $19.3 million from the $558.7 million originated during the same period in 2024. The decrease was driven by a $10.7 million decrease in purchase products and an $8.6 million decrease in refinance products.

Total mortgage banking noninterest income decreased by $401,000, or 1.9%, to $21.0 million during the three months ended September 30, 2025, compared to $21.4 million during the same period in 2024. This decrease was related to a 3.5% decrease in volume, partially offset by a 1.1% increase in gross margin on loans originated and sold.

Total compensation, payroll taxes, and other employee benefits decreased by $214,000, or 1.3%, to $15.7 million for the three months ended September 30, 2025, compared to $15.9 million for the same period in 2024. This decrease was primarily related to decreased commission expense due to a decrease in loan origination volumes and salary expense due to reduced employee headcount, offset by increases in the annual bonus accrual and sign-on incentives.

Net income for the three months ended September 30, 2025, was $7.9 million, compared to $4.7 million for the same period in 2024.

Basic earnings per share for the three months ended September 30, 2025, were $0.45, compared to $0.26 for the same period in 2024. Diluted earnings per share were also $0.45, compared to $0.26 for the same period in 2024.

The annualized return on average assets for the three months ended September 30, 2025, was 1.42%, compared to 0.83% for the same period in 2024. The annualized return on average equity was 9.14%, compared to 5.55% for the same period in 2024.