Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2022
26 Ottobre 2022 - 10:01PM
Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for
WaterStone Bank, reported net income of $5.3 million, or
$0.25 per diluted share for the quarter ended September
30, 2022 compared to $19.0 million, or $0.79 per diluted
share for the quarter ended September 30, 2021. Net income per
diluted share was $0.83 for the nine months ended September
30, 2022 compared to net income per diluted share of $2.43 for
the nine months ended September 30, 2021.
"We were pleased with the execution of the
community banking segment as loan growth remained
strong through the quarter,” said Douglas Gordon, Chief
Executive Officer of Waterstone Financial, Inc. “We were able to
grow our net interest income and expand margin at the
community banking segment as we deployed our cash to fund loans.
The results of the mortgage banking segment were disappointing
and reflect the significant headwinds that the industry continues
to face due to an increase in rates and resulting decline in
demand. We continue to execute on cost containment measures, while
we also seek opportunities to add production talent.”
Highlights of the Quarter Ended September 30, 2022
Waterstone Financial, Inc. (Consolidated)
- Consolidated net income of
Waterstone Financial, Inc. totaled $5.3 million for the quarter
ended September 30, 2022, compared to $19.0 million for the quarter
ended September 30, 2021.
- Consolidated return on average
assets was 1.08% for the quarter ended September 30, 2022 compared
to 3.38% for the quarter ended September 30, 2021.
- Consolidated return on average
equity was 5.38% for the quarter ended September 30, 2022 and
17.25% for the quarter ended September 30, 2021.
- Dividends declared during the
quarter ended September 30, 2022 totaled $0.20 per common
share.
- We repurchased approximately
425,000 shares at a cost of $7.3 million, or $17.05 per share,
during the quarter ended September 30, 2022.
- Nonperforming assets as percentage
of total assets was 0.27% at September 30, 2022, 0.39% at June 30,
2022, and 0.18% at September 30, 2021.
- Past due loans as percentage of
total loans was 0.48% at September 30, 2022, 0.60% at June 30,
2022, and 0.92% at September 30, 2021.
- Book value per share was $16.86 at
September 30, 2022 and $17.45 at December 31, 2021. The
decrease reflects an $0.80 per share impact resulting from an
increase in the unrealized loss on available for sale
securities.
Community Banking Segment
- Pre-tax income totaled $8.5 million
for the quarter ended September 30, 2022, which represents a
$309,000, or 3.5%, decrease compared to $8.9 million for the
quarter ended September 30, 2021.
- Net interest income totaled $15.5
million for the quarter ended September 30, 2022, which represents
a $1.4 million, or 10.1%, increase compared to $14.1 million for
the quarter ended September 30, 2021.
- Average loans held for investment
totaled $1.31 billion during the quarter ended September 30, 2022,
which represents an increase of $55.4 million, or 4.4%, compared to
$1.26 billion for the quarter ended September 30, 2021. Average
loans held for investment increased $63.7 million compared to $1.25
billion for the quarter ended June 30, 2022.
- Net interest margin increased 66
basis points to 3.34% for the quarter ended September 30, 2022
compared to 2.68% for the quarter ended September 30, 2021, which
was a result of a decrease in the average balance of cash, as funds
were utilized to fund loans held for investment, purchase
investment securities and pay down borrowings. In addition, yields
increased on loans receivable, loans held for sale, mortgage
related securities, debt securities, federal funds sold and short
term investments category. Net interest margin increased 32 basis
points compared to 3.02% for the quarter ended June 30, 2022,
driven by an increase in weighted average yield on loans and
weighted average yield on average debt securities, federal funds
sold and short term investments. In addition, excess cash was
utilized to fund loans held for investment and pay down
borrowings.
- The segment had a provision for
credit losses of $234,000 for the quarter ended September 30, 2022
compared to a negative provision for loan losses of $750,000 for
the quarter ended September 30, 2021. The increase was
primarily due to an increase in loans held for investment during
the quarter.
- The efficiency ratio was 47.16% for
the quarter ended September 30, 2022, compared to 48.74% for the
quarter ended September 30, 2021.
- Average deposits (excluding escrow
accounts) totaled $1.19 billion during the quarter ended September
30, 2022, a decrease of $62.7 million, or 5.0%, compared to $1.25
billion during the quarter ended September 30, 2021. Average
deposits decreased $14.9 million, or 4.9% annualized compared to
the $1.21 billion for the quarter ended June 30, 2022.
- Other noninterest expense increased
$1.1 million to $1.5 million during the quarter ended September 30,
2022 compared to $422,000 during the quarter ended September 30,
2021. The increase was driven by fees paid to the mortgage banking
segment for the purchase of single-family adjustable rate mortgage
loans. These fees are eliminated in the consolidated statements of
income.
Mortgage Banking Segment
-
Pre-tax loss totaled $1.8 million for the quarter ended September
30, 2022, compared to $15.6 million for the quarter ended September
30, 2021.
-
There was a $4.0 million gain on sale of mortgage servicing rights
during the three months ended September 30, 2021 compared to none
during the three months ended September 30, 2022.
-
Loan originations decreased $286.4 million, or 26.9%, to $778.8
million during the quarter ended September 30, 2022, compared to
$1.06 billion during the quarter ended September 30, 2021.
Origination volume relative to purchase activity accounted for
90.4% of originations for the quarter ended September 30, 2022
compared to 73.8% of total originations for the quarter ended
September 30, 2021.
-
Mortgage banking non-interest income decreased $24.0 million, or
46.8%, to $27.3 million for the quarter ended September 30, 2022,
compared to $51.3 million for the quarter ended September 30,
2021.
-
Gross margin on loans sold decreased to 3.80% for the quarter ended
September 30, 2022, compared to 4.54% for the quarter ended
September 30, 2021.
-
Total compensation, payroll taxes and other employee benefits
decreased $7.1 million, or 24.6%, to $21.8 million during the
quarter ended September 30, 2022 compared to $29.0 million during
the quarter ended September 30, 2021. The decrease primarily
related to decreased commission expense and branch manager
compensation driven by decreased loan origination volume and branch
profitability as gross margins decreased.
-
Other noninterest expense increased $301,000 to $2.6 million during
the quarter ended September 30, 2022 compared to $2.3 million
during the quarter ended September 30, 2021. The increase related
to an increase in provision of loan sale losses.
-
During the nine months ended September 30, 2022 the segment has
added 11 branches and a total of 130 loan origination
personnel. Losses associated with these new branches totaled
approximately $683,000 for the quarter ended September 30, 2022 and
$1.2 million for the nine months ended September 30, 2022. These
branch losses are net of corporate revenue of approximately
$492,000 for the quarter ended September 30, 2022 and $599,000 for
the nine months ended September 30, 2022.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and
loan holding company for WaterStone Bank. WaterStone Bank was
established in 1921 and offers a full suite of personal and
business banking products. The Bank has branches in Wauwatosa/State
St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners,
Germantown/Menomonee Falls, Greenfield/Loomis Rd,
Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave,
Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield
Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the
parent company to Waterstone Mortgage, which has the ability to
lend in 48 states. For more information about WaterStone Bank, go
to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains statements or
information that may constitute forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, statements regarding
expected financial and operating activities and results that are
preceded by, followed by, or that include words such as “may,”
“expects,” “anticipates,” “estimates” or “believes.” Any such
statements are based upon current expectations that involve a
number of risks and uncertainties and are subject to important
factors that could cause actual results to differ materially from
those anticipated by the forward-looking statements. Factors
that might cause such a difference include changes in interest
rates; demand for products and services; the degree of competition
by traditional and nontraditional competitors; changes in banking
regulation or actions by bank regulators; changes in tax laws; the
impact of technological advances; governmental and regulatory
policy changes; the outcomes of contingencies; trends in customer
behavior as well as their ability to repay loans; changes in local
real estate values; changes in the national and local economies,
including significant disruption to financial market and other
economic activity caused by the outbreak of COVID-19; and other
factors, including risk factors referenced in Item 1A. Risk Factors
in Waterstone’s most recent Annual Report on Form 10-K and as may
be described from time to time in Waterstone’s subsequent SEC
filings, which factors are incorporated herein by reference.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect only Waterstone’s belief
as of the date of this press release.
WATERSTONE FINANCIAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
For The Three Months Ended September 30, |
|
|
For The Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(In Thousands, except per share amounts) |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
16,235 |
|
|
$ |
16,131 |
|
|
$ |
44,281 |
|
|
$ |
49,214 |
|
Mortgage-related
securities |
|
|
903 |
|
|
|
471 |
|
|
|
2,326 |
|
|
|
1,448 |
|
Debt securities, federal funds
sold and short-term investments |
|
|
987 |
|
|
|
904 |
|
|
|
2,964 |
|
|
|
2,637 |
|
Total interest income |
|
|
18,125 |
|
|
|
17,506 |
|
|
|
49,571 |
|
|
|
53,299 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
981 |
|
|
|
947 |
|
|
|
2,511 |
|
|
|
3,542 |
|
Borrowings |
|
|
1,746 |
|
|
|
2,445 |
|
|
|
5,717 |
|
|
|
7,414 |
|
Total interest expense |
|
|
2,727 |
|
|
|
3,392 |
|
|
|
8,228 |
|
|
|
10,956 |
|
Net interest income |
|
|
15,398 |
|
|
|
14,114 |
|
|
|
41,343 |
|
|
|
42,343 |
|
Provision (credit) for credit
losses (1) |
|
|
332 |
|
|
|
(700 |
) |
|
|
304 |
|
|
|
(2,520 |
) |
Net interest income after
provision for loan losses |
|
|
15,066 |
|
|
|
14,814 |
|
|
|
41,039 |
|
|
|
44,863 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on loans and
deposits |
|
|
529 |
|
|
|
1,136 |
|
|
|
1,705 |
|
|
|
2,483 |
|
Increase in cash surrender
value of life insurance |
|
|
354 |
|
|
|
312 |
|
|
|
1,394 |
|
|
|
1,297 |
|
Mortgage banking income |
|
|
26,064 |
|
|
|
46,547 |
|
|
|
83,749 |
|
|
|
150,587 |
|
Other |
|
|
457 |
|
|
|
4,941 |
|
|
|
1,612 |
|
|
|
6,812 |
|
Total noninterest income |
|
|
27,404 |
|
|
|
52,936 |
|
|
|
88,460 |
|
|
|
161,179 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, payroll taxes,
and other employee benefits |
|
|
26,174 |
|
|
|
34,229 |
|
|
|
77,502 |
|
|
|
102,278 |
|
Occupancy, office furniture,
and equipment |
|
|
2,296 |
|
|
|
2,488 |
|
|
|
6,540 |
|
|
|
7,346 |
|
Advertising |
|
|
1,137 |
|
|
|
835 |
|
|
|
3,004 |
|
|
|
2,570 |
|
Data processing |
|
|
1,084 |
|
|
|
986 |
|
|
|
3,430 |
|
|
|
2,871 |
|
Communications |
|
|
302 |
|
|
|
331 |
|
|
|
900 |
|
|
|
988 |
|
Professional fees |
|
|
393 |
|
|
|
550 |
|
|
|
1,203 |
|
|
|
804 |
|
Real estate owned |
|
|
1 |
|
|
|
1 |
|
|
|
6 |
|
|
|
(11 |
) |
Loan processing expense |
|
|
1,120 |
|
|
|
1,135 |
|
|
|
3,685 |
|
|
|
3,670 |
|
Other |
|
|
3,187 |
|
|
|
2,768 |
|
|
|
9,408 |
|
|
|
9,104 |
|
Total noninterest
expenses |
|
|
35,694 |
|
|
|
43,323 |
|
|
|
105,678 |
|
|
|
129,620 |
|
Income before income
taxes |
|
|
6,776 |
|
|
|
24,427 |
|
|
|
23,821 |
|
|
|
76,422 |
|
Income tax expense |
|
|
1,506 |
|
|
|
5,427 |
|
|
|
5,269 |
|
|
|
18,184 |
|
Net income |
|
$ |
5,270 |
|
|
$ |
19,000 |
|
|
$ |
18,552 |
|
|
$ |
58,238 |
|
Income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.25 |
|
|
$ |
0.80 |
|
|
$ |
0.84 |
|
|
$ |
2.45 |
|
Diluted |
|
$ |
0.25 |
|
|
$ |
0.79 |
|
|
$ |
0.83 |
|
|
$ |
2.43 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
21,342 |
|
|
|
23,785 |
|
|
|
22,193 |
|
|
|
23,790 |
|
Diluted |
|
|
21,454 |
|
|
|
23,960 |
|
|
|
22,323 |
|
|
|
23,987 |
|
(1) The Company adopted ASU 2016-13 as of January 1,
2022. The 2021 amount presented is calculated under the
prior accounting standard.
WATERSTONE FINANCIAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION
|
|
September 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Unaudited) |
|
|
|
|
|
Assets |
|
(In Thousands, except per share amounts) |
|
Cash |
|
$ |
37,231 |
|
|
$ |
343,016 |
|
Federal funds sold |
|
|
16,007 |
|
|
|
13,981 |
|
Interest-earning deposits in
other financial institutions and other short term investments |
|
|
19,703 |
|
|
|
19,725 |
|
Cash and cash equivalents |
|
|
72,941 |
|
|
|
376,722 |
|
Securities available for sale
(at fair value) |
|
|
197,298 |
|
|
|
179,016 |
|
Loans held for sale (at fair
value) |
|
|
186,049 |
|
|
|
312,738 |
|
Loans receivable |
|
|
1,354,465 |
|
|
|
1,205,785 |
|
Less: Allowance for credit
losses ("ACL") - loans (1) |
|
|
17,452 |
|
|
|
15,778 |
|
Loans receivable, net |
|
|
1,337,013 |
|
|
|
1,190,007 |
|
|
|
|
|
|
|
|
|
|
Office properties and
equipment, net |
|
|
21,491 |
|
|
|
22,273 |
|
Federal Home Loan Bank stock
(at cost) |
|
|
15,750 |
|
|
|
24,438 |
|
Cash surrender value of life
insurance |
|
|
66,099 |
|
|
|
65,368 |
|
Real estate owned, net |
|
|
148 |
|
|
|
148 |
|
Prepaid expenses and other
assets |
|
|
78,262 |
|
|
|
45,148 |
|
Total assets |
|
$ |
1,975,051 |
|
|
$ |
2,215,858 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
246,487 |
|
|
$ |
214,409 |
|
Money market and savings
deposits |
|
|
346,960 |
|
|
|
392,314 |
|
Time deposits |
|
|
593,681 |
|
|
|
626,663 |
|
Total deposits |
|
|
1,187,128 |
|
|
|
1,233,386 |
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
319,951 |
|
|
|
477,127 |
|
Advance payments by borrowers
for taxes |
|
|
24,084 |
|
|
|
4,094 |
|
Other liabilities |
|
|
67,714 |
|
|
|
68,478 |
|
Total liabilities |
|
|
1,598,877 |
|
|
|
1,783,085 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
- |
|
|
|
- |
|
Common stock |
|
|
223 |
|
|
|
248 |
|
Additional paid-in
capital |
|
|
130,731 |
|
|
|
174,505 |
|
Retained earnings |
|
|
277,514 |
|
|
|
273,398 |
|
Unearned ESOP shares |
|
|
(13,353 |
) |
|
|
(14,243 |
) |
Accumulated other
comprehensive loss, net of taxes |
|
|
(18,941 |
) |
|
|
(1,135 |
) |
Total shareholders'
equity |
|
|
376,174 |
|
|
|
432,773 |
|
Total liabilities and
shareholders' equity |
|
$ |
1,975,051 |
|
|
$ |
2,215,858 |
|
|
|
|
|
|
|
|
|
|
Share
Information |
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
22,318 |
|
|
|
24,795 |
|
Book value per share |
|
$ |
16.86 |
|
|
$ |
17.45 |
|
|
|
|
|
|
|
|
|
|
(1) The Company adopted ASU 2016-13 as of January 1,
2022. The 2021 amount presented is calculated under the
prior accounting standard.
WATERSTONE FINANCIAL, INC. AND
SUBSIDIARIESSUMMARY OF KEY QUARTERLY FINANCIAL
DATA(Unaudited)
|
|
At or For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
(Dollars in Thousands, except per share amounts) |
|
Condensed Results of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
15,398 |
|
|
$ |
14,081 |
|
|
$ |
11,864 |
|
|
$ |
13,172 |
|
|
$ |
14,114 |
|
Provision (credit) for credit
losses (1) |
|
|
332 |
|
|
|
48 |
|
|
|
(76 |
) |
|
|
(1,470 |
) |
|
|
(700 |
) |
Total noninterest income |
|
|
27,404 |
|
|
|
31,238 |
|
|
|
29,818 |
|
|
|
42,016 |
|
|
|
52,936 |
|
Total noninterest expense |
|
|
35,694 |
|
|
|
35,050 |
|
|
|
34,935 |
|
|
|
40,974 |
|
|
|
43,323 |
|
Income before income
taxes |
|
|
6,776 |
|
|
|
10,221 |
|
|
|
6,823 |
|
|
|
15,684 |
|
|
|
24,427 |
|
Income tax expense |
|
|
1,506 |
|
|
|
2,231 |
|
|
|
1,532 |
|
|
|
3,131 |
|
|
|
5,427 |
|
Net income |
|
$ |
5,270 |
|
|
$ |
7,990 |
|
|
$ |
5,291 |
|
|
$ |
12,553 |
|
|
$ |
19,000 |
|
Income per share – basic |
|
$ |
0.25 |
|
|
$ |
0.36 |
|
|
$ |
0.23 |
|
|
$ |
0.53 |
|
|
$ |
0.80 |
|
Income per share –
diluted |
|
$ |
0.25 |
|
|
$ |
0.36 |
|
|
$ |
0.23 |
|
|
$ |
0.53 |
|
|
$ |
0.79 |
|
Dividends declared per
share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.70 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets -
QTD |
|
|
1.08 |
% |
|
|
1.61 |
% |
|
|
1.00 |
% |
|
|
2.22 |
% |
|
|
3.38 |
% |
Return on average equity -
QTD |
|
|
5.38 |
% |
|
|
7.93 |
% |
|
|
5.00 |
% |
|
|
11.14 |
% |
|
|
17.25 |
% |
Net interest margin - QTD |
|
|
3.34 |
% |
|
|
3.02 |
% |
|
|
2.38 |
% |
|
|
2.47 |
% |
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets -
YTD |
|
|
1.22 |
% |
|
|
1.30 |
% |
|
|
1.00 |
% |
|
|
3.20 |
% |
|
|
3.54 |
% |
Return on average equity -
YTD |
|
|
6.09 |
% |
|
|
6.42 |
% |
|
|
5.00 |
% |
|
|
16.38 |
% |
|
|
18.08 |
% |
Net interest margin - YTD |
|
|
2.90 |
% |
|
|
2.69 |
% |
|
|
2.38 |
% |
|
|
2.68 |
% |
|
|
2.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
|
0.48 |
% |
|
|
0.60 |
% |
|
|
0.53 |
% |
|
|
0.59 |
% |
|
|
0.92 |
% |
Nonaccrual loans to total
loans |
|
|
0.37 |
% |
|
|
0.59 |
% |
|
|
0.55 |
% |
|
|
0.46 |
% |
|
|
0.32 |
% |
Nonperforming assets to total
assets |
|
|
0.27 |
% |
|
|
0.39 |
% |
|
|
0.34 |
% |
|
|
0.26 |
% |
|
|
0.18 |
% |
Allowance for credit losses to
loans receivable (1) |
|
|
1.29 |
% |
|
|
1.35 |
% |
|
|
1.40 |
% |
|
|
1.31 |
% |
|
|
1.37 |
% |
(1) The Company adopted ASU 2016-13 as of January 1,
2022. The 2021 amounts presented are calculated
under the prior accounting standard.
WATERSTONE FINANCIAL, INC. AND
SUBSIDIARIESSUMMARY OF QUARTERLY AVERAGE BALANCES
AND YIELD/COSTS(Unaudited)
|
|
At or For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
Average
balances |
|
(Dollars in Thousands) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and held for
sale |
|
$ |
1,492,462 |
|
|
$ |
1,433,452 |
|
|
$ |
1,361,839 |
|
|
$ |
1,517,984 |
|
|
$ |
1,573,194 |
|
Mortgage related
securities |
|
|
172,807 |
|
|
|
168,000 |
|
|
|
138,863 |
|
|
|
119,709 |
|
|
|
108,743 |
|
Debt securities, federal funds
sold and short term investments |
|
|
162,211 |
|
|
|
269,823 |
|
|
|
519,116 |
|
|
|
475,574 |
|
|
|
409,559 |
|
Total interest-earning assets |
|
|
1,827,480 |
|
|
|
1,871,275 |
|
|
|
2,019,818 |
|
|
|
2,113,267 |
|
|
|
2,091,496 |
|
Noninterest-earning
assets |
|
|
114,274 |
|
|
|
117,248 |
|
|
|
128,813 |
|
|
|
131,703 |
|
|
|
137,454 |
|
Total assets |
|
$ |
1,941,754 |
|
|
$ |
1,988,523 |
|
|
$ |
2,148,631 |
|
|
$ |
2,244,970 |
|
|
$ |
2,228,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand accounts |
|
$ |
75,058 |
|
|
$ |
70,674 |
|
|
$ |
69,736 |
|
|
$ |
70,762 |
|
|
$ |
68,478 |
|
Money market, savings, and
escrow accounts |
|
|
398,643 |
|
|
|
412,321 |
|
|
|
404,413 |
|
|
|
398,210 |
|
|
|
391,599 |
|
Certificates of deposit |
|
|
586,012 |
|
|
|
584,244 |
|
|
|
610,681 |
|
|
|
643,546 |
|
|
|
663,343 |
|
Total interest-bearing deposits |
|
|
1,059,713 |
|
|
|
1,067,239 |
|
|
|
1,084,830 |
|
|
|
1,112,518 |
|
|
|
1,123,420 |
|
Borrowings |
|
|
296,111 |
|
|
|
326,068 |
|
|
|
440,252 |
|
|
|
481,971 |
|
|
|
475,000 |
|
Total interest-bearing liabilities |
|
|
1,355,824 |
|
|
|
1,393,307 |
|
|
|
1,525,082 |
|
|
|
1,594,489 |
|
|
|
1,598,420 |
|
Noninterest-bearing demand
deposits |
|
|
153,591 |
|
|
|
154,070 |
|
|
|
152,900 |
|
|
|
153,303 |
|
|
|
153,436 |
|
Noninterest-bearing
liabilities |
|
|
43,683 |
|
|
|
36,962 |
|
|
|
41,232 |
|
|
|
49,982 |
|
|
|
40,148 |
|
Total liabilities |
|
|
1,553,098 |
|
|
|
1,584,339 |
|
|
|
1,719,214 |
|
|
|
1,797,774 |
|
|
|
1,792,004 |
|
Equity |
|
|
388,656 |
|
|
|
404,184 |
|
|
|
429,417 |
|
|
|
447,196 |
|
|
|
436,946 |
|
Total liabilities and equity |
|
$ |
1,941,754 |
|
|
$ |
1,988,523 |
|
|
$ |
2,148,631 |
|
|
$ |
2,244,970 |
|
|
$ |
2,228,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield/Costs
(annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and held for
sale |
|
|
4.32 |
% |
|
|
4.07 |
% |
|
|
4.02 |
% |
|
|
3.96 |
% |
|
|
4.07 |
% |
Mortgage related
securities |
|
|
2.07 |
% |
|
|
1.96 |
% |
|
|
1.76 |
% |
|
|
1.68 |
% |
|
|
1.72 |
% |
Debt securities, federal funds
sold and short term investments |
|
|
2.41 |
% |
|
|
1.56 |
% |
|
|
0.72 |
% |
|
|
0.77 |
% |
|
|
0.88 |
% |
Total interest-earning assets |
|
|
3.93 |
% |
|
|
3.52 |
% |
|
|
3.02 |
% |
|
|
3.11 |
% |
|
|
3.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand accounts |
|
|
0.08 |
% |
|
|
0.09 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
Money market and savings
accounts |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.24 |
% |
Certificates of deposit |
|
|
0.51 |
% |
|
|
0.37 |
% |
|
|
0.37 |
% |
|
|
0.40 |
% |
|
|
0.42 |
% |
Total interest-bearing deposits |
|
|
0.37 |
% |
|
|
0.28 |
% |
|
|
0.29 |
% |
|
|
0.31 |
% |
|
|
0.33 |
% |
Borrowings |
|
|
2.34 |
% |
|
|
1.95 |
% |
|
|
2.20 |
% |
|
|
2.09 |
% |
|
|
2.04 |
% |
Total interest-bearing liabilities |
|
|
0.80 |
% |
|
|
0.67 |
% |
|
|
0.84 |
% |
|
|
0.85 |
% |
|
|
0.84 |
% |
COMMUNITY BANKING
SEGMENTSUMMARY OF KEY QUARTERLY FINANCIAL
DATA(Unaudited)
|
|
At or For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
(Dollars in Thousands) |
|
Condensed Results of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
15,507 |
|
|
$ |
13,710 |
|
|
$ |
11,652 |
|
|
$ |
13,197 |
|
|
$ |
14,090 |
|
Provision (credit) for credit
losses (1) |
|
|
234 |
|
|
|
(41 |
) |
|
|
(140 |
) |
|
|
(1,500 |
) |
|
|
(750 |
) |
Total noninterest income |
|
|
1,116 |
|
|
|
1,640 |
|
|
|
1,432 |
|
|
|
1,459 |
|
|
|
1,726 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, payroll taxes,
and other employee benefits |
|
|
4,424 |
|
|
|
4,596 |
|
|
|
5,212 |
|
|
|
5,085 |
|
|
|
5,360 |
|
Occupancy, office furniture
and equipment |
|
|
955 |
|
|
|
876 |
|
|
|
937 |
|
|
|
960 |
|
|
|
909 |
|
Advertising |
|
|
213 |
|
|
|
244 |
|
|
|
227 |
|
|
|
278 |
|
|
|
233 |
|
Data processing |
|
|
539 |
|
|
|
531 |
|
|
|
608 |
|
|
|
531 |
|
|
|
531 |
|
Communications |
|
|
108 |
|
|
|
63 |
|
|
|
94 |
|
|
|
100 |
|
|
|
122 |
|
Professional fees |
|
|
123 |
|
|
|
118 |
|
|
|
114 |
|
|
|
151 |
|
|
|
130 |
|
Real estate owned |
|
|
1 |
|
|
|
- |
|
|
|
5 |
|
|
|
14 |
|
|
|
1 |
|
Loan processing expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other |
|
|
1,477 |
|
|
|
1,006 |
|
|
|
600 |
|
|
|
651 |
|
|
|
422 |
|
Total noninterest expense |
|
|
7,840 |
|
|
|
7,434 |
|
|
|
7,797 |
|
|
|
7,770 |
|
|
|
7,708 |
|
Income before income
taxes |
|
|
8,549 |
|
|
|
7,957 |
|
|
|
5,427 |
|
|
|
8,386 |
|
|
|
8,858 |
|
Income tax expense |
|
|
1,983 |
|
|
|
1,658 |
|
|
|
1,167 |
|
|
|
1,690 |
|
|
|
2,092 |
|
Net income |
|
$ |
6,566 |
|
|
$ |
6,299 |
|
|
$ |
4,260 |
|
|
$ |
6,696 |
|
|
$ |
6,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - QTD |
|
|
47.16 |
% |
|
|
48.43 |
% |
|
|
59.59 |
% |
|
|
53.02 |
% |
|
|
48.74 |
% |
Efficiency ratio - YTD |
|
|
51.20 |
% |
|
|
53.57 |
% |
|
|
59.59 |
% |
|
|
48.58 |
% |
|
|
47.21 |
% |
(1) The Company adopted ASU 2016-13 as of January 1,
2022. The 2021 amounts presented are calculated
under the prior accounting standard.
MORTGAGE BANKING
SEGMENTSUMMARY OF KEY QUARTERLY FINANCIAL
DATA(Unaudited)
|
|
At or For the Three Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
(Dollars in Thousands) |
|
Condensed Results of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
(155 |
) |
|
$ |
370 |
|
|
$ |
183 |
|
|
$ |
(49 |
) |
|
$ |
(2 |
) |
Provision (credit) for credit
losses (2) |
|
|
98 |
|
|
|
89 |
|
|
|
64 |
|
|
|
30 |
|
|
|
50 |
|
Total noninterest income |
|
|
27,305 |
|
|
|
30,126 |
|
|
|
28,604 |
|
|
|
40,692 |
|
|
|
51,290 |
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, payroll taxes,
and other employee benefits |
|
|
21,864 |
|
|
|
21,311 |
|
|
|
20,438 |
|
|
|
27,866 |
|
|
|
28,981 |
|
Occupancy, office furniture
and equipment |
|
|
1,341 |
|
|
|
1,180 |
|
|
|
1,251 |
|
|
|
1,306 |
|
|
|
1,579 |
|
Advertising |
|
|
924 |
|
|
|
718 |
|
|
|
678 |
|
|
|
680 |
|
|
|
602 |
|
Data processing |
|
|
543 |
|
|
|
613 |
|
|
|
588 |
|
|
|
542 |
|
|
|
450 |
|
Communications |
|
|
194 |
|
|
|
195 |
|
|
|
246 |
|
|
|
221 |
|
|
|
209 |
|
Professional fees |
|
|
265 |
|
|
|
222 |
|
|
|
338 |
|
|
|
306 |
|
|
|
421 |
|
Real estate owned |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loan processing expense |
|
|
1,120 |
|
|
|
1,134 |
|
|
|
1,431 |
|
|
|
940 |
|
|
|
1,135 |
|
Other |
|
|
2,571 |
|
|
|
2,733 |
|
|
|
2,309 |
|
|
|
1,445 |
|
|
|
2,270 |
|
Total noninterest expense |
|
|
28,822 |
|
|
|
28,106 |
|
|
|
27,279 |
|
|
|
33,306 |
|
|
|
35,647 |
|
(Loss) income before income
taxes |
|
|
(1,770 |
) |
|
|
2,301 |
|
|
|
1,444 |
|
|
|
7,307 |
|
|
|
15,591 |
|
Income tax (benefit)
expense |
|
|
(470 |
) |
|
|
578 |
|
|
|
377 |
|
|
|
1,443 |
|
|
|
3,341 |
|
Net (loss) income |
|
$ |
(1,300 |
) |
|
$ |
1,723 |
|
|
$ |
1,067 |
|
|
$ |
5,864 |
|
|
$ |
12,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - QTD |
|
|
106.16 |
% |
|
|
92.16 |
% |
|
|
94.76 |
% |
|
|
81.95 |
% |
|
|
69.50 |
% |
Efficiency ratio - YTD |
|
|
97.42 |
% |
|
|
93.42 |
% |
|
|
94.76 |
% |
|
|
71.44 |
% |
|
|
68.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan originations |
|
$ |
729,897 |
|
|
$ |
778,760 |
|
|
$ |
708,463 |
|
|
$ |
993,113 |
|
|
$ |
1,055,500 |
|
Purchase |
|
|
94.2 |
% |
|
|
90.4 |
% |
|
|
77.3 |
% |
|
|
73.8 |
% |
|
|
73.8 |
% |
Refinance |
|
|
5.8 |
% |
|
|
9.6 |
% |
|
|
22.7 |
% |
|
|
26.2 |
% |
|
|
26.2 |
% |
Gross margin on loans
sold(1) |
|
|
3.80 |
% |
|
|
3.76 |
% |
|
|
4.00 |
% |
|
|
4.18 |
% |
|
|
4.54 |
% |
(1) Gross margin on loans sold equals mortgage banking income
(excluding the change in interest rate lock value) divided by total
loan originations(2) The Company adopted ASU 2016-13 as of
January 1, 2022. The 2021 amounts presented
are calculated under the prior accounting standard.
Contact: Mark R. GerkeChief Financial
Officer414-459-4012markgerke@wsbonline.com
Grafico Azioni Waterstone Financial (NASDAQ:WSBF)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Waterstone Financial (NASDAQ:WSBF)
Storico
Da Giu 2023 a Giu 2024