Shares of Waterstone Financial, Inc. WSBF have gained 1.3% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 index’s 1.4% growth over the same time frame. Over the past month, the stock has declined 0.6% compared with the S&P 500’s 3.2% growth.
For the second quarter ended June 30, 2025, Waterstone Financial reported net income of 43 cents per share compared to 31 cents per share for the same period in 2024, an earnings per share (EPS) increase of approximately 39%.
Revenue from net interest income grew to $13.7 million from $10.9 million, and noninterest income, though lower at $24.3 million compared with $26.5 million in the prior year, remained a significant contributor to total income.
The company reported net income of $7.7 million compared to $5.7 million for the same period in 2024.
Consolidated return on average assets rose to 1.39%, up from 1.02% in the prior-year quarter, while return on average equity climbed to 9.04% from 6.84% a year earlier.
Waterstone Financial, Inc. Price, Consensus and EPS Surprise
Waterstone Financial, Inc. price-consensus-eps-surprise-chart | Waterstone Financial, Inc. Quote
Other Key Business Metrics
The company’s net interest margin for the quarter was 2.60%, up from 2.01% in the same period last year, reflecting improved interest-earning asset yields amid a stable cost of funds. Total assets as of June 30, 2025, stood at $2.22 billion compared to $2.21 billion at the end of 2024. The loan portfolio saw a modest decline, with loans receivable reaching $1.64 billion, down from $1.7 billion in December 2024.
Waterstone repurchased approximately 508,000 shares during the quarter at an average cost of $12.80 per share, which increased book value per share to $18.19 from $17.53 at the end of December 2024. Dividends declared remained steady at 15 cents per share.
Management Commentary
Chairman and CEO William Bruss highlighted the company’s solid earnings performance. He attributed the improvement largely to growth in the community banking segment, where pre-tax income surged 50.4% to $7.6 million. Bruss added that “the Community Banking segment achieved $2.4 million of growth in net interest income and controlled expenses, leading to a significant increase in segment performance.”
Factors Influencing the Headline Numbers
Community Banking led the earnings strength, driven by a $2.6 million increase in pre-tax income versus the prior-year period, while the Mortgage Banking segment showed stability with flat pre-tax income at $2 million. The improvement in community banking was propelled by higher net interest income, tight cost controls, and a favorable credit environment.
On the mortgage side, originations declined 7.1% year over year to $588.8 million, with purchase originations accounting for 91.7% of that total. However, mortgage banking noninterest income declined 9.7% to $22.6 million, and gross margin on loans sold slipped to 3.8% from 3.9% a year ago. Compensation and employee benefits expenses declined 3.4%, mainly due to lower commission payouts and reduced health insurance costs, which helped support earnings despite a softening in the mortgage revenue line.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy’s Comeback free today.
Waterstone Financial, Inc. (WSBF) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).