Waterstone Financial, Inc. reported a solid performance for the third quarter and the nine months ended September 30, 2024, with notable increases in net income and total assets compared to the previous fiscal period. The company achieved a net income of $4.7 million for Q3 2024, up from $3.3 million in Q3 2023, and a net income of $13.5 million for the nine months ended September 30, 2024, compared to $9.4 million for the same period in 2023. Basic earnings per share rose to $0.26 for Q3 2024 from $0.16 in Q3 2023, and to $0.72 for the nine months ended September 30, 2024, up from $0.46 in the prior year.
Total assets increased to $2.24 billion as of September 30, 2024, from $2.21 billion at the end of 2023. Cash and cash equivalents also saw a rise, reaching $41.4 million, compared to $36.4 million at the end of 2023. Total deposits increased significantly by $73.2 million to $1.26 billion, driven by a $73.9 million increase in time deposits.
Interest income for the three months ended September 30, 2024, was $29.2 million, up from $26.4 million in the same quarter of 2023, while interest expense rose to $17.7 million from $14.4 million, reflecting the impact of rising interest rates. The net interest income after provision for credit losses for Q3 2024 was $11.9 million, slightly higher than $11.5 million in Q3 2023. However, for the nine months ended September 30, 2024, net interest income decreased to $33.3 million from $38.5 million in the previous year, primarily due to increased costs of funds.
The company’s mortgage banking segment reported a net income of $1.6 million for the nine months ended September 30, 2024, a significant recovery from a net loss of $5.4 million in the same period of 2023. Mortgage banking income increased to $66.2 million, up from $59.9 million in the prior year.
Waterstone Financial's allowance for credit losses decreased to $18.2 million as of September 30, 2024, from $18.6 million at the end of 2023, with a negative provision for credit losses of $535,000 for the nine months ended September 30, 2024. The company reported a total of $5.4 million in non-accrual loans, an increase from $4.8 million at the end of 2023.
Strategically, Waterstone Financial has been active in managing its capital structure, with a stock repurchase program authorized for 2 million shares, of which approximately 1.9 million shares remain as of September 30, 2024. The company continues to focus on managing interest rate risk, emphasizing variable-rate loans and adjusting its investment portfolio accordingly.
About Waterstone Financial, Inc.
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