Waterstone Financial's Q3 net income falls
WSBF•Waterstone Financial reported third-quarter net income of $6.17 million. Community Banking net interest income rose 9.6% year over year to $16.42 million, while the company reported a $443,000 credit loss provision.
1. Quarterly results
Waterstone Financial's third-quarter net income fell year over year to $6.17 million. Net interest income was $16.42 million, up 9.6% year over year, and the credit loss provision was $443,000.
2. Segment performance
The Community Banking segment recorded record net interest income, driven by lower average funding costs and growth in transaction deposits. Mortgage Banking posted a pretax loss as loan origination volumes declined and sales margins remained under pressure from higher mortgage rates and investor caution.
3. Asset quality and outlook
Past-due loans and nonperforming assets in Community Banking increased, mainly because of one significant, previously identified substandard relationship. Book value per share declined, mainly due to Treasury rate increases affecting asset values; the company provided no specific financial guidance for upcoming quarters or the full year.
