NASDAQ$WSBF
Waterstone Financial Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Net income increased driven by mortgage banking income growth.
Waterstone Financial, Inc. reported a net income of $6.9 million, or $0.27 per diluted share, for the quarter ended March 31, 2020, compared to $6.5 million, or $0.24 per diluted share, for the quarter ended March 31, 2019.
- Consolidated net income totaled $6.9 million for the quarter ended March 31, 2020, compared to $6.5 million for the quarter ended March 31, 2019.
- Consolidated return on average assets was 1.37% for the quarter ended March 31, 2020 compared to 1.39% for the quarter ended March 31, 2019.
- Consolidated return on average equity was 7.07% for the quarter ended March 31, 2020 and 6.65% for the quarter ended March 31, 2019.
- Dividends declared totaled $0.62 per share and we repurchased $14.2 million of shares during the quarter ended March 31, 2020 as a result of our strong financial position.
Headline financials
Revenue & EPS history
Waterstone Financial · Revenue · Quarterly
$44M
Revenue by segment
Waterstone Financial · $12.5M total across 2 segments · Q1 2020
- Community Banking$12.9M-1.7%103.0%
- Mortgage Banking-$379K—-3.0%
Forward guidance
The COVID-19 pandemic has caused economic and social disruption on an unprecedented scale, and the company is taking measures to address it.
Tailwinds
- The CARES Act allows for a temporary delay in the adoption of accounting guidance under Accounting Standards Codification Topic 326.
- Loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications.
- The Company is executing a payment deferral program for our lending clients that are adversely affected by the pandemic.
- The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new loan program call the Paycheck Protection Program (“PPP”).
- The Company deployed a successful remote working strategy, provided timely communication to team members and customers, implemented protocols for team member safety, and initiated strategies for monitoring and responding to local COVID-19 impacts.
Headwinds
- The COVID-19 pandemic has resulted in significant disruption to the mortgage banking market.
- Increased exposure to early payment defaults on loans sold to investors on the secondary market.
- Increased exposure to unsaleable loans.
- The economic impact caused by the pandemic has resulted in a liquidity crisis for some investors on the secondary mortgage market.
- Increased exposure related to mortgage servicing.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+0.2%
Avg return
Earnings day
+0.3%
Avg return
5 days after
+0.9%
Avg return
30 days after
52%
34 / 65 earnings
Positive
+18.8%
Q2 2011
Best reaction
-10.4%
Q1 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.3% | -0.3% | +1.9% | |
| Q4 2025 | +7.8% | +9.2% | +4.6% | |
| Q3 2025 | -2.6% | -2.9% | -0.6% | |
| Q2 2025 | -2.0% | -0.3% | +2.4% | |
| Q1 2025 | +0.1% | +0.5% | +4.4% | |
| Q4 2024 | +7.4% | +0.7% | +5.2% | |
| Q3 2024 | +3.2% | -0.7% | +4.6% | |
| Q2 2024 | +5.5% | +1.7% | +4.0% | |
| Q1 2024 | +2.5% | +6.5% | +3.8% | |
| Q4 2023 | -7.3% | -13.1% | -11.8% | |
| Q3 2023 | +0.7% | +4.6% | +22.3% | |
| Q2 2023 | -5.8% | -6.2% | -17.5% | |
| Q1 2023 | -1.7% | -3.4% | -4.7% | |
| Q4 2022 | -8.1% | -6.5% | -6.4% | |
| Q3 2022 | -1.8% | -0.4% | -1.7% | |
| Q2 2022 | +2.1% | +5.6% | +2.9% | |
| Q1 2022 | -10.4% | -14.3% | -15.2% | |
| Q4 2021 | -2.3% | -2.1% | -6.2% | |
| Q3 2021 | -1.2% | +0.0% | +6.6% | |
| Q2 2021 | +2.0% | +3.4% | +5.1% | |
| Q1 2021 | -3.7% | -3.7% | -4.7% | |
| Q4 2020 | +0.8% | +2.8% | +6.1% | |
| Q3 2020 | -3.2% | -0.8% | +7.9% | |
| Q2 2020 | +6.0% | +8.6% | +11.0% | |
| Q1 2020 | +9.4% | +6.5% | +13.0% | |
| Q4 2019 | -1.4% | -1.2% | -6.2% | |
| Q3 2019 | +5.9% | +7.3% | +8.0% | |
| Q2 2019 | +1.4% | +0.9% | -3.3% | |
| Q1 2019 | +3.2% | +3.7% | +2.7% | |
| Q4 2018 | -5.5% | -0.5% | +1.7% | |
| Q3 2018 | -0.9% | +0.5% | +0.8% | |
| Q2 2018 | +0.0% | -0.3% | -0.9% | |
| Q1 2018 | +0.0% | -1.4% | -0.9% | |
| Q4 2017 | -0.6% | +0.0% | +1.2% | |
| Q3 2017 | +1.8% | +2.3% | -5.1% | |
| Q2 2017 | +0.0% | -1.3% | -7.3% | |
| Q1 2017 | +0.8% | +5.0% | -1.6% | |
| Q4 2016 | -3.1% | -0.3% | -6.3% | |
| Q3 2016 | +2.4% | +0.0% | +10.0% | |
| Q2 2016 | +0.4% | +0.4% | +6.1% | |
| Q1 2016 | +1.5% | — | — | |
| Q4 2015 | -0.1% | — | — | |
| Q3 2015 | +0.1% | — | — | |
| Q2 2015 | -1.0% | — | — | |
| Q1 2015 | +0.1% | — | — | |
| Q4 2014 | +1.3% | — | — | |
| Q3 2014 | +0.6% | — | — | |
| Q3 2013 | +0.6% | — | — | |
| Q2 2013 | +0.9% | — | — | |
| Q2 2014 | +0.9% | — | — | |
| Q3 2012 | +0.8% | — | — | |
| Q1 2014 | +0.8% | — | — | |
| Q4 2011 | -0.5% | — | — | |
| Q4 2013 | -0.5% | — | — | |
| Q4 2012 | -0.5% | — | — | |
| Q1 2013 | +1.2% | — | — | |
| Q2 2012 | +0.0% | — | — | |
| Q1 2012 | +3.1% | — | — | |
| Q3 2011 | +0.4% | — | — | |
| Q2 2011 | +18.8% | — | — | |
| Q1 2011 | +0.4% | — | — | |
| Q4 2010 | -2.3% | — | — | |
| Q3 2010 | -0.5% | — | — | |
| Q2 2010 | -2.9% | — | — | |
| Q1 2010 | -9.9% | — | — |
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