NASDAQ$WSBF

Waterstone Financial Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported record earnings driven by mortgage banking income and community bank segment performance.

Waterstone Financial, Inc. reported a significant increase in net income for the quarter ended June 30, 2020, with earnings of $20.9 million, or $0.85 per diluted share, compared to $9.6 million, or $0.37 per diluted share, for the same quarter in 2019. The increase was driven by record quarterly earnings in the mortgage banking segment and the launch of a new digital banking platform in the Community Bank segment.

  • Consolidated net income totaled $20.9 million, compared to $9.6 million for the quarter ended June 30, 2019.
  • Consolidated return on average assets was 3.87% compared to 1.95% for the quarter ended June 30, 2019.
  • Consolidated return on average equity was 22.39% compared to 9.96% for the quarter ended June 30, 2019.
  • Dividends declared totaled $0.12 per share and $6.1 million of shares were repurchased.

Headline financials

Total Revenue

$80.2M

Previous: $48.2M+66.4%
EPS (adj)

$0.85

Previous: $0.37+129.7%
Return on Avg. Assets

3.9%

Previous: 1.9%+98.5%
Return on Avg. Equity

22.4%

Previous: 10.0%+124.8%
Net Interest Margin

2.6%

Previous: 2.8%-7.1%
Efficiency Ratio

45.9%

Previous: 49.5%-7.4%
Past Due Loans to Loans

0.5%

No prior period
Nonperforming Assets to Assets

0.3%

No prior period
Loan Originations

$1.14B

No prior period
Gross Margin on Loans Sold

5.5%

No prior period
Capital Expenditures

-$478K

Previous: -$1.72M+72.2%
Free Cash Flow

$20.5M

Previous: $7.92M+158.4%
Net Income

$20.9M

Previous: $9.64M+117.2%
Operating Income

$71.1M

Previous: $35.7M+99.2%
Gross Profit

$79.9M

Previous: $48.1M+66.3%
Cash & Equivalents

$64.9M

Previous: $56.8M+14.3%
Total Assets

$2.22B

Previous: $2.02B+10.0%
Stock-Based Comp

$175K

Previous: $229K-23.6%

Revenue & EPS history

Waterstone Financial · Revenue · Quarterly

$80.2M

Q2 2020+66.4%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Waterstone Financial · $67.2M total across 2 segments · Q2 2020

  • Mortgage Banking
    $64.2M+86.9%
  • Community Banking
    $2.94M+172.1%

Forward guidance

This press release contains forward-looking statements that are subject to risks and uncertainties, including changes in interest rates, demand for products and services, competition, banking regulation, tax laws, technological advances, governmental and regulatory policy changes, contingencies, customer behavior, real estate values, and national and local economies, including the impact of COVID-19.

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 Q2 2020

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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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