WSBF - Waterstone Financial Inc. Announces Results of Operations for the Quarter and Year Ended December 31 2019
WAUWATOSA, Wis., Jan. 30, 2020 (GLOBE NEWSWIRE) -- Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $8.8 million, or $0.34 per diluted share for the quarter ended December 31, 2019 compared to $5.7 million, or $0.21 per diluted share for the quarter ended December 31, 2018. Net income per diluted share was $1.37 for the year ended December 31, 2019 compared to net income per diluted share of $1.11 for the year ended December 31, 2018.
“We finished a successful fiscal 2019 with a record pre-tax income for a 4th quarter,” said Douglas Gordon, CEO of Waterstone Financial, Inc. “The record $11.8 million in consolidated 4th quarter pre-tax income represents a 62.2% increase over the prior year’s comparable quarter. The results are driven by a record pre-tax 4th quarter from the Community Banking segment and another successful quarter from the Mortgage Banking segment. During the quarter, the Community Banking segment achieved loan and deposit growth, while continuing to invest in technology and additional branch locations for the convenience of our customers. The Mortgage Banking segment continued to benefit from increased production volumes of refinance products, while maintaining a continued focus on cost discipline throughout the organization.”
Highlights of the Quarter and Year Ended December 31, 2019
Waterstone Financial, Inc. (Consolidated)
- Consolidated net income of Waterstone Financial, Inc. totaled $8.8 million for the quarter ended December 31, 2019, compared to $5.7 million for the quarter ended December 31, 2018.
- Consolidated net income of Waterstone Financial, Inc. totaled $35.9 million for the year ended December 31, 2019, compared to $30.8 million for the year ended December 31, 2018.
- Consolidated return on average assets was 1.75% for the quarter ended December 31, 2019 compared to 1.18% for the quarter ended December 31, 2018.
- Consolidated return on average assets was 1.82% for the year ended December 31, 2019 compared to 1.64% for the year ended December 31, 2018.
- Consolidated return on average equity was 8.91% for the quarter ended December 31, 2019 and 5.58% for the quarter ended December 31, 2018.
- Consolidated return on average equity was 9.14% for the year ended December 31, 2019 and 7.60% for the year ended December 31, 2018.
- Dividends declared totaled $0.12 per share during the quarter ended December 31, 2019 amounting to a total of $0.98 in dividends declared per share during the year ended December 31, 2019.
- The Company returned a total of $48.4 million to shareholders through dividends declared and stock repurchases in 2019.
Community Banking Segment
- Pre-tax income totaled $8.3 million for the quarter ended December 31, 2019, which represents a 10.5% increase compared to $7.5 million for the quarter ended December 31, 2018.
- Net interest income totaled $13.5 million for the quarter ended December 31, 2019, which represents a 2.2% decrease compared to $13.8 million for the quarter ended December 31, 2018.
- Average loans held for investment totaled $1.38 billion during the quarter ended December 31, 2019, which represents an increase of $15.0 million, or 1.1%, compared to the quarter ended December 31, 2018. Average loans held for investment increased $1.4 million, or 0.4% annualized, compared to $1.38 billion for the quarter ended September 30, 2019.
- Net interest margin decreased 20 basis points to 2.79% for the quarter ended December 31, 2019 compared to 2.99% for the quarter December 31, 2018, which was a result of the increase in cost of funding as money market accounts, certificates of deposit, and borrowings repriced at higher rates over the past year. Net interest margin decreased one basis point compared to 2.80% for the quarter ended September 30, 2019.
- The segment had $200,000 negative provision for loan losses for the quarter ended December 31, 2019 compared to no provision for loan losses for loan losses for the quarter ended December 31, 2018. Net recoveries totaled $10,000 for the quarter ended December 31, 2019, compared to net recoveries of $22,000 for the quarter ended December 31, 2018.
- Noninterest income increased $734,000 for the quarter ended December 31, 2019 compared to the quarter ended December 31, 2018 as loan prepayment penalties on existing loans increased. Additionally, the bank received fees for originating loan swaps which began in the current quarter.
- Noninterest expenses decreased $161,000 for the quarter ended December 31, 2019 compared to the quarter ended December 31, 2018. Compensation expenses decreased $68,000 as health insurance expense decreased offset by an increase in salaries. Advertising expense increased $132,000 as we increased efforts to attract new customers and data processing expense increased $161,000 as we continue to make investments in technology. Professional fees decreased $177,000 due to less consulting and net real estate owned expenses decreased $189,000 as gains on sales of real estate owned increased. Other noninterest expenses decreased $73,000 as FDIC insurance premiums decreased offset by increased losses on fixed asset disposals.
- The efficiency ratio was 46.23% for the quarter ended December 31, 2019, compared to 48.69% for the quarter ended December 31, 2018.
- Average deposits (excluding escrow accounts) totaled $1.06 billion during the quarter ended December 31, 2019, an increase of $36.4 million, or 3.6%, compared to $1.02 billion during the quarter ended December 31, 2018. Average deposits increased $9.0 million, or 3.4% annualized, compared to the quarter ended September 30, 2019.
- Nonperforming assets as percentage of total assets was 0.39% at December 31, 2019, 0.41% at September 30, 2019, and 0.45% at December 31, 2018.
- Past due loans as percentage of total loans was 0.47% at December 31, 2019, 0.62% at September 30, 2019, and 0.50% at December 31, 2018.
Mortgage Banking Segment
- Pre-tax income totaled $3.4 million for the quarter ended December 31, 2019, compared to $308,000 of pre-tax loss for the quarter ended December 31, 2018.
- Loan originations increased approximately $176.9 million, or 29.5%, to $777.1 million during the quarter ended December 31, 2019, compared to $600.2 million during the quarter ended December 31, 2018. Origination volume relative to purchase activity accounted for 72.1% of originations for the quarter ended December 31, 2019 compared to 91.1% of total originations for the quarter ended December 31, 2018.
- Mortgage banking income increased $7.5 million, or 29.8%, to $32.4 million for the quarter ended December 31, 2019, compared to $25.0 million for the quarter ended December 31, 2018.
- Gross margin on loans sold increased to 4.27% for the quarter ended December 31, 2019, compared to 4.17% for the quarter ended December 31, 2018.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha/Brookfield, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin along with a commercial lending office in Minneapolis, Minnesota. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Such statements are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. These factors include (i) exposure to the deterioration in the commercial and residential real estate markets which could result in increased charge-offs and increases in the allowance for loan losses, (ii) various other factors, including changes in economic conditions affecting borrowers, new information regarding outstanding loans and identification of additional problem loans, which could require an increase in the allowance for loan losses, (iii) Waterstone’s ability to maintain required levels of capital and other current and future regulatory requirements, (iv) the impact of recent and future legislative initiatives on the financial markets, and (v) those factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited) |
| For The Three Months Ended December 31, |
| For The Year Ended December 31, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| (In Thousands, except per share amounts) |
| Interest income: |
| Loans |
| $ |
| 18,547 |
| 17,468 |
| 72,235 |
| 66,966 |
| Mortgage-related securities |
| 718 |
| 723 |
| 2,978 |
| 2,648 |
| Debt securities, federal funds sold and short-term investments |
| 1,013 |
| 1,137 |
| 4,528 |
| 4,086 |
| Total interest income |
| 20,278 |
| 19,328 |
| 79,741 |
| 73,700 |
| Interest expense: |
| Deposits |
| 4,465 |
| 3,540 |
| 17,278 |
| 11,627 |
| Borrowings |
| 2,687 |
| 2,322 |
| 10,266 |
| 7,896 |
| Total interest expense |
| 7,152 |
| 5,862 |
| 27,544 |
| 19,523 |
| Net interest income |
| 13,126 |
| 13,466 |
| 52,197 |
| 54,177 |
| Provision for loan losses |
| (170 |
| ) |
| - |
| (900 |
| ) |
| (1,060 |
| ) |
| Net interest income after provision for loan losses |
| 13,296 |
| 13,466 |
| 53,097 |
| 55,237 |
| Noninterest income: |
| Service charges on loans and deposits |
| 1,091 |
| 348 |
| 2,363 |
| 1,680 |
| Increase in cash surrender value of life insurance |
| 356 |
| 352 |
| 1,935 |
| 1,848 |
| Mortgage banking income |
| 32,140 |
| 24,221 |
| 125,666 |
| 113,151 |
| Other |
| 222 |
| 715 |
| 786 |
| 1,520 |
| Total noninterest income |
| 33,809 |
| 25,636 |
| 130,750 |
| 118,199 |
| Noninterest expenses: |
| Compensation, payroll taxes, and other employee benefits |
| 26,491 |
| 23,114 |
| 101,718 |
| 97,784 |
| Occupancy, office furniture, and equipment |
| 2,521 |
| 2,860 |
| 10,606 |
| 10,855 |
| Advertising |
| 1,051 |
| 1,039 |
| 3,885 |
| 4,123 |
| Data processing |
| 989 |
| 735 |
| 3,630 |
| 2,792 |
| Communications |
| 320 |
| 382 |
| 1,359 |
| 1,611 |
| Professional fees |
| 1,167 |
| 397 |
| 3,605 |
| 2,327 |
| Real estate owned |
| (221 |
| ) |
| (62 |
| ) |
| (146 |
| ) |
| 1 |
| Loan processing expense |
| 746 |
| 643 |
| 3,288 |
| 3,372 |
| Other |
| 2,273 |
| 2,738 |
| 8,328 |
| 10,291 |
| Total noninterest expenses |
| 35,337 |
| 31,846 |
| 136,273 |
| 133,156 |
| Income before income taxes |
| 11,768 |
| 7,256 |
| 47,574 |
| 40,280 |
| Income tax expense |
| 2,974 |
| 1,578 |
| 11,671 |
| 9,526 |
| Net income |
| $ |
| 8,794 |
| 5,678 |
| 35,903 |
| 30,754 |
| Income per share: |
| Basic |
| $ |
| 0.34 |
| 0.21 |
| 1.38 |
| 1.12 |
| Diluted |
| $ |
| 0.34 |
| 0.21 |
| 1.37 |
| 1.11 |
| Weighted average shares outstanding: |
| Basic |
| 25,586 |
| 26,994 |
| 26,021 |
| 27,363 |
| Diluted |
| 25,852 |
| 27,218 |
| 26,247 |
| 27,634 |
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
| December 31, |
| December 31, |
| 2019 |
| 2018 |
| (Unaudited) |
| Assets |
| (In Thousands, except per share amounts) |
| Cash |
| $ |
| 52,814 |
| $ |
| 48,234 |
| Federal funds sold |
| 12,704 |
| 25,100 |
| Interest-earning deposits in other financial institutions and other short term investments |
| 8,782 |
| 12,767 |
| Cash and cash equivalents |
| 74,300 |
| 86,101 |
| Securities available for sale (at fair value) |
| 178,476 |
| 185,720 |
| Loans held for sale (at fair value) |
| 220,123 |
| 141,616 |
| Loans receivable |
| 1,388,031 |
| 1,379,148 |
| Less: Allowance for loan losses |
| 12,387 |
| 13,249 |
| Loans receivable, net |
| 1,375,644 |
| 1,365,899 |
| Office properties and equipment, net |
| 25,028 |
| 24,524 |
| Federal Home Loan Bank stock (at cost) |
| 21,150 |
| 19,350 |
| Cash surrender value of life insurance |
| 69,665 |
| 67,550 |
| Real estate owned, net |
| 748 |
| 2,152 |
| Prepaid expenses and other assets |
| 31,213 |
| 22,469 |
| Total assets |
| $ |
| 1,996,347 |
| $ |
| 1,915,381 |
| Liabilities and Shareholders' Equity |
| Liabilities: |
| Demand deposits |
| $ |
| 130,063 |
| $ |
| 139,111 |
| Money market and savings deposits |
| 197,942 |
| 163,511 |
| Time deposits |
| 739,771 |
| 735,873 |
| Total deposits |
| 1,067,776 |
| 1,038,495 |
| Borrowings |
| 483,562 |
| 435,046 |
| Advance payments by borrowers for taxes |
| 4,212 |
| 4,371 |
| Other liabilities |
| 47,111 |
| 37,790 |
| Total liabilities |
| 1,602,661 |
| 1,515,702 |
| Shareholders' equity: |
| Preferred stock |
| - |
| - |
| Common stock |
| 271 |
| 285 |
| Additional paid-in capital |
| 211,997 |
| 232,406 |
| Retained earnings |
| 197,393 |
| 187,153 |
| Unearned ESOP shares |
| (16,617 |
| ) |
| (17,804 |
| ) |
| Accumulated other comprehensive income (loss), net of taxes |
| 642 |
| (2,361 |
| ) |
| Total shareholders' equity |
| 393,686 |
| 399,679 |
| Total liabilities and shareholders' equity |
| $ |
| 1,996,347 |
| $ |
| 1,915,381 |
| Share Information |
| Shares outstanding |
| 27,148 |
| 28,463 |
| Book value per share |
| $ |
| 14.50 |
| $ |
| 14.04 |
| Closing market price |
| $ |
| 19.03 |
| $ |
| 16.76 |
| Price to book ratio |
| 131.24 |
| % |
| 119.37 |
| % |
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES |
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA |
| (Unaudited) |
| At or For the Three Months Ended |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2018 |
| (Dollars in Thousands, except per share amounts) |
| Condensed Results of Operations: |
| Net interest income |
| $ |
| 13,126 |
| 13,154 |
| 12,981 |
| 12,936 |
| 13,466 |
| Provision for loan losses |
| (170 |
| ) |
| (80 |
| ) |
| 30 |
| (680 |
| ) |
| - |
| Total noninterest income |
| 33,809 |
| 37,494 |
| 35,190 |
| 24,257 |
| 25,636 |
| Total noninterest expense |
| 35,337 |
| 36,232 |
| 35,355 |
| 29,349 |
| 31,846 |
| Income before income taxes |
| 11,768 |
| 14,496 |
| 12,786 |
| 8,524 |
| 7,256 |
| Income tax expense |
| 2,974 |
| 3,572 |
| 3,143 |
| 1,982 |
| 1,578 |
| Net income |
| $ |
| 8,794 |
| 10,924 |
| 9,643 |
| 6,542 |
| 5,678 |
| Income per share – basic |
| $ |
| 0.34 |
| 0.42 |
| 0.37 |
| 0.25 |
| 0.21 |
| Income per share – diluted |
| $ |
| 0.34 |
| 0.42 |
| 0.37 |
| 0.24 |
| 0.21 |
| Dividends declared per share |
| $ |
| 0.12 |
| 0.12 |
| 0.12 |
| 0.62 |
| 0.12 |
| Performance Ratios (annualized): |
| Return on average assets - QTD |
| 1.75 |
| % |
| 2.17 |
| % |
| 1.95 |
| % |
| 1.39 |
| % |
| 1.18 |
| % |
| Return on average equity - QTD |
| 8.91 |
| % |
| 11.15 |
| % |
| 9.96 |
| % |
| 6.65 |
| % |
| 5.58 |
| % |
| Net interest margin - QTD |
| 2.79 |
| % |
| 2.80 |
| % |
| 2.82 |
| % |
| 2.93 |
| % |
| 2.99 |
| % |
| Return on average assets - YTD |
| 1.82 |
| % |
| 1.84 |
| % |
| 1.67 |
| % |
| 1.39 |
| % |
| 1.64 |
| % |
| Return on average equity - YTD |
| 9.14 |
| % |
| 9.21 |
| % |
| 8.28 |
| % |
| 6.65 |
| % |
| 7.60 |
| % |
| Net interest margin - YTD |
| 2.83 |
| % |
| 2.85 |
| % |
| 2.88 |
| % |
| 2.93 |
| % |
| 3.09 |
| % |
| Asset Quality Ratios: |
| Past due loans to total loans |
| 0.47 |
| % |
| 0.62 |
| % |
| 0.61 |
| % |
| 0.46 |
| % |
| 0.50 |
| % |
| Nonaccrual loans to total loans |
| 0.51 |
| % |
| 0.46 |
| % |
| 0.41 |
| % |
| 0.49 |
| % |
| 0.48 |
| % |
| Nonperforming assets to total assets |
| 0.39 |
| % |
| 0.41 |
| % |
| 0.37 |
| % |
| 0.44 |
| % |
| 0.45 |
| % |
| WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES |
| SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS |
| (Unaudited) |
| At or For the Three Months Ended |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2018 |
| Average balances |
| (Dollars in Thousands) |
| Interest-earning assets |
| Loans receivable and held for sale |
| 1,573,190 |
| 1,579,575 |
| 1,552,199 |
| 1,477,991 |
| 1,496,125 |
| Mortgage related securities |
| 110,426 |
| 114,051 |
| 114,537 |
| 115,674 |
| 111,004 |
| Debt securities, federal funds sold and short term investments |
| 183,447 |
| 169,621 |
| 180,111 |
| 194,669 |
| 179,232 |
| Total interest-earning assets |
| 1,867,063 |
| 1,863,247 |
| 1,846,847 |
| 1,788,334 |
| 1,786,361 |
| Noninterest-earning assets |
| 125,904 |
| 137,723 |
| 136,263 |
| 125,396 |
| 119,715 |
| Total assets |
| 1,992,967 |
| 2,000,970 |
| 1,983,110 |
| 1,913,730 |
| 1,906,076 |
| Interest-bearing liabilities |
| Demand accounts |
| 38,650 |
| 37,015 |
| 35,744 |
| 36,268 |
| 36,941 |
| Money market, savings, and escrow accounts |
| 215,332 |
| 206,474 |
| 193,542 |
| 176,237 |
| 184,873 |
| Certificates of deposit |
| 737,726 |
| 739,544 |
| 736,798 |
| 735,471 |
| 722,774 |
| Total interest-bearing deposits |
| 991,708 |
| 983,033 |
| 966,084 |
| 947,976 |
| 944,588 |
| Borrowings |
| 485,482 |
| 509,099 |
| 504,940 |
| 438,905 |
| 439,601 |
| Total interest-bearing liabilities |
| 1,477,190 |
| 1,492,132 |
| 1,471,024 |
| 1,386,881 |
| 1,384,189 |
| Noninterest-bearing demand deposits |
| 85,815 |
| 86,849 |
| 91,545 |
| 97,951 |
| 97,677 |
| Noninterest-bearing liabilities |
| 38,580 |
| 33,130 |
| 32,143 |
| 30,027 |
| 20,219 |
| Total liabilities |
| 1,601,585 |
| 1,612,111 |
| 1,594,712 |
| 1,514,859 |
| 1,502,085 |
| Equity |
| 391,382 |
| 388,859 |
| 388,398 |
| 398,871 |
| 403,991 |
| Total liabilities and equity |
| 1,992,967 |
| 2,000,970 |
| 1,983,110 |
| 1,913,730 |
| 1,906,076 |
| Average Yield/Costs (annualized) |
| Loans receivable and held for sale |
| 4.68 |
| % |
| 4.66 |
| % |
| 4.66 |
| % |
| 4.69 |
| % |
| 4.63 |
| % |
| Mortgage related securities |
| 2.58 |
| % |
| 2.56 |
| % |
| 2.68 |
| % |
| 2.66 |
| % |
| 2.58 |
| % |
| Debt securities, federal funds sold and short term investments |
| 2.19 |
| % |
| 2.53 |
| % |
| 2.50 |
| % |
| 2.73 |
| % |
| 2.52 |
| % |
| Total interest-earning assets |
| 4.31 |
| % |
| 4.34 |
| % |
| 4.32 |
| % |
| 4.35 |
| % |
| 4.29 |
| % |
| Demand accounts |
| 0.10 |
| % |
| 0.09 |
| % |
| 0.09 |
| % |
| 0.09 |
| % |
| 0.09 |
| % |
| Money market and savings accounts |
| 0.66 |
| % |
| 0.57 |
| % |
| 0.66 |
| % |
| 0.63 |
| % |
| 0.47 |
| % |
| Certificates of deposit |
| 2.20 |
| % |
| 2.24 |
| % |
| 2.19 |
| % |
| 2.04 |
| % |
| 1.82 |
| % |
| Total interest-bearing deposits |
| 1.79 |
| % |
| 1.81 |
| % |
| 1.80 |
| % |
| 1.71 |
| % |
| 1.49 |
| % |
| Borrowings |
| 2.20 |
| % |
| 2.14 |
| % |
| 2.06 |
| % |
| 2.08 |
| % |
| 2.10 |
| % |
| Total interest-bearing liabilities |
| 1.92 |
| % |
| 1.92 |
| % |
| 1.89 |
| % |
| 1.82 |
| % |
| 1.68 |
| % |
| COMMUNITY BANKING SEGMENT |
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA |
| (Unaudited) |
| At or For the Three Months Ended |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2018 |
| (Dollars in Thousands) |
| Condensed Results of Operations: |
| Net interest income |
| $ |
| 13,472 |
| 13,885 |
| 13,530 |
| 13,132 |
| 13,774 |
| Provision for loan losses |
| (200 |
| ) |
| (150 |
| ) |
| - |
| (700 |
| ) |
| - |
| Total noninterest income |
| 1,645 |
| 1,415 |
| 1,079 |
| 881 |
| 911 |
| Noninterest expenses: |
| Compensation, payroll taxes, and other employee benefits |
| 4,693 |
| 4,075 |
| 4,671 |
| 4,756 |
| 4,761 |
| Occupancy, office furniture and equipment |
| 894 |
| 942 |
| 944 |
| 972 |
| 842 |
| Advertising |
| 317 |
| 202 |
| 220 |
| 181 |
| 185 |
| Data processing |
| 583 |
| 588 |
| 493 |
| 457 |
| 422 |
| Communications |
| 93 |
| 90 |
| 93 |
| 82 |
| 92 |
| Professional fees |
| 162 |
| 223 |
| 160 |
| 268 |
| 339 |
| Real estate owned |
| (251 |
| ) |
| 24 |
| 19 |
| 32 |
| (62 |
| ) |
| Loan processing expense |
| - |
| - |
| - |
| - |
| - |
| Other |
| 498 |
| 583 |
| 635 |
| 489 |
| 571 |
| Total noninterest expense |
| 6,989 |
| 6,727 |
| 7,235 |
| 7,237 |
| 7,150 |
| Income before income taxes |
| 8,328 |
| 8,723 |
| 7,374 |
| 7,476 |
| 7,535 |
| Income tax expense |
| 2,033 |
| 1,982 |
| 1,594 |
| 1,687 |
| 1,632 |
| Net income |
| $ |
| 6,295 |
| 6,741 |
| 5,780 |
| 5,789 |
| 5,903 |
| Efficiency ratio - QTD |
| 46.23 |
| % |
| 43.97 |
| % |
| 49.52 |
| % |
| 51.64 |
| % |
| 48.69 |
| % |
| Efficiency ratio - YTD |
| 47.74 |
| % |
| 48.27 |
| % |
| 50.56 |
| % |
| 51.64 |
| % |
| 47.63 |
| % |
| MORTGAGE BANKING SEGMENT |
| SUMMARY OF KEY QUARTERLY FINANCIAL DATA |
| (Unaudited) |
| At or For the Three Months Ended |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| 2019 |
| 2019 |
| 2019 |
| 2019 |
| 2018 |
| (Dollars in Thousands) |
| Condensed Results of Operations: |
| Net interest income |
| $ |
| (399 |
| ) |
| (774 |
| ) |
| (529 |
| ) |
| (208 |
| ) |
| (332 |
| ) |
| Provision for loan losses |
| 30 |
| 70 |
| 30 |
| 20 |
| - |
| Total noninterest income |
| 32,440 |
| 36,535 |
| 34,364 |
| 23,571 |
| 24,986 |
| Noninterest expenses: |
| Compensation, payroll taxes, and other employee benefits |
| 21,975 |
| 23,616 |
| 22,579 |
| 16,060 |
| 18,499 |
| Occupancy, office furniture and equipment |
| 1,627 |
| 1,687 |
| 1,736 |
| 1,804 |
| 2,018 |
| Advertising |
| 734 |
| 711 |
| 743 |
| 777 |
| 854 |
| Data processing |
| 402 |
| 411 |
| 372 |
| 308 |
| 309 |
| Communications |
| 227 |
| 268 |
| 260 |
| 246 |
| 290 |
| Professional fees |
| 1,000 |
| 688 |
| 620 |
| 426 |
| 52 |
| Real estate owned |
| 30 |
| - |
| - |
| - |
| - |
| Loan processing expense |
| 746 |
| 858 |
| 879 |
| 805 |
| 643 |
| Other |
| 1,918 |
| 1,725 |
| 1,186 |
| 1,912 |
| 2,297 |
| Total noninterest expense |
| 28,659 |
| 29,964 |
| 28,375 |
| 22,338 |
| 24,962 |
| Income (loss) before income taxes |
| 3,352 |
| 5,727 |
| 5,430 |
| 1,005 |
| (308 |
| ) |
| Income tax expense (benefit) |
| 921 |
| 1,584 |
| 1,545 |
| 286 |
| (62 |
| ) |
| Net income (loss) |
| $ |
| 2,431 |
| 4,143 |
| 3,885 |
| 719 |
| (246 |
| ) |
| Efficiency ratio - QTD |
| 89.44 |
| % |
| 83.79 |
| % |
| 83.86 |
| % |
| 95.61 |
| % |
| 101.25 |
| % |
| Efficiency ratio - YTD |
| 87.47 |
| % |
| 86.79 |
| % |
| 88.66 |
| % |
| 95.61 |
| % |
| 92.89 |
| % |
| Loan originations |
| $ |
| 777,073 |
| 851,297 |
| 793,254 |
| 501,432 |
| 600,156 |
| Purchase |
| 72.1 |
| % |
| 79.0 |
| % |
| 87.6 |
| % |
| 89.9 |
| % |
| 91.1 |
| % |
| Refinance |
| 27.9 |
| % |
| 21.0 |
| % |
| 12.4 |
| % |
| 10.1 |
| % |
| 8.9 |
| % |
| Gross margin on loans sold(1) |
| 4.27 |
| % |
| 4.30 |
| % |
| 4.29 |
| % |
| 4.57 |
| % |
| 4.17 |
| % |
| (1) - Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations |
Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com