“We are proud of the efforts from the entire team that resulted in a second consecutive record quarterly profits,” said
Highlights of the Quarter Ended
- Consolidated net income of
Waterstone Financial, Inc. totaled$26.3 million for the quarter endedSeptember 30, 2020 , compared to$10.9 million for the quarter endedSeptember 30, 2019 . - Consolidated return on average assets was 4.78% for the quarter ended
September 30, 2020 compared to 2.17% for the quarter endedSeptember 30, 2019 . - Consolidated return on average equity was 26.30% for the quarter ended
September 30, 2020 and 11.15% for the quarter endedSeptember 30, 2019 . - Dividends declared totaled
$0.12 per share and we repurchased approximately 800,000 shares at a cost of$12.3 million during the quarter endedSeptember 30, 2020 as a result of our strong financial position.
Community Banking Segment
- Pre-tax income totaled
$7.7 million for the quarter endedSeptember 30, 2020 , which represents a 11.3% decrease compared to$8.7 million for the quarter endedSeptember 30, 2019 . - Net interest income totaled
$13.5 million for the quarter endedSeptember 30, 2020 , which represents a 3.1% decrease compared to$13.9 million for the quarter endedSeptember 30, 2019 . - Average loans held for investment totaled
$1.43 billion during the quarter endedSeptember 30, 2020 , which represents an increase of$49.7 million , or 3.6%, compared to$1.38 billion for the quarter endedSeptember 30, 2019 . The$30.1 million of loans originated throughout the nine months endedSeptember 30, 2020 for the Paycheck Protection Program (PPP) contributed to the growth. Average loans held for investment increased$8.5 million , or 2.4% annualized, compared to$1.42 billion for the quarter endedJune 30, 2020 . - Net interest margin decreased 17 basis points to 2.63% for the quarter ended
September 30, 2020 compared to 2.80% for the quarter endedSeptember 30, 2019 , which was a result of the decrease in yield of interest-earning assets as rates on loans, investments, and cash decreased. Net interest margin increased one basis point compared to 2.62% for the quarter endedJune 30, 2020 . - The segment had a
$1.0 million provision for loan losses for the quarter endedSeptember 30, 2020 compared to a negative provision for loan losses of$150,000 for the quarter endedSeptember 30, 2019 . The provision expense recorded during the third quarter of 2020 was primarily due to an increase in the loan downgrades to our Watch category. Net recoveries totaled$85,000 for the quarter endedSeptember 30, 2020 , compared to net recoveries of$10,000 for the quarter endedSeptember 30, 2019 . - Noninterest income increased
$1.7 million for the quarter endedSeptember 30, 2020 compared to the quarter endedSeptember 30, 2019 , primarily due to a gain on death benefit as there were two death benefits received on bank-owned life insurance policies in the current quarter. - Noninterest expense increased
$1.1 million for the quarter endedSeptember 30, 2020 compared to the quarter endedSeptember 30, 2019 . Compensation, payroll taxes and other employee benefits expense increased$925,000 due to increases in health insurance claims, salaries related to the addition of two bank branch locations and annual merit increases, in addition to an increase in variable compensation expense as the company met certain performance incentives. Other noninterest expense increased$235,000 as we received a credit forFDIC premiums in 2019 but not in 2020. - The efficiency ratio was 47.23% for the quarter ended
September 30, 2020 , compared to 43.97% for the quarter endedSeptember 30, 2019 . - Average deposits (excluding escrow accounts) totaled
$1.18 billion during the quarter endedSeptember 30, 2020 , an increase of$133.8 million , or 12.8%, compared to$1.05 billion during the quarter endedSeptember 30, 2019 . Average deposits increased$52.8 million , or 18.7% annualized compared to the$1.13 billion for the quarter endedJune 30, 2020 . - Nonperforming assets as percentage of total assets was 0.31% at
September 30, 2020 , 0.28% atJune 30, 2020 , and 0.41% atSeptember 30, 2019 . - Past due loans as percentage of total loans was 0.39% at
September 30, 2020 , 0.45% atJune 30, 2020 , and 0.62% atSeptember 30, 2019 . - The PPP loans totaled
$30.1 million as ofSeptember 30, 2020 . - The Company held approximately
$8.9 million in loans, representing 0.6% of the total loan portfolio as ofSeptember 30, 2020 , which had been modified as either a deferment of principal or principal and interest since the beginning of the pandemic. Of the$8.9 million in loans,$3.2 million qualify as modifications under the CARES Act. The remaining$5.7 million represents a loan that is classified as a troubled debt restructuring. As ofJune 30 2020 , the Company held approximately$121.1 million in loans, representing 8.4% of the total loan portfolio at that date, which had been modified as either a deferment of principal or principal and interest since the beginning of the pandemic and qualified as modifications under the CARES Act.
Mortgage Banking Segment
- Pre-tax income totaled
$27.4 million for the quarter endedSeptember 30, 2020 , compared to$5.7 million for the quarter endedSeptember 30, 2019 . - Loan originations increased
$445.4 million , or 52.3%, to$1.30 billion during the quarter endedSeptember 30, 2020 , compared to$851.3 million during the quarter endedSeptember 30, 2019 . Origination volume relative to purchase activity accounted for 64.1% of originations for the quarter endedSeptember 30, 2020 compared to 79.0% of total originations for the quarter endedSeptember 30, 2019 . - Mortgage banking income increased
$36.6 million , or 100.2%, to$73.1 million for the quarter endedSeptember 30, 2020 , compared to$36.5 million for the quarter endedSeptember 30, 2019 . - Gross margin on loans sold increased to 5.44% for the quarter ended
September 30, 2020 , compared to 4.30% for the quarter endedSeptember 30, 2019 . - Total compensation, payroll taxes and other employee benefits increased
$10.9 million , or 46.3%, to$34.6 million during the quarter endedSeptember 30, 2020 compared to$23.6 million during the quarter endedSeptember 30, 2019 . The increase primarily related to increased commission expense and branch manager compensation driven by increased loan origination volume and branch profitability. - Professional fees increased
$3.8 million to$4.5 million primarily due to a tentative settlement agreement related to the Herrington litigation. - Other noninterest expense increased
$719,000 , or 41.7%, to$2.4 million during the quarter endedSeptember 30, 2020 compared to$1.7 million during the quarter endedSeptember 30, 2019 . The increase related to amortization of mortgage servicing rights as the value of the servicing portfolio has increased in 2020 compared to 2019.
About Waterstone
Forward-Looking Statements
This press release contains statements or information that may constitute 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.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies, including significant disruption to financial market and other economic activity caused by the outbreak of COVID-19; and other factors, including risk 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
Contact:
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(Unaudited) | ||||||||||||
For The Three Months Ended | For The Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
(In Thousands, except per share amounts) | ||||||||||||
Interest income: | ||||||||||||
Loans | $ | 18,224 | $ | 18,558 | $ | 54,404 | $ | 53,688 | ||||
Mortgage-related securities | 588 | 737 | 1,960 | 2,260 | ||||||||
Debt securities, federal funds sold and short-term investments | 732 | 1,083 | 2,493 | 3,515 | ||||||||
Total interest income | 19,544 | 20,378 | 58,857 | 59,463 | ||||||||
Interest expense: | ||||||||||||
Deposits | 3,495 | 4,479 | 11,760 | 12,813 | ||||||||
Borrowings | 2,640 | 2,745 | 7,913 | 7,579 | ||||||||
Total interest expense | 6,135 | 7,224 | 19,673 | 20,392 | ||||||||
Net interest income | 13,409 | 13,154 | 39,184 | 39,071 | ||||||||
Provision for loan losses | 1,025 | (80 | ) | 6,310 | (730 | ) | ||||||
Net interest income after provision for loan losses | 12,384 | 13,234 | 32,874 | 39,801 | ||||||||
Noninterest income: | ||||||||||||
Service charges on loans and deposits | 672 | 503 | 3,384 | 1,272 | ||||||||
Increase in cash surrender value of life insurance | 714 | 728 | 1,587 | 1,579 | ||||||||
Mortgage banking income | 72,112 | 36,062 | 166,292 | 93,526 | ||||||||
Other | 2,265 | 201 | 2,868 | 564 | ||||||||
Total noninterest income | 75,763 | 37,494 | 174,131 | 96,941 | ||||||||
Noninterest expenses: | ||||||||||||
Compensation, payroll taxes, and other employee benefits | 39,405 | 27,514 | 100,695 | 75,227 | ||||||||
Occupancy, office furniture, and equipment | 2,469 | 2,629 | 7,744 | 8,085 | ||||||||
Advertising | 861 | 913 | 2,625 | 2,834 | ||||||||
Data processing | 922 | 1,003 | 3,023 | 2,641 | ||||||||
Communications | 339 | 358 | 994 | 1,039 | ||||||||
Professional fees | 4,738 | 954 | 7,647 | 2,438 | ||||||||
Real estate owned | 11 | 24 | 55 | 75 | ||||||||
Loan processing expense | 1,336 | 858 | 3,620 | 2,542 | ||||||||
Other | 2,920 | 1,979 | 9,495 | 6,055 | ||||||||
Total noninterest expenses | 53,001 | 36,232 | 135,898 | 100,936 | ||||||||
Income before income taxes | 35,146 | 14,496 | 71,107 | 35,806 | ||||||||
Income tax expense | 8,853 | 3,572 | 17,797 | 8,697 | ||||||||
Net income | $ | 26,293 | $ | 10,924 | $ | 53,310 | $ | 27,109 | ||||
Income per share: | ||||||||||||
Basic | $ | 1.08 | $ | 0.42 | $ | 2.16 | $ | 1.04 | ||||
Diluted | $ | 1.08 | $ | 0.42 | $ | 2.15 | $ | 1.03 | ||||
Weighted average shares outstanding: | ||||||||||||
Basic | 24,297 | 25,772 | 24,720 | 26,168 | ||||||||
Diluted | 24,380 | 25,962 | 24,842 | 26,372 | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||
| | |||||
2020 | 2019 | |||||
(Unaudited) | ||||||
Assets | (In Thousands, except per share amounts) | |||||
Cash | $ | 54,681 | $ | 52,814 | ||
Federal funds sold | 21,151 | 12,704 | ||||
Interest-earning deposits in other financial institutions and other short term investments | 10,730 | 8,782 | ||||
Cash and cash equivalents | 86,562 | 74,300 | ||||
Securities available for sale (at fair value) | 153,201 | 178,476 | ||||
Loans held for sale (at fair value) | 385,803 | 220,123 | ||||
Loans receivable | 1,434,132 | 1,388,031 | ||||
Less: Allowance for loan losses | 18,844 | 12,387 | ||||
Loans receivable, net | 1,415,288 | 1,375,644 | ||||
Office properties and equipment, net | 23,961 | 25,028 | ||||
26,720 | 21,150 | |||||
Cash surrender value of life insurance | 63,255 | 69,665 | ||||
Real estate owned, net | 772 | 748 | ||||
Prepaid expenses and other assets | 65,260 | 31,213 | ||||
Total assets | $ | 2,220,822 | $ | 1,996,347 | ||
Liabilities and Shareholders' Equity | ||||||
Liabilities: | ||||||
Demand deposits | $ | 169,218 | $ | 130,063 | ||
Money market and savings deposits | 271,283 | 197,942 | ||||
Time deposits | 744,150 | 739,771 | ||||
Total deposits | 1,184,651 | 1,067,776 | ||||
Borrowings | 552,126 | 483,562 | ||||
Advance payments by borrowers for taxes | 25,987 | 4,212 | ||||
Other liabilities | 58,629 | 47,111 | ||||
Total liabilities | 1,821,393 | 1,602,661 | ||||
Shareholders' equity: | ||||||
Preferred stock | - | - | ||||
Common stock | 252 | 271 | ||||
Additional paid-in capital | 182,960 | 211,997 | ||||
Retained earnings | 229,289 | 197,393 | ||||
Unearned ESOP shares | (15,727 | ) | (16,617 | ) | ||
Accumulated other comprehensive income, net of taxes | 2,655 | 642 | ||||
Total shareholders' equity | 399,429 | 393,686 | ||||
Total liabilities and shareholders' equity | $ | 2,220,822 | $ | 1,996,347 | ||
Share Information | ||||||
Shares outstanding | 25,220 | 27,148 | ||||
Book value per share | $ | 15.84 | $ | 14.50 | ||
Closing market price | $ | 15.49 | $ | 19.03 | ||
Price to book ratio | 97.79 | % | 131.24 | % | ||
SUMMARY OF KEY QUARTERLY FINANCIAL DATA | |||||||||||||||
(Unaudited) | |||||||||||||||
At or For the Three Months Ended | |||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||
(Dollars in Thousands, except per share amounts) | |||||||||||||||
Condensed Results of Operations: | |||||||||||||||
Net interest income | $ | 13,409 | $ | 13,249 | $ | 12,526 | $ | 13,126 | $ | 13,154 | |||||
Provision for loan losses | 1,025 | 4,500 | 785 | (170 | ) | (80 | ) | ||||||||
Total noninterest income | 75,763 | 66,904 | 31,464 | 33,809 | 37,494 | ||||||||||
Total noninterest expense | 53,001 | 47,689 | 35,208 | 35,337 | 36,232 | ||||||||||
Income before income taxes | 35,146 | 27,964 | 7,997 | 11,768 | 14,496 | ||||||||||
Income tax expense | 8,853 | 7,016 | 1,928 | 2,974 | 3,572 | ||||||||||
Net income | $ | 26,293 | $ | 20,948 | $ | 6,069 | $ | 8,794 | $ | 10,924 | |||||
Income per share – basic | $ | 1.08 | $ | 0.86 | $ | 0.24 | $ | 0.34 | $ | 0.42 | |||||
Income per share – diluted | $ | 1.08 | $ | 0.85 | $ | 0.24 | $ | 0.34 | $ | 0.42 | |||||
Dividends declared per share | $ | 0.12 | $ | 0.12 | $ | 0.62 | $ | 0.12 | $ | 0.12 | |||||
Performance Ratios (annualized): | |||||||||||||||
Return on average assets - QTD | 4.78 | % | 3.87 | % | 1.21 | % | 1.75 | % | 2.17 | % | |||||
Return on average equity - QTD | 26.30 | % | 22.39 | % | 6.24 | % | 8.91 | % | 11.15 | % | |||||
Net interest margin - QTD | 2.63 | % | 2.62 | % | 2.68 | % | 2.79 | % | 2.80 | % | |||||
Return on average assets - YTD | 3.35 | % | 2.59 | % | 1.21 | % | 1.82 | % | 1.84 | % | |||||
Return on average equity - YTD | 18.02 | % | 14.03 | % | 6.24 | % | 9.14 | % | 9.21 | % | |||||
Net interest margin - YTD | 2.64 | % | 2.65 | % | 2.68 | % | 2.83 | % | 2.85 | % | |||||
Asset Quality Ratios: | |||||||||||||||
Past due loans to total loans | 0.39 | % | 0.45 | % | 0.78 | % | 0.47 | % | 0.62 | % | |||||
Nonaccrual loans to total loans | 0.42 | % | 0.39 | % | 0.48 | % | 0.51 | % | 0.46 | % | |||||
Nonperforming assets to total assets | 0.31 | % | 0.28 | % | 0.36 | % | 0.39 | % | 0.41 | % | |||||
Allowance for loan loss to loans receivable | 1.31 | % | 1.24 | % | 0.94 | % | 0.89 | % | 0.91 | % | |||||
SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS | |||||||||||||||
(Unaudited) | |||||||||||||||
At or For the Three Months Ended | |||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||
Average balances | (Dollars in Thousands) | ||||||||||||||
Interest-earning assets | |||||||||||||||
Loans receivable and held for sale | $ | 1,766,715 | $ | 1,759,970 | $ | 1,562,097 | $ | 1,573,190 | $ | 1,579,575 | |||||
Mortgage related securities | 96,529 | 105,727 | 112,089 | 110,426 | 114,051 | ||||||||||
Debt securities, federal funds sold and short term investments | 166,160 | 164,306 | 206,485 | 183,447 | 169,621 | ||||||||||
Total interest-earning assets | 2,029,404 | 2,030,003 | 1,880,671 | 1,867,063 | 1,863,247 | ||||||||||
Noninterest-earning assets | 160,526 | 147,342 | 132,283 | 125,904 | 137,723 | ||||||||||
Total assets | $ | 2,189,930 | $ | 2,177,345 | $ | 2,012,954 | $ | 1,992,967 | $ | 2,000,970 | |||||
Interest-bearing liabilities | |||||||||||||||
Demand accounts | $ | 50,590 | $ | 45,289 | $ | 39,886 | $ | 38,650 | $ | 37,015 | |||||
Money market, savings, and escrow accounts | 282,349 | 252,500 | 218,942 | 215,332 | 206,474 | ||||||||||
Certificates of deposit | 741,265 | 730,573 | 734,147 | 737,726 | 739,544 | ||||||||||
Total interest-bearing deposits | 1,074,204 | 1,028,362 | 992,975 | 991,708 | 983,033 | ||||||||||
Borrowings | 531,588 | 609,863 | 495,595 | 485,482 | 509,099 | ||||||||||
Total interest-bearing liabilities | 1,605,792 | 1,638,225 | 1,488,570 | 1,477,190 | 1,492,132 | ||||||||||
Noninterest-bearing demand deposits | 129,911 | 115,605 | 92,627 | 85,815 | 86,849 | ||||||||||
Noninterest-bearing liabilities | 56,451 | 47,140 | 40,609 | 38,580 | 33,130 | ||||||||||
Total liabilities | 1,792,154 | 1,800,970 | 1,621,806 | 1,601,585 | 1,612,111 | ||||||||||
Equity | 397,776 | 376,375 | 391,148 | 391,382 | 388,859 | ||||||||||
Total liabilities and equity | $ | 2,189,930 | $ | 2,177,345 | $ | 2,012,954 | $ | 1,992,967 | $ | 2,000,970 | |||||
Average Yield/Costs (annualized) | |||||||||||||||
Loans receivable and held for sale | 4.10 | % | 4.23 | % | 4.55 | % | 4.68 | % | 4.66 | % | |||||
Mortgage related securities | 2.42 | % | 2.55 | % | 2.52 | % | 2.58 | % | 2.56 | % | |||||
Debt securities, federal funds sold and short term investments | 1.75 | % | 1.71 | % | 2.07 | % | 2.19 | % | 2.53 | % | |||||
Total interest-earning assets | 3.83 | % | 3.93 | % | 4.16 | % | 4.31 | % | 4.34 | % | |||||
Demand accounts | 0.09 | % | 0.08 | % | 0.08 | % | 0.10 | % | 0.09 | % | |||||
Money market and savings accounts | 0.67 | % | 0.74 | % | 0.78 | % | 0.66 | % | 0.57 | % | |||||
Certificates of deposit | 1.62 | % | 1.91 | % | 2.13 | % | 2.20 | % | 2.24 | % | |||||
Total interest-bearing deposits | 1.29 | % | 1.54 | % | 1.75 | % | 1.79 | % | 1.81 | % | |||||
Borrowings | 1.98 | % | 1.76 | % | 2.12 | % | 2.20 | % | 2.14 | % | |||||
Total interest-bearing liabilities | 1.52 | % | 1.62 | % | 1.87 | % | 1.92 | % | 1.92 | % | |||||
COMMUNITY BANKING SEGMENT | |||||||||||||||
SUMMARY OF KEY QUARTERLY FINANCIAL DATA | |||||||||||||||
(Unaudited) | |||||||||||||||
At or For the Three Months Ended | |||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||
(Dollars in Thousands) | |||||||||||||||
Condensed Results of Operations: | |||||||||||||||
Net interest income | $ | 13,461 | $ | 13,701 | $ | 12,908 | $ | 13,472 | $ | 13,885 | |||||
Provision for loan losses | 1,000 | 4,325 | 750 | (200 | ) | (150 | ) | ||||||||
Total noninterest income | 3,104 | 2,936 | 1,028 | 1,645 | 1,415 | ||||||||||
Noninterest expenses: | |||||||||||||||
Compensation, payroll taxes, and other employee benefits | 5,000 | 4,906 | 5,168 | 4,693 | 4,075 | ||||||||||
Occupancy, office furniture and equipment | 874 | 866 | 1,014 | 894 | 942 | ||||||||||
Advertising | 252 | 297 | 248 | 317 | 202 | ||||||||||
Data processing | 490 | 678 | 605 | 583 | 588 | ||||||||||
Communications | 113 | 91 | 97 | 93 | 90 | ||||||||||
Professional fees | 266 | 226 | 198 | 162 | 223 | ||||||||||
Real estate owned | 11 | 33 | 11 | (251 | ) | 24 | |||||||||
Loan processing expense | - | - | - | - | - | ||||||||||
Other | 818 | 532 | 580 | 498 | 583 | ||||||||||
Total noninterest expense | 7,824 | 7,629 | 7,921 | 6,989 | 6,727 | ||||||||||
Income before income taxes | 7,741 | 4,683 | 5,265 | 8,328 | 8,723 | ||||||||||
Income tax expense | 1,565 | 574 | 1,154 | 2,033 | 1,982 | ||||||||||
Net income | $ | 6,176 | $ | 4,109 | $ | 4,111 | $ | 6,295 | $ | 6,741 | |||||
Efficiency ratio - QTD | 47.23 | % | 45.86 | % | 56.84 | % | 46.23 | % | 43.97 | % | |||||
Efficiency ratio - YTD | 49.59 | % | 50.86 | % | 56.84 | % | 47.74 | % | 48.27 | % | |||||
MORTGAGE BANKING SEGMENT | |||||||||||||||
SUMMARY OF KEY QUARTERLY FINANCIAL DATA | |||||||||||||||
(Unaudited) | |||||||||||||||
At or For the Three Months Ended | |||||||||||||||
2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||
(Dollars in Thousands) | |||||||||||||||
Condensed Results of Operations: | |||||||||||||||
Net interest income | $ | (58 | ) | $ | (511 | ) | $ | (379 | ) | $ | (399 | ) | $ | (774 | ) |
Provision for loan losses | 25 | 175 | 35 | 30 | 70 | ||||||||||
Total noninterest income | 73,143 | 64,218 | 30,798 | 32,440 | 36,535 | ||||||||||
Noninterest expenses: | |||||||||||||||
Compensation, payroll taxes, and other employee benefits | 34,559 | 32,139 | 19,387 | 21,975 | 23,616 | ||||||||||
Occupancy, office furniture and equipment | 1,595 | 1,668 | 1,727 | 1,627 | 1,687 | ||||||||||
Advertising | 609 | 567 | 652 | 734 | 711 | ||||||||||
Data processing | 426 | 413 | 395 | 402 | 411 | ||||||||||
Communications | 226 | 226 | 241 | 227 | 268 | ||||||||||
Professional fees | 4,465 | 850 | 1,620 | 1,000 | 688 | ||||||||||
Real estate owned | - | - | - | 30 | - | ||||||||||
Loan processing expense | 1,336 | 1,208 | 1,076 | 746 | 858 | ||||||||||
Other | 2,444 | 3,239 | 2,552 | 1,918 | 1,725 | ||||||||||
Total noninterest expense | 45,660 | 40,310 | 27,650 | 28,659 | 29,964 | ||||||||||
Income before income taxes | 27,400 | 23,222 | 2,734 | 3,352 | 5,727 | ||||||||||
Income tax expense | 7,284 | 6,440 | 768 | 921 | 1,584 | ||||||||||
Net income | $ | 20,116 | $ | 16,782 | $ | 1,966 | $ | 2,431 | $ | 4,143 | |||||
Efficiency ratio - QTD | 62.48 | % | 63.27 | % | 90.90 | % | 89.44 | % | 83.79 | % | |||||
Efficiency ratio - YTD | 67.95 | % | 72.70 | % | 90.90 | % | 87.47 | % | 86.79 | % | |||||
Loan originations | $ | 1,296,725 | $ | 1,142,683 | $ | 708,840 | $ | 777,073 | $ | 851,297 | |||||
Purchase | 64.1 | % | 55.5 | % | 68.3 | % | 72.1 | % | 79.0 | % | |||||
Refinance | 35.9 | % | 44.5 | % | 31.7 | % | 27.9 | % | 21.0 | % | |||||
Gross margin on loans sold(1) | 5.44 | % | 5.45 | % | 4.08 | % | 4.27 | % | 4.30 | % | |||||
(1) - Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations | |||||||||||||||
Source:
2020 GlobeNewswire, Inc., source