Capital allocation remains aggressive despite volatile cash generation, evidenced by share repurchases that peaked at $6.5 million in 2025Q2 and a consistent quarterly dividend payout of approximately $2.6 million to $3.0 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Jun'05 | Jun'04 |
|---|
| Cash from Operations | -3.21M | 19.02M | 48.06M | -27.58M | 206.66M | 142.01M | -93.58M | -40.22M | 41.5M | 107.1M | -24.06M | -12.99M | -2.22M | 52.28M | -8.14M | 35.09M | -13.13M | -11.88M | 24.07M | -224K | 10.12M | 9.78M | 13.06M | 11.22M |
| Operating CF Growth % | -242.01% | -60.42% | 274.29% | -113.34% | 45.53% | 251.75% | -132.68% | -196.91% | -61.25% | 545.09% | -85.22% | -486.24% | -104.24% | 742.55% | -123.19% | 367.29% | -10.47% | -149.38% | 10844.64% | -102.21% | 3.49% | -25.12% | 16.37% | - |
| Net Income | 29.36M | 26.4M | 18.69M | 9.38M | 19.49M | 70.79M | 81.14M | 35.9M | 30.75M | 25.96M | 25.53M | 16.57M | 12.73M | 14.71M | 34.91M | -7.47M | -1.85M | -10.14M | -26.45M | 1.56M | 8.05M | 5.43M | 9.12M | 10.58M |
| Depreciation & Amortization | 2.75M | 1.48M | 2.47M | 3.3M | 4.03M | 6.05M | 5.61M | 4.7M | 4.73M | 2.16M | 3.21M | 3.6M | 3.73M | 3.84M | 2.47M | 1.85M | 1.86M | 1.97M | 2.43M | 3.67M | 3.57M | 2.11M | 1.66M | 1.54M |
| Deferred Taxes | 249K | 714K | 980K | -1.07M | -484K | 1.38M | -2.62M | 639K | 535K | 3.08M | 1.56M | -154K | 3.72M | 5.39M | -16.89M | -735K | -9.62M | 479K | 7.56M | -2.47M | -1.28M | 0 | -1.19M | -133K |
| Other Non-Cash Items | -27.03M | -15.53M | 27.33M | -35.19M | 179.72M | 71.2M | -179.88M | -80.06M | 6.11M | 74.77M | -60.47M | -39.64M | -20.17M | 38.17M | -32.88M | 39.48M | -26.5M | -828K | 46.38M | 14.06M | -2.75M | 516K | 2.44M | -1.19M |
| Working Capital Changes | -8.91M | 5.66M | -1.72M | -4.27M | 3.33M | -8.16M | 1.44M | -2.46M | -2.38M | -2.73M | 2.55M | 2.44M | -3.54M | -10.67M | 3.8M | 167K | 11.45M | -5.01M | -7.46M | -17.04M | 2.53M | 1.73M | 1.04M | 420K |
| Cash from Investing | -41.55M | -3.58M | -23.96M | -159.22M | -335.74M | 160.06M | 37.19M | -1.15M | -78.44M | -94.88M | -25.03M | -16.13M | -75.25M | 24.07M | 91.53M | 61.45M | 85.89M | 69.49M | -231.24M | -110.65M | -76.24M | -129.34M | -139.73M | -147.49M |
| Purchase of Investments | -53.67M | -50.01M | -35.39M | -29.5M | -90M | -73.69M | -29.5M | 0 | 0 | -22.97M | -14.5M | -49.87M | -102.85M | -60.8M | -134.93M | -99.99M | -101.66M | -72.74M | -47.43M | -86.08M | -38.84M | -56.38M | -194.39M | -203.2M |
| Sale/Maturity of Investments | 34.46M | 42.09M | 31.04M | 24.85M | 50.75M | 49.5M | 50.54M | 8.08M | 10.44M | 16.13M | 14.86M | 10.54M | 17.86M | 7.09M | 85.51M | 62.12M | 61.23M | 83.74M | 16.34M | 23.13M | 41.33M | 16.67M | 46.75M | 58.39M |
| Net Investment Activity | -19.2M | -7.92M | -4.35M | -4.65M | -39.25M | -24.19M | 21.05M | 8.08M | 10.44M | -6.83M | 355K | -39.33M | -84.98M | -53.71M | -49.42M | -37.87M | -40.43M | 11M | -31.08M | -62.95M | 2.48M | -39.71M | -147.64M | -144.81M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -163K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.08M | 847K | 0 | 0 |
| Other Investing | -20.46M | 5.51M | -18.52M | -153.87M | -295.79M | 185.03M | 17.37M | -6.12M | -84.75M | -86.47M | 0 | 26.16M | 11.68M | 83.14M | 142.62M | 100.35M | 127.25M | 62.32M | 0 | -45.58M | -69.02M | -88.13M | 13.74M | 2.4M |
| Cash from Financing | 46.12M | 15.91M | -20.76M | 176.58M | -201M | -20.12M | 76.86M | 29.57M | 74.43M | -10.83M | -4.16M | -43.23M | -178.88M | 281.35M | -92.3M | -91.5M | -68.55M | -10.34M | 213.13M | 54.95M | 123.42M | 115.59M | 127.74M | 126.89M |
| Dividends Paid | -10.66M | -10.77M | -11.27M | -15.36M | -30.26M | -30.39M | -31.52M | -25.96M | -27.05M | -26.95M | -6.92M | -5.87M | -5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -17.43M | -16.21M | -14.91M | -26.03M | -47.83M | -10.18M | -36.24M | -22.77M | -19.2M | -2.19M | -3.86M | -72.75M | -141.88M | 0 | 0 | 0 | 0 | 0 | 0 | -45.26M | 0 | -8.54M | 0 | 0 |
| Stock Issued | 687K | 2.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 98.73M | 0 | 0 |
| Net Stock Activity | -16.74M | -13.8M | -14.91M | -26.03M | -47.83M | -10.18M | -36.24M | -22.77M | -19.2M | -2.19M | -3.86M | -72.75M | -141.88M | 0 | 0 | 0 | 0 | 0 | 0 | -45.26M | 0 | 90.19M | 0 | 0 |
| Debt Issuance (Net) | 1.78M | -1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -870K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Financing | 56.35M | 74.74M | 169.96M | -6.29M | -32.57M | 51.4M | 120.11M | 29.78M | 71.91M | 19.18M | 60.66M | 28.18M | -10.8M | 306.04M | -111.05M | -95.67M | -17.61M | -31.01M | 201.36M | -41.27M | -9.37M | -82.65M | 94.58M | 0 |
| Net Change in Cash | 1.36M | 31.35M | 3.34M | -10.22M | -330.08M | 281.95M | 20.47M | -11.8M | 37.49M | 1.39M | -53.25M | -72.35M | -256.35M | 357.7M | -8.91M | 5.05M | 4.21M | 47.27M | 5.96M | -55.92M | 57.31M | 0 | 1.07M | -9.38M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 71.11M | 39.76M | 36.42M | 46.64M | 376.72M | 94.77M | 74.3M | 86.1M | 48.61M | 47.22M | 100.47M | 172.82M | 429.17M | 71.47M | 80.38M | 75.33M | 71.12M | 23.85M | 17.88M | 73.81M | 16.5M | 0 | 19.39M | 28.77M |
| Cash at End | 44.65M | 71.11M | 39.76M | 36.42M | 46.64M | 376.72M | 94.77M | 74.3M | 86.1M | 48.61M | 47.22M | 100.47M | 172.82M | 429.17M | 71.47M | 80.38M | 75.33M | 71.12M | 23.85M | 17.88M | 73.81M | 0 | 20.47M | 19.39M |
| Interest Paid | 57.2M | 59.16M | 66.27M | 47.74M | 12.89M | 14.55M | 25.41M | 27.38M | 19.01M | 16.39M | 21.02M | 23.08M | 22.32M | 23.78M | 28.27M | 33.08M | 41.01M | 57.05M | 61.79M | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 5.01M | 5.01M | 2.39M | 1.17M | 4.09M | 22.66M | 29.48M | 10.7M | 10.17M | 17.08M | 14.35M | 7.93M | 3.85M | 6.26M | 4.85M | 69K | 5.55M | 500K | 230K | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -5.1M | 17.86M | 46.96M | -28.28M | 205.96M | 141.23M | -94.81M | -43.33M | 37.54M | 105.52M | -25.15M | -15.96M | -4.17M | 46.92M | -9.81M | 34.07M | -14.05M | -15.7M | 22.78M | -2.35M | 1.51M | 7.43M | 13.06M | 6.14M |
| FCF Growth % | -106.09% | -61.98% | 266.09% | -113.73% | 45.84% | 248.96% | -118.79% | -215.43% | -64.42% | 519.61% | -57.59% | -283.12% | -108.88% | 578.28% | -128.8% | 342.43% | 10.51% | -168.93% | 1071.18% | -255.67% | -79.73% | -43.08% | 112.82% | - |
Mortgage market cyclicality
According to recent financial disclosures, Waterstone Financial's net income has shown significant quarterly variance, with a low of -$40,000 in 2023Q4 and a high of $7.9 million in 2025Q3, illustrating the inherent volatility of a business model heavily tethered to mortgage banking cycles and secondary market conditions.
The bank's ability to generate organic capital is frequently interrupted by the cyclical nature of its mortgage segment, which complicates long-term capital planning. Investors should monitor whether the current earnings trajectory provides a sufficient buffer to support both dividend payments and ongoing share repurchase programs without eroding the regulatory capital base.
Based on reported figures, Waterstone Financial consistently deployed capital into investment securities, with quarterly purchases reaching $13.8 million in 2026Q1, while simultaneously liquidating positions to manage liquidity, as evidenced by the $27.9 million in sales recorded during the 2025Q4 period to offset operational cash requirements.
The frequent rotation of the investment portfolio suggests an active management strategy aimed at balancing yield requirements with the need for immediate liquidity. This behavior appears to be a tactical response to the fluctuating cash demands of the mortgage origination business rather than a purely strategic long-term asset allocation.
As reported in regulatory filings, Waterstone Financial maintained a consistent dividend payout of approximately $2.6 million to $3.0 million per quarter, while simultaneously executing share repurchases that peaked at $6.5 million in 2025Q2, signaling a management preference for returning capital despite significant fluctuations in operating cash flow.
The commitment to returning capital during periods of negative operating cash flow may indicate management's confidence in the underlying strength of the community banking franchise. However, this strategy warrants further investigation to determine if such distributions are sustainable if mortgage banking fee income remains suppressed for an extended duration.
Analysis of the cash flow statement reveals that OCF/NI ratios have swung wildly, ranging from a negative 6.92 in 2024Q2 to a positive 24.98 in 2023Q4, which suggests that traditional cash flow metrics are poor indicators of the bank's true economic performance due to non-cash MSR adjustments.
The extreme variance in these ratios highlights the danger of relying on standard cash flow analysis for a mortgage-heavy institution. Investors should look past the headline OCF figures and focus on the underlying stability of the community banking deposit base to gauge the true health of the firm.
Quick answers to the most common questions about buying WSBF stock.
Waterstone Financial, Inc. (WSBF) generated $19.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Waterstone Financial, Inc. (WSBF) generated $17.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Waterstone Financial, Inc. (WSBF) spent $1.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Waterstone Financial, Inc. (WSBF) returned $10.8M to shareholders via cash dividends and spent $16.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.