GlobeNewswire·Nov 13, 2026, 4:01 PM ET

Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2026

WSBF

Waterstone Financial, Inc. reported net income of $6.2 million ($0.36 per diluted share) for the quarter ended September 30, 2026, compared to $7.9 million ($0.45 per diluted share) in the same period in 2025.
Net income for the nine months ended September 30, 2026, totaled $20.6 million ($1.19 per diluted share), an increase from $18.7 million ($1.04 per diluted share) in the prior year period.
The Community Banking segment achieved record quarterly net interest income of $16.0 million, a $1.4 million increase from 2025, driven by reduced average costs of funds & growth in transaction deposits.
The Mortgage Banking segment recorded a pre-tax loss of $754,000, a $2.1 million improvement over the $1.3 million loss in the prior year, though sales margins remain under pressure due to high mortgage rates.
Book value per share decreased $0.24 to $19.29, primarily due to accumulated other comprehensive losses from rising treasury rates & the declaration of a $0.17 quarterly dividend.
Consolidated return on average assets was 1.09% for the quarter, down from 1.42% in the prior year, while return on average equity was 6.93%, down from 9.14%.
Nonperforming assets as a percentage of total assets rose to 0.55% at September 30, 2026, compared to 0.27% in September 2025, linked to one significant substandard relationship.
Past due loans as a percentage of total loans increased to 0.81% at September 30, 2026, compared to 0.50% in September 2025.
Average loans held for investment in the Community Banking segment grew 0.8% to $1.70 billion, driven by multi-family mortgage increases offset by single-family decreases.
Net interest margin for the Community Banking segment expanded 30 basis points to 3.06%, driven by higher loan yields & lower deposit costs.
Mortgage banking loan originations fell 5.5% to $509.7 million, hindered by a significant jump in mortgage rates, with purchase activity accounting for 90.4% of volume.
Gross margin on loans sold in the Mortgage Banking segment decreased to 3.48% from 3.87% in the prior year due to lower sales margins & investor concerns over elevated rates.
Total compensation & benefits increased 12.0% in the Community Banking segment to $5.6 million, primarily due to higher salary, health insurance, & ESOP expenses.
Total compensation & benefits decreased 6.3% in the Mortgage Banking segment to $14.7 million, driven by lower commission expenses & bonus accruals.
The company sold mortgage servicing rights related to $121.9 million in loans for a $391,000 gain during the quarter, with no comparable sale in the prior year period.
Waterstone Financial, Inc. operates WaterStone Bank with 14 branches in southeastern Wisconsin & WaterStone Mortgage Corporation, a national lender licensed in 48 states.

Company: Waterstone Financial, Inc.
Keywords: Nasdaq:WSBF, Waterstone Financial, Inc., Earnings Release, Community Bank