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

WSBF
  • Waterstone Financial, Inc. reported net income of $8.5 million ($0.49 per diluted share) for the quarter ended June 30, 2026, compared to $7.7 million ($0.43 per diluted share) for the same period in 2025.
  • Consolidated net income totaled $14.5 million ($0.84 per diluted share) for the six months ended June 30, 2026, versus $10.8 million ($0.59 per diluted share) for the first six months of 2025.
  • The Community Banking segment achieved a record quarterly net interest income of $15.8 million, a 16.1% increase from the prior year, driven by higher loan yields & reduced funding costs.
  • Net interest margin for the quarter rose 43 basis points to 3.03%, the highest level since December 31, 2022.
  • The Mortgage Banking segment generated pre-tax income of $1.6 million, a 20.2% decrease from the prior year, despite a 5.6% increase in loan origination volumes to $621.8 million.
  • Mortgage banking gross margins on loans sold decreased to 3.60% from 3.84% due to softer sales margins amid investor concerns over long-term rates.
  • Waterstone Financial declared a quarterly dividend of $0.17 per share & repurchased approximately 200,000 shares for $3.7 million during the quarter.
  • Total capital returned to shareholders via buybacks & dividends reached $6.5 million for the quarter.
  • Book value per share increased $0.51 to $19.53 at June 30, 2026.
  • Consolidated return on average assets was 1.52% for the quarter, while return on average equity was 9.65%.
  • Nonperforming assets as a percentage of total assets stood at 0.30% at June 30, 2026, down from 0.37% in the same period last year.
  • Average core retail deposits increased 2.0% year-over-year to $1.34 billion, driven by growth in money market & demand deposits.
  • Total compensation, payroll taxes, & employee benefits increased 11.6% in the Community Banking segment to $5.6 million, primarily due to higher health insurance & ESOP expenses.
  • The Community Banking segment's efficiency ratio improved to 48.16% from 50.40% in the prior year quarter.
  • Mortgage Banking segment expenses rose 1.6% to $16.6 million, influenced by increased commission, manager pay, & production incentive expenses.