Waterstone Financial Q2 Earnings: Net Income Climbs 10% to $8.5M, NIM Reaches 3.03%
WSBF sits 49% above its 52-week low of $13.08.
Summary
Waterstone Financial reported Q2 2026 net income of $8.5 million ($0.49/share), a 10% increase over the prior year, driven by record Community Banking net interest income and a 3.03% net interest margin. The company repurchased 200,000 shares and grew book value per share to $19.53.
Key Events · Earnings and Guidance · WSBF
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Q2 Net Income Rises 10%
Net income of $8.5 million, or $0.49 per diluted share, compared to $7.7 million ($0.43) in Q2 2025. Six-month net income reached $14.5 million ($0.84) versus $10.8 million ($0.59) a year ago.
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Net Interest Margin Hits 3.03%
Community Banking net interest income surged 16.1% to a record $15.8 million, driven by a 43-basis-point expansion in net interest margin to 3.03%—the highest since Q4 2022—as loan yields rose and deposit costs fell.
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Mortgage Banking Income Declines
Mortgage Banking pre-tax income fell 20.2% to $1.6 million despite a 5.6% increase in loan originations to $621.8 million, as gross margin on loans sold compressed to 3.60% from 3.84% a year ago.
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Share Buybacks Continue
The company repurchased approximately 200,000 shares at an average cost of $18.40 per share, totaling $3.7 million, as part of its expanded repurchase program. Book value per share rose to $19.53 from $19.03 at year-end 2025.
Analysis · WSBF · Finance
A 10% year-over-year increase in net income to $8.5 million, or $0.49 per diluted share, underscores a solid quarter for Waterstone Financial. The standout was the Community Banking segment, where record net interest income of $15.8 million was fueled by a net interest margin that expanded to 3.03%—the highest since late 2022—reflecting higher loan yields and lower deposit costs. Mortgage banking, however, softened: pre-tax income fell 20% as tighter sales margins offset higher origination volumes. The company continued its aggressive buyback, repurchasing 200,000 shares at $18.40, and book value per share climbed to $19.53. Credit quality remains benign, with nonperforming assets at just 0.30% of total assets. The results reinforce the bank's earnings momentum and capital return story, though the mortgage headwind bears watching if long-term rates stay elevated.
At the time of this filing, WSBF was trading at $19.46 on NASDAQ in the Finance sector, with a market capitalization of approximately $351.3M. The 52-week trading range was $13.08 to $21.03. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.