The continued net interest margin expansion to 3.03% and record community banking NII signal improving core profitability, but watch mortgage banking margin compression (3.60% vs 3.84% YoY) which could pressure future earnings if rate cuts don't materialize. The active buyback program ($3.7M in Q2) provides downside support.
Price Chart
Executive Summary
Waterstone Financial reported Q2 2026 net income of $8.5M ($0.49/diluted share), up from $7.7M ($0.43) a year ago, driven by record community banking net interest income of $15.8M and net interest margin expansion to 3.03%. The mortgage banking segment saw pre-tax income decline 20.2% YoY to $1.6M due to softer sales margins, partially offset by higher origination volumes. The company returned $6.5M to shareholders via buybacks and dividends during the quarter.
Key Financial Metrics
Key Facts
- Q2 2026 net income of $8.5M vs $7.7M YoY (+9.5%)
- Diluted EPS of $0.49 vs $0.43 YoY (+14.0%)
- Net interest margin expanded to 3.03%, highest since Q4 2022
- Community banking pre-tax income rose 18.2% YoY to $9.0M
- Mortgage banking pre-tax income fell 20.2% YoY to $1.6M
- Book value per share increased $0.51 to $19.53
- Repurchased ~200,000 shares at $18.40/share for $3.7M
- Quarterly dividend maintained at $0.17/share
Financial Impact
Net income increased $0.8M YoY (+9.5%) to $8.5M; diluted EPS up $0.06 (+14.0%)
Risk Factors
- Mortgage banking gross margin compression from 3.84% to 3.60% YoY
- Nonperforming assets ticked up to 0.30% from 0.29% at year-end 2025
- Elevated long-term rates pressuring secondary market sales margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-024291 |
| Document: wsbf20260523_8k.htm | 0001437749-26-024291 |
| Document: 0001437749-26-024291-index-headers.html | 0001437749-26-024291 |
| Document: 0001437749-26-024291-index.html | 0001437749-26-024291 |
| Document: 0001437749-26-024291.txt | 0001437749-26-024291 |
| 8-K Data (Synthetic) | 0001437749-26-024291 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 11d ago | 8-K | $19.80 | awaiting T+20 | — | $19.81 (+0.05%) |
Sep 22, 2026 5w ago | Press Release | $20.33 $19.62 | ▼ −3.49% | ▼ −4.18% | $19.81 (−2.56%) |
Jul 23, 2026 13w ago | 8-K | $20.06 $21.09 | ▲ +5.13% | ▲ +1.51% | $19.81 (−1.25%) |
Jun 23, 2026 18w ago | 8-K | $19.78 $19.53 | ▼ −1.26% | ▼ −3.20% | $19.81 (+0.15%) |
Apr 27, 2026 26w ago | Press Release | $18.24 $18.56 | ▲ +1.75% | ▼ −3.71% | $19.81 (+8.61%) |
Apr 27, 2026 26w ago | 8-K | $18.24 $18.56 | ▲ +1.75% | ▼ −3.71% | $19.81 (+8.61%) |
Apr 23, 2026 26w ago | Press Release | $17.91 $18.56 | ▲ +3.63% | ▼ −0.40% | $19.81 (+10.61%) |
Apr 23, 2026 26w ago | 8-K | $17.91 $18.56 | ▲ +3.63% | ▼ −0.40% | $19.81 (+10.61%) |
Mar 17, 2026 32w ago | Press Release | $17.50 $18.28 | ▲ +4.48% | ▼ −1.57% | $19.81 (+13.22%) |
US Market Status
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