The sharp improvement in mortgage banking and sustained net interest margin expansion signal strong operating leverage. Monitor Q3 loan origination volume and margin trajectory as leading indicators of sustained momentum.
Price Chart
Executive Summary
Waterstone Financial (WSBF) reported strong Q2 2026 earnings with net income of $6.0 million ($0.34 diluted EPS), up 98% YoY, driven by net interest margin expansion and a rebound in mortgage banking. The company returned $7.3 million to shareholders via buybacks and an increased dividend.
Key Financial Metrics
Key Facts
- Q2 2026 net income: $6.0 million ($0.34 diluted EPS) vs. $3.0 million ($0.17) YoY — up 100% YoY
- Net interest margin expanded to 2.97% (up 50 bps YoY, 8 bps QoQ)
- Community banking pre-tax income up 23.7% YoY to $7.5 million
- Mortgage banking pre-tax income turned positive at $22,000 vs. $2.2M loss YoY due to 31.1% higher loan originations ($508.3M)
- Book value per share increased to $19.19 from $19.03 in prior quarter
- Repurchased 246,000 shares for $4.4 million and raised quarterly dividend to $0.17 from $0.15
Financial Impact
Net income nearly doubled YoY to $6.0M; EPS doubled to $0.34; $7.3M returned to shareholders
Risk Factors
- Mortgage banking segment remains volatile — Q2 turnaround follows a $2.2M loss in prior year quarter
- Net interest margin may face pressure if long-term rates rise or deposit costs increase
- Analyst sentiment is overwhelmingly bearish (0 buys, 2 strong sells) — any positive revision could trigger short-term upside
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3280348 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d 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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