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Get filing alertsWaterstone Financial reports Q2 net income up 10% to $8.5M on record community banking NII
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Q2 2026 net income rose 10% to $8.5M ($0.49/share) from $7.7M ($0.43/share) in Q2 2025; six-month net income climbed 34% to $14.5M ($0.84/share) from $10.8M ($0.59/share).
Exhibit 99.1 view on EDGAR → -
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Community banking segment posted record quarterly net interest income of $15.8M, up 16% year-over-year, with net interest margin expanding to 3.03%, the highest since Q4 2022.
Exhibit 99.1 view on EDGAR → -
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Mortgage banking pre-tax income fell 20% to $1.6M despite 6% higher originations ($621.8M), as gross margin compressed to 3.60% from 3.84% on cautious secondary-market pricing.
Exhibit 99.1 view on EDGAR → -
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Returned $6.5M to shareholders in Q2 via $3.7M in buybacks (200,000 shares at $18.40 average) and $0.17/share dividend; book value per share rose to $19.53 from $19.03 at year-end.
Exhibit 99.1 view on EDGAR → -
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Nonperforming assets improved to 0.30% of total assets from 0.37% a year earlier; past due loans declined to 0.63% from 0.69%, reflecting stable credit quality.
Exhibit 99.1 view on EDGAR →
Summary
Waterstone Financial delivered a solid second quarter, with net income rising 10% to $8.5 million ($0.49 per share) from $7.7 million ($0.43 per share) in the prior-year period. The driver was the community banking segment, which posted record quarterly net interest income of $15.8 million—up 16% year-over-year—and expanded its net interest margin to 3.03%, the highest level since late 2022.
Rising loan yields and lower funding costs, supported by growth in transaction deposits, underpinned the improvement. Asset quality remained strong, with nonperforming assets declining to 0.30% of total assets. The mortgage banking segment presented a mixed picture: loan originations rose 6% to $621.8 million, but pre-tax income fell 20% to $1.6 million as gross margins compressed from 3.84% to 3.60%.
Secondary-market investors remained cautious amid elevated long-term rates, pressuring profitability despite higher volume. Waterstone returned $6.5 million to shareholders through $3.7 million in buybacks and a $0.17 quarterly dividend, with book value per share rising to $19.53. The quarter underscores the company's ability to grow core banking earnings while navigating a challenging mortgage environment.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
net income of $8.5 million, or $0.49 per diluted share, for the quarter ended June 30, 2026 compared to $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025. Net income totaled $14.5 million for the six months ended June 30, 2026 compared to net income of $10.8 million for the six months ended June 30, 2025.
Waterstone Financial reported second-quarter 2026 net income of $8.5 million, or $0.49 per diluted share, up 9.5% from $7.7 million, or $0.43 per diluted share, in the prior-year quarter. For the six months ended June 30, 2026, net income totaled $14.5 million ($0.84 per diluted share) compared to $10.8 million ($0.59 per diluted share) in the prior-year period, reflecting improved profitability driven by higher net interest income.
Added in current filing · view on EDGAR → · paraphrased
The Community Banking segment realized a record quarterly net interest income of $15.8 million, which represented a $2.2 million, or 16.1%, increase compared to the quarter ended June 30, 2025. ... quarterly net interest margin hit 3.03%, its highest level since the quarter ended December 31, 2022
The community banking segment achieved record quarterly net interest income of $15.8 million in Q2 2026, up $2.2 million or 16.1% year-over-year. The net interest margin expanded to 3.03%, the highest level since Q4 2022, driven by rising loan yields and lower funding costs. This improvement reflects continued growth in transaction deposits and effective balance-sheet management.
Added in current filing · view on EDGAR →
The Mortgage Banking segment generated pre-tax income of $1.6 million which represents a decrease of $403,000, or 20.2%, compared to the quarter ended June 30, 2025. ... Loan originations increased $33.0 million, or 5.6%, to $621.8 million during the quarter ended June 30, 2026, compared to $588.8 million during the quarter ended June 30, 2025. ... Gross margin on loans sold totaled 3.60% for the quarter ended June 30, 2026, compared to 3.84% for the quarter ended June 30, 2025.
The mortgage banking segment reported pre-tax income of $1.6 million in Q2 2026, down $403,000 or 20.2% from the prior-year quarter, despite loan originations rising 5.6% to $621.8 million. The decline in profitability was driven by compressed gross margins, which fell to 3.60% from 3.84%, as secondary-market investors remained cautious amid elevated long-term interest rates.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify