WSBF · Waterstone Financial, Inc.

Waterstone Financial, Inc. delivered stronger Q1 2026 results with consolidated net income of $6.0 million, more than doubling from $3.0 million in Q1 2025, primarily fueled by robust performance in the Community Banking segment. Net interest income rose to $15.2 million, a 22.8% increase year-over-year, supported by a 50 basis point expansion in net interest margin to 2.97%, driven by higher yields on loans held for investment and lower costs of funds and deposits. CEO William Bruss highlighted continued NIM expansion and increased loan origination volumes in mortgage banking as key factors starting 2026 strongly. The Mortgage Banking segment swung to pre-tax income of $22,000 from a $2.2 million loss last year, with originations surging 31.1% to $508.3 million amid periodic rate decreases, though gross margin dipped to 3.65%. Asset quality remained solid with nonperforming assets at 0.35% of total assets, despite a modest provision for credit losses of $264,000 tied to loan growth and qualitative factors. Balance sheet showed total assets at $2.25 billion, with stable loans receivable net of $1.67 billion. Shareholders benefited from $7.3 million returned via $4.4 million share repurchases (246,000 shares at $17.89 average) and a $0.17 quarterly dividend, boosting book value per share to $19.19. Community Banking efficiency improved to 52.48% from 59.66%, underscoring operational leverage. These results signal resilience amid interest rate dynamics, with purchase originations comprising 73.9% of mortgage volume.