Waterstone Financial (WSBF) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $6.0 million, up from $3.0 million in Q1 2025, driven by higher net interest income and increased mortgage banking activity.

• Earnings per share rose to $0.35 basic and $0.34 diluted, compared to $0.17 for both in Q1 2025.

• Return on average assets increased to 1.10% from 0.57% year-over-year; return on average equity rose to 6.88% from 3.61%.

• Strong net interest margin expansion and higher loan origination volumes, especially in mortgage banking, drove results.

• $7.3 million returned to shareholders via buybacks and dividends; quarterly dividend increased to $0.17 per share.

Financial highlights

• Net interest income increased 23% year-over-year to $15.5 million, with net interest margin improving to 2.97% from 2.47%.

• Loans receivable grew by $8.8 million to $1.68 billion, while deposits rose by $1.5 million to $1.44 billion.

• Mortgage banking income rose 20.5% to $19.0 million, driven by a 31% increase in loan origination volume.

• Book value per share increased to $19.19 at March 31, 2026, from $19.03 at December 31, 2025.

• Nonperforming assets as a percentage of total assets remained stable at 0.35%.

Outlook and guidance

• Management expects continued benefit from net interest margin expansion and loan origination activity, but notes increased allowance for credit losses due to external factors.

• Management highlights ongoing focus on managing interest rate risk, maintaining strong capital, and monitoring credit quality.

• Forward-looking statements caution about risks from interest rates, competition, regulation, and economic conditions.

• No significant changes in risk factors or forward-looking guidance were disclosed for the remainder of 2026.