Waterstone Financial, Inc. reported its financial results for the second quarter and first half of 2026, showing a net income of $8.5 million for the three months ended June 30, 2026, compared to $7.7 million for the same period in 2025. For the first half of 2026, net income reached $14.5 million, up from $10.8 million in the prior year. The company's total interest income increased to $29.6 million in Q2 2026, a rise of 3.1% from $28.7 million in Q2 2025, driven by higher yields on loans and securities. Net interest income after provisions for credit losses was $15.8 million for the quarter, compared to $13.7 million a year earlier.
In terms of operational changes, Waterstone Financial's total assets decreased slightly to $2.25 billion as of June 30, 2026, down from $2.26 billion at the end of 2025. This decline was primarily attributed to a significant drop in cash and cash equivalents, which fell by 46.3% to $38.2 million. However, loans receivable increased to $1.68 billion, reflecting growth in multi-family, construction, and commercial loan categories. The company also reported an increase in loans held for sale, which rose to $151.7 million, attributed to seasonal house buying activity.
The company’s total deposits decreased by $16.3 million to $1.42 billion, with a notable decline in time deposits offset by increases in demand and savings deposits. Borrowings remained stable at $412 million, with a mix of long-term and short-term advances from the Federal Home Loan Bank. The allowance for credit losses increased to $17.9 million, reflecting a provision of $500,000 for the first half of 2026, compared to a negative provision in the same period last year.
Waterstone Financial's strategic focus includes enhancing its mortgage banking segment, which originated $621.8 million in loans during Q2 2026, a 5.6% increase from the previous year. However, the gross margin on loans decreased, impacting overall mortgage banking income. The company has also initiated a stock repurchase program, with approximately 2 million shares remaining as of June 30, 2026. Looking ahead, Waterstone Financial anticipates continued growth in its loan portfolio and remains focused on managing interest rate risk and maintaining regulatory capital requirements, as it is classified as "well-capitalized" under regulatory guidelines.
About Waterstone Financial, Inc.
Waterstone Financial, Inc. is a community-focused bank providing retail banking, mortgage lending, and investment services. Its primary activities include originating residential and commercial real estate loans, offering deposit products, and managing a diverse securities portfolio. Serving primarily Wisconsin and select states through its bank and mortgage subsidiary, it emphasizes relationship banking, asset quality, and prudent risk management within a competitive financial landscape.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.
View the complete official filing on the SEC website.
Read on SEC.gov