Waterstone Financial, Inc. reported net income of $6.2 million, or $0.36 per diluted share, for the quarter ended September 30, 2026. This figure represents a decrease compared to the same period in the prior year, when net income was $7.9 million, or $0.45 per diluted share.
For the nine months ended September 30, 2026, the company reported net income of $20.6 million, compared to $18.7 million for the first nine months of 2025. Diluted earnings per share for the nine-month period increased to $1.19 from $1.04 in the prior year.
The company’s Community Banking segment achieved a record quarterly net interest income of $16.0 million, a $1.4 million increase compared to the prior year. This growth was driven by a reduction in the average cost of funds, attributed to continued growth in average transaction deposits. However, the Mortgage Banking segment incurred a pre-tax loss of $754,000 for the quarter, a decrease of $2.1 million compared to the prior year.
Loan originations in the Mortgage Banking segment decreased by $29.7 million, or 5.5%, to $509.7 million for the quarter. The decline was attributed to a significant jump in mortgage rates, which pressured sales margins. The company declared a quarterly dividend of $0.17 per common share during the period.
On the balance sheet, book value per share decreased by $0.24 during the quarter to $19.29. The decline was primarily due to treasury rates increasing, which negatively impacted the value of accumulated other comprehensive losses, alongside the declaration of the quarterly dividend.
Nonperforming assets as a percentage of total assets stood at 0.55% at September 30, 2026, up from 0.30% at June 30, 2026. Past due loans as a percentage of total loans were 0.81% at the end of the quarter.
