Waterstone Financial Reports $6.2 Million Quarterly Net Income
Waterstone Financial reported a net income of $6.2M ($0.36 per diluted share) for Q3 2026, down from $7.9M ($0.45 per share) a year earlier. However, net income for the first nine months of 2026 rose to $20.6M from $18.7M. The company's community banking net interest income increased, while mortgage banking reported a pretax loss.
How this was made
The 30-second read
Why it matters
The earnings decline may prompt short‑term price weakness, but deposit growth could mitigate concerns.
Market read
Earnings miss for a small regional bank; limited impact beyond the sector.
What to watch
The rise in community banking loan balances and deposit growth may provide a longer‑term earnings tailwind.
Background
Waterstone Financial is a regional bank operating primarily in southeastern Wisconsin, with a mortgage subsidiary licensed in 48 states.
Ticker impact
Waterstone Financial reported Q3 2026 net income of $6.2M, down from $7.9M a year earlier, with EPS $0.36 vs $0.45.
likely downward pressure as the market prices in the earnings decline
Revenue and profit fell year‑over‑year; mortgage banking posted a pretax loss, which typically weighs on share price.
Market effects
Community banking earnings beat may offset broader weakness in mortgage banking within regional banks.
Limited to U.S. regional banking sector; no broader market effect expected.
Minimal; the company is a small U.S. regional bank.
Counterpoint
Despite the earnings decline, the increase in core retail deposits could support liquidity and future loan growth.
Key entities
- companyWaterstone Financial, Inc.
U.S. regional bank reporting Q3 2026 results.
