Waterstone forecasts $6.2 million in third-quarter net income despite nine-month growth
Key Facts
Waterstone Financial expects to report net income of $6.2 million for the three months ended September 30, 2026, down from $7.9 million in the year-earlier period, according to a notice of late filing submitted to the Securities and Exchange Commission on November 9. That would mark a year-over-year decline in quarterly income, while expected net income for the nine-month period rose. The company estimated that income at $20.6 million, compared with $18.7 million for the nine months ended September 30, 2025. It said quarterly results were affected by lower noninterest income and a higher provision for credit losses. Higher net interest income offset part of the impact of those two factors.
Waterstone attributed the quarterly income decline to two factors that weighed on results: lower noninterest income and a higher provision for credit losses. In the filing, it said an increase in net interest income partly offset those effects, limiting the decline without preventing it. The nine-month picture differs from the standalone quarter: expected net income for the cumulative period rose to $20.6 million from $18.7 million. The company also said higher net interest income supported nine-month performance. But increases in noninterest expense and the provision for credit losses partly eroded that improvement.
The third-quarter estimate followed the company's report of net income of $8.5 million, or $0.49 per diluted share, in the previous quarter, which ended June 30, 2026. In the same quarter of 2025, net income was $7.7 million and diluted earnings per share were $0.43. For the first half of 2026, net income was $14.5 million, compared with $10.8 million in the same period a year earlier. Chief Executive William Bruss said the quarterly net interest margin reached 3.03% in the June quarter, its highest level since the quarter ended December 31, 2022. In that quarter, the community banking segment posted record net interest income of $15.8 million, up $2.2 million, or 16.1%, year over year; the company attributed the increase to loan yields and a lower cost of funds.
The notice of expected results coincided with the company's delay in filing its quarterly 10-Q report. Waterstone said the delay was primarily due to needing more time to complete pre-filing procedures. It added that it expects to file the report no later than the fifth calendar day after the specified due date. In EL7 market data, the company's shares closed at $20.14 on November 12, 2026. The net income figure in the November 9 notice remains an estimate from the company, which described it as income it expects to report for the period ended September 30.