Waterstone Financial Q2 net income rises on higher loan yields
WSBF•Outlook
- Company did not provide specific guidance or outlook for future quarters or full year
Overview
- U.S. savings and loan reported Q2 net income up yr/yr on higher net interest income
- Net interest margin rose to 3.03%, highest since Q4 2022, aided by higher loan yields
- Company returned $6.5 mln to shareholders via buybacks and dividends in Q2
Result Drivers and Key Details
- Higher loan yields - Co said increased yields on loans and reduced cost of funds drove higher net interest income in Community Banking.
- Mortgage margin pressure - Mortgage Banking segment saw lower pre-tax income despite higher loan originations, as sales margins declined due to secondary market concerns about long-term rates.
- Credit loss provision - Provision for credit losses increased, mainly due to commercial real estate external qualitative factors.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Income | $8.46 mln | ||
| Q2 Net Interest Income | $16.01 mln | ||
| Q2 Credit Loss Provision | $236,000 |
