Waterstone Financial Raises Quarterly Dividend to $0.17 Per Share
Waterstone Financial, Inc., the holding company for WaterStone Bank, declared an increased quarterly dividend of $0.17 per share for the period ended March 31, 2026. The announcement came as the company reported first-quarter net income of $6.0 million.
Waterstone Financial, Inc. (NASDAQ: WSBF), the holding company for WaterStone Bank, declared an increased quarterly dividend of $0.17 per share for the quarter ended March 31, 2026. The dividend increase accompanied first-quarter earnings that doubled year-over-year. Read more dividend announcements.
The Wauwatosa, Wisconsin-based company reported net income of $6.0 million, or $0.34 per diluted share, for the quarter ended March 31, 2026, compared to $3.0 million, or $0.17 per diluted share, in the same period last year. The company earned $7.7 million, or $0.44 per diluted share, in the fourth quarter of 2025.
| Dividend Details | Information |
|---|---|
| Dividend Amount | $0.17 per share |
| Frequency | Quarterly |
| Record Date | Not disclosed |
| Ex-Dividend Date | Not disclosed |
| Payment Date | Not disclosed |
Strong Community Banking Performance
The company's community banking segment posted record first-quarter net interest income of $15.2 million, a $2.8 million or 22.8% increase from the first quarter of 2025. Net interest margin expanded to 2.97% for the quarter, driven by higher yields on loans held for investment and reduced cost of funds.
"We started 2026 on a strong note due to continued net interest margin expansion and increased loan origination volumes at the mortgage banking segment," said William Bruss, Chief Executive Officer.
Capital Returns and Asset Quality
Waterstone returned $7.3 million to shareholders during the quarter through dividends and share repurchases. The company bought back approximately 246,000 shares at a cost of $4.4 million, or $17.89 per share including federal excise tax.
Book value per share increased to $19.19 at March 31, 2026, from $19.03 at December 31, 2025. The company's consolidated return on average assets reached 1.10% for the quarter, up from 0.57% in the prior-year period. Return on average equity climbed to 6.88% from 3.61%.
Nonperforming assets as a percentage of total assets held steady at 0.35% at March 31, 2026, unchanged from a year earlier but up from 0.29% at year-end 2025. Past due loans as a percentage of total loans improved to 0.58% from 0.67% a year ago and 0.86% at December 31, 2025.
Mortgage Banking Rebound
The mortgage banking segment increased pre-tax income by $2.2 million due to higher loan origination activity as interest rates decreased periodically throughout the quarter. The company did increase its allowance for credit losses due to certain external qualitative factors, though management noted asset quality metrics remain strong.