GET DAILY SIGNALSWaterstone Financial (WSBF) Q3 2026 Earnings: Margin Gains and Mortgage Recovery in Focus
Key Takeaways
- Waterstone Financial, the holding company for WaterStone Bank SSB and Waterstone Mortgage Corporation, is scheduled to report third-quarter 2026 results for the three months ended September 30, 2026.
- Consensus tracking points to earnings per share (EPS) near $0.66, though sell-side coverage remains thin; the company delivered $0.49 per diluted share in the second quarter of 2026.
- Net interest margin (NIM, a measure of lending profitability) expansion has been the central earnings engine, climbing to 3.03% in Q2 2026 from 2.60% a year earlier.
- Mortgage banking has returned to profitability, with first-half 2026 loan originations up 15.7% year over year on a sharp rebound in refinancing activity.
- Credit quality and capital remain strengths: nonperforming assets were just 0.30% of total assets, and the bank's Tier 1 capital ratio (a key regulatory measure of financial strength) stood at 18.66%.
- For additional context, explore Waterstone Financial's Major News, Today's Price Move, Price Targets, and Forecast on Tickeron.
- Investors looking for data-driven market ideas can also explore Tickeron's Trending AI Robots.
Earnings Context and Why It Matters
Waterstone Financial enters its third-quarter report on a multi-quarter rebound in core profitability. After full-year 2025 diluted EPS of $1.48, up from $1.01 in 2024, the company has sustained momentum through 2026 on rising loan yields, easing funding costs, and a recovery in its mortgage banking segment. Because WSBF operates a dual business model spanning community banking and mortgage origination, this report offers investors a read on both regional lending conditions in southeastern Wisconsin and the broader U.S. housing market. With the stock up roughly 40% over the past year, the quarter will test whether margin expansion and mortgage volumes can continue supporting that valuation. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Earnings Expectations
Analyst coverage of Waterstone Financial is limited, so formal consensus figures should be viewed cautiously. Where estimates are tracked, consensus points to EPS near $0.66 for the third quarter of 2026, which would represent meaningful growth from the $0.45 per diluted share reported in the year-ago period. Revenue expectations have been less consistently updated given the company's small float and thin institutional following.
Investors will focus primarily on net interest income and NIM, the core driver of recent outperformance. In the second quarter of 2026, community banking net interest income rose 16.1% year over year, lifting NIM to 3.03%. Mortgage banking results will also be in focus after the segment swung to a profit, supported by a 15.7% increase in first-half originations and a more than doubling of refinance production. Finally, watch credit metrics and expense trends, including the provision for credit losses, which has begun to tick higher on commercial real estate qualitative factors and a growing loan pipeline.
Market Reaction and Investor Sentiment
Sentiment heading into the third-quarter report is broadly constructive, reflecting a multi-quarter trend of margin improvement, a rebounding mortgage business, and steady shareholder returns through dividends and buybacks. WSBF shares have outperformed the savings-and-loan industry over the past year, and the company trades at a modest premium to some regional-bank peers on a trailing price-to-earnings basis. Key risk factors heading into the print include potential pressure on mortgage gain-on-sale margins, rising compensation and benefit costs, and any deterioration in credit-quality indicators such as past-due loans, which edged higher in the second quarter. From what I see, this is important because sustained outperformance often hinges on these metrics holding steady.
Forward Outlook and Key Factors to Monitor
The most important variable for Waterstone's earnings trajectory remains the direction of interest rates and its impact on NIM. The company has benefited from higher loan yields and lower deposit and borrowing costs, but that benefit could moderate if the rate environment stabilizes or shifts.
On the lending side, investors should monitor loan growth across multi-family, construction, and commercial real estate categories, which have partially offset softer single-family residential balances. A growing pipeline of unfunded commitments suggests additional balance-sheet expansion is possible, though it also carries incremental credit-risk provisions.
In mortgage banking, the key watch items are origination volumes and gain-on-sale margins. While refinancing activity has surged, margins have compressed, meaning higher volume may not translate linearly into higher profit. Sustained purchase-market strength will matter for the segment's durability.
Finally, capital deployment remains a supporting factor. A $0.17 quarterly dividend and an expanded share repurchase authorization underline management's willingness to return capital, but investors will want confirmation that this does not come at the expense of credit quality or liquidity. Each of these signals will shape how the market interprets Waterstone's forward earnings power. I'm watching this closely as the report approaches.
Exploring AI Tools for Bank Stock Analysis
In my own research process, I frequently rely on Tickeron’s AI Screener to quickly filter regional banks and compare metrics like NIM trends or credit quality across peers. This tool lets me scan for patterns in technical indicators and fundamentals, which helps surface comparable ideas without spending hours on manual reviews. It has become a practical part of how I prepare for earnings like the upcoming WSBF report, offering a more efficient way to monitor shifting market conditions in the sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WSBF in upward trend: price rose above 50-day moving average on November 04, 2026
WSBF moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend. In 28 of 37 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where WSBF's RSI Oscillator exited the oversold zone, 16 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 57%.
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on WSBF as a result. In 52 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for WSBF just turned positive on October 14, 2026. Looking at past instances where WSBF's MACD turned positive, the stock continued to rise in 25 of 44 cases over the following month. The odds of a continued upward trend are 57%.
Following a +0.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where WSBF advanced for three days, in 177 of 297 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WSBF declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
WSBF broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for WSBF entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 26 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.050) is normal, around the industry mean (1.286). P/E Ratio (11.850) is within average values for comparable stocks, (13.490). Projected Growth (PEG Ratio) (0.050) is also within normal values, averaging (1.190). Dividend Yield (0.033) settles around the average of (0.035) among similar stocks. P/S Ratio (2.465) is also within normal values, averaging (3.738).
The Tickeron PE Growth Rating for this company is 43 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. WSBF’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 67 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WSBF’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock worse than average.
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General Information
a regional bank
Industry RegionalBanks
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