Waterstone Financial Q2 net income rises on higher loan yields

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

Outlook

• Company did not provide specific guidance or outlook for future quarters or full year

Result Drivers

• 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

Company press release: ID:nGNX44RLJG

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)