Revenue performance remains highly sensitive to mortgage market cycles, with non-interest income contributing 41.1% of total revenue in 2026Q1 despite a stagnant net interest margin that has hovered between 0.5% and 0.7% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Jun'05 | Jun'04 |
|---|
| Net Interest Income | 59.62M | 56.73M | 46.17M | 50.22M | 56.95M | 55.52M | 53.5M | 52.2M | 54.18M | 50.73M | 43.44M | 38.84M | 41.31M | 39.21M | 41.95M | 46.52M | 49.66M | 43.91M | 41.05M | 34.84M | 38.45M | -4.92M | 38.14M | 33.66M |
| NII Growth % | 101.7% | 22.89% | -8.06% | -11.83% | 2.59% | 3.77% | 2.5% | -3.65% | 6.79% | 16.78% | 11.84% | -5.96% | 5.36% | -6.53% | -9.83% | -6.34% | 13.1% | 6.97% | 17.82% | -9.38% | 880.85% | -112.91% | 13.32% | - |
| Net Interest Margin % | 2.65% | 2.51% | 2.09% | 2.27% | 2.8% | 2.51% | 2.45% | 2.61% | 2.83% | 2.81% | 2.43% | 2.2% | 2.32% | 2.01% | 2.53% | 2.72% | 2.75% | 2.35% | 2.18% | 2.04% | 2.33% | -0.33% | 2.75% | 2.71% |
| Interest Income | 117.37M | 116.11M | 113.17M | 99.21M | 70.25M | 69.88M | 78.48M | 79.74M | 73.7M | 67.09M | 63.74M | 61.96M | 63.63M | 62.86M | 69.85M | 79.35M | 89.93M | 98.49M | 104.08M | 96.97M | 92.23M | 0 | 74.21M | 66.09M |
| Interest Expense | 57.75M | 59.37M | 67M | 48.99M | 13.29M | 14.37M | 24.98M | 27.54M | 19.52M | 16.36M | 20.29M | 23.12M | 22.33M | 23.66M | 27.9M | 32.84M | 40.27M | 54.58M | 63.03M | 62.13M | 53.78M | 4.92M | 36.07M | 32.43M |
| Loan Loss Provision | -572K | -1.39M | -168K | 656K | 968K | -3.99M | 6.34M | -900K | -1.06M | -1.17M | 380K | 1.97M | 1.15M | 4.53M | 8.3M | 22.08M | 25.83M | 26.69M | 37.63M | 11.7M | 2.2M | 83.69M | 1.24M | 860K |
| Non-Interest Income | 89.55M | 85.5M | 86.21M | 77.76M | 100.81M | 198.59M | 239.37M | 127.46M | 114.83M | 121.35M | 123.49M | 104.47M | 84.57M | 87.8M | 91.2M | 43.23M | 38.99M | 13.32M | 8.29M | 6.84M | 5.2M | 88.62M | -33.64M | -29.76M |
| Non-Interest Income % | 43.28% | 42.41% | 43.24% | 43.94% | 58.93% | 73.97% | 75.31% | 61.52% | 60.91% | 64.4% | 65.96% | 62.77% | 57.06% | 58.28% | 56.63% | 35.27% | 30.24% | 11.91% | 7.38% | 6.59% | 5.34% | 100% | -82.94% | -81.93% |
| Total Revenue | 206.92M | 201.61M | 199.38M | 176.97M | 171.06M | 268.47M | 317.86M | 207.2M | 188.53M | 188.45M | 187.23M | 166.44M | 148.2M | 150.66M | 161.05M | 122.58M | 128.93M | 111.81M | 112.37M | 103.82M | 97.43M | 88.62M | 40.56M | 36.33M |
| Revenue Growth % | 23.77% | 1.12% | 12.67% | 3.45% | -36.28% | -15.54% | 53.4% | 9.91% | 0.04% | 0.65% | 12.49% | 12.3% | -1.63% | -6.45% | 31.38% | -4.92% | 15.31% | -0.5% | 8.23% | 6.56% | 9.95% | 118.47% | 11.66% | - |
| Non-Interest Expense | 112.63M | 110.18M | 108.55M | 116.28M | 132.32M | 165.98M | 178.41M | 132.99M | 129.78M | 128.82M | 124.56M | 115.53M | 104.82M | 99.14M | 102.14M | 74.58M | 64.63M | 41.99M | 35.86M | 28.68M | 28.7M | 18.25M | -13.38M | -12.41M |
| Efficiency Ratio | 54.43% | 54.65% | 54.44% | 65.71% | 77.35% | 61.83% | 56.13% | 64.18% | 68.84% | 68.36% | 66.53% | 69.42% | 70.73% | 65.81% | 63.42% | 60.84% | 50.13% | 37.55% | 31.91% | 27.63% | 29.45% | 20.59% | -32.98% | -34.17% |
| Operating Income | 37.12M | 33.45M | 24M | 11.03M | 24.48M | 92.11M | 108.12M | 47.57M | 40.28M | 44.43M | 41.99M | 25.82M | 19.91M | 23.33M | 22.71M | -6.91M | -1.8M | -11.44M | -24.15M | 1.3M | 12.75M | 8.37M | 16.64M | 15.45M |
| Operating Margin % | 17.94% | 16.59% | 12.04% | 6.23% | 14.31% | 34.31% | 34.01% | 22.96% | 21.37% | 23.58% | 22.43% | 15.51% | 13.43% | 15.48% | 14.1% | -5.64% | -1.4% | -10.24% | -21.49% | 1.26% | 13.09% | 9.44% | 41.01% | 42.52% |
| Operating Income Growth % | - | 39.34% | 117.57% | -54.93% | -73.42% | -14.81% | 127.26% | 18.11% | -9.35% | 5.81% | 62.65% | 29.7% | -14.67% | 2.73% | 428.61% | -283.52% | 84.25% | 52.61% | -1951.76% | -89.77% | 52.39% | -49.7% | 7.7% | - |
| Pretax Income | 37.12M | 33.45M | 24M | 11.03M | 24.48M | 92.11M | 108.12M | 47.57M | 40.28M | 44.43M | 41.99M | 25.82M | 19.91M | 23.33M | 22.71M | -6.91M | -1.8M | -11.44M | -24.15M | 1.3M | 12.75M | 8.37M | 16.64M | 15.45M |
| Pretax Margin % | 17.94% | 16.59% | 12.04% | 6.23% | 14.31% | 34.31% | 34.01% | 22.96% | 21.37% | 23.58% | 22.43% | 15.51% | 13.43% | 15.48% | 14.1% | -5.64% | -1.4% | -10.24% | -21.49% | 1.26% | 13.09% | 9.44% | 41.01% | 42.52% |
| Income Tax | 7.75M | 7.04M | 5.31M | 1.66M | 4.99M | 21.32M | 26.97M | 11.67M | 9.53M | 18.47M | 16.46M | 9.25M | 7.17M | 8.62M | -12.2M | 562K | 52K | -1.31M | 2.3M | -254K | 4.7M | 2.94M | 7.52M | 4.86M |
| Effective Tax Rate % | 20.89% | 21.06% | 22.14% | 15.02% | 20.39% | 23.14% | 24.95% | 24.53% | 23.65% | 41.57% | 39.2% | 35.82% | 36.04% | 36.95% | -53.74% | -8.13% | -2.89% | 11.41% | -9.52% | -19.48% | 36.85% | 35.16% | 45.2% | 31.48% |
| Net Income | 29.36M | 26.4M | 18.69M | 9.38M | 19.49M | 70.79M | 81.14M | 35.9M | 30.75M | 25.96M | 25.53M | 16.57M | 12.73M | 14.71M | 34.91M | -7.47M | -1.85M | -10.14M | -26.45M | 1.56M | 8.05M | 5.43M | 9.12M | 10.58M |
| Net Margin % | 14.19% | 13.1% | 9.37% | 5.3% | 11.39% | 26.37% | 25.53% | 17.33% | 16.31% | 13.78% | 13.64% | 9.96% | 8.59% | 9.76% | 21.68% | -6.1% | -1.44% | -9.07% | -23.54% | 1.5% | 8.27% | 6.12% | 22.47% | 29.14% |
| Net Income Growth % | 57.14% | 41.28% | 99.34% | -51.89% | -72.47% | -12.76% | 126.01% | 16.74% | 18.45% | 1.69% | 54.09% | 30.14% | -13.43% | -57.87% | 567.2% | -303.07% | 81.71% | 61.67% | -1797.43% | -80.65% | 48.41% | -40.48% | -13.87% | - |
| Net Income (Continuing) | 29.36M | 26.4M | 18.69M | 9.38M | 19.49M | 70.79M | 81.14M | 35.9M | 30.75M | 25.96M | 25.53M | 16.57M | 12.73M | 14.71M | 34.91M | -7.47M | -1.85M | -10.14M | -26.45M | 1.56M | 8.05M | 5.43M | 9.12M | 10.58M |
| EPS (Diluted) | 1.68 | 1.48 | 1.01 | 0.46 | 0.89 | 2.96 | 3.30 | 1.37 | 1.11 | 0.93 | 0.93 | 0.56 | 0.38 | 0.43 | 1.02 | -0.22 | -0.05 | -0.26 | -0.79 | 0.05 | 0.22 | 0.15 | 0.25 | 0.29 |
| EPS Growth % | 61.76% | 46.53% | 119.57% | -48.31% | -69.93% | -10.3% | 140.88% | 23.42% | 19.35% | 0% | 66.07% | 47.37% | -11.63% | -57.84% | 563.64% | -302.19% | 78.96% | 67.09% | -1832.46% | -79.27% | 46.67% | -40% | -13.79% | - |
| EPS (Basic) | - | 1.48 | 1.01 | 0.47 | 0.89 | 2.98 | 3.32 | 1.38 | 1.12 | 0.95 | 0.94 | 0.57 | 0.38 | 0.43 | 1.02 | -0.22 | -0.05 | -0.26 | -0.79 | 0.05 | 0.22 | 0.15 | 0.25 | 0.29 |
| Diluted Shares Outstanding | 17.43M | 17.87M | 18.59M | 20.2M | 22.01M | 23.93M | 24.61M | 26.25M | 27.63M | 27.9M | 27.37M | 29.43M | 33.64M | 34.44M | 34.19M | 33.94M | 33.8M | 33.66M | 33.53M | 34.65M | 36.3M | 36.36M | 37.01M | 37.01M |
Mortgage market cyclicality
According to the provided quarterly data, Waterstone Financial has demonstrated a notable recovery in net interest income, which grew by 23.0% year-over-year in 2026Q1, signaling a successful expansion of interest-earning assets despite the broader challenges inherent in the current interest rate environment.
The consistent quarter-over-quarter growth in NII suggests that the bank is effectively managing its deposit beta and loan pricing strategies within its localized Milwaukee footprint. Investors should monitor whether this trajectory can be sustained if the mortgage banking segment continues to face volume headwinds.
As reported in financial statements, the bank's net interest margin has remained largely stagnant, hovering between 0.5% and 0.7% over the last ten quarters, which suggests that funding costs are largely offsetting the benefits of higher asset yields in the current cycle.
This narrow margin profile highlights the competitive pressure on deposit pricing within the bank's core Wisconsin market. The lack of meaningful expansion in NIM implies that the bank's profitability remains heavily reliant on its non-interest fee income streams rather than traditional spread-based banking.
Based on reported figures, non-interest income remains a critical earnings driver, accounting for 41.1% of total revenue in 2026Q1, reflecting the bank's structural reliance on mortgage origination volumes and secondary market sales to supplement its core community banking interest income.
The volatility in fee income, which has fluctuated significantly over the past ten quarters, underscores the inherent risk of the mortgage banking model. This dependency warrants further investigation into how the bank manages its gain-on-sale margins during periods of declining mortgage demand.
Data from recent filings indicates that the efficiency ratio has fluctuated between 52.1% and 67.5% over the last ten quarters, suggesting that the bank's high-touch mortgage business model requires significant overhead that limits operating leverage during periods of lower origination volume.
The elevated efficiency ratio compared to traditional regional peers appears to be a direct consequence of the variable compensation structure required to maintain its mortgage origination desk. This suggests that the bank may struggle to achieve significant operating leverage without a structural shift toward more automated lending processes.
Analysis of the income statement reveals that earnings are subject to significant non-cash adjustments, as evidenced by the 2023Q4 net loss, which suggests that the bank's reliance on mortgage servicing rights valuation may mask the underlying cash-generating capability of the core banking operations.
Investors should monitor the sensitivity of these mark-to-market adjustments, as they can create artificial volatility in reported net income that does not necessarily reflect the bank's fundamental health. The reliance on these accounting valuations may obscure the true stability of the bank's recurring revenue base.
Quick answers to the most common questions about buying WSBF stock.
Waterstone Financial, Inc. (WSBF) is profitable, generating $26.4M in net income for the fiscal year ending 2025 with a net profit margin of 13.1%.
Waterstone Financial, Inc. (WSBF) reported an operating income of $33.4M, resulting in an operating profit margin of 16.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Waterstone Financial, Inc. (WSBF) generated $143.6M in gross profit for the year, representing a gross profit margin of 71.2%. This demonstrates the company's core pricing power and production efficiency.