Waterstone Financial soars on home loans

Mortgage banking origination drive 70% profit increase

WaterStone Bank
WaterStone Bank's Wauwatosa headquarters.

Wauwatosa-based Waterstone Financial Inc., parent company of WaterStone Bank, today reported it increased second quarter profits by a whopping 70.6 percent over last year’s second quarter, driven by a jump in mortgage income.

WaterStone Bank
WaterStone Bank’s Wauwatosa headquarters.

Waterstone had second quarter net income of $7.8 million, or 29 cents per diluted share, up from $5.3 million, or 17 cents per share, in the second quarter of 2015.

Net interest income was $10.2 million, up from $10.1 million in the same period a year ago. Total noninterest income was $36.4 million, up from $31 million in the second quarter of 2015, driven by increased mortgage banking income.

The Mortgage Banking segment saw profit increase 51.3 percent year-over-year, to $4.4 million. The segment originated 13.3 percent more loans than the year-ago quarter, primarily for residential home prucahses.

“We achieved record quarterly pre-tax earnings in both our Community Banking and Mortgage Banking segments,” said Doug Gordon, chief executive officer of Waterstone Financial Inc. “Community Banking benefited from loan growth and an increase in net interest margin, while Waterstone Mortgage continues to excel in the origination of residential mortgage for the purpose of home purchase.”

Waterstone Financial had $1.8 billion in assets at the end of the second quarter. It has 11 branches in the Milwaukee market, a loan production office in Minneapolis, and mortgage banking offices in 21 states.

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Molly Dill, former BizTimes Milwaukee managing editor.

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