Waterstone Financial in Wauwatosa, Wis., reported a 71% year-over-year jump in net income during the second quarter thanks to growth in its mortgage banking division.
The $1.8 billion-asset bank's net income rose to $7.8 million for the quarter ended June 30 versus $5.3 million a year ago. Earnings per share were 29 cents, the company reported Friday.
The company's mortgage banking segment brought in $4.4 million, an increase of $1.5 million, or 51.3%, compared to a year ago.
Loans originated by the mortgage banking segment for sale in the secondary market rose 13.3% to $675 million from the previous year. Total loans increased 3.2% to $1.13 billion.
"The increase in originations was driven by an increase in the origination of loans made for the purpose of residential purchases, which yield a higher margin than refinance loans, partially offset by a decrease in the origination of mortgage refinance products," the company said in a news release.
Net interest income was $10.2 million versus $10.1 million in the second quarter of 2015.
Noninterest income, which includes mortgage banking revenue, rose about 17% to $36.4 million.
Noninterest expenses expanded roughly 7% to $34.2 million, mainly on higher employee compensation costs.
