Waterstone Financial, Inc.
- Open
- 19.70
- Day high
- 19.75
- Day low
- 19.38
- Prev close
- 19.69
- Volume
- 62K
- Mkt cap
- $351M
- P/E (TTM)
- 11.7
- EPS (TTM)
- $1.66
- P/B
- 1.0
- P/S
- 1.7
- Yield
- 1.75%
- Per share
- $0.34
- ▼Insiders net selling -$183K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Waterstone Financial, Inc. (WSBF) is a Financial Services company listed on NASDAQ. The stock is up 43% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Waterstone Financial, Inc. (WSBF) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WSBF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.66 | $0.34 | -48.5% | $49M | -25.2% |
| Oct 23, 2025 | — | $0.45 | — | $51M | — |
| Jul 22, 2025 | — | $0.43 | — | $52M | — |
| Apr 22, 2025 | — | $0.17 | — | $44M | — |
| Jan 28, 2025 | $0.33 | $0.28 | -15.2% | $48M | +15.2% |
| Oct 22, 2024 | $0.30 | $0.26 | -13.3% | $33M | +178.4% |
| Jul 25, 2024 | $0.26 | $0.31 | +19.2% | $36M | +202.9% |
| Apr 30, 2024 | $0.13 | $0.20 | +53.8% | $31M | +161.4% |
| Jan 30, 2024 | $0.18 | $-0.00 | -101.1% | $28M | +132.5% |
| Jul 25, 2023 | $0.27 | $0.20 | -25.9% | $35M | +153.7% |
| Jan 26, 2023 | $0.15 | $0.04 | -73.3% | $37M | +3.1% |
| Oct 26, 2022 | $0.29 | $0.25 | -13.8% | $42M | +5.8% |
WSBF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 22, 2026 | Gerke Mark Raymondofficer: EVP/Chief Financial Officer | Option | 10,000 | $14.98 |
| May 22, 2026 | Gerke Mark Raymondofficer: EVP/Chief Financial Officer | Sell | 10,000 | $18.34 |
| Feb 20, 2026 | Gordon Douglas Sdirector | Sell | 2,880 | $18.11 |
| Feb 10, 2026 | Gordon Douglas Sdirector | Sell | 6,765 | $18.27 |
| Feb 6, 2026 | Gordon Douglas Sdirector | Sell | 15,000 | $18.55 |
| Feb 6, 2026 | Gordon Douglas Sdirector | Sell | 18,716 | $18.25 |
| Feb 5, 2026 | Lawton Patrick Sdirector | Sell | 19,255 | $18.64 |
| Feb 5, 2026 | Lawton Patrick Sdirector | Sell | 30,000 | $18.53 |
| Feb 4, 2026 | Glynn Julie Annofficer: EVP/Chief Retail Officer | Sell | 929 | $18.69 |
| Feb 4, 2026 | Glynn Julie Annofficer: EVP/Chief Retail Officer | Option | 20,000 | $17.35 |
| Feb 4, 2026 | Glynn Julie Annofficer: EVP/Chief Retail Officer | Sell | 20,000 | $18.17 |
| Oct 28, 2025 | Hansen Michael Ldirector | Sell | 79,872 | $15.16 |
| Aug 14, 2025 | Hansen Michael Ldirector | Sell | 109,527 | $14.05 |
| Aug 14, 2025 | Hansen Michael Ldirector | Sell | 35,290 | $13.92 |
| Aug 12, 2025 | Hansen Michael Ldirector | Sell | 2,757 | $13.80 |
Source: WSBF SEC Form 4 filings, latest May 22, 2026. For informational purposes only — not investment advice.
See the full WSBF insider & 13F page →Waterstone Financial, Inc. company profile
Overview
Waterstone Financial, Inc. (NASDAQ:WSBF) is a Wisconsin-based bank holding company that has been serving southeastern Wisconsin communities since 1921. Originally founded as a local financial institution and formerly known as Wauwatosa Holdings, Inc., the company rebranded to its current name in August 2008. Waterstone operates through its primary subsidiary, WaterStone Bank SSB, providing traditional banking services across Milwaukee, Washington, and Waukesha Counties through 14 full-service banking offices, 1 drive-through location, and 14 ATMs.
Business
Waterstone Financial operates as a regional community bank in the competitive financial services sector, focusing primarily on southeastern Wisconsin markets. The company runs two distinct business segments that generate revenue through different channels and serve different customer needs. The Community Banking segment represents the traditional banking operations and likely accounts for the majority of the company's revenue base. This division provides comprehensive financial services to both individual consumers and local businesses. Consumer services include standard deposit products such as checking accounts, savings accounts, money market deposits, certificates of deposit, and individual retirement accounts. The bank also offers digital banking solutions including online banking, bill pay services, and money transfer capabilities, along with credit, debit, and prepaid card services. On the lending side, Community Banking provides residential mortgages, home equity loans and lines of credit, personal installment loans, and various business financing options including commercial real estate construction loans, term loans for working capital and inventory, and business lines of credit. Additionally, this segment offers wealth management services including fixed and variable annuities, insurance products, and trust and investment management accounts. The Mortgage Banking segment operates as a mortgage origination business focused on creating residential mortgage loans specifically for sale in the secondary market. This segment generates revenue through loan origination fees and the spread between the rate charged to borrowers and the price received when selling loans to government-sponsored enterprises or other investors. This business model allows the bank to generate fee income without retaining the long-term credit risk associated with mortgage lending. The company also maintains an investment portfolio consisting of mortgage-backed securities, government-sponsored enterprise bonds, private-label bonds, collateralized mortgage obligations, municipal bonds, and other debt securities, which provides additional interest income.
Revenue model
Waterstone Financial generates revenue through multiple streams typical of regional banking operations. The Community Banking segment earns money primarily through net interest income - the difference between interest earned on loans and investments and interest paid on deposits and borrowed funds. This includes income from residential mortgages, commercial real estate loans, business loans, personal loans, and the securities investment portfolio. Additionally, this segment generates fee income from various banking services including account maintenance fees, overdraft fees, ATM fees, wealth management services, insurance product sales, and trust services. The Mortgage Banking segment operates on a loan origination and sale model, earning fees from originating residential mortgages and then selling them in the secondary market to investors such as Fannie Mae, Freddie Mac, or private investors. Revenue comes from origination fees charged to borrowers and the gain on sale margin - the difference between the loan's value when originated and the price received when sold. The bank's profitability is significantly influenced by several key factors. Interest rate environment plays a crucial role, as rising rates can compress net interest margins if deposit costs rise faster than loan yields, while falling rates can reduce loan demand and refinancing activity in the mortgage banking segment. Credit quality directly impacts profitability through loan loss provisions - economic downturns in southeastern Wisconsin or deteriorating local real estate markets could increase defaults and reduce earnings. Competition from larger regional banks, credit unions, and fintech companies can pressure both deposit pricing and loan rates, squeezing margins. Regulatory compliance costs continue to increase for community banks, creating ongoing expense pressure. Local economic conditions in the Milwaukee metropolitan area significantly impact loan demand, deposit growth, and credit quality, making the bank's performance closely tied to regional economic health.
Competitive moat
Waterstone Financial operates in the highly competitive community banking sector where sustainable competitive advantages are limited and constantly under pressure. The company's primary moat stems from its local market presence and community relationships built over more than a century of operations in southeastern Wisconsin. This includes established relationships with local businesses, real estate professionals, and individual customers who value personalized service and local decision-making that larger national banks often cannot provide. However, this moat is relatively narrow and faces significant challenges. The bank's geographic concentration in a limited Wisconsin market area creates both opportunity and vulnerability - while it allows for deep local expertise and relationships, it also limits growth potential and increases exposure to regional economic downturns. Scale disadvantages compared to larger regional and national banks mean higher relative costs for technology infrastructure, regulatory compliance, and operational efficiency. The rise of fintech competitors and digital-first banks threatens traditional community banking relationships, particularly among younger customers who prioritize convenience over personal relationships. Regulatory barriers do provide some protection by making it difficult for new entrants to obtain banking charters, but this protection is diminishing as non-bank financial service providers offer many traditional banking services without full regulatory oversight. The company's mortgage banking operations face intense competition from both banks and non-bank mortgage originators, with limited differentiation possible in what is essentially a commodity business. Overall, Waterstone's competitive position is that of a typical small regional bank - defensible in the near term through local relationships and service quality, but vulnerable to technological disruption, economic cycles, and the ongoing consolidation pressures facing the community banking industry.
Risks & safety
Waterstone Financial presents a moderate margin of safety profile typical of a well-capitalized community bank, though with some areas of concern related to asset quality and profitability trends. • Solvency and Capital Position: The bank maintains adequate capitalization with a debt-to-equity ratio of 1.31, which is reasonable for a bank given that customer deposits constitute the majority of liabilities. Cash and short-term investments of $35.4 million provide operational liquidity. • Profitability Metrics: Return on equity of 5.5% for 2024 is modest but acceptable for community banking standards. Net income of $18.7 million on $113.2 million revenue indicates reasonable but not exceptional profitability. • Valuation Metrics: Trading at 0.74x book value suggests the market views the bank as fairly valued or slightly undervalued. P/E ratio of 13.3x appears reasonable for a regional bank. • Asset Quality Concerns: The Graham net-net working capital per share of -$20.46 reflects the bank's asset-heavy balance sheet structure, which is normal for banks but indicates limited liquidation value. • Revenue Volatility: Quarterly revenue has shown significant fluctuation, ranging from $29.2 million to $54.5 million in 2024, suggesting some instability in earnings streams, particularly from the mortgage banking segment. • Cash Flow: Positive operating cash flow of $48.1 million and free cash flow of $47.0 million for 2024 indicate healthy cash generation, though quarterly figures show volatility.
Recent development
Based on the available financial data, Waterstone Financial has experienced mixed operational performance over recent years, with notable volatility in revenue and profitability. The company's revenue peaked in 2022 at $157.8 million, driven by strong mortgage banking activity during the low interest rate environment, but declined to $99.2 million in 2023 and recovered partially to $113.2 million in 2024. This pattern reflects the cyclical nature of mortgage banking operations, which are highly sensitive to interest rate changes and housing market activity. The bank's net income performance has shown similar volatility, earning $19.5 million in 2022, dropping to $9.4 million in 2023, then recovering to $18.7 million in 2024. This recovery suggests management has successfully navigated the challenging interest rate environment that pressured many regional banks. The company's quarterly results throughout 2024 showed significant variation, with Q2 generating the highest revenue at $54.5 million, likely due to seasonal mortgage activity, while Q3 and Q4 showed more normalized community banking revenue levels around $29-31 million. The balance sheet has remained relatively stable with total assets fluctuating between $2.2-2.3 billion over the past two years. The bank has maintained adequate liquidity positions and appears to have managed interest rate risk reasonably well during the Federal Reserve's aggressive rate hiking cycle. The investment securities portfolio composition and duration management appear to be key factors in the bank's ability to maintain net interest margins during this challenging period.
WSBF company profile · for informational purposes only — not investment advice.
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