Waterstone Financial, Inc. operates as the holding company for WaterStone Bank SSB, a savings bank founded in 1921 and based in Wauwatosa, Wisconsin. The company's business model is structured around two primary segments: Community Banking and Mortgage Banking. The Community Banking segment, which generates the majority of the company's revenue and net interest income, offers traditional retail and commercial banking services. These include checking and savings accounts, money market deposits, and certificates of deposit, which fund its lending activities. The bank originates one- to four-family, multi-family residential, and commercial real estate loans, alongside business and consumer loans, primarily serving customers across southeastern Wisconsin through its branch network. The Mortgage Banking segment is operated through its subsidiary, Waterstone Mortgage Corporation. This segment focuses on originating residential mortgage loans primarily for sale in the secondary market, generating revenue through gains on loan sales and associated servicing fees. While the community bank is regionally focused, the mortgage banking division operates on a national scale with the ability to lend in 48 states. Waterstone Financial's dual-business model allows it to balance traditional, counter-cyclical deposit-funded lending with fee-generating mortgage banking activities, positioning it competitively within the regional banking sector.
