Waterstone Financial, Inc. (WSBF) Bundle
Ever heard of Waterstone Financial, Inc. (WSBF) and wondered what makes it tick? As the savings and loan holding company for WaterStone Bank, established in 1921, this Wisconsin-based institution offers a comprehensive suite of personal and business banking products with a commitment to community service. But how exactly does Waterstone Financial operate, and more importantly, how does it generate revenue in today's dynamic financial landscape? Keep reading to discover the history, ownership structure, mission, and business model that drive this regional banking powerhouse, which reported a net income of $5.2 million, or $0.28 per diluted share, for the quarter ended December 31, 2024.
Waterstone Financial, Inc. (WSBF) History
Founding Timeline
Year established
The company was established in 1921.
Original location
The company's original location was in Wauwatosa, Wisconsin.
Founding team members
While specific names of the original founders are not readily available, the institution began as a community-focused savings and loan association.
Initial capital/funding
Information regarding the precise initial capital or funding is not specified in the available resources.
Evolution Milestones
| Year | Key Event | Significance |
|---|---|---|
| 1921 | Founding as Wauwatosa Mutual Savings and Loan Association | Established a community-based financial institution focused on savings and loans. |
| 1997 | Merger with Elm Grove Savings and Loan Association | Expanded the company’s footprint and customer base in the Milwaukee metropolitan area. |
| 2004 | Name change to Waterstone Bank SSB | Reflected a broader range of financial services and a more modern banking approach. |
| 2013 | Formation of Waterstone Financial, Inc. and Initial Public Offering (IPO) | Created a holding company and allowed public investment, providing capital for growth and strategic initiatives. |
| 2017 | Acquisition of Lincoln Savings Bank | Further expanded the company's presence and assets in the Wisconsin market. |
Transformative Moments
- Strategic Shift to Commercial Banking: Expanding services beyond traditional residential mortgages to include commercial lending, catering to businesses and developers.
- Digital Transformation Initiatives: Implementing advanced online and mobile banking platforms to enhance customer experience and operational efficiency.
- Community Engagement Programs: Launching initiatives focused on financial literacy and community development, strengthening local ties and brand reputation.
To delve deeper into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Waterstone Financial, Inc. (WSBF).
Waterstone Financial, Inc. (WSBF) Ownership Structure
Waterstone Financial, Inc. features a mix of institutional, retail, and insider ownership, reflecting diverse investor interests and management alignment.
Waterstone Financial, Inc.'s Current Status
Waterstone Financial, Inc. (WSBF) is a publicly traded company. This means that its shares are available for purchase by the general public on a stock exchange. Being publicly traded allows Waterstone Financial to raise capital through the issuance of stock and provides liquidity for its investors.
Waterstone Financial, Inc.'s Ownership Breakdown
Understanding the ownership structure of Waterstone Financial, Inc. provides insights into the distribution of control and influence within the company. Here's a breakdown:
| Shareholder Type | Ownership, % | Notes |
|---|---|---|
| Institutions | 61.43% | Institutional investors, such as mutual funds, pension funds, and hedge funds, hold a significant portion of Waterstone Financial's shares. This indicates strong interest and confidence from the professional investment community. |
| Individual Insiders | 1.44% | Insiders, including company executives and board members, own a smaller percentage of the shares. This suggests that the leadership has a direct stake in the company's performance, aligning their interests with those of other shareholders. |
| Retail | 37.13% | Retail investors represent the balance of ownership in Waterstone Financial, Inc. |
Waterstone Financial, Inc.'s Leadership
The leadership team at Waterstone Financial, Inc. is responsible for setting the strategic direction and overseeing the company's operations. Key members of the leadership team as of April 2025 include:
- Douglas Gordon: Chairman and Chief Executive Officer
- Mark Riffee: President and Chief Operating Officer
- Thomas Everson: Executive Vice President and Chief Financial Officer
These individuals, along with their respective teams, guide Waterstone Financial in its mission and strategic objectives. You can find more about the company's goals at: Mission Statement, Vision, & Core Values of Waterstone Financial, Inc. (WSBF).
Waterstone Financial, Inc. (WSBF) Mission and Values
Waterstone Financial, Inc. operates with a commitment to serving its customers and communities through its financial services. The company's mission and values reflect a focus on integrity, customer service, and community support.
Waterstone Financial, Inc.'s Core Purpose
Official mission statement
While a specific, formally published mission statement for Waterstone Financial, Inc. is not readily available, their approach to business provides insight into what drives them. Waterstone Bank, a subsidiary of Waterstone Financial, Inc., emphasizes building strong relationships with customers and supporting the communities it serves. This suggests a mission centered around providing personalized financial solutions and fostering local economic growth.
Vision statement
Although a formal vision statement is not publicly declared, Waterstone Financial's actions and priorities suggest a forward-looking vision that includes:
- Sustained Growth: Expanding their reach and services while maintaining financial stability.
- Community Leadership: Remaining a pillar of support for local communities through investments and services.
- Customer-Centric Innovation: Adapting to evolving customer needs through innovative financial products and services.
Company slogan/tagline
Waterstone Bank uses the tagline 'Your Hometown Bank,' which reflects its commitment to local communities and personalized service.
For further insights into Waterstone Financial, Inc.'s financial standing, consider reading Breaking Down Waterstone Financial, Inc. (WSBF) Financial Health: Key Insights for Investors.
Waterstone Financial, Inc. (WSBF) How It Works
Waterstone Financial, Inc. operates as the holding company for WaterStone Bank SSB, providing a range of banking and financial services to individuals and businesses.
Waterstone Financial, Inc.'s Product/Service Portfolio
| Product/Service | Target Market | Key Features |
|---|---|---|
| Residential Mortgages | Individuals and families seeking to purchase or refinance homes. | Fixed-rate and adjustable-rate mortgages, jumbo loans, and government-backed loans (e.g., FHA, VA). |
| Commercial Real Estate Loans | Developers, investors, and businesses investing in commercial properties. | Financing for the acquisition, development, and refinancing of commercial properties, including office buildings, retail centers, and industrial facilities. |
| Consumer Banking Services | Individuals and households. | Checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). |
| Business Banking Services | Small to medium-sized businesses. | Business checking accounts, business savings accounts, commercial loans, lines of credit, and treasury management services. |
| Wealth Management and Investment Services | Individuals, families, and businesses. | Financial planning, investment management, retirement planning, and trust services offered through Waterstone Financial Group. |
Waterstone Financial, Inc.'s Operational Framework
Waterstone Financial, Inc. operates through its primary subsidiary, WaterStone Bank SSB. The bank's operations are structured to attract deposits, originate loans, and manage investments to generate revenue. Key aspects of its operational framework include:
- Deposit Gathering: Attracting deposits from individuals and businesses through competitive interest rates and a variety of account options. These deposits form a significant funding source for lending activities.
- Loan Origination: Underwriting and originating residential mortgages, commercial real estate loans, and commercial and industrial loans. The bank assesses credit risk and sets interest rates based on market conditions and borrower profiles.
- Investment Management: Managing a portfolio of investment securities, including government bonds, mortgage-backed securities, and corporate bonds. Investment decisions are made to optimize returns while managing risk.
- Customer Service: Providing customer service through branch locations, online banking, and mobile banking platforms. The bank focuses on building long-term relationships with customers by offering personalized service and financial advice.
- Risk Management: Implementing risk management practices to mitigate credit risk, interest rate risk, and operational risk. This includes setting lending limits, monitoring loan performance, and maintaining adequate capital reserves.
More insights about Waterstone Financial, Inc. you can find here: Mission Statement, Vision, & Core Values of Waterstone Financial, Inc. (WSBF).
Waterstone Financial, Inc.'s Strategic Advantages
Waterstone Financial, Inc. has several strategic advantages that contribute to its market success:
- Strong Local Presence: WaterStone Bank SSB has a strong presence in the Milwaukee metropolitan area, with a network of branches and a long-standing reputation for community involvement.
- Diversified Revenue Streams: The company generates revenue from a variety of sources, including interest income from loans, service fees, and investment gains. This diversification reduces its reliance on any single revenue source.
- Experienced Management Team: Waterstone Financial, Inc. has an experienced management team with a proven track record of success in the banking industry. Their expertise in lending, risk management, and strategic planning contributes to the company's stability and growth.
- Focus on Technology: Investing in technology to improve the customer experience and streamline operations, including online and mobile banking platforms.
- Sound Asset Quality: Maintaining sound asset quality through prudent underwriting practices and effective risk management. This helps to minimize loan losses and maintain a strong balance sheet. As of the fiscal year 2024, the company reported non-performing assets to total assets ratio of 0.34%, showcasing effective asset management.
Waterstone Financial, Inc. (WSBF) How It Makes Money
Waterstone Financial, Inc. primarily makes money through its community banking and mortgage banking operations.
Waterstone Financial, Inc.'s Revenue Breakdown
As of the fiscal year 2024, here’s a breakdown of Waterstone Financial's revenue streams:
| Revenue Stream | % of Total | Growth Trend |
|---|---|---|
| Net Interest Income | Approx. 55-65% | Stable to Decreasing |
| Non-interest Income (Mortgage Banking) | Approx. 35-45% | Subject to Market Fluctuations |
Waterstone Financial, Inc.'s Business Economics
Waterstone Financial, Inc.'s business economics are influenced by several factors:
- Interest Rate Environment: As a financial institution, changes in interest rates significantly impact Waterstone Financial's net interest margin (NIM). Higher interest rates can increase the yield on assets but may also increase the cost of funds.
- Mortgage Origination Volume: Revenue from mortgage banking is highly dependent on mortgage origination volume, which fluctuates with interest rates, housing market conditions, and refinance activity.
- Operating Efficiency: Managing operating expenses efficiently is crucial for profitability. The company focuses on controlling costs while investing in technology and infrastructure to support growth.
- Credit Quality: Maintaining strong credit quality in its loan portfolio is essential to minimize loan losses and ensure sustainable profitability.
To delve deeper into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Waterstone Financial, Inc. (WSBF).
Waterstone Financial, Inc.'s Financial Performance
Key aspects of Waterstone Financial, Inc.'s financial performance include:
- Net Interest Income: This is the difference between the revenue generated from the bank’s assets and the expenses associated with paying out its liabilities. In 2024, Net Interest Income constituted a significant portion of the total revenue, around 55-65%.
- Non-interest Income: A substantial portion of non-interest income comes from mortgage banking activities, including loan origination fees and gains on sales of loans.
- Profitability Ratios: Key profitability ratios such as Return on Assets (ROA) and Return on Equity (ROE) are important indicators of financial health. These ratios reflect how efficiently the company is using its assets and equity to generate profits.
- Asset Quality: Monitoring asset quality, including non-performing loans and loan loss reserves, is crucial for assessing the company's financial stability.
- Capital Adequacy: Maintaining adequate capital levels is essential for regulatory compliance and to support future growth. Capital ratios, such as the Tier 1 capital ratio, are closely monitored.
Waterstone Financial, Inc. (WSBF) Market Position & Future Outlook
Waterstone Financial, Inc. is strategically positioned to leverage its community banking model and mortgage banking operations to navigate the evolving financial landscape. The company's future outlook hinges on capitalizing on market opportunities while mitigating potential risks inherent in the financial services sector.
Competitive Landscape
| Company | Market Share, % | Key Advantage |
|---|---|---|
| Waterstone Financial, Inc. | Approx. 1-2% (Based on publicly available data and relative size within the regional banking sector) | Strong community ties and integrated mortgage banking services. |
| Associated Banc-Corp | Approx. 5-7% (Estimate based on publicly accessible market share data for regional banks) | Larger asset base and broader range of financial products. |
| Old National Bancorp | Approx. 8-10% (Estimated from available reports on regional bank market share) | Extensive branch network and diversified service offerings. |
Opportunities & Challenges
| Opportunities | Risks |
|---|---|
| Expansion of digital banking services to attract and retain tech-savvy customers. | Interest rate volatility impacting net interest margins and mortgage demand. |
| Strategic partnerships with local businesses to enhance community engagement and drive loan growth. | Increased competition from larger national banks and fintech companies. |
| Leveraging data analytics to improve risk management and personalize customer offerings. | Regulatory changes and compliance costs affecting profitability. |
Industry Position
Waterstone Financial operates primarily through its wholly-owned subsidiary, WaterStone Bank SSB. As a community-focused financial institution, Waterstone Financial's position is characterized by:
- Local Market Expertise: Deep understanding of the local markets it serves, enabling tailored financial solutions.
- Relationship Banking: Emphasis on building long-term relationships with customers, fostering loyalty and trust.
- Mortgage Banking Strength: Significant presence in the mortgage market, providing a competitive advantage.
To gain more insight into the company's financial well-being, explore Breaking Down Waterstone Financial, Inc. (WSBF) Financial Health: Key Insights for Investors.
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