Waterstone Financial, Inc. (NASDAQ: WSBF)

Waterstone Financial, Inc. is a financial holding company that derives its primary operations from its wholly owned subsidiary WaterStone Bank, a community bank that has served the Milwaukee Wisconsin metropolitan area since 1921, and from its mortgage banking subsidiary Waterstone Mortgage Corporation, which focuses on originating residential loans for sale in the secondary market. The company engages in traditional banking activities such as accepting deposits, making commercial and consumer loans, and investing in securities, while also earning fee income from mortgage loan origination and sale activities.

The company generates revenue mainly from interest income earned on its loan portfolio, investment securities and other earning assets, from service charges on deposit accounts and from gains on the sale of mortgage loans originated by its mortgage banking subsidiary. Interest income stems from a diverse loan mix that includes one to four family residential mortgages, multi family residential mortgages, commercial real estate loans, home equity lines of credit, construction and land loans, and commercial loans. Noninterest income consists of deposit related fees, mortgage loan origination fees and gains on the sale of loans held for sale.

The company operates through the following segments: Community Banking and Mortgage Banking.

• Community Banking: This segment attracts retail and commercial deposits through offerings such as checking accounts, savings accounts, money market accounts and certificates of deposit, extends credit via one to four family residential mortgages, multi family residential mortgages, commercial real estate loans, home equity loans and lines of credit, construction and land loans, and commercial loans, and funds its lending activities primarily with retail deposits, brokered deposits and advances from the Federal Home Loan Bank of Chicago.

• Mortgage Banking: This segment originates single family residential mortgage loans for sale into the secondary market, relies on a line of credit from WaterStone Bank and additional funding when needed, and reported approximately $2.05 billion in mortgage loan originations held for sale during the year ended December 31, 2025.

Waterstone Financial operates in a competitive banking environment that includes large national banks, regional community banks, credit unions and numerous mortgage banking firms. Within the Milwaukee Waukesha metropolitan statistical area the company ranked ninth among 44 financial institutions with a market share of about 1.85% of total deposits as of June 30, 2025. The firm differentiates itself through its long history as a community bank dating back to 1921, its focus on building lasting relationships with local consumers and businesses, and its ability to offer both traditional banking products and mortgage banking services under a single corporate structure, which provides diversification of revenue streams.

The company serves individual consumers, small and midsize enterprises and real estate investors primarily located in the Milwaukee Wisconsin region, while its mortgage banking subsidiary originates loans for borrowers across multiple states including Florida, New Mexico, Wisconsin, Oklahoma, Texas and others. The filing does not disclose specific customer names, so the description is limited to the types of customers served.