Waterstone Financial, Inc. (WSBF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Waterstone Financial, Inc. (WSBF) trades at $20.23 with AI Score 45/100 (Grade C). Waterstone Financial, Inc. Market cap: $365.30M, Sector: Financial services.
Price live · AI analysis from May 10, 2026Analyst Coverage for WSBF: WSBF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates WSBF against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
WSBF: the 7 perspectives are evenly split. Dominant signal: Ray Dalio bullish.
How is this calculated? →Waterstone Financial, Inc. (WSBF) Financial Services Profile
Waterstone Financial, Inc., operating as WaterStone Bank SSB, delivers community and mortgage banking solutions in southeastern Wisconsin. With a focus on traditional banking and residential mortgages, WSBF distinguishes itself through local market expertise and a commitment to community banking values within a competitive regional banking landscape.
What Is the Investment Thesis for WSBF?
Waterstone Financial presents a compelling investment case based on its established presence in the southeastern Wisconsin market and its focus on traditional banking and mortgage services. With a P/E ratio of 12.4 and a dividend yield of 3.31%, WSBF offers potential value for investors seeking stable returns. The company's diversified revenue streams from community and mortgage banking segments provide resilience against market fluctuations. Growth catalysts include expanding its digital banking services and increasing its market share in residential mortgages. However, potential risks include interest rate sensitivity and competition from larger regional and national banks. The company's ability to maintain its profit margin of 14.2% and capitalize on growth opportunities will be crucial for long-term success.
Based on FMP financials and quantitative analysis
WSBF Key Highlights
- Market capitalization of $365.30M, reflecting its position as a regional bank.
- P/E ratio of 12.4, suggesting a potentially undervalued stock compared to industry peers.
- Profit margin of 14.2%, indicating efficient operations and profitability.
- Gross margin of 72.4%, highlighting strong revenue generation relative to the cost of goods sold.
- Dividend yield of 3.31%, offering an attractive income stream for investors.
Who Are WSBF's Competitors?
WSBF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BOH Bank of Hawaii Corporation | $83.05 | +0.39% | $3.29B | 86 |
| CMA Comerica Incorporated | $88.67 | -4.51% | $11.35B | 48 |
| HBAN Huntington Bancshares Incorporated | $17.89 | +0.17% | $36.27B | 68 |
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| BUSE First Busey Corporation | $29.58 | -0.25% | $2.50B | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are WSBF's Key Strengths?
- Strong local presence in southeastern Wisconsin.
- Diversified revenue streams from community and mortgage banking.
- Experienced management team.
- Solid capital base.
What Are WSBF's Weaknesses?
- Limited geographic reach compared to larger regional banks.
- Reliance on interest income, making it vulnerable to interest rate fluctuations.
- Smaller scale may limit its ability to invest in technology and innovation.
- Competition from larger banks and fintech companies.
What Could Drive WSBF Stock Higher?
- Expansion of digital banking services to attract younger customers and improve customer retention.
- Increasing market share in residential mortgages through competitive rates and personalized service.
- Strategic partnerships with local businesses to drive growth in the community banking segment.
- Potential acquisitions of smaller community banks in southeastern Wisconsin to expand its market presence.
- Leveraging data analytics to improve customer service and identify new business opportunities.
What Are the Key Risks for WSBF?
- Financial-distress signal — its Altman Z-Score of 0.38 sits in the distress zone (elevated bankruptcy risk).
- Interest rate fluctuations could negatively impact net interest margin and profitability.
- Increasing competition from larger banks and fintech companies.
- Regulatory changes could increase compliance costs and limit business activities.
- Economic downturn in southeastern Wisconsin could lead to increased loan losses.
- Cybersecurity threats could compromise customer data and disrupt operations.
What Are the Growth Opportunities for WSBF?
- Growth opportunity 1: Expanding digital banking services represents a significant growth opportunity for Waterstone Financial. Investing in user-friendly online and mobile banking platforms can attract younger customers and improve customer retention. The digital banking market is projected to reach $9.0 trillion in transaction value by 2027, offering a substantial market for WSBF to capture. Timeline: Ongoing.
- Growth opportunity 2: Increasing market share in residential mortgages is another key growth driver. By offering competitive rates and personalized service, Waterstone Financial can attract more homebuyers in southeastern Wisconsin. The U.S. mortgage market is expected to reach $2.5 trillion in 2026, providing ample opportunity for WSBF to expand its mortgage portfolio. Timeline: Ongoing.
- Growth opportunity 3: Strategic partnerships with local businesses can drive growth in the community banking segment. By offering tailored financial solutions and building strong relationships, Waterstone Financial can become the preferred bank for small and medium-sized enterprises in the region. The small business lending market is estimated at $800 billion annually. Timeline: Ongoing.
- Growth opportunity 4: Expanding wealth management services can attract high-net-worth individuals and generate additional revenue streams. By offering financial planning, investment management, and trust services, Waterstone Financial can cater to the growing demand for wealth management solutions. The global wealth management market is projected to reach $145 trillion by 2030. Timeline: Upcoming.
- Growth opportunity 5: Leveraging data analytics to improve customer service and identify new business opportunities is crucial for long-term growth. By analyzing customer data, Waterstone Financial can personalize its offerings, optimize its marketing efforts, and identify underserved segments in the market. The data analytics market in the financial services industry is expected to reach $50 billion by 2028. Timeline: Ongoing.
What Opportunities Does WSBF Have?
- Expanding digital banking services to attract younger customers.
- Increasing market share in residential mortgages.
- Strategic partnerships with local businesses.
- Expanding wealth management services.
What Threats Does WSBF Face?
- Increasing competition from larger banks and fintech companies.
- Interest rate fluctuations.
- Regulatory changes.
- Economic downturn in southeastern Wisconsin.
What Are WSBF's Competitive Advantages?
- Strong local presence and brand recognition in southeastern Wisconsin.
- Established customer relationships and community ties.
- Diversified revenue streams from community and mortgage banking.
- Experienced management team with deep knowledge of the regional market.
What Does WSBF Do?
Waterstone Financial, Inc., established in 1921 and headquartered in Wauwatosa, Wisconsin, functions as the bank holding company for WaterStone Bank SSB. The bank provides a comprehensive suite of financial services to individuals and businesses throughout southeastern Wisconsin. Waterstone Financial operates through two primary segments: Community Banking and Mortgage Banking. The Community Banking segment offers a range of services, including deposit accounts, online banking, credit and debit cards, and various lending products such as residential mortgages, home equity loans, personal loans, and business loans. The Mortgage Banking segment focuses on originating residential mortgage loans for sale into the secondary market. WaterStone Bank SSB operates 14 full-service banking offices, 1 drive-through office, and 14 automated teller machines across Milwaukee, Washington, and Waukesha Counties, Wisconsin. The company's investment portfolio includes mortgage-backed securities, government-sponsored enterprise bonds, and municipal obligations. Waterstone Financial was formerly known as Wauwatosa Holdings, Inc., changing its name in August 2008. The company's long-standing presence in the Wisconsin market underscores its commitment to local communities and its focus on building lasting customer relationships. Waterstone Financial aims to provide personalized financial solutions and contribute to the economic well-being of the region it serves.
What Products and Services Does WSBF Offer?
- Provides community banking services in southeastern Wisconsin.
- Offers deposit and transactional solutions, including checking accounts and online banking.
- Provides investable funds solutions, such as savings accounts and certificates of deposit.
- Offers residential mortgages, home equity loans, and personal loans.
- Provides business loans and lines of credit.
- Offers fixed and variable annuities and insurance products.
- Provides trust and investment management accounts.
- Originates residential mortgage loans for sale in the secondary market.
How Does WSBF Make Money?
- Generates revenue from interest income on loans and investments.
- Earns fees from deposit accounts, online banking, and other services.
- Profits from the sale of residential mortgage loans in the secondary market.
- Manages investment portfolios and earns fees from trust and investment management accounts.
What Industry Does WSBF Operate In?
Waterstone Financial operates within the regional banking sector, which is characterized by increasing competition from larger national banks and fintech companies. The industry is influenced by interest rate fluctuations, regulatory changes, and economic conditions. The regional banking sector is experiencing consolidation, with larger banks acquiring smaller institutions to expand their market presence. Waterstone Financial's focus on community banking and mortgage services positions it to cater to local customers, but it must adapt to evolving technology and customer preferences to remain competitive.
Who Are WSBF's Key Customers?
- Individual consumers in southeastern Wisconsin.
- Small and medium-sized businesses in the region.
- Homebuyers seeking residential mortgages.
- High-net-worth individuals seeking wealth management services.
Company Profile
Waterstone Financial, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Wauwatosa, US. The company is led by CEO William F. Bruss. WSBF has traded publicly since 2005.
How Waterstone Financial, Inc. Is Valued
Waterstone Financial, Inc. carries a market capitalization of $365.30M, placing it in the small-cap category. Relative to its peer group, WSBF's quantitative score of 45/100 is below the peer average of 68/100.
ROE 8%Key Financial Metrics
Return on equity for Waterstone Financial, Inc. stands at 8.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. WSBF trades at a trailing price-to-earnings ratio of 12.39, below the Financial Services sector average of ~18x. Its free cash flow yield is -1.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.23 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.2%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
Waterstone Financial, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.38 places it in the distress zone, a signal of elevated financial risk.
WSBF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Waterstone's future performance, indicating that those closest to the company believe in its growth potential.
- Community sentiment has shifted positively, with discussions highlighting the company's strong customer service and community engagement initiatives.
- Market perception is bolstered by a favorable regulatory environment, which could enhance operational efficiencies for financial institutions like Waterstone.
- The company's focus on digital banking solutions aligns with current trends, attracting a younger demographic and increasing market share.
Bear Case
- Concerns over rising interest rates could impact Waterstone's profitability, as higher rates typically squeeze margins for financial institutions.
- Recent social sentiment reflects skepticism about the company's ability to compete with larger banks, which may stifle growth opportunities.
- There have been mixed reviews regarding the company’s loan performance, raising questions about credit quality and risk management practices.
- The overall economic uncertainty has led to cautious sentiment in the financial sector, impacting investor confidence in Waterstone's stability.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
WSBF Latest News
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Stocks That Hit 52-Week Highs On Tuesday
· Dec 16, 2019
WSBF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for WSBF.
Price Targets
Wall Street price target analysis for WSBF.
WSBF MoonshotScore
What does this score mean?
The MoonshotScore rates WSBF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: William F. Bruss
CEO
William F. Bruss serves as the CEO of Waterstone Financial, Inc., bringing extensive experience in the financial services industry. His career spans several decades, with a focus on community banking and mortgage lending. Prior to joining Waterstone Financial, Bruss held leadership positions at various financial institutions in the Midwest. He holds a degree in Finance from a leading university and has completed executive education programs at prestigious business schools. Bruss is actively involved in community organizations and serves on the boards of several non-profit organizations in the Milwaukee area.
Track Record: Under William F. Bruss's leadership, Waterstone Financial has maintained a strong focus on community banking and customer service. He has overseen the expansion of the bank's digital banking services and the growth of its mortgage portfolio. Bruss has also emphasized the importance of risk management and compliance, ensuring the bank operates in a safe and sound manner. During his tenure, Waterstone Financial has consistently delivered solid financial results and maintained a strong capital base.
WSBF Financial Services Stock FAQ
What does Waterstone Financial, Inc. do?
Waterstone Financial, Inc. operates as the bank holding company for WaterStone Bank SSB, providing a range of financial services to individuals and businesses in southeastern Wisconsin. The company operates through two segments: Community Banking and Mortgage Banking. The Community Banking segment offers deposit accounts, loans, and other banking services, while the Mortgage Banking segment originates residential mortgage loans for sale in the secondary market. Waterstone Financial focuses on building strong customer relationships and providing personalized financial solutions to the local community.
What do analysts say about WSBF stock?
Analyst coverage of Waterstone Financial, Inc. (WSBF) is limited, but generally reflects a neutral outlook. Key valuation metrics, such as the P/E ratio of 12.4, suggest the stock may be undervalued compared to its peers. Growth considerations include the company's ability to expand its digital banking services and increase its market share in residential mortgages. Investors should monitor the company's financial performance, industry trends, and competitive landscape to make informed investment decisions. Analyst consensus is not a recommendation to buy or sell.
What are the main risks for WSBF?
Waterstone Financial faces several risks, including interest rate fluctuations, increasing competition, regulatory changes, and economic downturns. Interest rate fluctuations can impact the company's net interest margin and profitability. Increasing competition from larger banks and fintech companies could erode market share. Regulatory changes could increase compliance costs and limit business activities. An economic downturn in southeastern Wisconsin could lead to increased loan losses and reduced demand for financial services. Cybersecurity threats also pose a risk to customer data and operations.
What are the key factors to evaluate for WSBF?
Waterstone Financial, Inc. (WSBF) holds an AI score of 45/100 (low). P/E: 12.4x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does WSBF data refresh on this page?
WSBF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven WSBF's recent stock price performance?
Waterstone Financial, Inc. (WSBF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong local presence in southeastern Wisconsin. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider WSBF overvalued or undervalued right now?
Waterstone Financial, Inc. (WSBF) trades at 12.4x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying WSBF?
Before investing in Waterstone Financial, Inc. (WSBF), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.
- Analyst opinions may vary.