Waterstone in Wisconsin Plans Stock Offering, Conversion

Waterstone Financial (WSBF) in Wauwatosa, Wis., is planning a second-step conversion.

The $1.6 billion-asset company will shed its mutual status and become fully public, it said Thursday. The bank's holding company, Lamplighter Financial, which owned 74% of the company's stock as of Dec. 31, will sell its stake in a public offering. The remaining 26% is held by the public.

Depositors as of the end of 2011 will have first priority to buy the stock, Waterstone said. The conversion requires approval from Waterstone's stockholders and regulators.

Waterstone has eight branches in the Milwaukee area and mortgage offices in 12 states. The Federal Deposit Insurance Corp. terminated an enforcement action with Waterstone in January.