Exhibit 99.1

Wauwatosa Holdings, Inc. Announces Results of Operations for the Fourth Quarter and Year Ended December 31, 2007.

WAUWATOSA, WI – 02/20/2008– Wauwatosa Holdings, Inc. (NASDAQ: WAUW) released 2007 fourth quarter and annual unaudited financial highlights, consolidated statements of operations and consolidated statements of financial condition.

WAUWATOSA HOLDINGS, INC.
FINANCIAL HIGHLIGHTS

	Three months ended						Years ended
	December 31,						December 31,
	2007			2006			2007			2006
	(Unaudited)						(Unaudited)
	(In thousands except ratios and per share data)
Operations Data:
Net interest income	$	8,578		$	9,623		$	34,841		$	38,449
Provision for loan losses		2,845			358			11,697			2,201
Noninterest income		1,665			1,275			6,842			5,156
Noninterest expense		7,708			6,944			28,682			28,652
Income (loss) before income taxes		(310	)		3,610			1,304			12,752
Income tax expense (benefit)		(617	)		1,326			(254	)		4,699
Net income		307			2,284			1,558			8,053
Selected Financial Ratios:
Yield on earning assets		6.06	%		6.12	%		6.10	%		6.03	%
Cost of funds		4.35			4.27			4.36			4.03
Interest rate spread		1.70			1.85			1.74			2.00
Return on average assets		0.07			0.54			0.09			0.50
Return on average equity		0.60			3.77			0.72			3.41
Average equity to average assets		11.94			14.35			13.07			14.79
Non-interest expense to average assets		1.77			1.65			1.72			1.80
Allowance for loan losses to total loans outstanding		0.92			0.52			0.92			0.52
Per Share:
Basic earnings per share	$	0.01		$	0.07		$	0.05		$	0.24
Diluted earnings per share		0.01			0.07			0.05			0.24
Book value per share		6.46			7.29			6.46			7.29
Weighted average shares outstanding		30,557,719			33,105,046			31,570,677			33,076,565
Shares outstanding at December 31		31,250,897			33,723,750			31,250,897			33,723,750

	December 31,				Percent
	2007		2006		Change
	(Unaudited)
			(Dollars in thousands)
Financial Condition:
Total assets	$	1,710,202	$	1,648,470		3.7		%
Loans receivable, net		1,389,209		1,365,712		1.7
Securities available for sale		172,137		117,330		46.7
Deposits		994,535		1,036,218		(4.0	)
Borrowings		475,484		334,003		42.4
Total equity		201,819		241,272		(16.4	)
Allowance for loan losses		12,839		7,195		78.4
Non-performing assets		88,893		29,408		202.3

WAUWATOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended						Years ended
	December 31,						December 31,
	2007			2006			2007			2006
	(Unaudited)						(Unaudited)
	(In thousands except per share data)
Interest income:
Loans	$	22,024		$	21,509		$	87,101		$	83,822
Mortgage-related securities		1,794			1,207			5,869			4,263
Debt securities, federal funds sold and
short-term investments		827			1,971			4,005			4,143
Total interest income		24,645			24,687			96,975			92,228
Interest expense:
Deposits		11,269			11,281			44,910			42,038
Borrowings		4,798			3,783			17,224			11,741
Total interest expense		16,067			15,064			62,134			53,779
Net interest income		8,578			9,623			34,841			38,449
Provision for loan losses		2,845			358			11,697			2,201
Net interest income after provision for loan losses		5,733			9,265			23,144			36,248
Noninterest income:
Service charges on loans and deposits		504			520			1,983			2,021
Increase in cash surrender value of life insurance		204			180			1,192			1,055
Loss on sale of securities		-			(35	)		-			(819	)
Mortgage banking income		775			357			2,912			2,109
Other		182			253			755			790
Total noninterest income		1,665			1,275			6,842			5,156
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		3,709			3,715			15,487			16,209
Occupancy, office furniture, and equipment		1,211			1,168			4,990			4,304
Advertising		288			423			1,158			1,369
Data processing		475			229			1,622			1,730
Communications expense		175			232			729			700
Professional fees		319			450			1,230			1,243
Foreclosed properties		1,001			(28	)		1,200			116
Other		530			741			2,266			2,981
Total noninterest expenses		7,708			6,930			28,682			28,652
Income (loss) before income taxes		(310	)		3,610			1,304			12,752
Income tax expense (benefit)		(617	)		1,326			(254	)		4,699
Net income	$	307		$	2,284		$	1,558		$	8,053
Basic earnings per share	$	0.01		$	0.07			0.05			0.24
Diluted earnings per share	$	0.01		$	0.07			0.05			0.24

WAUWATOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2007			2006
	(Dollars in thousands)
Assets	(Unaudited)
Cash	$	5,492		$	26,745
Federal funds sold		11,833			19,458
Short term investments		559			27,604
Cash and cash equivalents		17,884			73,807
Securities available-for-sale (at fair value)		172,137			117,330
Securities held-to-maturity (at cost)		7,646			-
Loans held for sale		23,108			5,387
Loans receivable		1,402,048			1,372,907
Allowance for loan losses		(12,839	)		(7,195	)
Loans receivable, net		1,389,209			1,365,712
Office properties and equipment, net		32,018			32,625
Federal Home Loan Bank stock, at cost		19,289			17,213
Cash surrender value of life insurance		25,649			24,152
Real estate owned		8,543			520
Prepaid expenses and other assets		14,719			11,724
Total assets	$	1,710,202			1,648,470
Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits	$	53,210		$	58,407
Money market and savings deposits		114,387			94,472
Time deposits		826,938			883,339
Total deposits		994,535			1,036,218
Federal Home Loan Bank advances short-term		53,484			41,224
Federal Home Loan Bank advances long-term		422,000			292,779
Advance payments by borrowers for taxes		606			190
Other liabilities		37,758			36,787
Total liabilities		1,508,383			1,407,198
Shareholders’ equity:
Common Stock (par value — $.01;		340			337
200,000,000 shares authorized;
33,975,250 shares issued; 31,250,897and
33,723,750 shares outstanding 2007 and 2006)
Additional Paid-In Capital		106,306			104,182
Accumulated other comprehensive
loss (net of taxes)		44			(1,225	)
Retained earnings, substantially restricted		146,367			144,809
Unearned ESOP shares		(5,977	)		(6,831	)
Treasury shares (2,724,353 shares), at cost		(45,261	)		-
Total shareholders’ equity		201,819			241,272
Total liabilities and shareholders’ equity	$	1,710,202			1,648,470