Winchester Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2025

WINCHESTER, Mass.--( BUSINESS WIRE)--Winchester Bancorp, Inc. (NASDAQ-WSBK) (the "Company"), the holding company for Winchester Savings Bank (the "Bank"), today announced its second quarter 2026 financial results. The Company reported net income of $1.1 million or $0.12 per common share compared to a net income of $373,000 for the quarter ended December 31, 2024, an increase of $701,000, or 187.9%, in net income. For the six months ended December 31, 2025, the Company reported net income of $2.0 million, or $0.23 per common share, as compared to a net loss of $259,000, for the six months ended December 31, 2024, an increase of $2.3 million in net income.

“The Bank had a successful second quarter, highlighted by continued loan demand, strong deposit growth and margin improvements. Deposit growth of $29.9 million outpaced loan growth of $7.0 million during the quarter as our newly established municipal channel continues to add value allowing us to restructure wholesale funding. Margin improvements are a result of a more stabilized interest rate environment and balance sheet growth. Net income was $0.12 per common share for the quarter and other financial metrics such as book value per share, efficiency and loan to deposit ratio, continue to trend in the right direction. As we enter the third quarter, we will continue to pursue our strategic plan and focus on orderly and disciplined capital management and balance sheet growth,” said John A. Carroll, President and Chief Executive Officer.

BALANCE SHEET

Total assets were $1.02 billion on December 31, 2025, representing an increase of $66.5 million, or 7.0%, from June 30, 2025.

NET INTEREST INCOME

Net interest income was $6.1 million for the quarter ended December 31, 2025, compared to $4.0 million for the quarter ended December 31, 2024, representing an increase of $2.0 million, or 50.4%. Net interest margin expanded by 59 basis points to 2.51% for the quarter ended December 31, 2025 compared to 1.92% for the quarter ended December 31, 2024.

NON-INTEREST INCOME

Non-interest income was $382,000 for the quarter ended December 31, 2025 compared to $388,000 for the quarter ended December 31, 2024.

NON-INTEREST EXPENSE

Non-interest expense was $4.7 million for the quarter ended December 31, 2025, representing a decrease of $88,000 or 1.8% from the prior quarter due primarily to a decrease in employee benefits due to lower payroll taxes and bonus expense.

ASSET QUALITY

Asset quality remains strong. The allowance for credit losses on loans in total and as a percentage of total gross loans as of December 31, 2025 was $4.4 million and 0.55%, compared to $4.1 million and 0.55%, as of June 30, 2025, and $3.6 million and 0.50% as of December 31, 2024.

ABOUT WINCHESTER BANCORP, INC.

Winchester Bancorp, Inc. is a mid-tier holding company of Winchester Savings Bank and is the majority owned subsidiary of Winchester Bancorp, MHC. Winchester Savings Bank's mission is to operate and grow a profitable community-oriented financial institution that is dedicated to meeting the banking needs of individuals and small businesses in the communities in which it operates.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, demand for loan products, deposit flows, changes in the interest rate environment, the effects of inflation, general economic conditions (including potential recessionary conditions) or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve Board; changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; changes in asset quality, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding; the effects of continued U.S. Government shutdown; changes in demand for our products and services; legislative, accounting, tax and regulatory changes; the imposition of tariffs or other domestic or international governmental policies; the current or anticipated impact of military conflict, terrorism or other geopolitical events; a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged, the failure to maintain current technologies and the failure to retain or attract employees.

You should not place undue reliance on forward-looking statements. Winchester Bancorp, Inc. undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Winchester Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets (unaudited)

(Dollars in thousands, except share and per share data)

December 31,

June 30,

2025

Assets

Cash and due from banks

1,068

7,513

Interest-bearing deposits

53,717

47,731

Total cash and cash equivalents

54,785

55,244

Securities available for sale, at fair value

63,854

47,299

Securities held to maturity, at amortized cost

58,893

57,211

Federal Home Loan Bank stock, at cost

6,161

6,278

Loans, net of allowance for credit losses of $4,396 at December 31, 2025

and $4,151 at June 30, 2025

800,153

751,220

Bank owned life insurance

11,163

10,925

Premises and equipment, net

5,927

6,418

Accrued interest receivable

3,626

3,327

Net deferred tax asset

994

1,212

Other assets

10,414

10,244

1,015,970

949,378

Liabilities and stockholders' equity

Non-interest-bearing deposits

64,377

55,696

Interest-bearing deposits

681,946

623,486

Federal Home Loan Bank advances

143,596

147,000

Mortgagors’ escrow accounts

1,987

1,756

Accrued expenses and other liabilities

5,817

6,088

Total liabilities

897,723

834,026

Commitments and contingencies

Preferred stock, $.01 par value, 5,000,000 shares authorized, none outstanding

—

Common stock, $.01 par value, 20,000,000 shares authorized, 9,295,376 issued and outstanding as of December 31, 2025 and June 30, 2025

Additional paid-in capital

39,564

39,571

Unearned compensation (ESOP)

(3,238

)

(3,346

)

Retained earnings

82,756

80,720

Accumulated other comprehensive loss

(928

)

(1,686

)

Total stockholders' equity

118,247

115,352

Total liabilities and stockholders' equity

1,015,970

949,378

Winchester Bancorp, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(Dollars in thousands, except share and per share data)

Three months ended

Six months ended

December 31,

2025

2024

2025

2024

(In thousands, except share data)

Interest and dividend income:

Interest and fees on loans

10,702

9,245

21,104

18,260

Interest and dividends on securities

1,167

755

2,280

1,521

Interest on federal funds sold and other interest-bearing deposits

545

507

967

956

Total interest and dividend income

12,414

10,507

24,351

20,737

Interest expense:

Interest on deposits

4,876

4,942

9,546

9,951

Interest on Federal Home Loan Bank advances

1,475

1,534

3,000

2,988

Total interest expense

6,351

6,476

12,546

12,939

Net interest income

6,063

4,031

11,805

7,798

Provision for credit losses

388

238

1,400

Net interest income, after provision for credit losses

5,675

3,793

11,737

6,398

Non-interest income:

Customer service fees

191

180

382

368

Income on bank owned life insurance

119

118

238

235

Loss on available for sale securities, net

—

(317

)

—

Gain on marketable equity securities, net

—

223

Gain on sale of loans

—

Miscellaneous

130

Total non-interest income

382

388

433

889

Non-interest expense:

Salaries and employee benefits

2,621

2,174

5,390

5,159

Occupancy and equipment, net

513

413

909

790

Data processing

381

305

789

652

Deposit insurance

160

207

370

428

Marketing and advertising

144

328

192

Net periodic pension and post retirement benefit, less service costs

—

(73

)

(723

)

Other general and administrative

888

572

1,789

1,205

Total non-interest expense

4,707

3,767

9,502

7,703

Income (loss) before income taxes

1,350

414

2,668

(416

)

Provision (benefit) for income taxes

276

632

(157

)

Net income (loss)

1,074

373

2,036

(259

)

Share Data:

Average common shares outstanding, basic and diluted

8,969,031

N/A

8,966,962

N/A

Basic and diluted net income per share

0.12

N/A

0.23

N/A

Winchester Bancorp, Inc. and Subsidiaries

Average Balances and Yields (unaudited)

For the Three Months Ended

December 31, 2025

December 31, 2024

Average

Outstanding

Balance

Interest

Average

Yield/Rate (1)

Average

Outstanding

Balance

Interest

Average

Yield/Rate (1)

(Dollars in thousands)

Interest-earning assets:

Loans

797,381

10,702

5.37

716,262

9,245

5.16

Securities

116,650

1,167

4.00

86,642

755

3.49

Federal funds sold and other interest-bearing deposits

50,655

545

4.30

38,698

507

5.24

Total interest-earning assets

964,686

12,414

5.15

841,602

10,507

4.99

Non-interest-earning assets

41,157

29,012

Allowance for credit losses on loans

(4,491

)

(3,467

)

Total assets

1,001,352

867,147

Interest-bearing liabilities:

NOW and demand deposits

56,162

0.03

52,110

0.03

Savings accounts

152,166

793

2.09

162,074

969

2.39

Money market accounts

187,702

1,534

3.27

98,441

823

3.34

Certificates of deposit

271,860

2,545

3.74

288,580

3,146

4.36

Total interest-bearing deposits

667,890

4,876

2.92

601,205

4,942

3.29

Borrowings

140,125

1,475

4.21

137,205

1,534

4.47

Total interest-bearing liabilities

808,015

6,351

3.14

738,410

6,476

3.51

Other non-interest-bearing liabilities

75,406

48,073

Total liabilities

883,421

786,483

Stockholders' equity

117,931

80,664

Total liabilities and stockholders' equity

1,001,352

867,147

Net interest income

6,063

4,031

Net interest rate spread (2)

2.01

1.48

Net interest-earning assets (3)

156,671

103,192

Net interest margin (4)

2.51

1.92

Average interest-earning assets to average interest-bearing liabilities

119.39

113.97

(1) Annualized.

(2) Net interest rate spread represents the difference between the weighted average yield on interes-earning assets and the weighted average rate of interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

Winchester Bancorp, Inc. and Subsidiaries

Selected Financial Highlights (unaudited)

(Dollars in thousands, except share and per share data)

For the Three Months Ended

December 31,

2025

2024

Earnings Data

Net interest income

6,063

3,793

Non-interest income

382

388

Total net interest income and non-interest income

6,445

4,181

Provision for credit losses

388

238

Non-interest expense

4,707

3,767

Pre-tax income

1,350

414

Net income

1,074

373

Per share Data

Basic and diluted earnings per share

0.12

N/A

Book value per share

12.72

N/A

Earnings

Return on average assets (1)

0.43

0.17

Return on average stockholders' equity (1)

3.64

1.85

Net interest margin (1)

2.51

1.92

Cost of deposits (1)

2.92

3.29

Efficiency ratio

73.04

85.25

Balance Sheet

Total assets

1,015,970

894,086

Loans, net

800,153

725,299

Total stockholders' equity

118,247

80,325

Asset quality

Allowance for credit losses (ACL)

4,396

3,635

ACL/Total loans

0.55

0.50

ACL/Total nonperforming loans (NPLs)

121.31

187.86

Net charge-offs/average total loans

(0.04

0.02

Capital Ratios

Stockholders' equity/total assets

11.64

8.98

(1) Annualized.