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.

• Cash and cash equivalents were $54.8 million, reflecting a decrease of $459,000 from June 30, 2025.
• Net loans were $800.2 million, representing an increase of $48.9 million or 6.5%, from June 30, 2025, as demand for new originations continues to be strong. The main driver of the new growth was in multifamily which has increased $24.4 million, or 14.6%, since June 30, 2025. Residential real estate and construction loans also increased by $10.8 million and $8.9 million, respectively.
• Investment securities totaled $122.7 million, representing an increase of $7.4 million or 6.4% for the quarter due to purchases of U.S. treasuries and government agency securities.
• Deposits totaled $746.3 million, representing an increase of $67.1 million, or 9.9% since June 30, 2025. The increase in deposits was a result of growth of $63.2 million in municipal customer deposits. As a result of the increase in municipal deposits, money market accounts increased $76.6 million. Savings accounts and certificates of deposit decreased $8.9 million and $9.9 million, respectively, while demand deposit accounts increased $9.3 million.
• FHLB borrowings totaled $143.6 million, representing a decrease of $3.4 million or 2.3% from $147.0 million from June 30, 2025.
• Stockholders’ equity was $118.2 million, representing an increase of $2.9 million from $115.4 million, or 2.5% from June 30, 2025. The increase was driven by net income of $2.0 million for the six months ended December 31, 2025 and a decrease in accumulated other comprehensive loss of $758,000.

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.

• The increase in interest income during the quarter ended December 31, 2025 was primarily attributable to the increase in the average balance of loans and investment securities.
• The decrease in interest expense during the quarter was attributable to the decrease in average rates on interest bearing deposit accounts.

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.

• During the quarter ended December 31, 2025, the Company recorded net charge offs of $310,000 compared to net charge offs of $270,000 for the quarter ended September 30, 2025.
• Non-performing assets totaled $3.6 million, or 0.36% of total assets, as of December 31, 2025, an increase of $1.7 million from $1.9 million, or 0.24% of total assets, as of September 30, 2025. The increase was primarily due to one construction loan that was placed on non-accrual during the quarter.

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			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		93			93
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,				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		68			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		—		52		—			223
Gain on sale of loans		8		—		—			—
Miscellaneous		64		38		130			63
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		96		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		41		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			4		0.03	%	$	52,110			4		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.