Winchester Bancorp, Inc. (NASDAQ-WSBK) (the “Company”), the holding company for Winchester Savings Bank (the “Bank”), today announced its fiscal 2026 financial results. The Company reported net income of $4.4 million, or $0.49 per common share, as compared to net loss of $874,000 for the year ended June 30, 2025, an increase of $5.3 million in net income. Operating net income for the year ended June 30, 2025, which excludes our contribution to the Winchester Savings Bank Charitable Foundation, Inc. (the “Charitable Foundation”), was $750,000 (non-GAAP), making the year over year increase $3.7 million on an adjusted basis.

“In our first full year as a public company, we’ve demonstrated the ability to deploy capital prudently to grow the franchise. Loan and deposit growth were both impressive year-over-year, up $119.6 million, or 15.9% and $130.1 million, or 19.1%, respectively. Total assets grew more than $146.5 million, or 15.4%, while profitability also improved, with margin expanding to 2.55% from 2.05% and efficiency improving to 75.2% from 85.5% (non-GAAP), both compared to June 30, 2025,” said John A. Carroll, President and Chief Executive Officer. “Our first year as a public company was a strong one, from establishing our municipal department to delivering double digit growth and improved earnings. We look forward to building on that momentum as we enter our second year of creating shareholder value,” Carroll added.

BALANCE SHEET

Total assets were $1.10 billion at June 30, 2026, representing an increase of $146.6 million, or 15.4%, from June 30, 2025.

  • Cash and cash equivalents were $60.0 million, reflecting an increase of $4.8 million, or 8.7%, from June 30, 2025.

  • Net loans were $870.8 million, representing an increase of $119.6 million, or 15.9%, from June 30, 2025, as we continued to experience strong loan demand. The main driver of the new growth was in our residential and multifamily portfolios, which increased $47.6 million, or 13.3%, and $45.9 million, or 27.6%, respectively, since June 30, 2025.

  • Investment securities totaled $125.0 million, representing an increase of $20.5 million, or 19.6%, from June 30, 2025, due to purchases of U.S. Treasury bonds and government agency securities.

  • Deposits totaled $809.2 million, representing an increase of $130.1 million, or 19.1%, since June 30, 2025. The increase in deposits was a result of growth of $135.6 million in municipal customer deposits. As a result of the increase in municipal deposits, money market accounts increased $140.0 million. Savings accounts and certificates of deposit decreased $10.3 million and $1.6 million, respectively, while demand deposit accounts increased $2.0 million.

  • Federal Home Loan Bank borrowings totaled $158.2 million, representing an increase of $11.2 million, or 7.6%, from $147.0 million at June 30, 2025.

  • Stockholders’ equity was $120.5 million, representing an increase of $5.2 million, or 4.5% from $115.4 million from June 30, 2025. The increase was driven by net income of $4.4 million for the year ended June 30, 2026 and a decrease in accumulated other comprehensive loss of $530,000.

NET INTEREST INCOME

Net interest income was $25.0 million for the year ended June 30, 2026, compared to $17.5 million for the year ended June 30, 2025, representing an increase of $7.5 million, or 42.6%. Net interest margin expanded by 50 basis points to 2.55% for the year ended June 30, 2026 compared to 2.05% for the year ended June 30, 2025.

  • The increase in interest income during the year ended June 30, 2026, was primarily attributable to the increase in the average balance of loans and investment securities.

  • The increase in interest expense during the year was primarily attributable to higher average interest-bearing deposit balances, partially offset by lower average rates paid on those deposits, lower average borrowings, and reduced borrowing rates.

NON-INTEREST INCOME

Non-interest income was $1.3 million for the year ended June 30, 2026, compared to $1.8 million for the year ended June 30, 2025. Non-interest income for the year ended June 30, 2025 includes a one-time gain on the sale of equity securities.

NON-INTEREST EXPENSE

Non-interest expense was $19.8 million for the year ended June 30, 2026, representing an increase of $1.0 million, or 5.2%, from the year ended June 30, 2025 due to increases in salaries and employee benefits, marketing and data processing expense offset by a decrease in other general and administrative expenses as the prior year included a $2.3 million charitable foundation contribution.

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 June 30, 2026 was $4.8 million and 0.55%, compared to $4.2 million and 0.55% as of June 30, 2025.

  • During the year ended June 30, 2026, the Company recorded $597,000 of net charge offs compared to net charge offs of $1.4 million for the year ended June 30, 2025.

  • Non-performing assets totaled $1.6 million, or 0.15% of total assets, as of June 30, 2026, a decrease from $2.2 million, or 0.23% of total assets, as of June 30, 2025.

ABOUT WINCHESTER BANCORP, INC.

Winchester Bancorp, Inc. is the 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

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements in other documents it files with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating net income, noninterest expense on an operating basis, noninterest income on an operating basis, operating return on average shareholders’ equity, operating return on average assets annualized, efficiency ratio, and diluted earnings per share excluding contribution to the Charitable Foundation. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

Winchester Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets (unaudited)

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

 

 

 

 

 

 

 

June 30,

 

June 30,

 

 

 

2026

 

 

 

2025

 

Assets

 

 

 

 

Cash and due from banks

 

$

1,283

 

 

$

7,513

 

Interest-bearing deposits

 

 

58,764

 

 

 

47,731

 

Total cash and cash equivalents

 

 

60,047

 

 

 

55,244

 

Securities available for sale, at fair value

 

 

68,776

 

 

 

47,299

 

Securities held to maturity, at amortized cost

 

 

56,228

 

 

 

57,211

 

Federal Home Loan Bank stock, at cost

 

 

6,791

 

 

 

6,278

 

Loans, net of allowance for credit losses of $4,783 at June 30, 2026 and $4,151 at June 30, 2025

 

 

870,773

 

 

 

751,220

 

Bank owned life insurance

 

 

11,397

 

 

 

10,925

 

Premises and equipment, net

 

 

5,590

 

 

 

6,418

 

Accrued interest receivable

 

 

4,034

 

 

 

3,327

 

Net deferred tax asset

 

 

1,092

 

 

 

1,212

 

Other assets

 

 

11,208

 

 

 

10,244

 

 

 

$

1,095,936

 

 

$

949,378

 

Liabilities and stockholders’ equity

 

 

 

 

Non-interest-bearing deposits

 

$

63,168

 

 

$

55,696

 

Interest-bearing deposits

 

 

746,068

 

 

 

623,486

 

Federal Home Loan Bank advances

 

 

158,158

 

 

 

147,000

 

Mortgagors’ escrow accounts

 

 

1,809

 

 

 

1,756

 

Accrued expenses and other liabilities

 

 

6,220

 

 

 

6,088

 

Total liabilities

 

 

975,423

 

 

 

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 June 30, 2026 and June 30, 2025

 

 

93

 

 

 

93

 

Additional paid-in capital

 

 

39,586

 

 

 

39,571

 

Unearned compensation (ESOP)

 

 

(3,151

)

 

 

(3,346

)

Retained earnings

 

 

85,141

 

 

 

80,720

 

Accumulated other comprehensive loss

 

 

(1,156

)

 

 

(1,686

)

Total stockholders’ equity

 

 

120,513

 

 

 

115,352

 

Total liabilities and stockholders’ equity

 

$

1,095,936

 

 

$

949,378

 

Winchester Bancorp, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

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

 

 

 

Year ended

 

June 30,

 

 

2026

 

 

2025

 

 

(In thousands, except share data)

Interest and dividend income:

 

 

Interest and fees on loans

$

43,783

 

$

37,528

 

Interest and dividends on securities

 

4,678

 

 

3,128

 

Interest on federal funds sold and other interest-bearing deposits

 

1,919

 

 

2,057

 

Total interest and dividend income

 

50,380

 

 

42,713

 

Interest expense:

 

 

Interest on deposits

 

19,764

 

 

19,115

 

Interest on Federal Home Loan Bank advances

 

5,623

 

 

6,076

 

Total interest expense

 

25,387

 

 

25,191

 

Net interest income

 

24,993

 

 

17,522

 

Provision for credit losses

 

789

 

 

2,066

 

Net interest income, after provision for credit losses

 

24,204

 

 

15,456

 

Non-interest income:

 

 

Customer service fees

 

773

 

 

728

 

Income on bank owned life insurance

 

472

 

 

466

 

Loss on available for sale securities, net

 

(317

)

 

—

 

Gain (loss) on marketable equity securities, net

 

—

 

 

374

 

Gain on sale of loans

 

8

 

 

—

 

Miscellaneous

 

332

 

 

224

 

Total non-interest income

 

1,268

 

 

1,792

 

Non-interest expense:

 

 

Salaries and employee benefits

 

11,748

 

 

9,688

 

Occupancy and equipment, net

 

1,819

 

 

1,579

 

Data processing

 

1,749

 

 

1,368

 

Deposit insurance

 

715

 

 

848

 

Marketing and advertising

 

734

 

 

462

 

Net periodic pension and post retirement benefit, less service costs

 

(697

)

 

(73

)

Other general and administrative

 

3,684

 

 

4,906

 

Total non-interest expense

 

19,752

 

 

18,778

 

Income (loss) before income taxes

 

5,720

 

 

(1,530

)

Provision (benefit) for income taxes

 

1,299

 

 

(656

)

Net income (loss)

$

4,421

 

$

(874

)

Share Data:

 

 

Average common shares outstanding, basic and diluted

 

8,971,061

 

 

8,961,476

 

Basic and diluted net income (loss) per share

$

0.49

 

$

(0.10

)

Winchester Bancorp, Inc. and Subsidiaries

Average Balances and Yields (unaudited)

 

 

 

 

 

  

 

 

 

 

 

 

  

 

 

 

 

For the Year Ended June 30,

 

 

2026

 

2025

 

 

Average

Outstanding

Balance

 

Interest

 

Average

Yield/Rate

 

Average

Outstanding

Balance

 

Interest

 

Average

Yield/Rate

 

 

(Dollars in thousands)

Interest-earning assets:

 

 

  

 

 

 

  

 

Loans

$

814,169

 

$

43,783

  

5.38

%

$

725,618

 

$

37,528

  

5.17

%

Securities

 

118,400

 

 

4,678

  

5.27

%

 

87,850

 

 

3,128

  

3.56

%

Interest-bearing deposits

 

46,666

 

 

1,919

  

4.11

%

 

42,473

 

 

2,057

  

4.84

%

Total interest-earning assets

 

979,235

 

 

50,380

  

5.14

%

 

855,941

 

 

42,713

  

4.99

%

Non-interest-earning assets

 

43,143

 

 

  

 

 

39,045

 

 

  

 

Allowance for credit losses on loans

 

(4,437

)

 

  

 

 

(3,575

)

 

  

 

Total assets

$

1,017,941

 

 

  

 

$

891,411

 

 

  

 

Interest-bearing liabilities:

 

 

  

 

 

 

  

 

NOW and demand deposits

$

55,838

 

 

34

  

0.06

%

$

55,520

 

 

137

  

0.25

%

Savings accounts

 

154,627

 

 

3,263

  

2.11

%

 

163,597

 

 

3,871

  

2.37

%

Money market accounts

 

197,836

 

 

6,337

  

3.20

%

 

104,832

 

 

3,460

  

3.30

%

Certificates of deposit

 

278,312

 

 

10,130

  

3.64

%

 

279,500

 

 

11,647

  

4.17

%

Total interest-bearing deposits

 

686,613

 

 

19,764

  

2.88

%

 

603,449

 

 

19,115

  

3.17

%

Borrowings

 

136,236

 

 

5,623

  

4.13

%

 

139,207

 

 

6,076

  

4.36

%

Total interest-bearing liabilities

 

822,849

 

 

25,387

  

3.09

%

 

742,656

 

 

25,191

  

3.39

%

Other non-interest-bearing liabilities

 

76,756

 

 

  

 

 

67,710

 

 

  

 

Total liabilities

 

899,605

 

 

  

 

 

810,366

 

 

  

 

Stockholders’ equity

 

118,336

 

 

  

 

 

81,045

 

 

  

 

Total liabilities and stockholders’ equity

$

1,017,941

 

 

  

 

$

891,411

 

 

  

 

Net interest income

 

$

24,993

  

 

 

$

17,522

  

 

Net interest rate spread (1)

 

 

  

2.05

%

 

 

  

1.60

%

Net interest-earning assets (2)

$

156,386

 

 

  

 

$

113,285

 

 

  

 

Net interest margin (3)

 

 

  

2.55

%

 

 

  

2.05

%

Average interest-earning assets to average interest-bearing liabilities

 

119.01

%

 

  

 

 

115.25

%

 

  

 

 

 

 

  

 

 

 

  

 

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

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

(3) 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 Year Ended

 

 

June 30,

 

June 30,

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

Earnings Data

 

 

 

 

Net interest income

 

$

24,993

 

 

$

17,522

 

Non-interest income

 

 

1,268

 

 

 

1,792

 

Total net interest income and non-interest income

 

 

26,261

 

 

 

19,314

 

Provision for credit losses

 

 

789

 

 

 

2,066

 

Non-interest expense

 

 

19,752

 

 

 

18,778

 

Pre-tax income (loss)

 

 

5,720

 

 

 

(1,530

)

Net income (loss)

 

 

4,421

 

 

 

(874

)

 

 

 

 

 

Per share Data

 

 

 

 

Basic and diluted earnings per share

 

$

0.49

 

 

$

(0.10

)

Book value per share

 

$

13.43

 

 

$

12.41

 

 

 

 

 

 

Earnings

 

 

 

 

Return on average assets

 

 

0.43

%

 

 

(0.10

)%

Return on average stockholders’ equity

 

 

3.74

%

 

 

(1.08

)%

Net interest margin

 

 

2.55

%

 

 

2.05

%

Cost of deposits

 

 

2.88

%

 

 

3.17

%

Efficiency ratio

 

 

75.21

%

 

 

97.22

%

 

 

 

 

 

Balance Sheet

 

 

 

 

Total assets

 

$

1,095,936

 

 

$

949,378

 

Loans, net

 

$

870,773

 

 

$

751,220

 

Total stockholders’ equity

 

$

120,513

 

 

$

115,352

 

 

 

 

 

 

Asset quality

 

 

 

 

Allowance for credit losses (ACL)

 

$

4,783

 

 

$

4,151

 

ACL/Total loans

 

 

0.55

%

 

 

0.55

%

ACL/Total nonperforming loans (NPLs)

 

 

286.92

%

 

 

187.57

%

Net charge-offs/average total loans

 

 

(0.07

)%

 

 

(0.20

)%

Capital Ratios

 

 

 

 

Stockholders’ equity/total assets

 

 

11.00

%

 

 

12.15

%

Winchester Bancorp, Inc. and Subsidiaries

Non-GAAP Reconciliation (unaudited)

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

 

 

 

Year ended

 

June 30,

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

4,421

 

 

$

(874

)

Add (Subtract):

 

 

 

 

Non-interest expense component:

 

 

 

 

Winchester Charitable Foundation contribution

 

 

—

 

 

 

2,259

 

Total impact of non-GAAP adjustment

 

 

—

 

 

 

2,259

 

Less net tax provision (benefit) associated with non-GAAP adjustments

 

 

—

 

 

 

(635

)

Operating net income (non-GAAP)

 

$

4,421

 

 

$

750

 

Average common shares outstanding

 

 

8,971,061

 

 

 

8,817,329

 

Diluted earnings per share excluding contribution to the Charitable Foundation (non-GAAP)

 

$

0.49

 

 

$

0.09

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

19,752

 

 

$

18,778

 

Add (Subtract):

 

 

 

 

Winchester Charitable Foundation contribution

 

 

—

 

 

 

(2,259

)

Total impact of non-GAAP noninterest expense adjustments

 

 

—

 

 

 

(2,259

)

Noninterest expense on an operating basis (non-GAAP)

 

$

19,752

 

 

$

16,519

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

4,421

 

 

$

750

 

Average assets

 

$

1,017,941

 

 

$

891,411

 

Operating return on average assets annualized (non-GAAP)

 

 

0.43

%

 

 

0.08

%

Average shareholders’ equity

 

$

118,336

 

 

$

81,045

 

Operating return on average shareholders’ equity (non-GAAP)

 

 

3.74

%

 

 

0.93

%

 

 

 

 

 

Noninterest expense on an operating basis (non-GAAP)

 

$

19,752

 

 

$

16,519

 

Net interest income

 

 

24,993

 

 

 

17,522

 

Noninterest income on an operating basis (non-GAAP)

 

 

1,268

 

 

 

1,792

 

Total net interest income and non-interest income

 

$

26,261

 

 

$

19,314

 

Efficiency ratio (non-GAAP) (1)

 

 

75.21

%

 

 

85.53

%

 

 

 

 

 

(1) The efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income and non-interest income

 

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