WINCHESTER, Mass.--(BUSINESS WIRE)--Winchester Bancorp, Inc. (NASDAQ-WSBK) (the "Company"), the holding company for Winchester Savings Bank (the "Bank"), today announced its third quarter 2026 financial results. The Company reported net income of $1.1 million or $0.13 per common share compared to net income of $305,000 for the quarter ended March 31, 2025, an increase of $840,000, or 275.4%, in net income. For the nine months ended March 31, 2026, the Company reported net income of $3.2 million, or $0.36 per common share, as compared to net income of $46,000 for the nine months ended March 31, 2025, an increase of $3.1 million in net income.

“We are extremely pleased with third quarter results, driven by strong loan and deposit growth and continued margin expansion. Loan growth of $40.4 million outpaced deposit growth of $37.4 million as management strategically prioritized growing the loan portfolio in advance of significant payoffs anticipated in the fourth quarter. Our newly established municipal channel continues to generate value and has enabled us to restructure wholesale funding more effectively. Year-over-year, net interest margin expanded by 52 basis points, while return on average assets improved to 0.44%, up from 0.14% in the third quarter of 2025. Net income was $0.13 per common share for the quarter, and the efficiency ratio improved meaningfully to 72.7%, compared to 92.5% in the third quarter of 2025. As we enter the final quarter of our fiscal year, we are pleased to announce the expansion of our branch network with a new location in Wakefield, MA. We remain steadfast in our commitment to delivering shareholder value and are optimistic about the trajectory of our strategic plan as we start our second year as a publicly traded company,” said John A. Carroll, President and Chief Executive Officer.

BALANCE SHEET

Total assets were $1.06 billion at March 31, 2026, representing an increase of $107.7 million, or 11.3%, from June 30, 2025.

• Cash and cash equivalents were $54.0 million, reflecting a decrease of $1.3 million from June 30, 2025.
• Net loans were $840.5 million, representing an increase of $89.3 million or 11.9%, from June 30, 2025, as we continue to experience strong loan demand. The main driver of the new growth was in our multifamily and residential portfolios which increased $49.6 million, or 29.8%, and $31.7 million or 8.9%, respectively, since June 30, 2025.
• Investment securities totaled $124.0 million, representing an increase of $19.5 million, or 34.1%, from June 30, 2025.
• Deposits totaled $783.7 million, representing an increase of $104.5 million, or 15.4% since June 30, 2025. The increase in deposits was a result of growth of $105.3 million in municipal customer deposits. As a result of the increase in municipal deposits, money market accounts increased $108.7 million. Savings accounts and certificates of deposit have decreased $4.8 million and $4.2 million, respectively, while demand deposit accounts have increased $4.8 million.
• FHLB borrowings totaled $146.9 million, representing a decrease of $117,000 or 0.1% from $147.0 million at June 30, 2025.
• Stockholders’ equity was $119.1 million, representing an increase of $3.8 million from $115.4 million, or 3.3% from June 30, 2025. The increase was driven by net income of $3.2 million for the nine months ended March 31, 2026 and a decrease in accumulated other comprehensive loss of $457,000.

NET INTEREST INCOME

Net interest income was $6.3 million for the quarter ended March 31, 2026, compared to $4.4 million for the quarter ended March 31, 2025, representing an increase of $1.9 million, or 44.0%. Net interest margin expanded by 52 basis points to 2.54% for the quarter ended March 31, 2026 compared to 2.02% for the quarter ended March 31, 2025.

• The increase in interest income during the quarter ended March 31, 2026 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 and a decrease in average borrowings as well as lower borrowing rates.

NON-INTEREST INCOME

Non-interest income was $367,000 for the quarter ended March 31, 2026 compared to $299,000 for the quarter ended March 31, 2025.

NON-INTEREST EXPENSE

Non-interest expense was $4.8 million for the quarter ended March 31, 2026, representing an increase of $524,000 or 12.1% from the quarter ended March 31, 2025 due to a higher reserve for off balance sheet commitments and an increase in data processing and salaries and employee benefits 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 March 31, 2026 was $4.5 million and 0.54%, compared to $4.1 million and 0.55%, as of June 30, 2025, and $3.6 million and 0.49% as of March 31, 2025.

• During the quarter ended March 31, 2026, the Company recorded $12,000 of net charge offs compared to net charge offs of $50,000 for the quarter ended March 31, 2025.
• Non-performing assets totaled $1.7 million, or 0.16% of total assets, as of March 31, 2026, decrease from $1.9 million, or 0.20% of total assets, as of March 31, 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

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.

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Investor Contact
John A. Carroll
President and Chief Executive Officer
IR@WinchesterSavings.com
(781) 729-2130

Source: Winchester Bancorp, Inc.