Winchester Bancorp Inc.
10/22/2025 | Press release | Distributed by Public on 10/22/2025 13:57
Business/Financial Results (Form 8-K)
Winchester Bancorp, Inc.
Announces Results for the Quarter Ended September 30, 2025
Investor Contact
John A. Carroll
President and Chief Executive Officer
(781) 729-2130
WINCHESTER, MA, October 22, 2025 - Winchester Bancorp, Inc. (NASDAQ-WSBK) (the "Company"), the holding company for Winchester Savings Bank (the "Bank"), today announced its first quarter financial results. The Company reported net income of $962 thousand or $0.11 cents per common share compared to a net loss of $920 thousand or ($0.10) per common share for the prior quarter, an increase of $1.9 million in net income. The net loss during the quarter ended June 30, 2025, was driven by the $2.3 million contribution to the Winchester Savings Bank Charitable Foundation made in connection with our public offering.
"Our first quarter was an exciting time for the Company, marking the start of a new chapter in the Bank's 154-year history. After the completion of the stock offering, the team focused on the execution of our growth strategy. Loan and deposit growth were strong at $42.0 million and $37.2 million, respectively, which brought total assets to over $1 billion. Management launched a new deposit channel focusing on municipal deposits which should continue to contribute to strong deposit growth for the remainder of our fiscal year. We look forward to continuing to gain market share as we prudently grow our customer base and deliver value for all our shareholders." said John A. Carroll, President and Chief Executive Officer.
BALANCE SHEET
Total assets were $1.05 billion on September 30, 2025, representing an increase of $55.8 million, or 5.9%, from June 30, 2025.
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Cash and cash equivalents increased $2.5 million, or 4.5%, to $57.7 million from $55.2 million.
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Net loans were $793.2 million, representing an increase of $42.0 million or 5.6% from June 30, 2025 as demand for new originations continued. The main driver of the new growth was in construction and commercial real estate loans, which increased $15.5 million and $13.4 million, respectively. The multi-family and residential real estate portfolios also increased $7.1 million and $5.7 million, respectively.
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Investment securities totaled $115.4 million, representing an increase of $10.8 million or 19.0% for the quarter due to purchases of U.S. treasuries and government agency securities.
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Deposits totaled $716.4 million, representing an increase of $37.2 million, or 5.5% from the prior quarter. The increase in deposits was a result of growth of $38.9 million in municipal customer deposits. As a result of the increase in municipal deposits money market accounts increased $48.8 million. Certificate of deposit and savings accounts decreased $8.5 million and $4.6 million, respectively, while demand deposit accounts increased $1.5 million.
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FHLB borrowings totaled $164 million, representing an increase of $17 million or 11.6% from $147 million on June 30, 2025.
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Stockholders' equity was $117.0 million, representing an increase of $1.6 million from $115.4 million, or 1.4% from June 30, 2025. The increase was driven by net income of $962 thousand and decrease in other comprehensive loss of $614 thousand.
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NET INTEREST INCOME
Net interest income was $5.7 million for the quarter ended September 30, 2025, compared to $5.3 million for the prior quarter, representing an increase of $393 thousand, or 7.3%. Net interest income was $3.8 million for the same period last year, representing an increase of $2 million, or 52.4%. Net interest margin increased nine basis points for the quarter. Compared to the same quarter last year, net interest margin has expanded 65 basis points to 2.49% from 1.84%.
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The increase in interest income during the quarter ended September 30, 2025 was primarily attributable to the increase in the average balance of loans and higher yields on investment securities as a result of new purchases and additional restructuring of the existing investment portfolio.
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The decrease in interest expense during the quarter was attributable to the decrease in average rates on interest bearing deposit accounts.
PROVISION FOR CREDIT LOSS
Provision for credit loss decreased by $1 million during the quarter, partially due to the change in the loan loss methodology from the Federal Reserve developed Scaled CECL Allowance for Credit Losses Estimator (SCALE) method to the Discounted Cash Flow (DCF) model, a release of reserves due to lower off balance sheet commitments and changes to reserves for individually assessed loans.
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Due to the change in methodology provision for credit losses on loans increased by $561 thousand while provision for credit losses on off balance sheet commitments decreased by $718 thousand representing a net change of $158 thousand.
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The prior quarter includes a $270 thousand reserve on an individually assessed credit.
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There was an additional release of $86 thousand in the reserve for off balance sheet commitments compared to an increase of $77 thousand in off balance sheet reserves recorded in the prior quarter.
NON-INTEREST INCOME
Non-interest income decreased during the quarter due to a $317 thousand loss on sale of available-for-sale securities as management restructured part of the portfolio to take advantage of higher yielding investments.
NON-INTEREST EXPENSE
Non-interest expense was $4.8 million for the quarter ended September 30, 2025, compared to $6.8 million in the prior quarter. Prior quarter expense includes a $2.3 million contribution to the Winchester Savings Bank Charitable Foundation. Excluding the charitable foundation contribution, non-interest expense increased $322 thousand from the prior quarter.
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Audit, legal, and data processing fees increased during the quarter, offset by decreases in employee benefits due to lower expenses related to the pension plan.
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 September 30, 2025 was $4.4 million and 0.55%, respectively, as compared to $4.1 million and 0.55%, respectively, as of June 30, 2025.
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During the quarter ended September 30, 2025, the Company recorded net charge offs of $270 thousand compared to no charge offs for the quarter ended June 30, 2025.
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Total non-performing assets were $1.9 million, or 0.24%, of total assets as of September 30, 2025, and $2.2 million, or 0.23% of total assets, as of June 30, 2025.
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.
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