Winchester Bancorp, Inc. Announces Results for the Quarter Ended September 30, 2025

Winchester Bancorp, Inc. Announces Results for the Quarter Ended September 30, 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. Cash and cash equivalents increased $2.5 million, or 4.5%, to $57.7 million from $55.2 million.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.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.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.FHLB borrowings totaled $164 million, representing an increase of $17 million or 11.6% from $147 million on June 30, 2025.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. 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%. 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.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. 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.The prior quarter includes a $270 thousand reserve on an individually assessed credit.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. 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. 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.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. 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) September 30, June 30, 2025 2025 Assets Cash and due from banks $ 1,653 $ 7,513 Interest-bearing deposits 56,064 47,731 Total cash and cash equivalents 57,717 55,244 Securities available for sale, at fair value 54,732 47,299 Securities held to maturity, at amortized cost 60,623 57,211 Federal Home Loan Bank stock, at cost 6,928 6,278 Loans, net of allowance for credit losses of $4,356 at September 30, 2025 and $4,151 at June 30, 2025 793,184 751,220 Bank owned life insurance 11,044 10,925 Premises and equipment, net 6,188 6,418 Accrued interest receivable 3,458 3,327 Net deferred tax asset 1,034 1,212 Other assets 10,304 10,244 $ 1,005,212 $ 949,378 Liabilities and stockholders' equity Non-interest-bearing deposits $ 63,577 $ 55,696 Interest-bearing deposits 652,846 623,486 Federal Home Loan Bank advances 164,000 147,000 Mortgagors’ escrow accounts 1,946 1,756 Accrued expenses and other liabilities 5,851 6,088 Total liabilities 888,220 834,026 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 September 30, 2025 and June 30, 2025 93 93 Additional paid-in capital 39,567 39,571 Unearned compensation (ESOP) (3,278 ) (3,346 ) Retained earnings 81,682 80,720 Accumulated other comprehensive loss (1,072 ) (1,686 ) Total stockholders' equity 116,992 115,352 Total liabilities and stockholders' equity $ 1,005,212 $ 949,378 Winchester Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) (Dollars in thousands, except share and per share data) Three months ended September 30, 2025 change Three months ended From three months ended September 30, June 30, September 30, June 30, September 30, 2025 2025 2024 2025 2024 Interest and dividend income: Interest and fees on loans $ 10,402 $ 9,789 $ 9,015 $ 613 6.3 % $ 1,387 15.4 % Interest and dividends on securities 1,113 862 898 251 29.1 % 215 23.9 % Interest on federal funds sold and other interest-bearing deposits 422 710 318 (288 ) -40.5 % 104 32.8 % Total interest and dividend income 11,937 11,361 10,231 576 5.1 % 1,706 16.7 % Interest expense: Interest on deposits 4,670 4,485 5,009 185 4.1 % (339 ) -6.8 % Interest on Federal Home Loan Bank advances 1,526 1,528 1,454 (2 ) -0.2 % 72 4.9 % Total interest expense 6,196 6,013 6,463 183 1.6 % (267 ) -4.1 % Net interest income 5,741 5,348 3,768 393 7.3 % 1,973 52.4 % Provision (benefit) for credit losses (320 ) 687 1,162 (1,007 ) -146.6 % (1,482 ) -127.5 % Net interest income, after provision (benefit) for credit losses 6,061 4,661 2,606 1,400 30.0 % 3,455 132.6 % Non-interest income: Customer service fees 191 193 188 (2 ) -0.9 % 3 1.7 % Income on bank owned life insurance 119 115 117 4 3.1 % 2 1.4 % Loss on available for sale securities, net (317 ) — — (317 ) 100.0 % (317 ) 100.0 % Gain on marketable equity securities, net — 223 171 (223 ) -100.0 % (171 ) -100.0 % Miscellaneous 59 75 25 (16 ) -21.6 % 34 135.1 % Total non-interest income 52 606 501 (554 ) -91.4 % (449 ) -89.6 % Non-interest expenses: Salaries and employee benefits 2,697 2,649 2,263 48 1.8 % 434 19.2 % Occupancy and equipment, net 396 380 377 16 4.2 % 19 5.1 % Data processing 408 360 347 48 13.3 % 61 17.6 % Deposit insurance 210 210 221 — 0.0 % (11 ) -5.0 % Marketing and advertising 184 150 96 34 22.7 % 88 91.7 % Other general and administrative 900 3,004 633 (2,104 ) -70.0 % 267 42.1 % Total non-interest expenses 4,795 6,753 3,937 (1,958 ) -29.0 % 858 21.8 % Income (loss) before income taxes 1,318 (1,486 ) (830 ) 2,804 -188.7 % 2,148 -258.8 % Provision (benefit) for income taxes 356 (566 ) (198 ) 922 -162.9 % 554 -279.8 % Net income (loss) $ 962 $ (920 ) $ (632 ) $ 1,882 -204.6 % $ 1,594 -252.3 % Share Data: Average common shares outstanding, basic and diluted 8,964,893 8,961,476 N/A Basic and diluted net (income) loss per share $ 0.11 $ (0.10 ) N/A Winchester Bancorp, Inc. and Subsidiaries Average Balances and Yields (unaudited) For the Three Months Ended September 30, 2025 June 30, 2025 Average Outstanding Balance Interest Average Yield/Rate (1) Average Outstanding Balance Interest Average Yield/Rate (1) (Dollars in thousands) Interest-earning assets: Loans $ 775,015 $ 10,402 5.37 % $ 750,159 $ 9,789 5.22 % Securities 109,870 1,113 4.05 % 92,553 862 3.73 % Federal funds sold and other interest-bearing deposits 36,551 422 4.62 % 55,924 710 5.08 % Total interest-earning assets 921,436 11,937 5.18 % 898,636 11,361 5.06 % Non-interest-earning assets 43,149 39,728 Allowance for credit losses on loans (4,180 ) (3,733 ) Total assets $ 960,405 $ 934,631 Interest-bearing liabilities: NOW and demand deposits $ 55,599 4 0.03 % $ 54,976 8 0.06 % Savings accounts 159,587 916 2.30 % 161,356 920 2.28 % Money market accounts 133,819 1,102 3.29 % 122,267 974 3.19 % Certificates of deposit 280,536 2,648 3.77 % 273,212 2,583 3.78 % Total interest-bearing deposits 629,541 4,670 2.97 % 611,811 4,485 2.93 % Borrowings 141,294 1,526 4.32 % 146,989 1,528 4.16 % Total interest-bearing liabilities 770,835 6,196 3.22 % 758,800 6,013 3.17 % Other non-interest-bearing liabilities 73,546 92,935 Total liabilities 844,381 851,735 Shareholders' equity 116,024 82,896 Total liabilities and shareholders' equity $ 960,405 $ 934,631 Net interest income $ 5,741 $ 5,348 Net interest rate spread (2) 1.96 % 1.89 % Net interest-earning assets (3) $ 150,601 $ 139,836 Net interest margin (4) 2.49 % 2.38 % Average interest-earning assets to average interest-bearing liabilities 119.54 % 118.43 % (1) Annualized. (2) 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. (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 September 30, June 30, 2025 2024 2025 Earnings Data Net interest income $ 5,741 $ 3,768 $ 5,348 Non-interest income 52 501 606 Total net interest income and non-interest income 5,793 4,269 5,954 Provision for credit losses (320 ) 1,162 687 Non-interest expense 4,795 3,937 6,753 Pre-tax income (loss) 1,318 (830 ) (1,486 ) Net income (loss) 962 (632 ) (920 ) Per share Data Basic and diluted earnings per share $ 0.11 N/A $ (0.10 ) Book value per share $ 12.59 N/A $ 12.41 Earnings Return on average assets (1) 0.40 % (0.30 )% (0.39 )% Return on average stockholders' equity (1) 3.32 % (3.17 )% (4.44 )% Net interest margin (1) 2.49 % 1.84 % 2.38 % Cost of deposits (1) 2.97 % 3.41 % 2.93 % Efficiency ratio 82.77 % 92.22 % 113.37 % Balance Sheet Total assets $ 1,005,212 $ 872,853 $ 949,378 Loans, net $ 793,184 $ 708,221 $ 751,220 Total stockholders' equity $ 116,992 $ 80,233 $ 115,352 Asset quality Allowance for credit losses (ACL) $ 4,356 $ 3,359 $ 4,151 ACL/Total loans 0.55 % 0.47 % 0.55 % ACL/Total nonperforming loans (NPLs) 224.67 % 204.94 % 187.57 % Net charge-offs/average total loans (0.03 )% (0.78 )% — Capital Ratios Stockholders' equity/total assets 11.64 % 9.19 % 12.15 % (1) Annualized. Investor Contact John A. Carroll President and Chief Executive Officer [email protected] (781) 729-2130 Source: Winchester Bancorp, Inc.