Winchester Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2025

Winchester Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2025 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. Investor Contact John A. Carroll President and Chief Executive Officer [email protected] (781) 729-2130 Source: Winchester Bancorp, Inc.