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.

Winchester Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except share and per share data)

	March 31,			June 30,
	2026			2025
Assets
Cash and due from banks	$	1,532		$	7,513
Interest-bearing deposits		52,420			47,731
Total cash and cash equivalents		53,952			55,244
Securities available for sale, at fair value		65,204			47,299
Securities held to maturity, at amortized cost		58,784			57,211
Federal Home Loan Bank stock, at cost		6,208			6,278
Loans, net of allowance for credit losses of $4,537 at March 31, 2026 and $4,151 at June 30, 2025		840,544			751,220
Bank owned life insurance		11,280			10,925
Premises and equipment, net		5,714			6,418
Accrued interest receivable		3,620			3,327
Net deferred tax asset		1,081			1,212
Other assets		10,717			10,244
	$	1,057,104		$	949,378
Liabilities and stockholders' equity
Non-interest-bearing deposits	$	63,445		$	55,696
Interest-bearing deposits		720,253			623,486
Federal Home Loan Bank advances		146,883			147,000
Mortgagors' escrow accounts		1,915			1,756
Accrued expenses and other liabilities		5,464			6,088
Total liabilities		937,960			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 March 31, 2026 and June 30, 2025		93			93
Additional paid-in capital		39,574			39,571
Unearned compensation (ESOP)		(3,195	)		(3,346	)
Retained earnings		83,901			80,720
Accumulated other comprehensive loss		(1,229	)		(1,686	)
Total stockholders' equity		119,144			115,352
Total liabilities and stockholders' equity	$	1,057,104		$	949,378

Winchester Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollars in thousands, except share and per share data)

	Three months ended					Nine months ended
	March 31,					March 31,
	2026		2025			2026			2025
	(In thousands, except share data)
Interest and dividend income:
Interest and fees on loans	$	10,861	$	9,479		$	31,965		$	27,739
Interest and dividends on securities		1,183		744			3,463			2,266
Interest on federal funds sold and other interest-bearing deposits		472		390			1,439			1,347
Total interest and dividend income		12,516		10,613			36,867			31,352
Interest expense:
Interest on deposits		4,903		4,681			14,449			14,633
Interest on Federal Home Loan Bank advances		1,316		1,559			4,316			4,547
Total interest expense		6,219		6,240			18,765			19,180
Net interest income		6,297		4,373			18,102			12,172
Provision (benefit) for credit losses		325		(21	)		393			1,379
Net interest income, after provision (benefit) for credit losses		5,972		4,394			17,709			10,793
Non-interest income:
Customer service fees		185		167			567			535
Income on bank owned life insurance		117		115			355			351
Loss on available for sale securities, net		—		—			(317	)		—
Gain (loss) on marketable equity securities, net		—		(71	)		—			152
Gain on sale of loans		—		—			8			—
Miscellaneous		65		88			187			150
Total non-interest income		367		299			800			1,188
Non-interest expense:
Salaries and employee benefits		2,659		2,531			8,049			6,967
Occupancy and equipment, net		464		409			1,373			1,199
Data processing		477		356			1,267			1,008
Deposit insurance		165		210			535			638
Marketing and advertising		216		120			544			312
Net periodic pension and post retirement benefit, less service costs		—		—			(73	)		(723	)
Other general and administrative		864		695			2,652			2,624
Total non-interest expense		4,845		4,321			14,347			12,025
Income (loss) before income taxes		1,494		372			4,162			(44	)
Provision (benefit) for income taxes		349		67			981			(90	)
Net income	$	1,145	$	305		$	3,181		$	46
Share Data:
Average common shares outstanding, basic and diluted		8,973,154	N/A				8,968,996		N/A
Basic and diluted net income per share	$	0.13	N/A			$	0.36		N/A

Winchester Bancorp, Inc. and Subsidiaries
Average Balances and Yields (unaudited)

	For the Three Months Ended
	March 31, 2026								March 31, 2025
	Average Outstanding Balance			Interest		Average Yield/Rate (1)			Average Outstanding Balance			Interest		Average Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans	$	817,314		$	10,861		5.32	%	$	735,256		$	9,479		5.16	%
Securities		122,706			1,183		3.86	%		86,597			744		3.44	%
Federal funds sold and other interest-bearing deposits		50,683			472		3.73	%		42,373			390		3.68	%
Total interest-earning assets		990,703			12,516		5.05	%		864,226			10,613		4.91	%
Non-interest-earning assets		43,553								40,668
Allowance for credit losses on loans		(4,410	)							(3,673	)
Total assets	$	1,029,846							$	901,221
Interest-bearing liabilities:
NOW and demand deposits	$	56,575			9		0.06	%	$	54,291			4		0.03	%
Savings accounts		153,877			779		2.02	%		163,830			910		2.22	%
Money market accounts		206,463			1,593		3.09	%		108,775			845		3.11	%
Certificates of deposit		282,681			2,522		3.57	%		285,692			2,922		4.09	%
Total interest-bearing deposits		699,596			4,903		2.80	%		612,588			4,681		3.06	%
Borrowings		132,152			1,316		3.98	%		144,429			1,559		4.32	%
Total interest-bearing liabilities		831,748			6,219		2.99	%		757,017			6,240		3.30	%
Other non-interest-bearing liabilities		78,897								63,356
Total liabilities		910,645								820,373
Stockholders' equity		119,201								80,848
Total liabilities and stockholders' equity	$	1,029,846							$	901,221
Net interest income				$	6,297							$	4,373
Net interest rate spread (2)							2.06	%							1.61	%
Net interest-earning assets (3)	$	158,955							$	107,209
Net interest margin (4)							2.54	%							2.02	%
Average interest-earning assets to average interest-bearing liabilities		119.11	%							114.16	%

(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
	March 31,
	2026			2025

Earnings Data
Net interest income	$	6,297		$	4,373
Non-interest income		367			299
Total net interest income and non-interest income		6,664			4,672
Provision (benefit) for credit losses		325			(21	)
Non-interest expense		4,845			4,321
Pre-tax income		1,494			372
Net income		1,145			305

Per share Data
Basic and diluted earnings per share	$	0.13		N/A
Book value per share	$	13.00		N/A

Earnings
Return on average assets (1)		0.44	%		0.14	%
Return on average stockholders' equity (1)		3.84	%		1.51	%
Net interest margin (1)		2.54	%		2.02	%
Cost of deposits (1)		2.80	%		3.06	%
Efficiency ratio		72.70	%		92.51	%

Balance Sheet
Total assets	$	1,057,104		$	923,092
Loans, net	$	840,544		$	727,728
Total stockholders' equity	$	119,144		$	80,914

Asset quality
Allowance for credit losses (ACL)	$	4,537		$	3,600
ACL/Total loans		0.54	%		0.49	%
ACL/Total nonperforming loans (NPLs)		272.17	%		191.77	%
Net charge-offs/average total loans		(0.00	)%		(0.01	)%
Capital Ratios
Stockholders' equity/total assets		11.27	%		8.77	%

(1) Annualized.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429034888/en/

Investor Contact

John A. Carroll

President and Chief Executive Officer

IR@WinchesterSavings.com

(781) 729-2130

Winchester Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2026