Winchester Bancorp (WSBK) Q3 2026 earnings summary

Executive summary

• Net income for the quarter ended March 31, 2026 was $1.1 million, up from $305,000 in the prior year quarter, driven by higher interest and dividend income and lower cost of funds, partially offset by increased operating expenses.

• For the nine months ended March 31, 2026, net income was $3.2 million, a significant increase from $46,000 in the prior year period, primarily due to higher net interest income and lower provision for credit losses.

Financial highlights

• Total assets grew 11.3% year-over-year to $1.06 billion at March 31, 2026, mainly from increases in loans and investment securities.

• Loans increased 11.9% to $843.5 million, with multi-family and residential real estate loans as primary growth drivers.

• Deposits rose 15.4% to $783.7 million, led by a 90.1% increase in money market accounts, especially from municipal customers.

• Net interest income for the quarter was $6.3 million, up from $4.4 million year-over-year; for the nine months, it was $18.1 million, up from $12.2 million.

• Net interest margin improved to 2.54% for the quarter and 2.52% for the nine months, compared to 2.02% and 1.93% in the prior year periods.

• Provision for credit losses was $325,000 for the quarter and $393,000 for the nine months, reflecting portfolio growth and a change in methodology.

• Non-interest expense increased 12.1% for the quarter and 19.3% for the nine months, mainly due to higher salaries, technology investments, and marketing.

Outlook and guidance

• Management expects sufficient liquidity to meet funding commitments, supported by increased core deposits and access to Federal Home Loan Bank advances.

• Return on equity may remain lower in the near term due to increased equity from the recent stock offering.