Winchester Bancorp (WSBK) Registration filing summary

Company overview and business model

• Operates as a Massachusetts-chartered savings bank with a community banking focus, serving the Boston metro area through five branches.

• Reorganizing into a two-tier mutual holding company structure, with a new Maryland-incorporated mid-tier holding company and a Massachusetts mutual holding company.

• Primary business is gathering deposits and making loans, with a focus on residential, commercial, multi-family, and construction lending.

• Plans to continue expanding in contiguous markets and invest in digital platforms to enhance deposit growth.

Financial performance and metrics

• As of September 30, 2024: total assets $872.9M, deposits $642.3M, surplus $80.2M.

• Net loss of $632K for the three months ended September 30, 2024; net income of $786K for the year ended June 30, 2024; net income of $4.2M for the year ended June 30, 2023.

• Net interest margin declined to 1.84% for the three months ended September 30, 2024, from 2.11% a year earlier.

• Allowance for credit losses at 0.47% of total loans; non-performing loans at 0.23% of total loans.

Use of proceeds and capital allocation

• Net proceeds from the offering expected to be $24.3M–$33.5M, or $38.8M if upsized.

• At least 50% of net proceeds to be invested in the bank; remainder to fund ESOP loan, charitable foundation, and retained for general corporate purposes.

• Proceeds may be used for loan growth, securities investments, branch expansion, potential acquisitions, and general corporate purposes.