Winchester Bancorp, Inc. Announces Results for the Year Ended June 30, 2025

Winchester Bancorp, Inc. (NASDAQ-WSBK) (the "Company"), the holding company for Winchester Savings Bank (the "Bank"), today announced its 2025 financial results.

As described in the prospectus for its initial public offering (“IPO”), concurrent with the completion of its reorganization and stock offering, the Company made a one-time donation of $400,000 in cash and 185,907 shares of common stock to the Winchester Savings Bank Charitable Foundation at a total market value of $2.3 million, resulting in an after-tax charge of $1.6 million. As a result of this contribution the Company reported a net loss of $874,000 for the year ended June 30, 2025, compared to net income of $786,000 for the year ended June 30, 2024. Net income excluding the charitable foundation contribution (non-GAAP) was $750,000 for the year ended June 30, 2025, compared to $786,000 for the year ended June 30, 2024. Non-GAAP reconciliation tables are included in this release.

“In the fourth quarter, we completed our reorganization and concurrent stock offering, building on our 154-year legacy. Both the capital we raised, and the newly formed Winchester Savings Bank Charitable Foundation, will positively impact our customers and the communities we serve for many years to come,” said John A. Carroll, President and Chief Executive Officer.

BALANCE SHEET

Total assets were $949.4 million as of June 30, 2025, representing an increase of $96.4 million, or 11.3%, from June 30, 2024.

• Cash and cash equivalents increased to $55.2 million from $44.1 million, a $11.1 million, or 25.2%, year over year as a result of the cash raised in the reorganization and stock offering.
• Net loans were $751.2 million, representing an increase of $69.3 million or 10.2% from the prior year as demand for new originations continued. The main driver of the new growth was in multi-family, residential real estate and commercial real estate loans, which increased $41.8 million, $18.8 million and $16.9 million, respectively, partially offset by a decline in the construction portfolio of $5.5 million.
• Investment securities totaled $104.5 million, representing an increase of $17.9 million or 20.6% from the prior year due to purchases of U.S. treasuries and government agency securities.
• Deposits totaled $679.2 million, representing an increase of $43.8 million, or 6.9% from the prior year. The increase in deposits was a result of growth in customer deposits, primarily money market and certificate of deposit accounts, which increased by $35.1 million and $21.0 million, respectively, partially offset by decreases in savings and demand deposit accounts, which decreased by $8.2 million and $4.1 million, respectively.
• Shareholders’ equity was $115.4 million, representing an increase of $35.1 million from $80.3 million, or 43.7% from the prior year. The increase was driven by net stock offering proceeds, which totaled $37.8 million partially offset by the one-time contribution to the Charitable Foundation and $3.3 million for the purchase of 334,633 shares of common stock by the employee stock ownership plan ("ESOP") in the offering.

NET INTEREST INCOME

Net interest income was $17.5 million for the year ended June 30, 2025, compared to $14.4 million for the prior year, representing an increase of $3.1 million, or 21.9%.

• The increase in net interest income was primarily driven by an increase in net interest margin of 15 basis points, to 2.05% for the year ended June 30, 2025, compared to 1.90% for the prior year.
• The increase in interest income during the year ended June 30, 2025 was primarily attributable to an increase in average earning assets of $100.0 million, and an increase of 38 basis points in average asset yields.
• The increase in interest expense during the year ended June 30, 2025 was driven by increases in average interest-bearing liabilities of $94.0 million, along with an increase of 23 basis points in the average cost of interest-bearing liabilities.

NON-INTEREST EXPENSE

Non-interest expense was $18.8 million for the year ended June 30, 2025, compared to $14.9 million for the prior year, representing an increase of $3.9 million, or 26.2%.

• Other general and administrative expense in 2025 include $2.3 million of expense resulting from the contribution to the Winchester Savings Bank Charitable Foundation in connection with the Company’s reorganization and stock offering.

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 June 30, 2025 was $4.2 million and 0.55%, respectively, as compared to $3.5 million and 0.50%, respectively, as of June 30, 2024.

• The Company recorded a provision for credit losses of $2.1 million for 2025 compared to $514,000 in 2024.
• For the year ended June 30, 2025, the Company recorded net charge offs of $1.4 million compared to no charge offs for the year ended June 30, 2024.
• Total non-performing assets were $2.2 million, or 0.23%, of total assets as of June 30, 2025, and $1.4 million, or 0.16% of total assets, as of June 30, 2024.

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.

NON-GAAP FINANCIAL MEASURES

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures, including net income excluding contribution to the charitable foundation, noninterest expense excluding contribution to the charitable foundation, earnings per share excluding contribution to the charitable foundation, return on average assets excluding contribution to the charitable foundation, return on average shareholders' equity excluding contribution to the charitable foundation, and efficiency ratio excluding contribution to the charitable foundation. The Company's management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

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; 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.

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