Financial Performance - Total assets increased by $55.8 million, or 5.9%, to $1.0 billion at September 30, 2025, from $949.4 million at June 30, 2025[110] - Gross loans increased by $42.0 million, or 5.6%, to $796.2 million at September 30, 2025, with significant growth in construction and commercial real estate loans[112] - Deposits increased by $37.2 million, or 5.5%, to $716.4 million at September 30, 2025, primarily driven by a $49.3 million increase in money market accounts[113] - Interest and dividend income rose by $1.7 million, or 16.7%, to $11.9 million for the three months ended September 30, 2025, compared to the same period in 2024[117] - Net interest income for the three months ended September 30, 2025, was $5.7 million, up from $3.8 million for the same period in 2024, reflecting a growth of 50.0%[122] - Total non-interest income for the three months ended September 30, 2025, was $52,000, a decrease of 89.6% from $501,000 in the same period in 2024[127] - Total non-interest expense increased to $4.8 million for the three months ended September 30, 2025, up 21.8% from $3.9 million for the same period in 2024[129] - Income tax expense rose to $356,000 for the three months ended September 30, 2025, compared to a benefit of $198,000 for the same period in 2024[130] Loan and Credit Metrics - The average balance of loans increased by $74.3 million, or 10.6%, to $775.0 million for the three months ended September 30, 2025[119] - The average yield on loans increased by 22 basis points to 5.37% for the three months ended September 30, 2025, from 5.15% for the same period in 2024[119] - The allowance for credit losses on loans was $4.4 million at September 30, 2025, representing 0.55% of total loans[123] - The provision for credit losses was a benefit of $320,000 for the three months ended September 30, 2025, compared to a provision of $1.2 million for the same period in 2024[122] - Total nonaccrual loans decreased to $1.9 million at September 30, 2025, down from $2.2 million at June 30, 2025[124] Interest Rate and Liquidity - Total interest expense decreased by $267,000, or 4.1%, to $6.2 million for the three months ended September 30, 2025[120] - The interest rate spread increased to 1.96% for the three months ended September 30, 2025, compared to 1.38% for the same period in 2024[122] - The net interest margin increased to 2.49% for the three months ended September 30, 2025, compared to 1.84% for the same period in 2024[122] - As of September 30, 2025, a 200 basis point increase in interest rates would lead to a 16.9% decrease in net interest income, while a 200 basis point decrease would result in a 6.5% increase[143] - The estimated economic value of equity (EVE) would decrease by 22.7% with a 200 basis point increase in interest rates and increase by 9.0% with a 200 basis point decrease as of September 30, 2025[149] - The company maintained a minimum monthly liquidity ratio of 4% to 6% of assets and a quarterly Primary Liquidity ratio of at least 10%, complying with these guidelines as of September 30, 2025[157] - The liquidity position is monitored daily, with cash and cash equivalents being the most liquid assets[155] Capital and Funding - Total stockholders' equity increased by $1.6 million to $117.0 million at September 30, 2025, due to net income of $962,000 for the three months ended September 30, 2025[115] - Borrowings increased by $17.0 million, or 11.6%, to $164.0 million at September 30, 2025, used to fund asset growth[114] - At September 30, 2025, the company had $164.0 million in advances from the Federal Home Loan Bank of Boston and the ability to borrow an additional $147.3 million[154] - The net cash provided by operating activities for the three months ended September 30, 2025, was $1.4 million, compared to a cash outflow of $334,000 for the same period in 2024[158] - The net proceeds from the recent offering are expected to enhance the company's financial condition and increase net interest-earning assets and net interest income[162] - The company is considered "well capitalized" under regulatory guidelines as of September 30, 2025[161] - The company anticipates sufficient funds to meet current funding commitments through increased loans and core deposits[160] Risk Management - The allowance for credit losses on loans would have increased to $6.3 million from $4.4 million with a 25 basis point increase in the lifetime loss rate[104] - The company acknowledges that interest rate risk measurements may not reflect the fair values of financial instruments, particularly in changing market conditions[153]
Winchester Bancorp Inc(WSBK) - 2026 Q1 - Quarterly Report