Financial Performance - Net income for the three months ended December 31, 2025, was $1.1 million, compared to $373,000 for the same period in 2024[117]. - Net income for the six months ended December 31, 2025, was $2.0 million, a significant improvement from a net loss of $259,000 for the same period in 2024[136]. - Interest and dividend income increased by $1.9 million, or 18.2%, to $12.4 million for the three months ended December 31, 2025[118]. - Interest and dividend income increased by $3.6 million, or 17.4%, to $24.4 million for the six months ended December 31, 2025[137]. - Net interest income increased to $6.1 million for the three months ended December 31, 2025, up from $4.0 million for the same period in 2024, reflecting a growth rate of 52.5%[122]. - Net interest income for the six months ended December 31, 2025, was $11.8 million, up from $7.8 million for the same period in 2024, reflecting a growth of 51.3%[142]. - Non-interest income decreased by 1.6% to $382,000 for the three months ended December 31, 2025, down from $388,000 in 2024[127]. - Total other income decreased by 51.3% to $433,000 for the six months ended December 31, 2025, compared to $889,000 in 2024, largely due to a loss on the sale of securities[146]. Asset and Liability Management - Total assets increased by $66.6 million, or 7.0%, to $1.0 billion at December 31, 2025, from $949.4 million at June 30, 2025[111]. - Gross loans increased by $49.0 million, or 6.5%, to $803.1 million at December 31, 2025, driven by multi-family and residential real estate loans[113]. - Deposits increased by $67.1 million, or 9.9%, to $746.3 million at December 31, 2025, primarily due to a $77.0 million increase in money market accounts[114]. - The average balance of loans increased by $81.1 million, or 11.3%, to $797.4 million for the three months ended December 31, 2025[119]. - Average balance of loans increased by $77.7 million, or 11.0%, to $786.2 million for the six months ended December 31, 2025[138]. - The company recorded a total increase in net interest income of $4.007 million for the six months ended December 31, 2025, attributed to both volume and rate changes[156]. Interest Rate Risk - The interest rate spread rose to 2.01% for the three months ended December 31, 2025, compared to 1.48% for the same period in 2024[122]. - The interest rate spread increased to 1.98% for the six months ended December 31, 2025, compared to 1.43% for the same period in 2024, while the net interest margin rose to 2.50% from 1.88%[142]. - The company is focusing on managing interest rate risk through strategies such as emphasizing non-interest-bearing accounts and diversifying the loan portfolio[159]. - The Asset/Liability Committee is responsible for evaluating and managing interest rate risk, ensuring alignment with the company's business strategy and performance objectives[157]. - As of December 31, 2025, a 200 basis point increase in interest rates would lead to a 16.8% decrease in net interest income[163]. - The estimated economic value of equity (EVE) would decrease by 22.4% with a 200 basis point increase in interest rates as of December 31, 2025[171]. Expenses and Provisions - Total non-interest expense rose to $4.7 million for the three months ended December 31, 2025, a 25.0% increase from $3.8 million in 2024[129]. - Operating expenses increased by 23.4% to $9.5 million for the six months ended December 31, 2025, compared to $7.7 million in 2024, driven by higher salaries and employee benefits and increased marketing expenses[148]. - Provision for credit losses was $388,000 for the three months ended December 31, 2025, an increase from $238,000 for the same period in 2024[122]. - Provision for credit losses decreased significantly to $68,000 for the six months ended December 31, 2025, down from $1.4 million in the prior year, primarily due to lower charge-offs of $580,000[143]. - Income tax expense increased to $276,000 for the three months ended December 31, 2025, compared to $41,000 for the same period in 2024[130]. - Income tax provision rose to $632,000 for the six months ended December 31, 2025, compared to a benefit of $157,000 in the prior year, reflecting higher income levels[149]. Capital and Liquidity - Total stockholders' equity increased by $2.9 million to $118.2 million at December 31, 2025[116]. - At December 31, 2025, the company was considered "well capitalized" under regulatory guidelines[182]. - The net cash provided by operating activities for the six months ended December 31, 2025, was $2.9 million, compared to a net cash used of $277,000 for the same period in 2024[180]. - The company maintained a minimum monthly liquidity ratio of 4% to 6% of assets and a minimum quarterly Primary Liquidity ratio of 10%[179]. - At December 31, 2025, the company had $143.6 million in advances from the Federal Home Loan Bank of Boston and the ability to borrow an additional $152.5 million[176]. - The net proceeds from the recent offering are expected to enhance the company's financial condition and increase net interest-earning assets[183]. - The company anticipates sufficient funds to meet current funding commitments based on its strategy to increase loans and core deposits[181].
Winchester Bancorp Inc(WSBK) - 2026 Q2 - Quarterly Report