EWSB Bancorp Reports $679,000 Net Loss for First Half of 2026

EWSB Bancorp, Inc. reported a net loss of $679,000 for the six months ended June 30, 2026, a decrease from a loss of $847,000 during the same period in 2025. The company's total interest and dividend income for the first half of 2026 was $5.3 million, slightly down from $5.4 million in 2025. This decline was attributed to a decrease in interest and fees on loans, which fell by $40,000, alongside a reduction in interest on investment securities. However, net interest income increased by $314,000, or 15%, to $2.4 million, driven by a higher interest rate spread and net interest margin.

Total assets decreased by $5 million, or 1.8%, to $266 million as of June 30, 2026, primarily due to a $3.5 million reduction in loans and a $5.2 million decrease in securities held-to-maturity. Cash and cash equivalents increased significantly by $5.4 million, reflecting proceeds from a common stock issuance and loan sales. Total deposits rose by $7.7 million, or 3.5%, to $224.9 million, with non-interest-bearing deposits increasing by 39.7% to $10.8 million.

In terms of operational developments, EWSB Bancorp completed a rights offering in June 2026, issuing 261,682 shares of common stock for gross proceeds of approximately $2.6 million. This capital infusion is intended to support the bank's regulatory capital ratios. The company also reported a decrease in its employee headcount, contributing to a reduction in salary and benefit expenses.

The bank's provision for credit losses was $102,000 for the first half of 2026, down from $126,000 in the same period of 2025. The allowance for credit losses stood at $1.2 million as of June 30, 2026, reflecting a cautious approach to managing credit risk amid changing market conditions. The bank's Tier 1 capital ratio was 7.1%, and total capital to risk-weighted assets was 12.6%, indicating compliance with regulatory capital requirements.

Looking ahead, EWSB Bancorp aims to enhance its liquidity position and manage interest rate risk effectively. The bank plans to focus on increasing core deposits and originating shorter-term loans to mitigate exposure to interest rate fluctuations. The management remains optimistic about future growth, contingent on improving economic conditions and effective execution of its strategic initiatives.