EWSB Bancorp Reports Second Quarter 2025 Financial Results with Net Loss of $278,660

EWSB Bancorp, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $278,660, a decrease from a loss of $462,861 in the same period last year. The company's total interest income increased by 14.9% to $2.76 million, driven primarily by a rise in interest and fees on loans, which grew by $361,000. The weighted average yield on the loan portfolio rose to 5.07%, up from 4.69% a year earlier. However, total noninterest income fell by 15.6% to $359,946, largely due to the absence of a one-time gain from an interest rate swap that had occurred in the previous year.

In terms of overall financial performance, EWSB Bancorp's total assets increased by 4.3% to $285 million as of June 30, 2025, compared to $273.3 million at the end of 2024. This growth was primarily attributed to a $9.9 million increase in net loans, which rose to $196.3 million, reflecting strong loan production that outpaced payoffs. Conversely, total deposits decreased by 4.0% to $222.1 million, with significant declines in non-interest-bearing and interest-bearing deposits, while certificates of deposit saw a slight increase.

The company also reported a significant rise in borrowed funds, which increased to $44.3 million from $24.2 million at the end of 2024. This increase was utilized to support loan growth and offset the decline in brokered deposits. EWSB Bancorp's stockholders' equity rose to $15.8 million, up from $15.6 million, despite a decrease in retained earnings due to the net loss incurred during the period.

Operationally, the company has been focusing on improving its asset-liability management strategies to mitigate interest rate risk. EWSB Bancorp has implemented new policies aimed at maintaining capital levels above regulatory requirements and enhancing liquidity. The bank's Tier 1 capital ratio stood at 6.3% of total average assets, while its total risk-based capital ratio was 11.4%, both of which exceed the minimum requirements for being classified as "well capitalized."

Looking ahead, EWSB Bancorp remains cautious about the economic environment, particularly regarding interest rates and market conditions. The company is committed to managing its liquidity and capital resources effectively while continuing to focus on loan production and maintaining asset quality. The management's outlook suggests a focus on strategic growth while navigating the challenges posed by the current economic landscape.