EWSB Bancorp Reports $364,780 Net Loss in Q1 2026, Sees Increase in Interest Income

EWSB Bancorp, Inc. reported a net loss of $364,780 for the first quarter of 2026, a decrease from a net loss of $568,641 in the same period of 2025. The company's total interest and dividend income increased by 3% to $2.68 million, driven primarily by a rise in loan interest income, which grew by $62,000. This increase was partially offset by a decline in interest income from investment securities. Total interest expense decreased by 8.4% to $1.5 million, reflecting a reduction in the cost of interest-bearing deposits and a shift in the deposit mix towards lower-cost options. As a result, net interest income rose by 22.3% to $1.18 million, bolstered by an improved interest rate spread.

In terms of financial position, EWSB Bancorp's total assets decreased by 2.9% to $263.2 million as of March 31, 2026, down from $270.97 million at the end of 2025. This decline was primarily attributed to a $4.5 million decrease in net loans, which fell to $184.96 million, and a $2.5 million reduction in securities held to maturity. Total deposits increased by 0.8% to $219 million, with a notable rise in certificates of deposit, which grew by 1.3% to $113.56 million. The company’s borrowings also decreased significantly, from $38.37 million to $29.26 million, as cash generated from loan sales and maturities were used to pay down debt.

Operationally, EWSB Bancorp has seen a shift in its loan portfolio, with a decrease in one-to-four family residential loans and other consumer loans, while home equity lines of credit and commercial installment loans experienced growth. The company reported a provision for credit losses of $52,893, down from $110,290 in the previous year, indicating improved credit quality. The total allowance for credit losses stood at $1.17 million, reflecting a proactive approach to managing potential loan defaults.

Looking ahead, EWSB Bancorp is considering a private offering of up to $3.5 million in common stock to bolster its capital position. The company remains focused on improving its liquidity and capital ratios, as it operates under a memorandum of understanding with regulatory authorities to maintain higher capital levels. The bank's Tier 1 capital ratio was reported at 6.3%, while its total capital ratio was 11.5%, both of which exceed the minimum regulatory requirements. Management continues to monitor market conditions and adjust strategies to enhance financial performance and stability.