Winchester Bancorp Reports Increased Net Income and Asset Growth Following IPO

Winchester Bancorp, Inc. reported a significant increase in financial performance for the three months ending March 31, 2025, with net income rising to $305,000, compared to $192,000 for the same period in 2024. This increase was driven by a 17.4% rise in interest and dividend income, which reached $10.6 million, primarily due to a 20.2% increase in interest and fees on loans. The average balance of loans also increased by 12.2% to $735.3 million, while the average yield on loans rose to 5.16%, up from 4.81% a year earlier. However, total interest expense also increased by 11.9% to $6.2 million, reflecting higher costs associated with deposits and Federal Home Loan Bank advances.

In terms of overall financial condition, Winchester Bancorp's total assets increased by 8.2% to $923.1 million as of March 31, 2025, up from $853.0 million at the end of June 2024. This growth was primarily attributed to a $45.8 million increase in gross loans, which totaled $730.1 million. The bank's allowance for credit losses on loans remained stable at $3.6 million, representing 0.49% of total loans. The bank also reported a 10.7% increase in total deposits, which reached $703.1 million, largely due to an influx of subscription funds from prospective investors in its initial public offering.

Strategically, Winchester Bancorp is in the process of transitioning to a public company following its reorganization into a mutual holding company. The bank completed a stock offering on April 30, 2025, selling 3,997,012 shares at $10.00 per share, resulting in 9,295,376 shares of common stock outstanding. This transition is expected to enhance the bank's liquidity and capital resources, allowing for further growth in its loan portfolio, particularly in commercial real estate and multi-family residential loans.

Operationally, the bank has seen an increase in its customer base and engagement metrics, with a focus on expanding its loan offerings. The bank's strategy includes establishing new broker relationships to balance its concentration of commercial real estate loans. The bank's employee headcount has also increased, reflecting its commitment to enhancing its operational capabilities and customer service.

Looking ahead, Winchester Bancorp anticipates continued growth in its loan portfolio and overall financial performance, supported by the recent capital infusion from its public offering. However, management remains cautious about potential economic fluctuations and interest rate changes that could impact its operations. The bank's management is committed to maintaining a strong liquidity position and ensuring compliance with regulatory capital requirements, as it navigates the challenges and opportunities presented by its new public status.