10-Q · May 13, 2026
Winchester Bancorp, Inc. demonstrated strong performance in the third quarter with a substantial net income growth to $1.1 million or $0.13 per share, up from last year's $305,000. Total revenue rose 44.0%…
Earnings analysis · 10-K
WSBK earnings analysis
Filed September 15, 2026 · Our reading of the company's report
The latest report
Winchester Bancorp delivered a strong fiscal 2026 turnaround, with $4.4 million of net income versus an $874,000 loss, 15.9% loan growth, and net interest margin expansion to 2.55%. Growth was driven by residential,…
Read full summary
Winchester Bancorp delivered a strong fiscal 2026 turnaround, with $4.4 million of net income versus an $874,000 loss, 15.9% loan growth, and net interest margin expansion to 2.55%. Growth was driven by residential, multifamily, and construction lending and by a newly established municipal deposit channel. However, the strategy is increasing exposure to concentrated and relatively unseasoned commercial real estate, multifamily, and construction portfolios, while modeled interest-rate risk exceeded internal policy limits.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.49
- Segment
- Banking; the Company reports one aggregated operating segment
What stood out
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Sharp Return to Profitability
Net income increased to $4.4 million, or $0.49 diluted EPS, for fiscal 2026 from a $874,000 net loss, benefiting from improved margins and the absence of the prior year’s $1.6 million after-tax reorganization-related charge.
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Material Margin Expansion
Net interest income increased 42.6% to $25.0 million, while net interest margin expanded to 2.55% from 2.05% and the interest-rate spread increased to 2.05% from 1.60%.
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Loan Growth Across Key Categories
The loan portfolio grew 15.9% to $873.8 million, led by one- to four-family residential loans up $47.6 million, or 13.3%, multifamily loans up $45.9 million, or 27.6%, and construction loans up $20.4 million, or 21.3%.
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Municipal Channel Drives Deposits
Deposits increased 19.1% to $809.2 million, driven by a 116.1% increase in money-market balances to $260.6 million, which management attributed largely to its newly established municipal deposit channel.
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Improved Asset Quality Coverage
Credit metrics improved: nonaccrual loans declined to $1.6 million from $2.2 million, while allowance coverage of nonperforming loans increased to 300.8% from 187.6%; the allowance remained 0.55% of total loans.
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Strong Liquidity and Capital Position
The Bank remained well capitalized and maintained liquidity access, including $118.8 million of additional FHLBB borrowing capacity, a $102.0 million secured BIC line with no balance outstanding, and compliance with its minimum liquidity guidelines.
What to watch
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CRE Concentration and Regulatory Scrutiny
Commercial real estate and multifamily loans increased to $435.5 million, or 49.8% of total loans, from $364.9 million, or 48.4%, one year earlier. Multifamily and commercial real estate loans represented 320.3% of total Bank capital, above the 300% regulatory concentration-risk threshold described in the filing, potentially requiring heightened risk management or additional capital.
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Interest-Rate Sensitivity Exceeds Policy Limits
The filing states that the Bank’s estimated interest-rate effects from potential rate increases were not in compliance with board policy limits at June 30, 2026. A 200-basis-point instantaneous increase was estimated to reduce net interest income by 17.9% and EVE by 20.1%; the Bank permitted the exceptions because asset sales would have caused a significant loss and depleted capital.
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Deposit and Wholesale Funding Risk
Funding remains exposed to higher-cost and potentially less-stable sources: certificates of deposit totaled $281.5 million, or 34.8% of deposits, while FHLBB advances totaled $158.2 million. Although deposits grew 19.1%, the filing warns that deposit attrition or heavier reliance on borrowings could increase funding costs and pressure margins.
Management's outlook
The 10-K does not provide numeric forward revenue or EPS guidance; annual outlook appears deferred to the earnings press release or call.
Earlier filings 4
10-Q · February 11, 2026
Winchester Bancorp reported a strong quarter: total revenue (net interest income + non-interest income) rose to $6,445,000 (6,445 in filing thousands) and net income increased to $1,074,000, driving EPS of $0.12 for the…
10-Q · November 12, 2025
Winchester Bancorp reported a return to profitability in the quarter ended September 30, 2025 with net income of $962,000 versus a loss of $632,000 a year earlier. Core net interest income expanded to $5,741,000 (from…
10-K · September 17, 2025
Winchester Bancorp completed a mutual-to-stock reorganization and IPO in April 2025 (3,997,012 shares at $10.00 for gross proceeds of $39,970,120) and began trading on NASDAQ as WSBK on May 2, 2025. As of June 30, 2025…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.