Earnings release
Page 1
Exhibit 99.1 Winchester Bancorp, Inc. Announces Results for the Year Ended June 30, 2026 Investor Contact John A. Carroll President and Chief Executive Officer IR@WinchesterSavings.com (781) 729-2130 WINCHESTER, MA, July 30, 2026 - Winchester Bancorp, Inc. (NASDAQ-WSBK) (the "Company"), the holding company for Winchester Savings Bank (the "Bank"), today announced its fiscal 2026 financial results. The Company reported net income of $4.4 million, or $0.49 per common share, as compared to net loss of $874,000 for the year ended June 30, 2025, an increase of $5.3 million in net income. Operating net income for the year ended June 30, 2025, which excludes our contribution to the Winchester Savings Bank Charitable Foundation, Inc. (the "Charitable Foundation"), was $750,000 (non-GAAP), making the year over year increase $3.7 million on an adjusted basis. “In our first full year as a public company, we've demonstrated the ability to deploy capital prudently to grow the franchise. Loan and deposit growth were both impressive year-over-year, up $119.6 million, or 15.9% and $130.1 million, or 19.1%, respectively. Total assets grew more than $146.5 million, or 15.4%, while profitability also improved, with margin expanding to 2.55% from 2.05% and efficiency improving to 75.2% from 85.5% (non-GAAP), both compared to June 30, 2025," said John A. Carroll, President and Chief Executive Officer. "Our first year as a public company was a strong one, from establishing our municipal department to delivering double digit growth and improved earnings. We look forward to building on that momentum as we enter our second year of creating shareholder value,” Carroll added. BALANCE SHEET Total assets were $1.10 billion at June 30, 2026, representing an increase of $146.6 million, or 15.4%, from June 30, 2025. • Cash and cash equivalents were $60.0 million, reflecting an increase of $4.8 million, or 8.7%, from June 30, 2025. • Net loans were $870.8 million, representing an increase of $119.6 million, or 15.9%, from June 30, 2025, as we continued to experience strong loan demand. The main driver of the new growth was in our residential and multifamily portfolios, which increased $47.6 million, or 13.3%, and $45.9 million, or 27.6%, respectively, since June 30, 2025. • Investment securities totaled $125.0 million, representing an increase of $20.5 million, or 19.6%, from June 30, 2025, due to purchases of U.S. Treasury bonds and government agency securities. • Deposits totaled $809.2 million, representing an increase of $130.1 million, or 19.1%, since June 30, 2025. The increase in deposits was a result of growth of $135.6 million in municipal customer deposits. As a result of the increase in municipal deposits, money market accounts increased $140.0 million. Savings accounts and certificates of deposit decreased $10.3 million and $1.6 million, respectively, while demand deposit accounts increased $2.0 million. • Federal Home Loan Bank borrowings totaled $158.2 million, representing an increase of $11.2 million, or 7.6%, from $147.0 million at June 30, 2025. • Stockholders’ equity was $120.5 million, representing an increase of $5.2 million, or 4.5% from $115.4 million from June 30, 2025. The increase was driven by net income of $4.4 million for the year ended June 30, 2026 and a decrease in accumulated other comprehensive loss of $530,000.
Page 2
2 NET INTEREST INCOME Net interest income was $25.0 million for the year ended June 30, 2026, compared to $17.5 million for the year ended June 30, 2025, representing an increase of $7.5 million, or 42.6%. Net interest margin expanded by 50 basis points to 2.55% for the year ended June 30, 2026 compared to 2.05% for the year ended June 30, 2025. • The increase in interest income during the year ended June 30, 2026, was primarily attributable to the increase in the average balance of loans and investment securities. • The increase in interest expense during the year was primarily attributable to higher average interest-bearing deposit balances, partially offset by lower average rates paid on those deposits, lower average borrowings, and reduced borrowing rates. NON-INTEREST INCOME Non-interest income was $1.3 million for the year ended June 30, 2026, compared to $1.8 million for the year ended June 30, 2025. Non- interest income for the year ended June 30, 2025 includes a one-time gain on the sale of equity securities. NON-INTEREST EXPENSE Non-interest expense was $19.8 million for the year ended June 30, 2026, representing an increase of $1.0 million, or 5.2%, from the year ended June 30, 2025 due to increases in salaries and employee benefits, marketing and data processing expense offset by a decrease in other general and administrative expenses as the prior year included a $2.3 million charitable foundation contribution. ASSET QUALITY Asset quality remains strong. The allowance for credit losses on loans in total and as a percentage of total gross loans as of June 30, 2026 was $4.8 million and 0.55%, compared to $4.2 million and 0.55% as of June 30, 2025. • During the year ended June 30, 2026, the Company recorded $597,000 of net charge offs compared to net charge offs of $1.4 million for the year ended June 30, 2025. • Non-performing assets totaled $1.6 million, or 0.15% of total assets, as of June 30, 2026, a decrease from $2.2 million, or 0.23% of total assets, as of June 30, 2025. ABOUT WINCHESTER BANCORP, INC. Winchester Bancorp, Inc. is the mid-tier holding company of Winchester Savings Bank and is the majority owned subsidiary of Winchester Bancorp, MHC. Winchester Savings Bank's mission is to operate and grow a profitable community-oriented financial institution that is dedicated to meeting the banking needs of individuals and small businesses in the communities in which it operates. FORWARD-LOOKING STATEMENTS Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements in other documents it files with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and
Page 3
3 debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10- K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made. NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP financial measures, such as operating net income, noninterest expense on an operating basis, noninterest income on an operating basis, operating return on average shareholders' equity, operating return on average assets annualized, efficiency ratio, and diluted earnings per share excluding contribution to the Charitable Foundation. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
Page 4
4 Winchester Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) (Dollars in thousands, except share and per share data) June 30, June 30, 2026 2025 Assets Cash and due from banks $ 1,283 $ 7,513 Interest-bearing deposits 58,764 47,731 Total cash and cash equivalents 60,047 55,244 Securities available for sale, at fair value 68,776 47,299 Securities held to maturity, at amortized cost 56,228 57,211 Federal Home Loan Bank stock, at cost 6,791 6,278 Loans, net of allowance for credit losses of $4,783 at June 30, 2026 and $4,151 at June 30, 2025 870,773 751,220 Bank owned life insurance 11,397 10,925 Premises and equipment, net 5,590 6,418 Accrued interest receivable 4,034 3,327 Net deferred tax asset 1,092 1,212 Other assets 11,208 10,244 $ 1,095,936 $ 949,378 Liabilities and stockholders' equity Non-interest-bearing deposits $ 63,168 $ 55,696 Interest-bearing deposits 746,068 623,486 Federal Home Loan Bank advances 158,158 147,000 Mortgagors’ escrow accounts 1,809 1,756 Accrued expenses and other liabilities 6,220 6,088 Total liabilities 975,423 834,026 Commitments and contingencies Preferred stock, $.01 par value, 5,000,000 shares authorized, none outstanding — — Common stock, $.01 par value, 20,000,000 shares authorized, 9,295,376 issued and outstanding as of June 30, 2026 and June 30, 2025 93 93 Additional paid-in capital 39,586 39,571 Unearned compensation (ESOP) (3,151) (3,346) Retained earnings 85,141 80,720 Accumulated other comprehensive loss (1,156) (1,686) Total stockholders' equity 120,513 115,352 Total liabilities and stockholders' equity $ 1,095,936 $ 949,378
Page 5
5 Winchester Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) (Dollars in thousands, except share and per share data) Year ended June 30, 2026 2025 (In thousands, except share data) Interest and dividend income: Interest and fees on loans $ 43,783 $ 37,528 Interest and dividends on securities 4,678 3,128 Interest on federal funds sold and other interest-bearing deposits 1,919 2,057 Total interest and dividend income 50,380 42,713 Interest expense: Interest on deposits 19,764 19,115 Interest on Federal Home Loan Bank advances 5,623 6,076 Total interest expense 25,387 25,191 Net interest income 24,993 17,522 Provision for credit losses 789 2,066 Net interest income, after provision for credit losses 24,204 15,456 Non-interest income: Customer service fees 773 728 Income on bank owned life insurance 472 466 Loss on available for sale securities, net (317) — Gain (loss) on marketable equity securities, net — 374 Gain on sale of loans 8 — Miscellaneous 332 224 Total non-interest income 1,268 1,792 Non-interest expense: Salaries and employee benefits 11,748 9,688 Occupancy and equipment, net 1,819 1,579 Data processing 1,749 1,368 Deposit insurance 715 848 Marketing and advertising 734 462 Net periodic pension and post retirement benefit, less service costs (697) (73) Other general and administrative 3,684 4,906 Total non-interest expense 19,752 18,778 Income (loss) before income taxes 5,720 (1,530) Provision (benefit) for income taxes 1,299 (656) Net income (loss) $ 4,421 $ (874) Share Data: Average common shares outstanding, basic and diluted 8,971,061 8,961,476 Basic and diluted net income (loss) per share $ 0.49 $ (0.10)
Page 6
6 Winchester Bancorp, Inc. and Subsidiaries Average Balances and Yields (unaudited) For the Year Ended June 30, 2026 2025 AverageOutstandingBalance Interest AverageYield/Rate AverageOutstandingBalance Interest AverageYield/Rate (Dollars in thousands) Interest-earning assets: Loans $ 814,169 $ 43,783 5.38% $ 725,618 $ 37,528 5.17% Securities 118,400 4,678 5.27% 87,850 3,128 3.56% Interest-bearing deposits 46,666 1,919 4.11% 42,473 2,057 4.84% Total interest-earning assets 979,235 50,380 5.14% 855,941 42,713 4.99% Non-interest-earning assets 43,143 39,045 Allowance for credit losses on loans (4,437) (3,575) Total assets $ 1,017,941 $ 891,411 Interest-bearing liabilities: NOW and demand deposits $ 55,838 34 0.06% $ 55,520 137 0.25% Savings accounts 154,627 3,263 2.11% 163,597 3,871 2.37% Money market accounts 197,836 6,337 3.20% 104,832 3,460 3.30% Certificates of deposit 278,312 10,130 3.64% 279,500 11,647 4.17% Total interest-bearing deposits 686,613 19,764 2.88% 603,449 19,115 3.17% Borrowings 136,236 5,623 4.13% 139,207 6,076 4.36% Total interest-bearing liabilities 822,849 25,387 3.09% 742,656 25,191 3.39% Other non-interest-bearing liabilities 76,756 67,710 Total liabilities 899,605 810,366 Stockholders' equity 118,336 81,045 Total liabilities and stockholders' equity $ 1,017,941 $ 891,411 Net interest income $ 24,993 $ 17,522 Net interest rate spread (1) 2.05% 1.60% Net interest-earning assets (2) $ 156,386 $ 113,285 Net interest margin (3) 2.55% 2.05% Average interest-earning assets to average interest-bearing liabilities 119.01% 115.25% (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets.
Page 7
7 Winchester Bancorp, Inc. and Subsidiaries Selected Financial Highlights (unaudited) (Dollars in thousands, except share and per share data) For the Year Ended June 30, June 30, 2026 2025 Earnings Data Net interest income $ 24,993 $ 17,522 Non-interest income 1,268 1,792 Total net interest income and non-interest income 26,261 19,314 Provision for credit losses 789 2,066 Non-interest expense 19,752 18,778 Pre-tax income (loss) 5,720 (1,530) Net income (loss) 4,421 (874) Per share Data Basic and diluted earnings per share $ 0.49 $ (0.10) Book value per share $ 13.43 $ 12.41 Earnings Return on average assets 0.43% (0.10)% Return on average stockholders' equity 3.74% (1.08)% Net interest margin 2.55% 2.05% Cost of deposits 2.88% 3.17% Efficiency ratio 75.21% 97.22% Balance Sheet Total assets $ 1,095,936 $ 949,378 Loans, net $ 870,773 $ 751,220 Total stockholders' equity $ 120,513 $ 115,352 Asset quality Allowance for credit losses (ACL) $ 4,783 $ 4,151 ACL/Total loans 0.55% 0.55% ACL/Total nonperforming loans (NPLs) 286.92% 187.57% Net charge-offs/average total loans (0.07)% (0.20)% Capital Ratios Stockholders' equity/total assets 11.00% 12.15%
Page 8
8 Winchester Bancorp, Inc. and Subsidiaries Non-GAAP Reconciliation (unaudited) (Dollars in thousands, except share and per share data) Year ended June 30, 2026 2025 Net income (loss) (GAAP) $ 4,421 $ (874) Add (Subtract): Non-interest expense component: Winchester Charitable Foundation contribution — 2,259 Total impact of non-GAAP adjustment — 2,259 Less net tax provision (benefit) associated with non-GAAP adjustments — (635) Operating net income (non-GAAP) $ 4,421 $ 750 Average common shares outstanding 8,971,061 8,817,329 Diluted earnings per share excluding contribution to the Charitable Foundation (non- GAAP) $ 0.49 $ 0.09 Noninterest expense (GAAP) $ 19,752 $ 18,778 Add (Subtract): Winchester Charitable Foundation contribution — (2,259) Total impact of non-GAAP noninterest expense adjustments — (2,259) Noninterest expense on an operating basis (non-GAAP) $ 19,752 $ 16,519 Noninterest income (GAAP) $ 4,421 $ 750 Average assets $ 1,017,941 $ 891,411 Operating return on average assets annualized (non-GAAP) 0.43% 0.08% Average shareholders' equity $ 118,336 $ 81,045 Operating return on average shareholders' equity (non-GAAP) 3.74% 0.93% Noninterest expense on an operating basis (non-GAAP) $ 19,752 $ 16,519 Net interest income 24,993 17,522 Noninterest income on an operating basis (non-GAAP) 1,268 1,792 Total net interest income and non-interest income $ 26,261 $ 19,314 Efficiency ratio (non-GAAP) (1) 75.21% 85.53% (1) The efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income and non-interest income