WSBK 10-K & 10-Q changes, risk factors and insider trading

Unlike larger financial institutions that are more geographically diversified, our profitability depends primarily on the general economic conditions in our primary market area. Local economic conditions have a significant impact on our lending, including, the ability of borrowers to repay these loans and the value of the collateral securing these loans.

Our recent and intended increases in the level of our commercial real estate, construction and multi-family real estate originations have required and would likely require us to lend to borrowers with which we have limited or no experience. Our commercial real estate, construction and multi-family loans have grown from $244.9 million or 40.7% of the total loan portfolio at June 30, 2023 to $364.9 million or 48.4% of the total loan portfolio at June 30, 2025.2025 to $435.5 million or 49.8% of the total loan portfolio at June 30, 2026. While we have not incurred any losses with regard to loans originated during this period, this portion of the loan portfolio is unseasoned and we do not have a significant payment history pattern with which to judge future collectability. Further, newly originated loans have not been subjected to unfavorable economic conditions. As a result, it may be difficult to predict the future performance of newly originated loans. These loans may have delinquency or charge-off levels above our recent historical experience, which could adversely affect our future performance. Further, commercial real estate, construction (in particular commercial construction) and multi-family real estate loans generally have larger balances and involve a greater risk than one-toone- to four-family residential mortgage loans. Accordingly, if we make any errors in judgment in the collectability of these loans, any resulting charge-offs may be larger on a per loan basis than those incurred historically with our single-family residential mortgage loans.

The judicial foreclosure process is protracted, which delays our ability to resolve non-performing loans through the sale of the underlying collateral. The longer timelines have been the result of many factors, including additional consumer protection initiatives related to the foreclosure process, increased documentary requirements and judicial scrutiny, and, both voluntary and mandatory programs under which lenders may consider loan modifications or other alternatives to foreclosure. These reasons and the legal and regulatory responses have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders. This may negatively impact collateral values and our ability to minimize its losses.

A significant portion of our loan portfolio is secured by real estate, and we could become subject to environmental liabilities with respect to one or more of these properties, or with respect to properties that we own in operating our business. During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties.properties, particularly those properties securing commercial real estate lending. If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal injury and property damage, civil fines and criminal penalties regardless of when the hazardous conditions or toxic substances first affected any particular property. Environmental laws may require us to incur substantial expenses to address liabilities and may materially reduce the affected property’s value or limit our ability to use or sell the affected property. In addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability. Our policies, which require us to perform an environmental review before initiating any foreclosure action on non-residential real property, may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.

As of June 30, 20252026 and June 30, 2024,2025, we had $1.3 million$844,000 and $2.3$1.2 million in net unrealized losses on available-for-sale investment securities, respectively. In addition, we have experienced a shift in deposits from lower-cost savings and demand accounts to higher-cost certificates of deposit. However, the rates we earn on our loans did not increase as rapidly as those paid on deposits during the years ended June 30, 20252026 and June 30, 2024,2025, as we have a significant amount of fixed-rate residential real estate loans where the interest rates did not increase commensurate with the increase in market interest rates. In addition, most of our adjustable-rate loans do not reprice immediately, such that changes in market interest rates take a period of time to affect our portfolio yields.

For further discussion of how changes in interest rates could impact us, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Winchester Savings Bank—Management of Market Risk.”

We are required by bankingour regulatorybank authoritiesregulators to maintain adequate levels of capital to support our operations. We may at some point need to raise additional capital to support our growth. If we raise capital through the issuance of additional shares of our common stock or other securities, it would dilute the ownership interests of stockholders and may dilute the per share book value of our common stock. New investors may also have rights, preferences and privileges senior to our current stockholders, which may adversely impact our then current stockholders. Also, the need to raise additional capital may force our management to spend more time in managerial and financing-related activities than in operational activities.

Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assetsassets, and determination of the level of our allowance for credit losses. TheseBanking laws and regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards, policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislationlegislation, or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent registered public accounting firm. These changes could materially impact, potentially even retroactively, how we report our business, financial conditioncondition, and results of operations.

The USA PATRIOT Act and Bank Secrecy ActsAct, and other laws and regulations require financial institutions to developestablish programsand tomaintain preventan financialeffective institutions from being used for moneyanti-money laundering program and terrorist activities. If such activities are detected, financial institutions are obligated to file reports such as suspicious activity reports withand thecurrency U.S.transaction Treasury’sreports, Officeamong ofother Financial Crimes Enforcement Network.obligations. These rules also require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. FailureWe are required to comply with these regulationslaws couldand resultother anti-money laundering requirements. Our federal and state banking regulators, the Treasury Department’s Financial Crimes Enforcement Network, and other governmental agencies are authorized to impose significant civil money penalties for violations of anti-money laundering requirements, in finesaddition or sanctions, includingto restrictions on pursuing acquisitions or establishing new branches. The policies and procedures we have adopted that are designed to assist in compliance with these laws and regulations may not be effective in preventing violations of these laws and regulations. We have not been subject to any fines or other penalties, nor have suffered business or reputational harm, as a result of money laundering activities in recent years.

The Federal Reserve Board may require us to commit capital resources to support Winchester Savingsthe Bank, and we may not have sufficient access to such capital resources.

The FDI Act and Federal lawReserve requiresBoard thatregulations require a bank holding company actto serve as a source of financial and managerial strength to its subsidiary bank and to commit resources to support such subsidiary bank.subsidiaries. Under the “source of strength” doctrine, the Federal Reserve Board may require a bank holding company to make capital injections into a troubled subsidiary bank, including at times when the bank holding company may not be inclined to do so, and may charge the bank holding company with engaging in unsafe and unsound practices for failure to commit resources to such a subsidiary bank. AAccordingly, capitalwe injection may be required at times when the holding company may not have the resources to provide it and therefore maycould be required to attemptprovide financial assistance to borrow the fundsBank orif raiseit capital. Thus, any borrowing that must be done by Winchester Bancorp, Inc. to make a required capital injection becomes more difficult and expensive and could have an adverse effect on our business,experiences financial condition and results of operations. Moreover, it is possible that we will be unable to borrow funds or otherwise raise capital when we need to do so.distress.

We could remain an “emerging growth company” for up to five years, or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (b) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934,Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (c) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period.

We must maintain sufficient funds to respond to the needs of depositors and borrowers. As a part of our liquidity management, we use a number of funding sources in addition to core deposit growth and repayments and maturities of loans and investments. As we grow, we are likely to depend more on these sources, which may include Federal Home Loan Bank of BostonFHLBB advances, federal funds purchased and brokered certificates of deposit. While we emphasize the generation of low-cost core deposits as a source of funding, there is strong competition for such deposits in our market area. Additionally, deposit balances can decrease if customers perceive alternative investments as providing a better risk/return tradeoff. Adverse operating results or changes in industry conditions could lead to difficulty or an inability to access these additional funding sources. Our financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates.

At June 30, 2025,2026, we had $147.0$158.2 million outstanding in advances from the Federal Home Loan Bank of Boston.FHLBB. At June 30, 2025,2026, we had the ability to borrow $100.2$118.8 million in additional Federal Home Loan Bank of BostonFHLBB advances. At June 30, 2025,2026, we also had a $5.3 million line of credit with the Federal Home Loan Bank of Boston,FHLBB, which was not drawn at June 30, 2025.2026. Additionally, at June 30, 2025,2026, we had a $67.0$102.0 million secured line of credit through the Federal Reserve Borrower in Custody (BIC) program. We could significantly increase our borrowing capacity from the Federal Home Loan Bank of BostonFHLBB and the Federal Reserve Bank, if we pledged additional assets as security. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

At June 30, 2025,2026, certificates of deposit totaled $283.2$281.5 million, or 41.7%34.8% of our total deposits. Our increased levels of certificates of deposit in recent years have resulted in a higher cost of funds than would otherwise be the case if we had a higher percentage of demand deposits and savings deposits. In addition, if our certificates of deposit do not remain with us, we may be required to access other sources of funds, including loan sales, other types of deposits, advances from the Federal Home Loan Bank of BostonFHLBB and other borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or borrowings than we currently pay on our certificates of deposit.

We maintainhad a defined pension benefit plan for the benefit of a portion of our employees.employees Wethat maywas determineterminated toeffective terminateFebruary this1, plan.2026. We could incur an expense in connection with the termination, which could negatively affect our income duringin the yearupcoming of the termination.year.

We maintain a defined pension benefit plan for the benefit of employees of Winchester Savingsthe Bank who were employees prior to November 1, 2022. This plan was frozen effective October 31, 2024. We mayhave choosechosen and applied to terminate thisthe plan. The cost to terminate the plan is primarily dependent on the value of the plan’s assets and applicable interest rates at the time of such termination.termination is finalized. We cannot estimate the actual costs associated with potential termination from the plan until the date of the termination, but if these costs were material, it would negatively impact future earnings in the year of termination.

If our deposits grow too large, we may lose the benefits of excess deposit insurance provided by the DepositorsMA Insurance Fund.DIF.

Winchester SavingsThe Bank’s deposits are insured in full beyond federal deposit insurance coverage limits by the Depositors Insurance Fund, or theMA DIF, a private excess deposit insurer created under Massachusetts law. We believe providing deposit insurance in excess of FDIC insurance limits gives us a competitive advantage for individual, corporate and municipal depositors having deposit balances. However, the MA DIF may require member institutions that pose greater than normal loss exposure risk to the MA DIF to take certain risk-mitigating measures or withdraw from the MA DIF. In such an event, an institution may be required to reduce its level of excess deposits, pay for the reinsurance of excess deposits, make an additional capital contribution to the MA DIF, provide collateral or take other risk-mitigating measures that the MA DIF may require, which may include entering into reciprocal deposit programs with other financial institutions or reciprocal deposit services. Any of the above measures may reduce our overall level of deposits and increase our reliance on other, more expensive or less stable sources for funding, including FHLB advances, which would reduce net income.

TheOur articles of incorporation of Winchester Bancorp, Inc. provide that, unless Winchesterthe Bancorp, Inc.Company consents in writing, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of Winchesterthe Bancorp, Inc.,Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of Winchesterthe Bancorp, Inc.Company to Winchesterthe Bancorp, Inc.Company or its stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Maryland General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine will be conducted in a state or federal court located within Maryland, in all cases subject to the court’s having personal jurisdiction over the indispensable parties named as defendants. This exclusive forum provision does not apply to claims arising under the federal securities laws. This exclusive forum provision may limit a stockholder’s ability to bring a claim in a judicial forum it finds favorable for disputes with Winchesterthe Bancorp, Inc.Company and its directors, officers, and other employees, or may cause a stockholder to incur additional expense by having to bring a claim in a judicial forum that is distant from where the stockholder resides, or both. In addition, if a court were to find this exclusive forum provision to be inapplicable or unenforceable in a particular action, we may incur additional costs associated with resolving the action in another jurisdiction, which could have a material adverse effect on our financial condition and results of operations.

Stock banks or their holding companies, as well as individuals, may not acquire control of a company organized in the mutual holding company structure, such as Winchesterthe Bancorp, Inc.Company. As a result, the only entities that may acquire control of a mutual holding company are other mutual savings institutions or mutual holding companies. Accordingly, it is very unlikely that Winchesterthe Bancorp, Inc.Company would be subject to any takeover attempt by activist stockholders or other financial institutions.

Under applicable regulations, for a period of three years following completion of the reorganization, no person may acquire beneficial ownership of more than 10% of our common stock without prior approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks. Under federal law, subject to certain exemptions, a person, entity or group must notify the Federal Reserve Board before acquiring control of a bank holding company. Also, a bank holding company must obtain the prior approval of the Federal Reserve Board before, among other things, acquiring direct or indirect ownership or control of more than 5% of any class of voting shares of any bank, including Winchester Savingsthe Bank.

There also are provisions in our articles of incorporation that may be used to delay or block a takeover attempt, including a provision that prohibits any person from voting more than 10% of the shares of common stock outstanding. Furthermore, shares of restricted stock and stock options that we may grant to employees and directors, stock ownership by our management and directors, employment and change in control agreements that we have entered into with our executive officers and other factors may make it more difficult for companies or persons to acquire control of Winchesterthe Bancorp, Inc.Company without the consent of our board of directors. Taken as a whole, these statutory provisions and provisions in our articles of incorporation could result in our being less attractive to a potential acquirer and thus could adversely affect the market price of our common stock.

Our stockholders own a minority of Winchester Bancorp, Inc.’sour common stock and will not be able to exercise voting control over most matters put to a vote of stockholders.

Public stockholders own a minority of the outstanding shares of Winchester Bancorp, Inc.’sour common stock. As a result, stockholders other than Winchester Bancorp, MHC will not be able to exercise voting control over most matters put to a vote of stockholders. Winchester Bancorp, MHC owns a majority of Winchester Bancorp, Inc.’s common stock and, through its board of trustees, exercises voting control over most matters put to a vote of stockholders. Winchester Bancorp, MHC may take action that the public stockholders believe to be contrary to their interests. For example, Winchester Bancorp, MHC may exercise its voting control to defeat a stockholder nominee for election to the board of directors of Winchesterthe Bancorp, Inc.Company.

Total assets increased $96.4$146.6 million, or 11.3%,15.4%, to $1.1 billion at June 30, 2026, from $949.4 million at June 30, 2025, from $853.0 million at June 30, 2024.2025. The increasegrowth was primarily duedriven toby increases in loans, investmentsdeposits, investments, and cash and cash equivalents. Net lossincome for the year ended June 30, 20252026 was $874,000,$4.4 amillion, decreasean increase of $1.7$5.3 million, compared to net incomeloss of $786,000$874,000 for the year ended June 30, 2024.2025. The decreaseprior year loss was due in part to a one-time donation of $400,000 in cash and 185,907 shares of common stock to the Winchester Savings Bank Charitable Foundation at a total market value of $2.3 million, resulting in an after-tax charge of $1.6 million in connection with the reorganization and stock offering.

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. For example, an increase of 25 basis points as to our lifetime loss rate for qualitative factors for all loan categories at June 30, 20252026, would have increased our allowance for credit losses on collectively evaluated loans at that date to $5.4$6.9 million from $3.9$4.8 million.

Loans that do not share similar risk characteristics with any pools of assets are evaluatedsubject to individual evaluation and are removed from the collectively assessed pools to avoid double counting. This includes loans on annon-accrual individualand loanloans basis.that Loansare evaluated90 days or greater past due. For the loans that will be individually are not also included inevaluated, the collectiveCompany evaluation.will Foruse either a DCF approach or a fair value of collateral approach. The latter approach will be used for loans that are collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Total Assets. Total assets increased $96.4$146.6 million, or 11.3%,15.4%, to $1.1 billion at June 30, 2026, from $949.4 million at June 30, 2025, from $853.0 million at June 30, 2024.2025. The increase was primarily due to increases in loans, securities and cash and cash equivalents.

Cash and Cash Equivalents. Cash and cash equivalents increased $11.1$4.8 million, or 25.2%,8.7%, to $60.0 million at June 30, 2026 from $55.2 million at June 30, 2025 fromas $44.1a millionresult atof Junecurrent 30, 2024. The increase representsyear cash proceeds from our initial public offering.flows.

Gross Loans. Loans increased $69.7$119.7 million, or 10.2%,15.9%, to $873.8 million at June 30, 2026 compared to $754.1 million at June 30, 2025 compared to $684.4 million at June 30, 2024.2025. The growth was primary driven by increases were in multi-family real estate loans, which increased by $41.8 million, or 33.5%, one- to four-family residential real estate loansloans, whichof increased by $18.8$47.6 million, or 5.6%13.3%, and commercialmulti-family real estate loans whichof increased by $16.9$45.9 million, or 19.8%.27.6%, Partiallyand offsettingconstruction thosereal increasesestate was a decreaseloans of $5.5$20.4 millionmillion, or 5.4% in the construction loan portfolio.21.3%. The aforementioned increase in the loan portfolios reflects our strategy toof continuemaintaining toa diversifywell intobalanced highermix yieldingof multi-familyresidential and commercial real estate loans to improve portfolio yields and manage interest rate risk. In addition, we will continue to originate single-family residential real estate loans to support local homebuyers.loans. The recent increase in one- to four-family residential real estate loans was mostlylargely dueattributable to the expansion of our establishing new broker relationships.channel. The allowance for credit losses on loans was $4.8 million at June 30, 2026 and $4.2 million at June 30, 2025 and $3.5 million at June 30, 2024,2025, which represented 0.55% and 0.50% of total loans at both June 30, 20252026 and June 30, 2024, respectively.2025. The allowance for credit losses for off balance sheet commitments was $1.2 million at June 30, 20252026 and June 30, 2024.2025, was $746,000 and $1.2 million, respectively.

Total nonaccrual loans weredeclined to $1.6 million at June 30, 2026, from $2.2 million at June 30, 2025, compared to $1.4 million at June 30, 2024.2025. The increasedecrease was primarily due to a $622,000 increasedecrease in non-accrual residential real estate loans and a $270,000 increase in commercial loans. Total loans past due 30 days or greater were $1.5 million at June 30, 2026 compared to $1.8 million at June 30, 20252025. compared to $1.3 million at June 30, 2024. The increase was primarily due toAs a $340,00result, increasethe inratio residential real estate loans and a $270,000 increase in commercial loans. Theof allowance for credit losses on loans to nonaccrual loans wasincreased to 300.8% at June 30, 2026 from 187.6% at June 30, 2025 compared to 245.5% at June 30, 2024.2025.

Deposits. Deposits increased $43.8$130.1 million, or 6.9%,19.1%, to $809.2 million at June 30, 2026 from $679.2 million at June 30, 2025 from $635.4 million at June 30, 2024.2025. The increase was due primarily to an increase in money market accounts, which increasedrose $34.0$140.0 million, or 39.3%,116.1%, to $260.6 million at June 30, 2026 from $120.6 million at June 30, 20252025, from $86.6 million at June 30, 2024, as customers continued to hold deposit products with higher interest rates. The increase in deposits was alsolargely due to athe $21.0strong performance of our newly established municipal deposit channel. Partially offsetting this growth were decreases of $10.3 million, or 6.4% in savings accounts and $1.6 million or 8.0% increase0.6% in certificates of depositsdeposit. toWithin $283.2 million at June 30, 2025 from $262.2 million at June 30, 2024, which was primarily due to a $13.1 million increase in brokered deposits. This increase consistedcertificates of andeposit, increasebalances ofgreater $23.7than $250,000 increased $32.1 million, or 14.7%,32.5%, inwhile certificates of deposit in amounts ofbalances less than $250,000,$250,000 anddecreased a decrease of $2.7$33.7 million, or 2.7%, in certificates of deposit in amounts of $250,000 or greater (the limit for federal deposit insurance). Offsetting the increases is an $7.1 million or 4.2% decrease in savings accounts.18.3%. All of our deposits are fully insured under the DIF.

Borrowings. Borrowings, which consisted solely of Federal Home Loan Bank of BostonFHLBB advances, increased $17.5$11.2 million, or 13.5%,7.6%, to $147.0$158.2 million at June 30, 2025,2026, compared to $129.5$147.0 million from June 30, 2024,2025, as funds were used to supplementsupport loan growth.

Total stockholders' equity. Total stockholders' equity increased $35.1$5.2 million, andto was$120.5 million at June 30, 2026 from $115.4 million at June 30, 2025 and $80.3 million at June 30, 2024.2025. The increase in total stockholders' equity was mostlyprimarily due to the stock offering proceeds of $37.8 million, partially offsetdriven by a decreased of $1.4$4.4 million increase in retained earnings forand thea yearlower endedaccumulated other comprehensive loss at June 30, 2025.2026 compared to the prior year end.

General. We recorded net lossincome of $874,000$4.4 million and net incomeloss of $786,000$874,000, for the years ended June 30, 20252026 and 2024.2025, respectively. The decreaseincrease in net income was due primarily to increasesmargin inimprovements non-interestand expenselower dueprovision for credit losses. The prior year loss was partially attributable to a one-time contributiondonation of $2.3$400,000 millionin cash and 185,907 shares of common stock to the Winchester Savings Bank Charitable foundationFoundation andat a total market value of $2.3 million, resulting in an increaseafter-tax charge of $1.6 million in connection with the provision for credit losses, partially offset by a $3.1 million increase in net interest incomereorganization and anstock increase in the income tax benefit.offering.

The average balance of loans increased by $80.9$88.5 million, or 12.6%,12.2%, to $725.6$814.2 million for the year ended June 30, 2025,2026, over the average balance for the year ended June 30, 2024,2025, while the average yield on loans increased by 4219 basis points to 5.38% for the year ended June 30, 2026, from 5.17% for the year ended June 30, 2025, from 4.75% for the year ended June 30, 2024.2025. The increase in the average yield was due to increases in market interest rates as well as changes in the composition of our loan portfolio to include a higher percentage of higher-yielding construction and commercial real estate loans, and multi-family residential real estate loans. The increase in average balance was due to our continuing to pursue new commercial and residential broker relationships.

Interest Expense. Total interest expense increased $4.7$0.2 million, or 23.0%,0.8%, to $25.4 million for the year ended June 30, 2026, compared to $25.2 million for the year ended June 30, 2025,2025. comparedInterest expense on deposits increased $0.6 million, or 3.4%, to $20.5$19.8 million for the year ended June 30, 2024.2026, Interest expense on deposits increased $3.2 million, or 19.9%, tofrom $19.1 million for the year ended June 30, 2025, from $15.9 million for the year ended June 30, 2024.2025. Our average balance of interest-bearing deposits increased $58.1$83.2 million, or 10.7%,13.8%, to $603.4$686.6 million, while our average cost of deposits increaseddecreased 2529 basis points to 2.88% for the year ended June 30, 2026, from 3.17% for the year ended June 30, 2025, from 2.92% for the year ended June 30, 2024.2025. The increasedecrease in the average cost of deposits was due to increases inlower market interest rates as well as a higher percentage of our deposits consisting of certificates of deposit, and money market accounts, which bear higher rates than other deposit categories.rates.

Interest expense on Federal Home Loan Bank advances increaseddecreased $1.5$0.5 million, or 33.7%,7.5%, to $5.6 million for the year ended June 30, 2026, from $6.1 million for the year ended June 30, 2025, from $4.5 million for the year ended June 30, 2024.2025. The increasedecrease was due to increases in ourlower average balance of Federal Home Loan Bank advances ($35.9 million, or 34.8%), offset byand a decrease in the average cost of borrowings (four23 basis points to 4.13% for the year ended June 30, 2026, from 4.36% for the year ended June 30, 2025, from 4.40% for the year ended June 30, 20242025). We increased Federal Home Loan Bank borrowings in recent periods primarily to fund loan growth.

Provision for Credit Losses. Based on an analysis of the factors described in “Critical Accounting Policies—Allowance for Credit Losses,” we recorded a provision for credit losses of $789,000 for the year ended June 30, 2026, compared to a provision of $2.1 million for the year ended June 30, 2025, compared to a provision of $514,000 for the year ended June 30, 2024.2025. The provision for credit losses on loans was $2.1$1.2 million while a benefit of $2,000$440,000 was recorded for off balance sheet commitments. The increasedecrease in the provision for credit losses on loans for the year ended June 30, 20252026 was primarily due to ourlower chargingcharge offoffs andoffset fullyby reservingincreases onin a $1.6 million commercialthe loan due to the borrower’s filing for bankruptcy protection and terminating operations of the underlying business.portfolio.

Income Taxes. Income taxes decreasedexpense bywas $624,000$1.3 million for the year ended June 30, 2026, compared to a benefit of $656,000 for the year ended June 30, 2025, compared to a benefit of $32,000 for the year ended June 30, 2024.2025. The decreaseincrease in the income tax provision was due primarily to a net$7.3 lossmillion foryear theover 2025year period.increase in pre-tax income.

Net Interest Income. We analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net interest income would be for a 12-month period. We then calculate what the net interest income would be for the same period under the assumptions that the United StatesU.S. Treasury yield curve increases or decreases instantaneously by up to 300 basis points, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 2% to 3% would mean, for example, a 100 basis point increase in the “Change in Interest Rates” column below.

The tables below sets forth, as of June 30, 20252026 and June 30, 2024,2025, the calculation of the estimated changes in our net interest income that would result from the designated instantaneous changes in the United StatesU.S. Treasury yield curve.

Economic Value of Equity. We also compute amounts by which the net present value of our assets and liabilities (economic value of equity, or “EVE”) would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the United StatesU.S. Treasury yield curve increases or decreases instantaneously by up to 300 basis points, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

The tables below sets forth, as of June 30, 20252026 and June 30, 2024,2025, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United StatesU.S. Treasury yield curve.

Liquidity is our ability to meet current and future financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities and proceeds from maturities and calls of securities. We also have the ability to borrow from the Federal Home Loan Bank of Boston.FHLBB. At June 30, 2025,2026, we had $147.0$158.2 million outstanding in advances from the Federal Home Loan Bank of Boston.FHLBB. At June 30, 2025,2026, we had the ability to borrow $100.2$118.8 million in additional Federal Home Loan Bank of BostonFHLBB advances. At June 30, 2025,2026, we had a $5.3 million line of credit with the Federal Home Loan Bank of Boston,FHLBB, which was not drawn at June 30, 2025.2026. Additionally, at June 30, 2025,2026, we had a $67.0$102.0 million secured line of credit through the Federal Reserve Borrower in CustodyBIC program. At that date, there were no amounts outstanding.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $2.5$5.4 million and $231,000$2.5 million for the years ended June 30, 20252026 and 2024,2025, respectively. Net cash used by investing activities, which consists primarily of disbursements for loan originations and the purchase of investment securities, offset by principal collections on loans and proceeds from maturing securities and pay downs on securities, was $86.7$141.9 million and $105.2$86.7 million for the years ended June 30, 20252026 and 2024,2025, respectively. Net cash provided by financing activities was $95.4$141.3 million and $96.9$95.4 million for the years ended June 30, 20252026 and 2024,2025, respectively.

We are committed to maintaining a strong liquidity position. We consistently monitor our liquidity position. We anticipate that we will have sufficient funds to meet our current funding commitments based on our current strategy to increase loans with an increase in core deposits and the continued use of Federal Home Loan Bank of BostonFHLBB advances, as needed.

At June 30, 2025,2026, Winchester Savingsthe Bank exceeded its applicable regulatory capital requirement, and was considered “well capitalized” under regulatory guidelines.

Management’s discussion and analysis of financial condition and results of operations at DecemberMarch 31, 20252026 and June 30, 2025 and for the three months and sixnine months ended DecemberMarch 31, 20252026 and 20242025 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Allowance for Credit Losses on Loans. The allowance for credit losses is established based upon the Company's current estimate of expected lifetime credit losses on loans measured at amortized cost. Credit losses are charged against the allowance when management's assessments confirm that the Company will not collect the full amortized cost basis of a loan. Subsequent recoveries, if any, are credited to the allowance. The Company estimates credit losses for financial assets on a collective basis for loans sharing similar risk characteristics. The Company segments financial assets with similar risk characteristics and has elected to segment its loans based on Federal Call codes used for reporting loans to the Federal Deposit Insurance Corporation as part of the Call Report process. These segments are collectively evaluated for expected credit losses using a quantitative Discounted Cash Flow ("DCF") model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. The Company has elected to use this approach because DCF models allow for effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner and peer data is available for certain inputs such as the probability of default and the loss given default. The quantitative model utilizes a loss factor based approach to estimate expected credit losses, which are derived from industry peer loss experience. The model estimates expected credit losses using loan level data over the estimated life of the exposure, considering the effect of prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period, beyond which is a reversion to the historical long-run average using the straight-line reversion method. Management periodically evaluates a reasonable and supportable forecast period and a reversion period to be appropriate for purposes of estimating expected credit losses. The qualitative risk factors impacting the expected risk of loss within the portfolio include the following:

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. For example, an increase of 25 basis points as to our lifetime loss rate for qualitative factors for all loan categories at DecemberMarch 31, 20252026 would have increased our allowance for credit losses on loans at that date to $6.3$6.6 million from $4.4$4.5 million.

Comparison of Financial Condition at DecemberMarch 31, 20252026 and June 30, 2025

Total Assets. Total assets increased $66.6$107.7 million, or 7.0%,11.3%, to $1.0$1.06 billion at DecemberMarch 31, 2025,2026, from $949.4 million at June 30, 2025. The increase was primarily due to increases in loans and investment securities.

Cash and Cash Equivalents. Cash and cash equivalents decreased $459,000,$1.3 million, or 0.8%,2.3%, to $54.8$54.0 million at DecemberMarch 31, 20252026 from $55.2 million at June 30, 2025.

Investment Securities. Investment securities, comprised of both available for sale and held to maturity securities, aggregated $122.7$124.0 million at DecemberMarch 31, 20252026 compared to $104.5 million at June 30, 2025, as we continued to invest stock offering proceeds into government agency and mortgage backed securities.

Gross Loans. Loans increased $49.0$89.4 million, or 6.5%,11.9%, to $803.1$843.5 million at DecemberMarch 31, 20252026 compared to $754.1 million at June 30, 2025. The main driver of the new growth was in multi-family and residential real estate loans, which increased $24.4$49.6 million and $10.8$31.7 million, respectively. The construction and commercial real estate and home equity portfolios also increased $8.9$6.2 million and $3.4$2.2 million, respectively. We remained focused on originating construction,multi-family, commercial and residential real estate, and multi-family real estate loans as the primary drivers of loan portfolio growth.

Deposits. Deposits increased $67.1$104.5 million, or 9.9%,15.4%, to $746.3$783.7 million at DecemberMarch 31, 20252026 from $679.2 million at June 30, 2025. TheMoney increasemarket wasaccounts drove the increase, rising $108.7 million, or 90.1%, to $229.3 million at March 31, 2026 from $120.6 million at June 30, 2025, primarily due primarily to angrowth in municipal customer deposits. Offsetting the increase in money market accounts,accounts whichwas increaseda $77.0decrease of $4.2 million, or 63.5%, to $197.1 million at December 31, 2025 from $120.1 million at June 30, 2025; this was due to the growth in our municipal customer deposits. The offset was1.5%, in certificates of deposit, which decreased $9.9 million, or 3.5%,deposit to $273.3$278.9 million at DecemberMarch 31, 20252026 from $283.2 million at June 30, 2025. All of our deposits are fully insured by the FDIC or the Massachusetts Depositors Insurance Fund.

Borrowings. Borrowings, which consisted solely of Federal Home Loan Bank of Boston advances, decreased $3.4 million,$117,000, or 2.3%,0.1%, to $143.6$146.9 million at DecemberMarch 31, 2025,2026, compared to $147.0 million at June 30, 2025, as the inflows from the increase in deposits were used to payrestructure offwholesale some borrowings.funding.

Total Stockholders’ Equity. Total stockholders’ equity increased $2.9$3.8 million, and was $118.2$119.1 million at DecemberMarch 31, 20252026 and $115.4 million at June 30, 2025. Total stockholders’ equity increased due to a $758,000$457,000 decrease in accumulated other comprehensive loss to $928,000$1.2 million at DecemberMarch 31, 2025,2026, and bythe net income increase of $2.0$3.2 million for the sixnine months ended DecemberMarch 31, 2025.2026.

Comparison of Operating Results for the Three Months Ended DecemberMarch 31, 20252026 and 20242025

General. We recorded net income of $1.1 million and $373,000$305,000 for the three months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. The increase in net income was due to an increase in interest and dividend income and a decrease in the cost of deposits,funds, partially offset by an increase in operating expense.

Interest and Dividend Income. Interest and dividend income increased $1.9 million, or 18.2%,17.9%, to $12.4$12.5 million for the three months ended DecemberMarch 31, 2025,2026, from $10.5$10.6 million for the three months ended DecemberMarch 31, 2024.2025. Interest and fees on loans, which is our primary source of interest income, increased $1.5$1.4 million, or 15.8%,14.6%, to $10.7$10.9 million for the three months ended DecemberMarch 31, 2025.2026.

The average balance of loans increased by $81.1$82.1 million, or 11.3%,11.2%, to $797.4$817.3 million for the three months ended DecemberMarch 31, 2025,2026, over the average balance for the three months ended DecemberMarch 31, 2024,2025, while the average yield on loans increased by 2116 basis points to 5.37%5.32% for the three months ended DecemberMarch 31, 2025,2026, from 5.16% for the three months ended DecemberMarch 31, 2024.2025. The increase in the average yield was due to a change in the composition of our loan portfolio to include a higher percentage of higher yielding construction and commercial real estate loans, as well as multi-family residential real estate loans. The increase in average balance was due to our continuing to pursue new commercial relationships.

Interest Expense. Total interest expense decreasedtotaled $125,000, or 1.9%, to $6.4$6.2 million for the three months ended DecemberMarch 31, 2025,2026 which represents a decrease of $21,000, or 0.3%, compared to $6.5 million for the threesame monthsperiod endedin December 31, 2024.2025. Interest expense on deposits decreasedincreased $66,000,$222,000, or 1.3%,4.7%, to $4.9 million for the three months ended DecemberMarch 31, 2025.2026. Our average balance of interest-bearing deposits increased $66.7$87.0 million, or 11.1%,14.2%, to $667.9$699.6 million, while our average cost of deposits decreased 3726 basis points to 2.92%2.80% for the three months ended DecemberMarch 31, 2025,2026, from 3.29%3.06% for the three months ended DecemberMarch 31, 2024.2025.

Interest expense on Federal Home Loan Bank advances decreased $59,000,$243,000, or 3.9%,15.6%, to $1.5$1.3 million for the three months ended DecemberMarch 31, 2025.2026. Our average balance of Federal Home Loan Bank advances increaseddecreased $2.9$12.3 million, whileand our average cost of borrowings decreased 2634 basis points to 4.21%3.98% for the three months ended DecemberMarch 31, 2025,2026, from 4.47%4.32% for the three months ended DecemberMarch 31, 2024.2025. The decrease in the Federal Home Loan Bank cost of funds is due to the decrease in average borrowing balances and lower advance rates.

Net Interest Income. Net interest income was $6.1$6.3 million for the three months ended DecemberMarch 31, 2025,2026, compared to $4.0$4.4 million for the three months ended DecemberMarch 31, 2024,2025, as our interest income increased faster than our interest expense. Our interest rate spread increased to 2.01%2.06% for the three months ended DecemberMarch 31, 20252026 from 1.48%1.61% for the three months ended DecemberMarch 31, 2024.2025. Our net interest margin increased to 2.51%2.54% for the three months ended DecemberMarch 31, 20252026 from 1.92%2.02% for the three months ended DecemberMarch 31, 20242025 Provision for Credit Losses. Based on an analysis of the factors described in “Critical Accounting Policies—Allowance for Credit Losses,” we recorded a provision for credit losses of $388,000$325,000 for the three months ended DecemberMarch 31, 2025,2026, compared to a provisionbenefit of $238,000$21,000 for the three months ended DecemberMarch 31, 2024.2025. The increase in provision for credit losses on loans for the three months ended DecemberMarch 31, 20252026 was primarily due to an increase in loan balancesportfolio and a partial charge-off.growth.

The allowance for credit losses on loans was $4.4$4.5 million at DecemberMarch 31, 20252026 and $4.2 million at June 30, 2025, and represented 0.55%0.54% of total loans at both DecemberMarch 31, 20252026 and 0.55% at June 30, 2025 . The allowance for credit losses for off balance sheet commitments was $428,000$601,000 at DecemberMarch 31, 20252026 and $1.1 million at June 30, 2025. The benefit for off balance sheet commitments is related to the change in ACL methodology and lower balances of loan commitments as the commitments were converted to loans.

Total nonaccrual loans were $3.6$1.7 million at DecemberMarch 31, 2025,2026, compared to $2.2 million at June 30, 2025. Total loans past due 30 days or greater were $4.2$1.8 million at DecemberMarch 31, 20252026, andunchanged $1.8 millionfrom June 30, 2025. As a percentage of nonperforming loans, the allowance for credit losses on loans was 121.31%272.17% at DecemberMarch 31, 20252026 compared to 187.57% at June 30, 2025. The increasedecrease in past due and non-accrual balances is primarily due to one constructiona loan that was placed on non-accrualpayoff during the quarter.

The decrease in gainloss on marketable equity securities, net, was due to the liquidation of the equities portfolio in June 2025.

The increase in salaries and employee benefits was due to the addition of key finance and commercial lending staff, and higher expenses related to our health plan, while the decrease in deposit insurance expense was due to a decrease in FDIC insurance rates. The increase in data processing cost is due to investments in new technologies that will improve customer experience and efficiencies. Increases in marketing expense were due to the launch of a new website as well as a new investor relations site while increases in other expense were primarily due to higher costreserves for professionaloff servicesbalance relatedsheet to our operation as a public reporting entity.commitments.

Income Taxes. Income tax expense increased to $276,000$349,000 for the three months ended DecemberMarch 31, 2025,2026, compared to $41,000$67,000 for the three months ended DecemberMarch 31, 2024.2025. The effective tax rates were 20.5%23.4% and 9.9%18.0% for the three months ended DecemberMarch 31, 20252026 and 2024,2025, respectively, as we had lower levels of taxable income during the 20242025 period.

The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances, and the average balance of loans includes non-accrual loans. The yields set forth below include the effect of deferred fees/costs, discounts, and premiums that are amortized or accreted to interest income. Deferred loan fees for the three months ended DecemberMarch 31, 20252026 and 20242025 were not material.

Comparison of Operating Results for the SixNine Months ended DecemberMarch 31, 20252026 and 20242025

General. We recorded net income of $2.0$3.2 million and net lossincome of $259,000$46,000 for the sixnine months ended DecemberMarch 31, 20252026 and 2024.2025, respectively. The increase in net income was due primarily to increases in net interest income and lower provision for credit losses, partially offset by an increase in non-interest expense and income tax expense.

Interest and Dividend Income. Interest and dividend income increased $3.6$5.5 million, or 17.4%,17.6%, to $24.4$36.9 million for the sixnine months ended DecemberMarch 31, 2025,2026, from $20.7$31.4 million for the sixnine months ended DecemberMarch 31, 2024.2025. Interest and fees on loans, which is our primary source of interest income, increased $2.8$4.2 million, or 15.6%,15.2%, to $21.1$32.0 million for the sixnine months ended DecemberMarch 31, 2025,2026, from $18.3$27.7 million for the sixnine months ended DecemberMarch 31, 2024.2025.

The average balance of loans increased by $77.7$79.1 million, or 11.0%, to $786.2$796.6 million for the sixnine months ended DecemberMarch 31, 2025,2026, over the average balance for the sixnine months ended DecemberMarch 31, 2024,2025, while the average yield on loans increased by 2219 basis points to 5.37%5.35% for the sixnine months ended DecemberMarch 31, 2025,2026, from 5.15%5.16% for the sixnine months ended DecemberMarch 31, 2024.2025. The increase in the average yield was primarily due to increases in higher yielding construction, commercial and residential real estate, and multi-family loan balances. The increase in average balance was due to our continuing to pursue new commercial relationships.

Interest Expense. Total interest expense decreased $393,000,$415,000, or 3.0%,2.2%, to $12.5$18.8 million for the sixnine months ended DecemberMarch 31, 2025,2026, compared to $12.9$19.2 million for the sixnine months ended DecemberMarch 31, 2024.2025. Interest expense on deposits decreased $405,000,$184,000, or 4.1%,1.3%, to $9.5$14.4 million for the sixnine months ended DecemberMarch 31, 2025,2026, from $10.0$14.6 million for the sixnine months ended DecemberMarch 31, 2024.2025. Our average balance of interest-bearing deposits increased $54.0$65.1 million, or 9.1%,10.8%, to $648.7$665.8 million, while our average cost of deposits decreased 4136 basis points to 2.94%2.89% for the sixnine months ended DecemberMarch 31, 2025,2026, from 3.35%3.25% for the sixnine months ended DecemberMarch 31, 2024.2025. The decrease in the average cost of deposits was due to decreases in market interest rates as well as an increase in money market accounts, which typically bear lower rates than certificates of deposits.

Interest expense on Federal Home Loan Bank advances was $3.0$4.3 million for the sixnine months ended DecemberMarch 31, 2025,2026, ascompared wellto as$4.5 million for the sixnine months ended DecemberMarch 31, 2024.2025. We decreased Federal Home Loan Bank borrowings in recent periods due to increases in the money market accounts. The decrease in the average cost of borrowings was due to decreases in market interest rates between the periods.

Net Interest Income. Net interest income was $11.8$18.1 million for the sixnine months ended DecemberMarch 31, 2025,2026, compared to $7.8$12.2 million for the sixnine months ended DecemberMarch 31, 2024,2025, as our interest income increased faster than our interest expense. Our interest rate spread increased to 1.98%2.01% for the sixnine months ended DecemberMarch 31, 20252026 from 1.43%1.50% for the sixnine months ended DecemberMarch 31, 2024,2025, while our net interest margin increased to 2.50%2.52% for the sixnine months ended DecemberMarch 31, 20252026 from 1.88%1.93% for the sixnine months ended DecemberMarch 31, 2024.2025. The interest rate spread and net interest margin were both positively impacted by the lower market interest rates.

Provision for Credit Losses. Based on an analysis of the factors described in “Critical Accounting Policies—Allowance for Credit Losses,” we recorded a provision for credit losses of $68,000$393,000 for the sixnine months ended DecemberMarch 31, 2025,2026, compared to a provision of $1.4 million for the sixnine months ended DecemberMarch 31, 2024.2025. The decrease in the provision for credit losses on loans for the sixnine months ended DecemberMarch 31, 20252026 was primarily due to lower charge offs of $580,000$592,000 compared to our charge offs of $1.4 million for the sixnine months ended DecemberMarch 31, 2024.2025. Additionally, there was a net credit of $158,000 recorded for the sixnine months ended DecemberMarch 31, 20252026 due to the change in the credit loss methodology from the Federal Reserve Scaled CECL Allowance for Credit Loss Estimated (SCALE) method to the Discounted Cash Flow (DCF) model which was completed in the first quarter of 2026.

The decrease in gain on marketable equity securities, net, was due to the liquidation of the portfolio in June 2025. The loss on sale of securities for the sixnine months ended DecemberMarch 31, 20252026 was due to the sale of securities available for sale, which were replaced with higher yielding investment securities as part of the Company’s investment portfolio restructuring. The increase in miscellaneous other income for the sixnine months ended DecemberMarch 31, 20252026 is primarily due to higher release fees on construction loans.

The increase in salaries and employee benefits was due to the addition of key staff in finance and othercommercial areas,real estate, while the increase in data processing expense was due to our implementing a new program for electronic communications and online account opening. The decrease in deposit insurance expense was due to a decrease in FDIC insurance rates. The lower credit in net periodic pension and post-retirement cost is due to the freezing of the pension plan, while the increase in marketing and advertising is due to the launch of a new website as well as a new investor relations site. The increase in other expense were primarily due to higher cost for professional services related to our operation as a public reporting entity Income Taxes. Income taxes increased by $789,000 to a provision of $632,000 for the six months ended December 31, 2025, compared to a benefit of $157,000 for the six months ended December 31, 2024. The increase in the income tax provision was due primarily to higher income for the six months ended December 31, 2025.entity.

The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances, and the average balance of loans includes non-accrual loans. The yields set forth below include the effect of deferred fees/costs, discounts, and premiums that are amortized or accreted to interest income. Deferred loan fees for the sixnine months ended DecemberMarch 31, 20252026 and 20242025 were not material.

The tables below sets forth, as of DecemberMarch 31, 20252026 and June 30, 2025, the calculation of the estimated changes in our net interest income that would result from the designated instantaneous changes in the United States Treasury yield curve.

The tables above indicate that at DecemberMarch 31, 2025,2026, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 16.8%15.7% decrease in net interest income, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 5.2%5.7% increase in net interest income and at June 30, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 14.3% decrease in net interest income, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 1.7% increase in net interest income.

The tables below sets forth, as of DecemberMarch 31, 20252026 and June 30, 2025, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.

The tables above indicate that at DecemberMarch 31, 2025,2026, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 22.4%19.6% decrease in EVE, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 6.9%5.6% increase in EVE, and at June 30, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 22.0% decrease in EVE, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 7.1% increase in EVE.

At DecemberMarch 31, 2025,2026, all estimated changes described above with respect to net interest income and EVE with respect to potential increases in market interest rates were not in compliance with the current policy limits established by the board of trustees. We have determined that selling assets to comply with our internal policies would result in a significant loss that would deplete capital and, as a result, restrict future growth, while providing limited benefit during a period of declining market interest rates, as has begunbegan in the latter half of 2024.

Liquidity is our ability to meet current and future financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities and proceeds from maturities and calls of securities. We also have the ability to borrow from the Federal Home Loan Bank of Boston. At DecemberMarch 31, 2025,2026, we had $143.6$146.9 million outstanding in advances from the Federal Home Loan Bank of Boston.Boston and a $25 million outstanding letter of credit. At DecemberMarch 31, 2025,2026, we had the ability to borrow $152.5$146.1 million in additional Federal Home Loan Bank of Boston advances. At DecemberMarch 31, 2025,2026, we had a $5.3 million line of credit with the Federal Home Loan Bank of Boston, which was not drawn at DecemberMarch 31, 2025.2026. Additionally, at DecemberMarch 31, 2025,2026, we had a $68.9$88.2 million secured line of credit through the Federal Reserve Borrower in Custody program. At that date, there were no amounts outstanding.

We seek to maintain a minimum monthly liquidity ratio of 4% to 6% of assets, and a minimum quarterly Primary Liquidity ratio of 10%. At DecemberMarch 31, 20252026 and June 30, 2025, we were in compliance with both of these guidelines.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $2.9$4.3 million for the sixnine months ended DecemberMarch 31, 20252026 and net cash used by operating activities was $277,000$571,000 for the sixnine months ended DecemberMarch 31, 2024.2025. Net cash used by investing activities, which consists primarily of disbursements for loan originations and the purchase of investment securities, offset by principal collections on loans and proceeds from maturing securities and pay downs on securities, was $67.3$110.1 million and $44.1$47.5 million for the sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively. Net cash provided by financing activities was $64.0$104.6 million and $41.9$69.4 million for the sixnine months ended DecemberMarch 31, 20252026 and 2024,2025, respectively.

At DecemberMarch 31, 2025,2026, Winchester Savings Bank exceeded its applicable regulatory capital requirement, and was considered “well capitalized” under regulatory guidelines.