Thu, Mar 27, 3:43 PM (31 days ago)
**Winchester Bancorp, Inc. (WBNK) Q4 2024 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total interest and dividend income increased by 23.7% to $10.5 million in Q4 2024, driven by loan growth and higher yields. - **Profit Margins:** Net interest margin remained stable at 1.92% for Q4 2024. However, the net interest margin for the six months ended December 31, 2024 decreased to 1.88% from 2.01% for the same period in 2023. - **Cash Flow:** Net cash provided by operating activities was negative $277,000 for the six months ended December 31, 2024, compared to positive $804,000 in 2023. - **Earnings Changes:** Net income increased to $373,000 in Q4 2024 from $272,000 in Q4 2023. However, the company reported a net loss of $259,000 for the six months ended December 31, 2024, compared to a net income of $485,000 in the same period in 2023. **Quarterly Performance & Trends:** - **Loan Growth:** Total loans increased by 6.3% to $727.8 million in Q4 2024, with significant growth in construction, multi-family, and commercial real estate loans. - **Deposit Growth:** Total deposits increased by 4.0% to $661.0 million in Q4 2024, driven by growth in certificates of deposit and money market accounts. - **Asset Growth:** Total assets increased by 4.8% to $894.1 million in Q4 2024. - **Credit Quality:** The allowance for credit losses increased due to overall loan portfolio growth and charge-offs. Non-performing loans increased slightly. **Uncertainties & Future Operations:** - **Interest Rate Risk:** The company is exposed to interest rate risk, with a significant portion of its assets and liabilities being interest-sensitive. - **Economic Uncertainties:** The company faces risks related to economic conditions, including changes in interest rates, real estate values, and competition. - **Regulatory Risks:** The company is subject to regulatory requirements and examinations, which could impact its financial condition and results of operations. - **Reorganization:** The company is in the process of reorganizing from a mutual savings bank to a mutual holding company, which may impact its future operations and financial results. **Capital & Liquidity:** - The company maintains a strong liquidity position and exceeds its regulatory capital requirements. It has the ability to borrow additional funds from the Federal Home Loan Bank of Boston if needed. - The company's liquidity and capital resources will be enhanced by the net proceeds from its planned stock offering, which will increase its net interest-earning assets and net interest income. However, the return on equity may be lower immediately following the offering.