Winchester Bancorp, Inc./MD/
For the period ended Dec 31, 2025. Filed Feb 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 11, 2026
WSBK$13.61-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001193125-25-277465
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-11.
0001193125-26-046248
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 128 previous paragraphs and 146 current paragraphs.
101 unchanged; 26 reworded; 12 added; 1 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 8 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
General. We recorded net income of $2.0 million and net loss of $259,000 for the six months ended December 31, 2025 and 2024. 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.
Current report
Interest and Dividend Income. Interest and dividend income increased $3.6 million, or 17.4%, to $24.4 million for the six months ended December 31, 2025, from $20.7 million for the six months ended December 31, 2024. Interest and fees on loans, which is our primary source of interest income, increased $2.8 million, or 15.6%, to $21.1 million for the six months ended December 31, 2025, from $18.3 million for the six months ended December 31, 2024.
Current report
Interest Expense. Total interest expense decreased $393,000, or 3.0%, to $12.5 million for the six months ended December 31, 2025, compared to $12.9 million for the six months ended December 31, 2024. Interest expense on deposits decreased $405,000, or 4.1%, to $9.5 million for the six months ended December 31, 2025, from $10.0 million for the six months ended December 31, 2024. Our average balance of interest-bearing deposits increased $54.0 million, or 9.1%, to $648.7 million, while our average cost of deposits decreased 41 basis points to 2.94% for the six months ended December 31, 2025, from 3.35% for the six months ended December 31, 2024. 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.
Current report
Interest expense on Federal Home Loan Bank advances was $3.0 million for the six months ended December 31, 2025, as well as for the six months ended December 31, 2024. 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.
Current report
Net Interest Income. Net interest income was $11.8 million for the six months ended December 31, 2025, compared to $7.8 million for the six months ended December 31, 2024, as our interest income increased faster than our interest expense. Our interest rate spread increased to 1.98% for the six months ended December 31, 2025 from 1.43% for the six months ended December 31, 2024, while our net interest margin increased to 2.50% for the six months ended December 31, 2025 from 1.88% for the six months ended December 31, 2024. The interest rate spread and net interest margin were both positively impacted by the lower market interest rates.
Current report
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 for the six months ended December 31, 2025, compared to a provision of $1.4 million for the six months ended December 31, 2024. The decrease in the provision for credit losses on loans for the six months ended December 31, 2025 was primarily due to lower charge offs of $580,000 compared to our charge offs of $1.4 million for the six months ended December 31, 2024. Additionally, there was a net credit of $158,000 recorded for the six months ended December 31, 2025 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.
Current report
Other Income. Other income information is as follows.
Current report
Operating Expense. Operating expense information is as follows.
Current report
The increase in salaries and employee benefits was due to the addition of key staff in finance and other areas, 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
Current report
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.
Current report
Average Balances and Yields
Current report
Rate/Volume Analysis
Removed paragraphs (1)
Previous report
We do not engage in hedging activities, such as engaging in futures, options or interest rate swap transactions, nor invest in high-risk mortgage derivatives, such as collateralized mortgage obligation residual interests, real estate mortgage investment conduit residual interests or stripped mortgage-backed securities.
Reworded paragraphs (26)
Previous wording
Management’s discussion and analysis of financial condition and results of operations at September 30, 2025 and June 30, 2025 and for the three months ended September 30, 2025 and 2024 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.
Current wording
Management’s discussion and analysis of financial condition and results of operations at December 31, 2025 and June 30, 2025 and for the three months and six months ended December 31, 2025 and 2024 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.
Previous wording
Total Assets. Total assets increased $55.8 million, or 5.9%, to $1.0 billion at September 30, 2025, from $949.4 million at June 30, 2025. The increase was primarily due to increases in loans, investment securities, and cash and cash equivalents.
Current wording
Total Assets. Total assets increased $66.6 million, or 7.0%, to $1.0 billion at December 31, 2025, from $949.4 million at June 30, 2025. The increase was primarily due to increases in loans and investment securities.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents increased $2.5 million, or 4.5%, to $57.7 million at September 30, 2025 from $55.2 million at June 30, 2025.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $459,000, or 0.8%, to $54.8 million at December 31, 2025 from $55.2 million at June 30, 2025.
Previous wording
Investment Securities. Investment securities, comprised of both available for sale and held to maturity securities, aggregated $115.4 million at September 30, 2025 compared to $104.5 million at June 30, 2025, as we continued to invest stock offering proceeds into government agency and mortgage backed securities.
Current wording
Investment Securities. Investment securities, comprised of both available for sale and held to maturity securities, aggregated $122.7 million at December 31, 2025 compared to $104.5 million at June 30, 2025, as we continued to invest stock offering proceeds into government agency and mortgage backed securities.
Previous wording
Gross Loans. Loans increased $42.0 million, or 5.6%, to $796.2 million at September 30, 2025 compared to $754.1 million at June 30, 2025. The main driver of the new growth was in construction and commercial real estate loans, which increased $15.5 million and $13.4 million, respectively. The multi-family and residential real estate portfolios also increased $7.1 million and $5.7 million, respectively. We remained focused on originating construction, commercial real estate, and multi-family real estate loans as the primary drivers of loan portfolio growth.
Current wording
Gross Loans. Loans increased $49.0 million, or 6.5%, to $803.1 million at December 31, 2025 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 million and $10.8 million, respectively. The construction and commercial real estate portfolios also increased $8.9 million and $3.4 million, respectively. We remained focused on originating construction, commercial and residential real estate, and multi-family real estate loans as the primary drivers of loan portfolio growth.
Previous wording
Deposits. Deposits increased $37.2 million, or 5.5%, to $716.4 million at September 30, 2025 from $679.2 million at June 30, 2025. The increase was due primarily to an increase in money market accounts, which increased $49.3 million, or 40.4%, to $169.4 million at September 30, 2025 from $120.1 million at June 30, 2025; this was due to the growth in our municipal customer deposits. The offset was due to the certificates of deposit decrease of $8.5 million, or 3.0%, to $274.7 million at September 30, 2025 from $283.2 million at June 30, 2025. All of our deposits are fully insured by the FDIC or the Massachusetts Depositors Insurance Fund.
Current wording
Deposits. Deposits increased $67.1 million, or 9.9%, to $746.3 million at December 31, 2025 from $679.2 million at June 30, 2025. The increase was due primarily to an increase in money market accounts, which increased $77.0 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 was in certificates of deposit, which decreased $9.9 million, or 3.5%, to $273.3 million at December 31, 2025 from $283.2 million at June 30, 2025. All of our deposits are fully insured by the FDIC or the Massachusetts Depositors Insurance Fund.
Previous wording
Borrowings. Borrowings, which consisted solely of Federal Home Loan Bank of Boston advances, increased $17.0 million, or 11.6%, to $164.0 million at September 30, 2025, compared to $147.0 million at June 30, 2025; the increase was used to fund asset growth.
Current wording
Borrowings. Borrowings, which consisted solely of Federal Home Loan Bank of Boston advances, decreased $3.4 million, or 2.3%, to $143.6 million at December 31, 2025, compared to $147.0 million at June 30, 2025, as the inflows from the increase in deposits were used to pay off some borrowings.
Previous wording
Total Stockholders’ Equity. Total stockholders’ equity increased $1.6 million, and was $117.0 million at September 30, 2025 and $115.4 million at June 30, 2025. Total stockholders’ equity increased due to a $614,000 decrease in accumulated other comprehensive loss to $1.1 million at September 30, 2025, and by net income of $962,000 for the three months ended September 30, 2025.
Current wording
Total Stockholders’ Equity. Total stockholders’ equity increased $2.9 million, and was $118.2 million at December 31, 2025 and $115.4 million at June 30, 2025. Total stockholders’ equity increased due to a $758,000 decrease in accumulated other comprehensive loss to $928,000 at December 31, 2025, and by net income of $2.0 million for the six months ended December 31, 2025.
Previous wording
General. We recorded net income of $962,000 and net loss of $632,000 for the three months ended September 30, 2025 and 2024, respectively. The increase in net income was due to an increase in interest and dividend income and a decrease in provision for credit loss expense, partially offset by an increase in operating expense, and a decrease in other income.
Current wording
General. We recorded net income of $1.1 million and $373,000 for the three months ended December 31, 2025 and 2024, respectively. The increase in net income was due to an increase in interest and dividend income and a decrease in the cost of deposits, partially offset by an increase in operating expense.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $1.7 million, or 16.7%, to $11.9 million for the three months ended September 30, 2025, from $10.2 million for the three months ended September 30, 2024. Interest and fees on loans, which is our primary source of interest income, increased $1.4 million, or 15.4%, to $10.4 million for the three months ended September 30, 2025.
Current wording
Interest and Dividend Income. Interest and dividend income increased $1.9 million, or 18.2%, to $12.4 million for the three months ended December 31, 2025, from $10.5 million for the three months ended December 31, 2024. Interest and fees on loans, which is our primary source of interest income, increased $1.5 million, or 15.8%, to $10.7 million for the three months ended December 31, 2025.
Previous wording
The average balance of loans increased by $74.3 million, or 10.6%, to $775.0 million for the three months ended September 30, 2025, over the average balance for the three months ended September 30, 2024, while the average yield on loans increased by 22 basis points to 5.37% for the three months ended September 30, 2025, from 5.15% for the three months ended September 30, 2024. The increase in the average yield was due to increases in market interest rates as well as 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.
Current wording
The average balance of loans increased by $81.1 million, or 11.3%, to $797.4 million for the three months ended December 31, 2025, over the average balance for the three months ended December 31, 2024, while the average yield on loans increased by 21 basis points to 5.37% for the three months ended December 31, 2025, from 5.16% for the three months ended December 31, 2024. 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.
Previous wording
Interest Expense. Total interest expense decreased $267,000, or 4.1%, to $6.2 million for the three months ended September 30, 2025, compared to $6.5 million for the three months ended September 30, 2024. Interest expense on deposits decreased $339,000, or 6.8%, to $4.7 million for the three months ended September 30, 2025, from $5.0 million for the three months ended September 30, 2024. Our average balance of interest-bearing deposits increased $41.4 million, or 7.0%, to $629.5 million, while our average cost of deposits decreased 44 basis points to 2.97% for the three months ended September 30, 2025, from 3.41% for the three months ended September 30, 2024.
Current wording
Interest Expense. Total interest expense decreased $125,000, or 1.9%, to $6.4 million for the three months ended December 31, 2025, compared to $6.5 million for the three months ended December 31, 2024. Interest expense on deposits decreased $66,000, or 1.3%, to $4.9 million for the three months ended December 31, 2025. Our average balance of interest-bearing deposits increased $66.7 million, or 11.1%, to $667.9 million, while our average cost of deposits decreased 37 basis points to 2.92% for the three months ended December 31, 2025, from 3.29% for the three months ended December 31, 2024.
Previous wording
Interest expense on Federal Home Loan Bank advances increased $72,000, or 4.9%, to $1.5 million for the three months ended September 30, 2025, from $1.5 million for the three months ended September 30, 2024. Our average balance of Federal Home Loan Bank advances increased $13.3 million, while our average cost of borrowings decreased 22 basis points to 4.32% for the three months ended September 30, 2025, from 4.54% for the three months ended September 30, 2024. The decrease in the Federal Home Loan Bank cost of funds is due to the decrease in advance rates.
Current wording
Interest expense on Federal Home Loan Bank advances decreased $59,000, or 3.9%, to $1.5 million for the three months ended December 31, 2025. Our average balance of Federal Home Loan Bank advances increased $2.9 million, while our average cost of borrowings decreased 26 basis points to 4.21% for the three months ended December 31, 2025, from 4.47% for the three months ended December 31, 2024. The decrease in the Federal Home Loan Bank cost of funds is due to the decrease in advance rates.
Previous wording
Net Interest Income. Net interest income was $5.7 million for the three months ended September 30, 2025, compared to $3.8 million for the three months ended September 30, 2024, as our interest income increased faster than our interest expense. Our interest rate spread increased to 1.96% for the three months ended September 30, 2025 from 1.38% for the three months ended September 30, 2024. Our net interest margin increased to 2.49% for the three months ended September 30, 2025 from 1.84% for the three months ended September 30, 2024
Current wording
Net Interest Income. Net interest income was $6.1 million for the three months ended December 31, 2025, compared to $4.0 million for the three months ended December 31, 2024, as our interest income increased faster than our interest expense. Our interest rate spread increased to 2.01% for the three months ended December 31, 2025 from 1.48% for the three months ended December 31, 2024. Our net interest margin increased to 2.51% for the three months ended December 31, 2025 from 1.92% for the three months ended December 31, 2024
Previous wording
Provision for Credit Losses. Based on an analysis of the factors described in “Critical Accounting Policies—Allowance for Credit Losses,” we recorded a benefit for credit losses of $320,000 for the three months ended September 30, 2025, compared to a provision of $1.2 million for the three months ended September 30, 2024. The provision for credit losses on loans for the three months ended September 30, 2025 was due to an increase in loan balances and the change in ACL methodology, while there was a benefit for credit losses on off balance sheet commitments of $795,000 for the same period, due to the change in ACL methodology and lower off balance sheet commitments.
Current wording
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 for the three months ended December 31, 2025, compared to a provision of $238,000 for the three months ended December 31, 2024. The provision for credit losses on loans for the three months ended December 31, 2025 was due to an increase in loan balances and a partial charge-off.
Previous wording
The allowance for credit losses on loans was $4.4 million at September 30, 2025 and $4.2 million at June 30, 2025, and represented 0.55% of total loans at both September 30, 2025 and June 30, 2025 . The allowance for credit losses for off balance sheet commitments was $391,000 at September 30, 2025 and $1.1 million at June 30, 2025. The benefit for off balance sheet commitments related to the change in ACL methodology and lower balances of loan commitments as the commitments were converted to loans.
Current wording
The allowance for credit losses on loans was $4.4 million at December 31, 2025 and $4.2 million at June 30, 2025, and represented 0.55% of total loans at both December 31, 2025 and June 30, 2025 . The allowance for credit losses for off balance sheet commitments was $428,000 at December 31, 2025 and $1.1 million at June 30, 2025. The benefit for off balance sheet commitments related to the change in ACL methodology and lower balances of loan commitments as the commitments were converted to loans.
Previous wording
Total nonaccrual loans were $1.9 million at September 30, 2025, compared to $2.2 million at June 30, 2025. Total loans past due 30 days or greater were $1.8 million at both September 30, 2025 and June 30, 2025. As a percentage of nonperforming loans, the allowance for credit losses on loans was 224.67% at September 30, 2025 compared to 187.57% at June 30, 2025.
Current wording
Total nonaccrual loans were $3.6 million at December 31, 2025, compared to $2.2 million at June 30, 2025. Total loans past due 30 days or greater were $4.2 million at December 31, 2025 and $1.8 million June 30, 2025. As a percentage of nonperforming loans, the allowance for credit losses on loans was 121.31% at December 31, 2025 compared to 187.57% at June 30, 2025. The increase in past due and non-accrual balances is primarily due to one construction loan that was placed on non-accrual during the quarter.
Previous wording
The increase in salaries and employee benefits was due to the addition of key finance staff, and higher expenses related to our health plan, while the increase in deposit insurance expense was due to an increase in FDIC insurance rates and our higher deposit levels. Increases in marketing expense were due to the launch of a new website as well as a new investor relations site.
Current wording
The increase in salaries and employee benefits was due to the addition of key finance 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. 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 cost for professional services related to our operation as a public reporting entity.
Previous wording
Income Taxes. Income tax expense increased to $356,000 for the three months ended September 30, 2025, compared to a benefit of $198,000 for the three months ended September 30, 2024. The effective tax rates were 27.0% and (23.9%) for the three months ended September 30, 2025 and 2024, respectively, as we had lower levels of taxable income during the 2024 period.
Current wording
Income Taxes. Income tax expense increased to $276,000 for the three months ended December 31, 2025, compared to $41,000 for the three months ended December 31, 2024. The effective tax rates were 20.5% and 9.9% for the three months ended December 31, 2025 and 2024, respectively, as we had lower levels of taxable income during the 2024 period.
Previous wording
The following tables set 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 September 30, 2025 and 2024 were not material.
Current wording
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 December 31, 2025 and 2024 were not material.
Previous wording
The decrease in gain on marketable equity securities, net, was due to the liquidation of the equities portfolio in June 2025. In addition, in the current quarter the Company recognized $317,000 loss in sale of securities available for sale, which were replaced with higher yielding investment securities as part of the Company’s investment portfolio restructuring.
Current wording
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 six months ended December 31, 2025 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 six months ended December 31, 2025 is primarily due to higher release fees on construction loans.
Previous wording
General. The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage the impact of changes in market interest rates on net interest income and capital. We have an Asset/Liability Committee that is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of trustees. The Committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.
Current wording
General. The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage the impact of changes in market interest rates on net interest income and capital. We have an Asset/Liability Committee that is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors. The Committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.
Previous wording
The tables above indicate that at September 30, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 16.9% 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 6.5% 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.
Current wording
The tables above indicate that at December 31, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 16.8% 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% 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.
Previous wording
The tables above indicate that at September 30, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 22.7% decrease in EVE, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 9.0% 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.
Current wording
The tables above indicate that at December 31, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 22.4% 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% 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.
Previous wording
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 September 30, 2025, we had $164.0 million outstanding in advances from the Federal Home Loan Bank of Boston. At September 30, 2025, we had the ability to borrow $147.3 million in additional Federal Home Loan Bank of Boston advances. At September 30, 2025, we had a $5.3 million line of credit with the Federal Home Loan Bank of Boston, which was not drawn at September 30, 2025. Additionally, at September 30, 2025, we had a $66.7 million secured line of credit through the Federal Reserve Borrower in Custody program. At that date, there were no amounts outstanding.
Current wording
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 December 31, 2025, we had $143.6 million outstanding in advances from the Federal Home Loan Bank of Boston. At December 31, 2025, we had the ability to borrow $152.5 million in additional Federal Home Loan Bank of Boston advances. At December 31, 2025, we had a $5.3 million line of credit with the Federal Home Loan Bank of Boston, which was not drawn at December 31, 2025. Additionally, at December 31, 2025, we had a $68.9 million secured line of credit through the Federal Reserve Borrower in Custody program. At that date, there were no amounts outstanding.
Previous wording
Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by (used in) operating activities was $1.4 million and ($334,000) for the three months ended September 30, 2025 and 2024, 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 $53.3 million and $27.1 million for the three months ended September 30, 2025 and 2024, respectively. Net cash provided by financing activities was $54.4 million and $20.5 million for the three months ended September 30, 2025 and 2024, respectively.
Current wording
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 million for the six months ended December 31, 2025 and net cash used by operating activities was $277,000 for the six months ended December 31, 2024. 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 million and $44.1 million for the six months ended December 31, 2025 and 2024, respectively. Net cash provided by financing activities was $64.0 million and $41.9 million for the six months ended December 31, 2025 and 2024, respectively.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The decrease in gain on marketable equity securities, net, was due to the liquidation of the equities portfolio in June 2025.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months ended December 31, 2025 and 2024
Current report — wording carried from elsewhere
The average balance of loans increased by $77.7 million, or 11.0%, to $786.2 million for the six months ended December 31, 2025, over the average balance for the six months ended December 31, 2024, while the average yield on loans increased by 22 basis points to 5.37% for the six months ended December 31, 2025, from 5.15% for the six months ended December 31, 2024. The increase in the average yield was primarily due to increases in higher yielding construction, commercial real estate, and multi-family loan balances. The increase in average balance was due to our continuing to pursue new commercial relationships.
Current report — wording carried from elsewhere
Our estimates and assumptions used in the determination of the adequacy of the allowance could require adjustments in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any such increase in future provisions that may be required may adversely impact our financial condition and results of operations.
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
include the effect of deferred fees/costs, discounts, and premiums that are amortized or accreted to interest income. Deferred loan fees for the six months ended December 31, 2025 and 2024 were not material.
Current report — wording carried from elsewhere
The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.