Winchester Bancorp reported QQ1 2024 revenue of $10.732 million, up 34.35% year-over-year and 7.98% quarter-over-quarter, reflecting top-line momentum in a competitive regional banking environment. However, the quarter delivered a net loss of $0.632 million and negative EBITDA of $0.621 million as a majority of operating profitability was consumed by elevated financing costs: interest expense of $6.463 million exceeded gross profit of $3.107 million. The result was an operating loss of $0.83 million and a pre-tax loss of $0.83 million, with a net income margin of -0.59% and an EPS of -0.0669. The earnings backdrop is dominated by interest expense, which underscores the sensitivity of Winchester’s profitability to funding costs in a rising-rate environment.
Liquidity remains a material constraint, with a current ratio of 0.107 and a cash ratio of 0.0578, signaling limited near-term cushion to absorb stress in credit losses or funding markets. The balance sheet shows a high equity multiplier (10.88x) and a capital mix that relies heavily on equity relative to total assets, alongside a debt-to-capitalization figure of 0.64. While tangible profitability is weak (ROA approximately -0.07%, ROE around -0.79%), revenue growth could translate into improved earnings if funding costs stabilize and cost control tightens. The stock trades with a negative earnings multiple and a price-to-book around 1.10, suggesting ambiguous value given the current profitability trajectory.
With no formal forward guidance available in the provided data, the near-term upside is contingent on two drivers: (1) resilience of net interest income through favorable loan mix and deposit growth, and (2) ongoing cost discipline to convert revenue gains into sustainable earnings. Investors should monitor NIM dynamics, loan book growth in Massachusetts, deposit stability, non-interest income opportunities, and any regulatory or credit quality developments that could alter the earnings trajectory.