Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q4 2024 Earnings Presentation
33 slides from Western New England Bancorp's earnings presentation, Jan 28, 2025
Slide 1: Investor Presentation 4th Quarter 2024
Local banking is better than ever. INVESTOR PRESENTATION 4TH QUARTER 2024
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 2 We may, from time to time, make written or oral “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements contained in our filings with the Securities and Exchange Commission (the “SEC”), our report
Slide 3: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 3 • operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks ; • f ailure
Slide 4: Who We Are
WHO WE ARE Every day, we focus on showing Westfield Bank customers “ what better banking is all about . ” For us, the idea of better banking starts with putting customers first, while adhering to our core values . Our Core Values : • Integrity • Enhance Shareholder Value • Customer Focus • Community
Slide 5: Senior Management Team
SENIOR MANAGEMENT TEAM James C . Hagan, President & Chief Executive Officer Guida R . Sajdak, Executive Vice President, Chief Financial Officer & Treasurer Allen J . Miles III, Executive Vice President & Chief Lending Officer Kevin C . O’Connor, Executive Vice President & Chief Banking Officer Danie
Slide 6: Quarterly Earnings
4 Q2024 QUARTERLY EARNINGS 6 4Q2023 1Q2024 2Q2024 (2) 3Q2024 4Q2024 (1) ($ in thousands , except EPS ) $ 16,176 $ 15,346 $ 14,470 $ 14,728 $ 15,273 Net interest income 486 (550) (294) 941 (762) (Reversal of) provision for credit losses 2,714 2,674 3,834 3,141 3,254 Non - interest income 14,785 14,78
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $16.2 $15.3 $14.5 $14.7 $15.3 2.64% 2.57% 2.42% 2.40% 2.41% 2.20% 2.40% 2.60% 2.80% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Net interest income ($) Net interest margin (%) On a sequential quarter basis, net interest income, o
Slide 8: Total Loans
TOTAL LOANS 8 $2,017 $2,022 $2,017 $2,039 $2,063 4.73% 4.84% 4.88% 4.93% 4.88% 4.25% 4.35% 4.45% 4.55% 4.65% 4.75% 4.85% 4.95% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $2,000 $2,010 $2,020 $2,030 $2,040 $2,050 $2,060 $2,070 $2,080 Average Loans Outstanding Average Loans Outstanding Average Loan Yield, Tax
Slide 9: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 9 $217 $207 $216 $210 $212 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $202 $204 $206 $208 $210 $212 $214 $216 $218 Total commercial and industrial (“C&I”) loans decreased $ 5 . 7 million, or 2 . 7 % , to $ 211 . 7 million at December 31 , 2024 , from $ 217 . 4 million at Dece
Slide 10: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 10 (1) % of total loans as of December 31, 2024. All other C&I , 2.4% Manufacturing , 2.1% Merchant Wholesalers , 1.4% Heavy and Civil Engineering Construction , 1.0% Hotels , 0.1% Construction, Sand & Gravel Mining , 1.1% Healthcare , 0.4% Specialty Trade Contr
Slide 11: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 11 $1,080 $1,084 $1,057 $1,083 $1,075 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $1,040 $1,045 $1,050 $1,055 $1,060 $1,065 $1,070 $1,075 $1,080 $1,085 $1,090 Total commercial real estate (“CRE”) loans decreased $ 4 . 0 million, or 0 . 4 % , to $ 1 . 1 billion from December 31 ,
Slide 12: Commercial Real Estate Loans (CRE)
COMMERCIAL REAL ESTATE LOANS (CRE) (1) 12 ($ in thousands) (1) As of December 31, 2024. (2) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC ma y d iffer from the Call Report. At December 31 , 2024 , the commercial real estate port
Slide 13: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 13 At December 31 , 2024 , the non - owner occupied CRE portfolio totaled $ 880 . 8 million, or 325 . 2 % of total RBC . Of the $ 880 . 8 million, $ 458 . 3 million , or 52 . 0 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 26
Slide 14: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 14 ($ in thousands) (1) As of December 31, 2024. (2) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC may dif fer from the Call Report. % of Total Bank RBC (2) % of Office Portfolio Tot
Slide 15: Residential Real Estate Loans and Consumer Loans
RESIDENTIAL REAL ESTATE LOANS AND CONSUMER LOANS 15 $728 $732 $751 $753 $780 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $700 $710 $720 $730 $740 $750 $760 $770 $780 $790 Residential real estate loans , including home equity loans and consumer loans increased $ 52 . 4 million , or 7 . 2 % , to $ 780 . 1 mill
Slide 16: Investment Portfolio
INVESTMENT PORTFOLIO 16 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio represented 13 . 8 % of total assets at December 31 , 2024 and 14 . 1 % of total assets at December 31 , 2023 . The HTM unrealized losses, net of tax, were approximately $ 28 . 3 million,
Slide 17: Total Deposits
TOTAL DEPOSITS 17 $1,532 $1,501 $1,500 $1,524 $1,559 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $1,470 $1,480 $1,490 $1,500 $1,510 $1,520 $1,530 $1,540 $1,550 $1,560 $1,570 PERIOD - END CORE DEPOSITS Total deposits increased $ 118 . 9 million, or 5 . 6 % , from $ 2 . 1 billion at December 31 , 2023 to $ 2 .
Slide 18: Average Total Deposits
AVERAGE TOTAL DEPOSITS 18 $1,588 $1,576 $1,589 $1,621 $1,684 $589 $558 $549 $559 $579 1.60% 1.75% 1.94% 2.04% 2.01% -0.25% 0.25% 0.75% 1.25% 1.75% 2.25% 2.75% 3.25% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Average Deposits and Rates Interest-bearing deposi
Slide 19: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 19 $1,573 $1,506 $1,488 $1,492 $1,562 0.76% 0.76% 0.87% 0.93% 0.98% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 Average Core Deposits and Rates During the three months ended December 31 , 2024 , avera
Slide 20: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 20 94.6% 94.5% 93.3% 92.1% 91.5% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 90% 90% 91% 91% 92% 92% 93% 93% 94% 94% 95% 95% Period - end Loan - to - Deposit Ratio 71.5% 70.0% 69.1% 68.5% 68.9% 28.5% 30.0% 30.9% 31.5% 31.1% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 0% 10% 20% 30% 40% 50% 6
Slide 21: Wholesale Funding
WHOLESALE FUNDING 21 $156 $152 $155 $152 $123 4.83% 4.91% 5.00% 5.05% 5.04% 4.70% 4.75% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 $100 $110 $120 $130 $140 $150 $160 $170 Wholesale Funding (Includes $20 million in Subordinated Debt ) (1) FHLB Advances Average COF Th
Slide 22: Liquidity Position
22 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At December 31 , 2024 , the Company had available borrowing capacity with the FHLB of $ 461 . 6 million, including its overnight Ideal
Slide 23: Deposit Market Share in Hampden County, MA
________ Source: SNL Financial as of June 30, 2024 Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Three Wes tfi eld branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside
Slide 24: Asset Quality Indicators
ASSET QUALITY INDICATORS 24 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 $5.0M $4.3M $5.6M $4.7M $6.0M Total delinquent loans 0.24% 0.21% 0.27% 0.23% 0.30% Delinquent loans as a % of total loans $5.4M $4.9M $5.8M $5.8M $6.4M Nonperforming loans (NPL) 0.26% 0.24% 0.29% 0.29% 0.32% NPL as a % of total loans 0.2
Slide 25: Asset Quality
ASSET QUALITY 25 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 94 % at December 31 , 2024 , compared
Slide 26: Asset Quality
ASSET QUALITY 26 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 ($ in millions) $11.4 $21.3 $14.6 $15.2 $5.8 Special Mention 0.6% 1.0% 0.7% 0.8% 0.3% % of Total Loans $27.0 $21.9 $22.1 $21.6 $33.7 Substandard 1.3% 1.1% 1.1% 1.1% 1.7% % of Total Loans $38.4 $43.2 $36.7 $36.8 $39.5 Total Classified Loans 1.9% 2.1
Slide 27: Capital Management
CAPITAL MANAGEMENT 27 We are well - capitalized with excess capital. Ratio at December 31, 2023 Ratio at December 31, 2024 Consolidated 9.40% 9.14% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.59% 12.37% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.59% 12.37% Tier 1 Capital (to
Slide 28: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 28 # of Shares Year 2,189,276 2018 1,938,667 2019 1,391,496 2020 2,758,051 2021 720,975 2022 649,744 2023 200,000 1Q - 2024 269,841 2Q - 2024 244,441 3Q - 2024 220,000 4Q - 2024 Annual Dividends per Share Year $0.16 2018 $0.20 2019 $0.20 2020 $0.20 2021 $0.24 2022 $0.2
Slide 29: Capital Management
CAPITAL MANAGEMENT 29 $10.96 $10.90 $11.07 $11.40 $11.30 $10.30 $10.25 $10.41 $10.73 $10.63 Book Value per Share Tangible Book Value per Share (non - GAAP) (1) Book Value Tangible Book Value (non-GAAP) The Company’s book value per share was $11.30 at December 31, 2024, compared to $10.96 at December
Slide 30: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 30 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding i ts financial condition. Because not all companies use the same cal
Slide 31: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 31 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding i ts financial condition. Because not all companies use the same cal
Slide 32: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 32 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding i ts financial condition. Because not all companies use the same cal
Slide 33: Westfield Bank – Contact
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , First Vice President and Investor Relations Officer 33 141 Elm Street, Westfield, MA
Western New England Bancorp — Q4 2024 Earnings Presentation on 6ix