Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Shareholder Meeting (May 2019)
36 slides from Western New England Bancorp's shareholder meeting presentation, May 14, 2019
Slide 1: 2019 Annual Shareholders' Meeting
1 2019 Annual Shareholders’ Meeting May 14, 2019
Slide 2: Welcome to the 2019 Annual Shareholders' Meeting
Welcome to the 2019 Annual Shareholders’ Meeting James C. Hagan President Chief Executive Officer 2
Slide 3: Board of Directors
Board of Directors James C . Hagan, President & Chief Executive Officer Christos A . Tapases , Chairman of the Board William J . Wagner , Vice Chairman of the Board Laura Benoit , Director Donna J . Damon , Director Gary G . Fitzgerald , Director William D . Masse , Director Lisa G . McMahon , Direc
Slide 4: Introduction of Guests
Introduction of Guests Paul M. Maleck , Law Offices of Doherty, Wallace, Pillsbury & Murphy, Inspector of Elections Richard Schaberg, Hogan Lovells, LLP Leslie Byron Reese III , Hogan Lovells, LLP John J. Doherty, CPA, CGMA, Wolf & Company, Independent Auditor Anthony Roberts, Wolf & Company, Indepe
Slide 5: Senior Management Team
Senior Management Team James C . Hagan, President & Chief Executive Officer Guida R . Sajdak, Executive Vice President & Chief Financial Officer Allen J . Miles III, Executive Vice President & Chief Lending Officer Kevin C . O’Connor, Executive Vice President & Chief Banking Officer William J . Wagn
Slide 6: Proposals
Proposals Proposal 1: Election of Directors to serve a three year term • Gary G. Fitzgerald • Paul C. Picknelly • Kevin M. Sweeney • Christos A. Tapases Proposal 2: Non - binding Advisory Vote on Executive Compensation “ Say on Pay” Proposal 3: Ratification of Independent Registered Public Accountin
Slide 7: Voting Results
Voting Results Paul M. Maleck Inspector of Elections 300 Southampton Road, Westfield, MA 7
Slide 8: Financial Results for 2018 and First Quarter 2019
Financial Results for 2018 and First Quarter 2019 Guida R. Sajdak Executive Vice President Chief Financial Officer 8
Slide 9: Forward-looking statements
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 reports to shareholders and in other
Slide 10: Balance Sheet Transformation
Balance Sheet Transformation $725 , 55% $494 , 37% Loans and Securities (% of Total Assets) 2014 Loans Securities Data as of December 31 st (in millions) $1,697 , 80% $260 , 12% Loans and Securities (% of Total Assets) 2018 Loans Securities $355 , 17% $1,241 , 59% $267 , 13% Deposits & Borrowings (%
Slide 11: Asset Quality Indicators Continue to be Strong
Asset Quality Indicators Continue to be Strong Non-performing Loans/Total Loans Non-performing Assets/ Total Assets 2014 1.22% 0.67% 2018 0.79% 0.64% 1.22% 0.67% 0.79% 0.64% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Non - performing Loans to Total Loans Non - performing Assets to Total Assets
Slide 12: Largest Stock Community Bank in Hampden County
________ Source: SNL Financial as of June 30, 2018. Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Two Westf iel d branches are located in Hampshire County, MA and two Westfield branches are located in Hartford County, CT outside of
Slide 13: Growing and Strengthening Balance Sheet
Growing and Strengthening Balance Sheet 54.8% 60.8% 75.2% 78.3% 80.1% 40% 50% 60% 70% 80% 90% Loan to Asset Ratio 86.7% 90.4% 102.9% 108.3% 106.3% 80% 90% 100% 110% 120% Loan to Deposit Ratio 37.4% 31.4% 14.5% 13.8% 12.3% 10% 20% 30% 40% Securities to Asset Ratio 24.7% 21.0% 14.3% 14.9% 12.6% 10% 15
Slide 14: Improved Profitability
Improved Profitability 0.48% 0.42% 0.54% 0.72% 0.77% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 4.18% 4.10% 4.94% 5.97% 6.75% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Core ROAE $0.34 $0.33 $0.41 $0.50 $0.56 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Core EPS 2.60% 2.53%
Slide 15: Strong Capital Ratios
Strong Capital Ratios 2014 2018 Total Risk-Based Capital (Min. 10.0%) 18.7% 14.9% Tier 1 Risk-Based Capital (Min. 8.0%) 17.7% 14.1% Common Equity Tier 1 Capital (Min. 6.5%) 14.1% Tier 1 Leverage Capital (Min. 5.0%) 11.3% 11.1% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% NA Considered to be “well - c
Slide 16: Capital Management
Capital Management Total Repurchased Weighted Average Price 2014 1,405,878 $7.27 2015 515,604 $7.58 2016 201,296 $9.11 2017 903,813 $10.14 2018 2,198,376 $10.39 Dividend History Dividend Yield Dividend Payout Ratio 2014 $0.21 2.86% 62% 2015 $0.12 1.43% 36% 2016 $0.12 1.28% 50% 2017 $0.12 1.10% 29% 2
Slide 17: Competitive Shareholder Returns
Competitive Shareholder Returns Three Year Total Return 17
Slide 18: 1st Quarter of 2019
1 st Quarter of 2019 1Q2019 4Q2018 1Q2018 EPS $0.13 $0.14 $0.12 Core (1) EPS $0.13 $0.14 $0.12 Earnings per Share 1Q2019 4Q2018 1Q2018 ROAA 0.66% 0.72% 0.69% Core (1) ROAA 0.66% 0.72% 0.69% Return on Average Assets Return on Average Equity 1Q2019 4Q2018 1Q2018 ROAE 6.05% 6.43% 5.82% Core (1) ROAE 6.
Slide 19: Business Overview
Business Overview Kevin C. O’Connor Executive Vice President & Chief Banking Officer 19
Slide 20: 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 21: 2018 Highlights
2018 Highlights 569 East Street, Chicopee, MA. 21
Slide 22: Relocated the Tower Square Branch to Center Court
We relocated the Tower Square Branch to Center Court to increase visibility 1500 Main Street Springfield, MA. 1500 Main Street, Springfield, MA. Basketball Hall of Fame MGM Casino Springfield 22
Slide 23: Opened Liberty Street Branch in Springfield
We opened our 2 nd branch in Springfield, MA – Liberty Street Branch 1342 Liberty Street, Springfield, MA. 23
Slide 24: Added additional ATM Locations in Springfield
We added additional ATM Locations in Springfield 24 In July 2018, Westfield Bank added an ATM in the new and improved William C. Sullivan Springfield Visitors Center. In December 2018, the Bank added a second ATM in the newly renovated , historic Union Station in Springfield, further showcasing the
Slide 25: Mortgage Banking Leadership
Mortgage Banking Leadership We are proud to be recognized as the # 1 Mortgage Lender in Hampden County in 2018 by dollar amount . We would like to thank our residential team members, branch officers, realtors and customers for helping us with this accomplishment . We couldn’t do it without their com
Slide 26: Strategic Initiatives for 2019
Strategic Initiatives for 2019 • Grow loans organically and diversify the mix of the portfolio • Grow deposits with a focus on low - cost core deposits • Grow non - interest income with a focus on wealth management, cash management services and municipal deposit programs • Control expenses and impro
Slide 27: Strategic Initiatives for 2019
Strategic Initiatives for 2019 On April 22 , 2019 , we announced plans to expand our Connecticut footprint with two new offices to open in the Greater Hartford Area in 2019 and 2020 . In late 2019 , the Bank expects to open a Financial Services Center in West Hartford Center . The new Financial Serv
Slide 28: Connecticut Strategy
Connecticut Strategy “ We are very pleased to expand our Connecticut footprint into the greater Hartford community.” “ Our new West Hartford Financial Center will host banking specialists from many areas of the bank,” said Mr. Hagan. “ Both of our new locations will offer the deposit, lending, and t
Slide 29: New Additions to the Team to Support the CT Strategy
New Additions to the Team to Support the CT Strategy We are pleased to announce that several long - time Connecticut bankers have joined the Westfield Bank team. 29
Slide 30: Social Responsibility
Social Responsibility Proud member of the community 30
Slide 31: Social Responsibility
Social Responsibility Westfield Bank’s Future Fund was established in 2002 to support education, recreational, cultural and social service programs and projects in the community. The Future Fund is one of the many ways we pay tribute to our customers and contribute to important community - based ini
Slide 32: Thank you!
Westfield Bank “What better banking’s all about” Thank you! James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , Vice President and Investor Relations Officer 32 141 Elm Street, Westfield, MA
Slide 33: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non - GAAP to GAAP Financial Measures 33 Three Months Ended March 31, December 31, March 31, 2019 2018 2018 Diluted EPS: Diluted EPS, as presented $ 0.13 $ 0.14 $ 0.12 Tax benefits impact (1) - - - Core diluted EPS, exclusive of tax benefits impact $ 0.13 $ 0.14 $ 0.12 Return on Av
Slide 34: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non - GAAP to GAAP Financial Measures 34 Twelve Months Ended December 31, December 31, December 31, December 31, December 31, 2014 2015 2016 2017 2018 Return on Average Assets Return on average assets, as presented 0.48% 0.42% 0.32% 0.59% 0.78% Merger related expense impact, net of
Slide 35: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non - GAAP to GAAP Financial Measures 35 Twelve Months Ended December 31, December 31, December 31, December 31, December 31, 2014 2015 2016 2017 2018 Diluted EPS Diluted EPS, as presented $ 0.34 $ 0.33 $ 0.24 $ 0.41 $ 0.57 Merger related expense impact, net of tax (1) - - 0.17 0.0
Slide 36: Appendix: Net Interest Margin reconciliation
Appendix 36 Three Months Ended March 31, December 31, March 31, 2019 2018 201 8 Net Interest Margin Net interest margin, as presented 2.97% 2.99% 3.12% Purchase accounting amortization impact (1) (0.01) (0.02) (0.05) Adjusted net interest margin, exclusive of purchase accounting amortization impact
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