Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q1 2025 Earnings Presentation
33 slides from Western New England Bancorp's earnings presentation, Apr 22, 2025
Slide 1: Investor Presentation 1st Quarter 2025
Local banking is better than ever. INVESTOR PRESENTATION 1ST QUARTER 2025
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 Operating Officer Joh
Slide 6: 1Q2025 Quarterly Earnings
1Q2025 QUARTERLY EARNINGS 6 1Q2024 2Q2024 (2) 3Q2024 4Q2024 (1) 1Q2025 ($ in thousands , except EPS ) $ 15,346 $ 14,470 $ 14,728 $ 15,273 $ 15,534 Net interest income (550) (294) 941 (762) 142 Provision for (reversal of) credit losses 2,674 3,834 3,141 3,254 2,759 Non - interest income 14,782 14,314
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $15.3 $14.5 $14.7 $15.3 $15.5 2.57% 2.42% 2.40% 2.41% 2.49% 2.00% 2.20% 2.40% 2.60% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Net interest income ($) Net interest margin (%) On a sequential quarter basis, net interest inc
Slide 8: Total Loans
TOTAL LOANS 8 $2,022 $2,017 $2,039 $2,063 $2,073 4.84% 4.88% 4.93% 4.88% 4.91% 4.25% 4.35% 4.45% 4.55% 4.65% 4.75% 4.85% 4.95% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $2,000 $2,025 $2,050 $2,075 $2,100 AVERAGE LOANS OUTSTANDING Average Loans Outstanding Average Loan Yield, Tax-Equivalent Basis $2,023 $2,
Slide 9: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 9 $207 $216 $210 $212 $216 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $200 $205 $210 $215 $220 Total commercial and industrial (“C&I”) loans increased $ 4 . 7 million, or 2 . 2 % , to $ 216 . 4 million at March 31 , 2025 , from $ 211 . 7 million at December 31 , 2024 . ($ in
Slide 10: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 10 (1) % of total loans as of March 31, 2025. Other , 2.8% Manufacturing , 2.2% Merchant Wholesalers , 1.6% Educational Services , 1.2% Construction, Sand, and Gravel Mining , 1.1% Specialty Trade Contractors , 0.5% Healthcare , 0.4% Heavy and Civil Engineering
Slide 11: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 11 $1,084 $1,057 $1,083 $1,076 $1,073 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 Total commercial real estate (“CRE”) loans decreased $ 3 . 0 million, or 0 . 3 % , 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 March 31, 2025. (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 M arch 31 , 2025 , the commercial real estate portfolio
Slide 13: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 13 At March 31 , 2025 , the non - owner occupied CRE portfolio totaled $ 881 . 1 million, or 325 . 8 % of total RBC . Of the $ 881 . 1 million, $ 459 . 4 million , or 52 . 1 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 269 .
Slide 14: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 14 ($ in thousands) (1) As of March 31 , 2025. (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 Total
Slide 15: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS (1) 15 $727 $746 $749 $776 $784 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $690 $700 $710 $720 $730 $740 $750 $760 $770 $780 $790 At March 31 , 2025 , residential real estate loans, including home equity loans, increased $ 8 . 1 million, or 1 . 0 % , from $ 775 . 7 million at D
Slide 16: Investment Portfolio
INVESTMENT PORTFOLIO 16 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio represented 13 . 6 % of total assets at March 31 , 2025 and 13 . 8 % of total assets, at December 31 , 2024 . The HTM unrealized losses, net of tax, were approximately $ 25 . 7 million, o
Slide 17: Total Deposits
TOTAL DEPOSITS 17 $1,501 $1,500 $1,524 $1,559 $1,629 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 PERIOD - END CORE DEPOSITS Total deposits of $ 2 . 3 billion increased $ 66 . 0 million, or 2 . 9 % , from December 31 , 2024 to March 31 , 2025 . Core deposits, which th
Slide 18: Average Total Deposits
AVERAGE TOTAL DEPOSITS 18 $1,576 $1,589 $1,621 $1,684 $1,732 $558 $549 $559 $579 $570 1.75% 1.94% 2.04% 2.01% 2.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 $2,500 AVERAGE DEPOSITS AND RATES Interest-bearin
Slide 19: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 19 $1,506 $1,488 $1,492 $1,562 $1,599 0.76% 0.87% 0.93% 0.98% 1.08% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $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 March 31 , 2025 , av
Slide 20: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 20 94.5% 93.3% 92.1% 91.5% 89.3% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% PERIOD - END LOAN - TO - DEPOSIT RATIO 70.0% 69.1% 68.5% 68.9% 70.0% 30.0% 30.9% 31.5% 31.1% 30.0% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 0% 10% 20% 30% 40% 50% 60% 70% 8
Slide 21: Wholesale Funding
WHOLESALE FUNDING 21 $152 $155 $152 $123 $122 4.91% 5.00% 5.05% 5.04% 5.04% 4.65% 4.75% 4.85% 4.95% 5.05% 5.15% 5.25% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $- $20 $40 $60 $80 $100 $120 $140 $160 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (1) Wholesale Funding Average Cost of Funds 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 March 31 , 2025 , the Company had available borrowing capacity with the FHLB of $ 447 . 5 million, including its overnight Ideal Wa
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 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024 $4.5M $5.0M $4.3M $5.6M $4.7M Total delinquent loans 0.22% 0.24% 0.21% 0.27% 0.23% Delinquent loans as a % of total loans $6.0M $5.4M $4.9M $5.8M $5.8M Nonaccrual loans 0.29% 0.26% 0.24% 0.29% 0.29% Nonaccrual loans as a % of total loans
Slide 25: Asset Quality
ASSET QUALITY 25 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 95 % at March 31 , 2025 , compared to
Slide 26: Asset Quality
ASSET QUALITY 26 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024 ($ in millions) $10.7 $11.4 $21.3 $14.6 $15.2 Special Mention 0.5% 0.6% 1.0% 0.7% 0.8% % of Total Gross Loans $25.6 $27.0 $21.9 $22.1 $21.6 Substandard 1.2% 1.3% 1.1% 1.1% 1.1% % of Total Gross Loans $36.3 $38.4 $43.2 $36.7 $36.8 Total Classified L
Slide 27: Capital Management
CAPITAL MANAGEMENT 27 We are well - capitalized with excess capital. December 31, 2024 March 31, 2025 Consolidated 9.14% 9.06% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.37% 12.27% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.37% 12.27% Tier 1 Capital (to Risk Weighted Assets
Slide 28: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 28 # of Shares Year 2,758,051 2021 720,975 2022 649,744 2023 934,282 2024 206,709 1Q - 2025 Annual Dividends per Share Year $0.20 2021 $0.24 2022 $0.28 2023 $0.28 2024 $0.07 1Q - 2025 SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK On May 21 , 2024 , the Board of Dire
Slide 29: Capital Management
CAPITAL MANAGEMENT 29 $10.90 $11.07 $11.40 $11.30 $11.44 $10.25 $10.41 $10.73 $10.63 $10.78 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 $ 11.44 at March 31, 2025, compared to $11.30 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 results of operations and financial condition. Because not all
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 results of operations and financial condition. Because not all
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 results of operations and financial condition. Because not all
Slide 33: Westfield Bank – What Better Banking's All About
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 — Q1 2025 Earnings Presentation on 6ix