Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q4 2025 Earnings Presentation
35 slides from Western New England Bancorp's earnings presentation, Jan 27, 2026
Slide 1: Local banking is better than ever. 4th Quarter 2025
Local banking is better than ever. INVESTOR PRESENTATION 4TH 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 ● failure or circumvention of our internal controls or procedures ; ● changes in the securities markets which affect investment management revenues ; ● increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments ; ● the soundness of ot
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: 4Q2025 Quarterly Earnings
4Q2025 QUARTERLY EARNINGS 6 ($ in thousands, except EPS) 4Q2025 3Q2025 2Q2025 (1) 1Q2025 4Q2024 (2) Net interest income $ 18,829 $ 18,092 $ 17,642 $ 15,534 $ 15,273 (Reversal of) provision for credit losses (485) 1,293 (615) 142 (762) Non - interest income 3,173 3,173 3,411 2,759 3,254 Non - interes
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $15.3 $15.5 $17.6 $18.1 $18.8 2.41% 2.49% 2.80% 2.81% 2.89% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Net interest income ($) Net interest margin (%) ($ in millions) (
Slide 8: Total Loans
TOTAL LOANS 8 Residential Real Estate 33% Home Equity Lines and Loans 6% CRE - Owner Occupied 9% [CATEGOR Y NAME] 41% [CATEGOR Y NAME] 11% Total Loans $2.2 Billion HIGHLIGHTS • Total loans increased $ 113 . 2 million, or 5 . 5 % , from $ 2 . 1 billion, or 77 . 9 % of total assets, at December 31 , 2
Slide 9: Total Loans
TOTAL LOANS 9 $2,063 $2,073 $2,081 $2,112 $2,167 4.88% 4.91% 5.08% 5.04% 5.06% 4.75% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $2,000 $2,025 $2,050 $2,075 $2,100 $2,125 $2,150 $2,175 AVERAGE LOANS OUTSTANDING Average Loans Outstanding Average Loan Yield, Tax-Equiva
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 10 $212 $216 $235 $219 $222 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $200 $205 $210 $215 $220 $225 $230 $235 $240 Total C&I loans increased $ 10 . 1 million, or 4 . 8 % , to $ 221 . 8 million at December 31 , 2025 , from $ 211 . 7 million at December 31 , 2024 . ($ in milli
Slide 11: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 11 (1) % of total loans as of December 31, 2025. Specialty Trade Contractors, 0.5% Other, 2.5% Merchant Wholesalers, 1.5% Manufacturing, 2.8% Hotels, 0.1% Heavy and Civil Engineering Construction, 0.4% Healthcare, 0.5% Educational Services, 1.2% Construction, Sa
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 12 $1,076 $1,073 $1,046 $1,078 $1,099 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 At December 31 , 2025 , total CRE loans increased $ 23 . 3 million, or 2 . 2 % , to $ 1 . 1 billion from December 31 , 20
Slide 13: Commercial Real Estate Loans (CRE)
COMMERCIAL REAL ESTATE LOANS (CRE) (1) 13 ($ in thousands) (1) As of December 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 December 31 , 2025 , the commercial real estate portf
Slide 14: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 14 At December 31 , 2025 , the non - owner occupied CRE portfolio totaled $ 900 . 5 million, or 325 . 1 % of total RBC . Of the $ 900 . 5 million, $ 485 . 7 million, or 53 . 9 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 271
Slide 15: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 15 ($ in thousands) (1) As of December 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. Non - Owner Occupied Owner Occupied Total % of Of
Slide 16: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS (1) 16 $776 $784 $805 $828 $857 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $720 $740 $760 $780 $800 $820 $840 $860 $880 At December 31 , 2025 , residential real estate loans, including home equity loans, increased $ 81 . 2 million, or 10 . 5 % , from $ 775 . 7 million at Decemb
Slide 17: Investment Portfolio
INVESTMENT PORTFOLIO 17 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio totaled $ 364 . 6 million and represented 13 . 3 % of total assets at December 31 , 2025 and $ 365 . 7 million, or 13 . 8 % of total assets, at December 31 , 2024 . The HTM unrealized los
Slide 18: Total Deposits
TOTAL DEPOSITS 18 ($ in millions) (1) As of December 31, 2025 Time Deposits 29% Money Market 30% Demand (Non - interest bearing) 25% Savings 8% Interest - bearing 8% Total Deposits $2.4 Billion HIGHLIGHTS • Average cost of total deposits decreased 4 basis points from 1.77% at September 30, 2025 to 1
Slide 19: Total Deposits
TOTAL DEPOSITS 19 $1,559 $1,629 $1,640 $1,657 $1,671 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $1,500 $1,520 $1,540 $1,560 $1,580 $1,600 $1,620 $1,640 $1,660 $1,680 PERIOD - END CORE DEPOSITS At December 31 , 2025 , total deposits of $ 2 . 4 billion increased $ 98 . 3 million, or 4 . 3 % , from December 31
Slide 20: Average Total Deposits
AVERAGE TOTAL DEPOSITS 20 $1,684 $1,732 $1,732 $1,744 $1,761 $579 $570 $573 $582 $596 2.01% 2.00% 1.82% 1.77% 1.73% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $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 21: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 21 $1,562 $1,599 $1,614 $1,633 $1,671 0.98% 1.08% 1.01% 1.04% 1.02% 0.92% 0.94% 0.96% 0.98% 1.00% 1.02% 1.04% 1.06% 1.08% 1.10% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 AVERAGE CORE DEPOSITS AND RATES During the three months ended December 31 , 20
Slide 22: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 22 91.5% 89.3% 89.8% 90.7% 92.5% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 87% 88% 89% 90% 91% 92% 93% PERIOD - END LOAN - TO - DEPOSIT RATIO 68.9% 70.0% 70.4% 70.5% 70.8% 31.1% 30.0% 29.6% 29.5% 29.2% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 0% 10% 20% 30% 40% 50% 60% 70% 80% CORE DEPO
Slide 23: Wholesale Funding
WHOLESALE FUNDING 23 $123 $122 $122 $121 $106 5.04% 5.04% 5.04% 5.03% 4.96% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 5.15% 5.20% 5.25% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 $25 $45 $65 $85 $105 $125 $145 $165 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (1) Wholesale Funding Average C
Slide 24: Liquidity position remains strong
24 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At December 31 , 2025 , the Company had available borrowing capacity with the FHLB of $ 538 . 6 million, including its overnight Ideal
Slide 25: Deposit Market Share in Hampden County, MA
________ Source: SNL Financial as of June 30, 2025 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 26: Asset Quality Indicators
ASSET QUALITY INDICATORS 26 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Total delinquent loans $5.0M $4.5M $3.9M $4.5M $3.1M Delinquent loans as a % of total loans 0.24% 0.22% 0.18% 0.21% 0.14% Nonaccrual loans $5.4M $6.0M $5.8M $5.6M $5.2M Nonaccrual loans as a % of total loans 0.26% 0.29% 0.27% 0.27% 0.24%
Slide 27: Asset Quality
ASSET QUALITY 27 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 93 % at December 31 , 2025 and 0 . 94
Slide 28: Asset Quality
ASSET QUALITY 28 ($ in millions) 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Special Mention $11.4 $10.7 $1.5 $13.0 $17.2 % of Total Loans 0.6% 0.5% 0.1% 0.6% 0.8% Substandard $27.0 $25.6 $24.6 $27.0 $22.5 % of Total Loans 1.3% 1.2% 1.2% 1.3% 1.0% Total Criticized Loans $38.4 $36.3 $26.1 $40.0 $39.7 % of Tot
Slide 29: Capital Management
CAPITAL MANAGEMENT 29 We are well - capitalized with excess capital. Consolidated December 31, 2025 December 31, 2024 Tier 1 Leverage Ratio (to Adjusted Average Assets) 9.13% 9.14% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.21% 12.37% Tier 1 Capital (to Risk Weighted Assets) 12.21% 12
Slide 30: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 30 Year # of Shares 2021 2,758,051 2022 720,975 2023 649,744 2024 934,282 1Q - 2025 206,709 2Q - 2025 290,609 3Q - 2025 2,535 4Q - 2025 100,000 Year Annual Dividends per Share 2021 $0.20 2022 $0.24 2023 $0.28 2024 $0.28 1Q - 2025 $0.07 2Q - 2025 $0.07 3Q - 2025 $0.07 4
Slide 31: Capital Management
CAPITAL MANAGEMENT 31 $11.30 $11.44 $11.68 $11.89 [VALUE] $10.63 $10.78 $11.01 $11.22 [VALUE] 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 $12.16 at December 31, 2025, compared to $11.30 at Decem
Slide 32: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 32 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all c
Slide 33: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 33 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Net interest income (no tax adjustment) 18,829$ 18,092$ 17,642$ 15,534$ 15,273$ Tax equivalent adjustment 125 120 121 121 128 Net interest income (tax-equivalent basis) 18,954$ 18,212$ 17,763$ 15,655$
Slide 34: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 34 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Total Bank Equity (GAAP) 252,553$ 248,575$ 244,460$ 242,981$ 240,994$ Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposit intangible net of associated deferred tax
Slide 35: 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 35 141 Elm Street, Westfield, MA
Western New England Bancorp — Q4 2025 Earnings Presentation on 6ix