Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q2 2026 Earnings Presentation
38 slides from Western New England Bancorp's earnings presentation, 2026
Slide 1: Investor Presentation 2nd Quarter 2026
INVESTOR PRESENTATION 2ND QUARTER 2026 Local banking is better than ever.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This Investor Presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, r
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • the risk that we may not be successful in the implementation of our business strategy; • severe weather, natural disasters, pandemics, acts of war or terrorism and other external events which could significantly impact our business; • declines in real estate values in th
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 Focu
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 John E.
Slide 6: 2Q2026 Quarterly Earnings
2Q2026 QUARTERLY EARNINGS ($ in thousands, except EPS) 2Q2026 1Q2026(1) 4Q2025 3Q2025 2Q2025(2) Net interest income $ 19,321 $ 18,825 $ 18,829 $ 18,092 $ 17,642 Provision for (reversal of) credit losses 1,557 75 (485) 1,293 (615) Non-interest income 3,394 3,433 3,173 3,173 3,411 Non-interest expense
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 3.05% HIGHLIGHTS $24.0 Net interest income, our primary driver of 3.00% 3.00% revenues, increased $1.7 million, or 9.5%, from $17.6 million for the three months ended June 30, $22.0 2.95% 2025 to $19.3 million for the three months ended 2.95% June 30, 2026
Slide 8: Total Loans
(1) TOTAL LOANS HIGHLIGHTS Total Loans • Total loans increased $9.9 million, or 0.5%, from $2.2 billion, or $2.2 Billion 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 80.2% of total assets, at June 30, 2026. Consumer C&I 0% • Commercial and industrial loans (“C&I”) increased $12.5
Slide 9: Total Loans
TOTAL LOANS PERIOD-END LOANS OUTSTANDING AVERAGE LOANS OUTSTANDING ($ in millions) ($ in millions) $2,225 $2,200 $2,190 5.20% $2,198 $2,187 $2,200 $2,191 $2,181 $2,175 $2,167 5.14% $2,175 5.15% $2,150 5.11% $2,150 $2,128 5.10% $2,125 $2,125 5.08% $2,112 5.06% $2,100 $2,090 $2,100 5.04% 5.05% $2,081
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS $240 $235 $235 $234 $230 $228 $225 $222 $220 $219 $215 $210 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Total C&I loans increased $12.5 million, or 5.6%, from $221.8 million, or 10.2% of total loans, at December 31, 2025 to $234.3 million, or 10.7% of total loans, at June 30,
Slide 11: Commercial and Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO(1) Heavy and Civil Engineering HOTELS, 0.1% Construction, 0.6% Auto Sales/Service, 0.3% Healthcare, 0.4% Other, 2.5% Specialty Trade Contractors, 0.5% Construction, Sand and Gravel Mining, 0.7% Manufacturing, 2.5% Educational Services, 1.2% Merchant Wholesalers, 1.9
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS $1,200 $1,000 $884 $910 $918 $865 $883 $800 $600 $400 $200 $181 $194 $189 $183 $182 $- 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Owner Non-Owner At June 30, 2026, total CRE loans decreased $33.7 million, or 3.1%, to $1.1 billion from December 31, 2025. Non-owner occupied CRE lo
Slide 13: Commercial Real Estate Loans (CRE) – June 30, 2026
COMMERCIAL REAL ESTATE LOANS (CRE) – JUNE 30, 2026 % of Total Non-Owner Owner % of CRE Bank Risk-Based Property Type Occupied Occupied Total Portfolio Capital (RBC)(1) ($ in thousands) Office $169,471 $ 20,946 $ 190,417 18.0% 68.5% Apartment 170,511 - 170,511 16.0% 61.3% Industrial 109,511 40,149 14
Slide 14: CRE Concentration
CRE CONCENTRATION Non-Owner Occupied Commercial Real Estate $930 as a Percent of Total Risk-Based Capital(1) 350% ($ in millions) $918 $920 345% $910 $910 340% $900 335% $890 $884 330% $883 330% $880 329% 325% $870 $865 322% 320% 319% $860 318% 315% $850 310% $840 305% $830 300% 2Q2025 3Q2025 4Q2025
Slide 15: Commercial Real Estate – Non-Owner Occupied – June 30, 2026
COMMERCIAL REAL ESTATE – NON-OWNER OCCUPIED – JUNE 30, 2026 Weighted Average Loan to % of Total Value Property Type MA CT NH RI ME Other Total RBC (1) (LTV) (2) ($ in thousands) Office $ 63,054 $ 57,296 $38,023 $ - $11,098 $ - $169,741 61.0% 61.8% Apartment 106,140 43,169 - 21,202 - - 170,511 61.3%
Slide 16: Commercial Real Estate – Office Buildings – June 30, 2026
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS – JUNE 30, 2026 As of June 30, 2026, the office portfolio totaled $190.4 million, or 68.5% of total Non-Owner Owner % of Office % of Total Occupied Occupied Total Portfolio Bank RBC(1) RBC. Non-owner occupied office By Collateral Type ($ in thousands) totale
Slide 17: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS $900 Residential Real Estate Loans $889 As of June 30, 2026 $880 $866 $857 Home Equity $860 16% $840 $828 $820 $805 $800 $780 Residential Real Estate 84% $760 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 At June 30, 2026, residential real estate loans, including home equity loans
Slide 18: Investment Portfolio
INVESTMENT PORTFOLIO The table below displays the investment portfolio as of June 30, 2026. % of Net of Tax Investment Net of Tax Loss as a Portfolio Unrealized Loss as a % % of Amortized Fair (Amortized Loss of Amortized Tier 1 Duration in ($ in millions) Cost Basis Value Cost Basis) (Net of Tax) C
Slide 19: Total Deposits - June 30, 2026
TOTAL DEPOSITS - JUNE 30, 2026 HIGHLIGHTS Total Deposits $2.4 Billion • Average cost of total deposits increased two basis Savings Interest-bearing points from 1.72% for the three months ended March 8% checking 31, 2026 to 1.74% for the three months ended June 30, 6% 2026. Demand • At June 30, 2026,
Slide 20: Total Deposits
TOTAL DEPOSITS PERIOD-END CORE DEPOSITS PERIOD-END TIME DEPOSITS $740 $736 $1,680 $1,671 $1,672 $730 $1,670 $1,666 $720 $710 $1,660 $1,657 $710 $1,650 $700 $693 $690 $690 $1,640 $690 $1,640 $680 $1,630 $670 $1,620 $660 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Total depos
Slide 21: Average Total Deposits
AVERAGE TOTAL DEPOSITS AVERAGE DEPOSITS AND RATES $2,500 1.82% 2.00% 1.77% 1.73% 1.72% 1.74% $2,300 1.80% $2,100 1.60% $1,900 1.40% $1,732 $1,744 $1,761 $1,759 $1,792 $1,700 1.20% $1,500 1.00% $1,300 0.80% $1,100 0.60% $900 0.40% $700 $573 $582 $596 $589 $593 0.20% $500 0.00% 2Q2025 3Q2025 4Q2025 1Q
Slide 22: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS AVERAGE CORE DEPOSITS AND RATES AVERAGE TIME DEPOSITS AND RATES $1,700 1.05% $800 4.25% $1,680 1.04% $1,671 1.04% 3.69% $1,663 3.51% 3.46% 3.41% 3.38% 3.75% $1,660 $1,656 1.04% 1.03% $723 3.25% $1,640 $1,633 1.03% $691 $693 $700 $687 $692 $1,620 $1,614 1.03% 2.75% 1.02
Slide 23: Loan-to-Deposit Ratio
LOAN-TO-DEPOSIT RATIO Loan to Deposit Ratio Deposits as a Percent of Total Deposits 93% 92.5% 92.4% 93% 25% 2Q2026 31% 92% 69% 91.4% 25% 92% 1Q2026 30% 91% 70% 90.7% 25% 91% 4Q2025 29% 89.8% 71% 90% 25% 90% 3Q2025 30% 71% 89% 26% 89% 2Q2025 30% 70% 88% 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 0% 20% 40% 6
Slide 24: Wholesale Funding
WHOLESALE FUNDING WHOLESALE FUNDING The Bank is considered to be well-capitalized as defined by the (Includes $20 million in Subordinated Debt) regulators (see slide 31). The Bank’s Tier 1 Leverage Ratio to ($ in millions) 5.20% adjusted average assets was 9.37% at June 30, 2026 and $165 5.15% 9.32%
Slide 25: Liquidity
LIQUIDITY The Company’s liquidity position remains strong with solid core deposit Amount in relationships, cash, unencumbered securities and access to diversified Use at Total June 30, borrowing sources. At June 30, 2026, the Company had available Available Net Available ($ in millions) 2026 Interna
Slide 26: Deposit Market Share in Hampden County, MA
DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA Total Deposit Deposits in Rank 2025 Parent Company Name Market ($000) Market Share # of Branches 1 PeoplesBank 2,418,846 17.13% 11 2 TD Bank 2,266,902 1,762,519 16.05% 13.1% 14 20 3 Westfield Bank 1,912,916 13.54% 20 4 Bank of America 1,572,220 11.13% 8 5 B
Slide 27: Asset Quality Indicators
ASSET QUALITY INDICATORS 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 ($ in thousands) Total delinquent loans $3,853 $4,548 $3,145 $3,157 $4,658 Delinquent loans as a % of total loans 0.18% 0.21% 0.14% 0.14% 0.21% Nonaccrual loans $5,752 $5,649 $5,162 $4,681 $7,759 Nonaccrual loans as a % of total loans 0.27%
Slide 28: Asset Quality Indicators
ASSET QUALITY INDICATORS 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 ($ in thousands) Allowance for credit losses % of total loans 0.94% 0.96% 0.93% 0.93% 0.92% Allowance for credit losses % of nonaccrual loans 343% 364% 393% 437% 260.2% Net charge-offs/(recoveries) ($585) $43 $41 $55 $1,789 Net charge-offs/
Slide 29: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (“ACL”) June 30, 2026 December 31, 2025 ACL/ ACL/ Total Total ACL Total Loans Loans ACL Total Loans Loans C&I $ 2,530 $ 234,269 1.08% $ 2,245 $ 221,790 1.01% CRE 13,016 1,065,350 1.22% 13,718 1,099,063 1.25% Residential(1) 4,520 888,617 0.51% 4,186 856,871 0.49% Consumer
Slide 30: Asset Quality
ASSET QUALITY 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Special Mention $1.5 $13.0 $17.2 $37.6 $40.3 % of Total Loans 0.1% 0.6% 0.8% 1.7% 1.8% Substandard $24.6 $27.0 $22.5 $21.1 $23.6 % of Total Loans 1.2% 1.3% 1.0% 1.0% 1.1% Total Criticized Loans $26.1 $40.0 $39.7 $58.7 $63.9 % of Total Loans 1.2% 1.9%
Slide 31: Asset Quality
ASSET QUALITY At June 30, 2026, special mention loans totaled $40.3 million, Total Criticized Loans or 1.8% of total loans. Of the loans designated special mention, $17.8 million, or 44.2% are commercial and $45,000 industrial loans and $22.5 million, or 55.8% are commercial $40,000 real estate loan
Slide 32: Capital Management
CAPITAL MANAGEMENT We are well-capitalized with excess capital. At June 30, 2026, the Bank’s Tier 1 Leverage June 30, December 31, Ratio was 9.37%. The Bank’s TCE ratio(1), a Consolidated 2026 2025 non-GAAP financial measure, was 8.75% at Tier 1 Leverage Ratio (to 9.18% 9.13% June 30, 2026. Adjusted
Slide 33: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK Year # of Shares Year Annual Dividends per Share 2021 2,758,051 2021 $0.20 2022 720,975 2022 $0.24 2023 649,744 2023 $0.28 2024 934,282 2024 $0.28 2025 599,853 2025 $0.28 1Q-2026 186,000 1Q-2026 $0.07 2Q-2026 195,000 2Q-
Slide 34: Capital Management
CAPITAL MANAGEMENT BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE (non-GAAP)(1) $12.39 $12.26 $12.16 $11.89 $11.68 $11.72 $11.59 $11.49 $11.22 $11.01 Book Value Tangible Book Value (non-GAAP) The Company’s book value per share was $12.39 at June 30, 2026, compared to $12.16 at December 31, 2025,
Slide 35: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION 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 companies
Slide 36: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 (Dollars in thousands) Net interest income (no tax adjustment) $ 19,321 $ 18,825 $ 18,829 $ 18,092 $ 17,642 Tax equivalent adjustment 124 119 125 120 121 Net interest income (tax-equiva
Slide 37: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 (Dollars in thousands) Total Bank Equity (GAAP) $ 253,495 $ 253,406 $ 252,553 $ 248,575 $ 244,460 Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposi
Slide 38: Westfield Bank
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” 141 Elm Street, Westfield, MA 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 38
Western New England Bancorp — Q2 2026 Earnings Presentation on 6ix