Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — Investor Presentation (February 2016)
15 slides from Western New England Bancorp's investor presentation, Feb 8, 2016
Slide 1: Westfield Financial, Inc. Investor Presentation
W ESTFIELD F INANCIAL , I NC . NASDAQ: WFD I NVESTOR P RESENTATION
Slide 2: Forward-Looking Statements
F ORWARD – LOOKING STATEMENTS Today’s presentation may contain forward - looking statements, which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated” and “potential . ” Examples of forward - looking statements include, but are not limite
Slide 3: Westfield Financial Overview – Who We Are
W ESTFIELD F INANCIAL O VERVIEW – W HO W E A RE ▪ A bank holding company headquartered in Westfield, MA with $ 1 . 3 billion in assets and 13 branches throughout western Massachusetts and northern Connecticut . ▪ Successfully transitioned to a commercial bank model from a legacy mutual thrift . ▪ 57
Slide 4: Westfield Financial Overview – Corporate Summary
W ESTFIELD F INANCIAL O VERVIEW – W HO W E A RE C ORPORATE S UMMARY Westfield Financial, Inc. – NASDAQ (WFD) Corporate Headquarters – Westfield, MA Third quarter 2014, established a commercial lending hub for our middle market and commercial real estate lending teams located in downtown Springfield,
Slide 5: Commercial Lending Team with Regional Bank Experience
C OMMERCIAL L ENDING T EAM WITH R EGIONAL B ANK E XPERIENCE Years Lending Years with Westfield Bank Prior Experience James Hagan President and CEO 31 21 Fleet Bank, Bank of New England Allen Miles EVP and Senior Lender 27 17 Westbank, Bank of New England Commercial Lenders: Dennis Keefe 36 4 Berkshi
Slide 6: Market Overview
M ARKET O VERVIEW 6 Source: (1) Knowledge Corridor website; (2) Masslive website Big Concentrated Market (1) Nation’s 20 th largest metro region, with 2.77 million people, ranks ahead of Denver and St. Louis. Robust Business Sectors (1 ) Key areas of excellence, focus and investment include: • Finan
Slide 7: Market Overview
M ARKET Overview 7 Source: (1) United States Census Bureau; (2) United States Department of Labor • Third quarter 2014 - relocated middle market commercial lending team to Springfield, MA to provide better access to key markets and centers of influence. This will create better synergies for business
Slide 8: We Are Executing Our Strategy
W E A RE E XECUTING O UR S TRATEGY • Favorable shift in interest earning assets by way of loan growth with less reliance on investment portfolio. o For the twelve months ended December 31, 2015, loans grew by $93.5 million , or 12.9%, while investments decreased by $72.9 million, or 14.3%. • Target
Slide 9: Improved Mix of Interest Earning Assets
I MPROVED MIX OF INTEREST EARNING ASSETS I NCREASING LOANS AND REDUCING SECURITIES 9 $ in millions 558 584 583 595 596 607 620 637 648 686 720 725 730 759 809 818 658 654 664 636 631 607 558 554 542 496 511 509 515 517 456 437 400 450 500 550 600 650 700 750 800 850 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q
Slide 10: Loan Portfolio Composition
L OAN P ORTFOLIO C OMPOSITION $ in millions As of December 31, 2015 10 Owner Occupied $113.6 14% Non - Owner Occupied $189.2 23% Consumer Loans $ 1.6 Home equity $43.6 5% Residential Real Estate $301.8 37% Commercial & Industrial $168.4 21%
Slide 11: Commercial Loan Portfolio
C OMMERCIAL L OAN P ORTFOLIO 11 $ in millions As of December 31, 2015 Granularity of commercial loan relationships Diversified amongst a variety of segments >$5 Million & < $ 10 million $112.7 24% Over $10 million $141.7 30% Under $5 Million $216.8 46% Manufacturing $49.4 10% Wholesale Trade $42.9 1
Slide 12: Our Current Deposit Market
O UR C URRENT D EPOSIT M ARKET C ITIES & T OWNS WHERE WE HAVE BRANCHES $ in thousands Source: SNL Financial (1) - Does not include the Connecticut Banking Centers’ deposit total . 12 Deposits Market Bank Name Branches 06/30/2015 Share 1 TD Bank National Association 13 1,018,144 15.57% 2 Bank of Amer
Slide 13: Consistently Strong Credit Quality
C ONSISTENTLY S TRONG C REDIT Q UALITY 13 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Allowance for loan losses as a percentage of loans 1.08% 1.04% 1.09% 1.10% 1.10% Nonperforming loans as a percentage of total loans 0.99% 0.91% 1.06% 1.14% 1.22% Nonperforming assets as a percentage of total assets 0.6
Slide 14: Focus on Core Deposits
F OCUS ON C ORE D EPOSITS O VER FIVE YEAR PERIOD , TOTAL DEPOSITS GREW $200 MILLION ( 28.57%), WHILE N ON - MATURITY DEPOSITS GREW $158 MILLION (45.66%) December 31, 2015 December 31, 2010 14 Noninterest checking , 12% Interest - bearing checking , 12% Savings and MMDA , 25% Time , 51% Noninterest c
Slide 15: Why Invest in Westfield Financial
W HY I NVEST IN W ESTFIELD F INANCIAL • Stock trading near tangible book . • Experienced, disciplined regional leadership team. • Continued opportunities for organic growth. • Expansion into demographically attractive markets. • Improving mix of interest earning assets. • High credit quality. • Bala
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