Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — FIG Partners Analyst Meeting (February 2013)
28 slides from Western New England Bancorp's conference presentation, Feb 21, 2013
Slide 1: Westfield Financial Inc. FIG Partners Analyst Meeting
WESTFIELD FINANCIAL INC. NASDAQ: WFD FIG PARTNERS ANALYST MEETING FEBRUARY 21, 2013
Slide 2: Forward-Looking Statements
FORWARD — LOOKING STATEMEN 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 limited to. e
Slide 3: Overview
OVERVIEW $1.3 billion asset bank holding company headquartered in Westfield, MA with 11 branches throughout Hampden County in Western Massachusetts; Strong lending culture and historical focus on commercial business lending; Key differentiator from other legacy mutual thrifis; 21% C&1 loans and 19%
Slide 4: Strategy
STRATEGY Our markets are poised for significant recovery as the economy improves; Large banks are not focused on small and mid-sized consumers and businesses; Grow our business focusing on our strengths, and leveraging our capital: - Continue attracting top bankers and targeting high growth and demo
Slide 5: Branch Footprint
BRANCH FOOTPRINT Pepperet (2 twrehce fy) ~ Oracut LowellArdover Tewksbury ‘Ashbumbarn Gardner ee ee ae Walington a ‘von Torringtor East Hartford” Manchester. Mansfield _(,)) Sroklyn U2) Hartford — Weit Hartford )Stestont { Thomaston Brstolavdwgritain Wetherifeld Waterum —_Soutflegton Waterbur y Meri
Slide 6: Characteristics of Our Target Markets
CHARACTERISTICS OF OUR TARGET MARKETS (SPRINGFIELD & GREATER HARTFORD) Bismarck ND ‘Bostan MA Piustusyh Pa Albany Schenectady Danwer CO ‘Spingtield MA Sen raneisea Martford CT Orlando Miugui-Ft Laure Los Angeles 8 Ponfsrsnl RT Detet MI as Vegus NV ‘Yuma AZ Unemployment Rate ‘September 2012 DisnackND
Slide 7: Our Current Deposit Market
OUR CURRENT DEPOSIT MARKET Cities & TOWNS WHERE WE HAVE BRANCHES Deposits Market Bank Name Branches 06/3072012 Share 1 TD Bank National Association 3 1,045,617 18.26% 2 United Bank 796,686 13.91% 4PeoplesBank 713,799 12.46% SDank of America, NA 693,999 12.12% Berkshire Bank 439,963 7.68% 7 Hampden B
Slide 8: Our Current Deposit Market: Hampden County
OUR CURRENT DEPOSIT MARKET HAMPDEN COUNTY, MASSACHUSETTS, By amount of deposits Our market places value on locally owned banks as demonstrated by deposit growth, as compared to out of state eyo ‘ owned banks June 2012 ons Year Five Yours tn Years Deposits Gronth$Growth% Growth Growth % Growth S Grow
Slide 9: Total Deposits
TOTAL DEPOSITS 800 ~ 753 750 700 700 648 = £05 588 600 550 500 450 4o0 ze 2007 2008 2009 2010 2011 2012 Sin millions
Slide 10: Focus on Core Deposits
FOCUS ON CORE DEPOSITS TOTAL Drposits GREW $150.2 MILLION (24.9%) Non-Maruriry Deposits GREW $177.6 MILLION (71.2%) December nbe 7 Time, 43% Savings and MMDA, 35% ‘Time, 89% Savings and MMDA, 20%
Slide 11: Total Loans
600 550 500 450 400 350 TOTAL LOANS 300 Sin millions 2008 2009 2010 2011 2012
Slide 12: Commercial Business Lending
| |_| mt I i COMMERCIAL BUSINESS LENDING 2500 WESTFIELD HAS AS LARGE A COMMERCIAL BUSINESS PORTFOLIO ag AS ANY PUBLICLY TRADED BANK IN NEW ENGLAND. . . 2am ra C&I Loans as % of Total Loans L 1500 All public banks and thrifts in New England between $500 million and $5 billion in total assets 19.00 =
Slide 13: Price to Tangible Book Value
PRICE TO TANGIBLE BOOK VALUE . BUT OUR VALUATION DOES NOT REFLECT OUR STRONG COMMERCIAL PLATFORM AND FOCUS 200.0 All public banks and thrifts in New England between $500 million and $5 billion in total assets (8) As of 12/31/2012 or the most recent quartet for which regulatory flings are available;
Slide 14: Experienced Commercial Lending Team
EXPERIENCED COMMERCIAL LENDING TEAM James Hagan President and CEO Allen Miles EVP and Senior Lender Dennis Keefe Richard Hanchett Bruce Eger Bernard Donnelly Louis Gorman Thomas Cebula Michael Harrington Sharon Czarnecki Brittany Kelleher Years Lending Years with Westfield Bank Prior Experience 28 2
Slide 15: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO AS OF DECEMBER 31, 2012 Commercial & Industrial $126.1 21% Non Owner Occupied $132.7 2B% Residential Real Kstate $185.4 31% Sin millions
Slide 16: Commercial Loan Portfolio by Market Segment
COMMERCIAL LOAN PORTFOLIO BY MARKET SEGMENT AS OF DECEMBER 31, 2012 | Manufacturing 857.5 15% | I —s Retail Trade Sin millions
Slide 17: Granularity of Commercial Loan Relationships
GRANULARITY OF COMMERCIAL LOAN RELATIONSHIPS AS OF DECEMBER 31, 2012 Million $188.4 Million 51% Under $6 Million $121.8 Million 33%
Slide 18: Consistently Strong Credit Quality
CONSISTENTLY STRONG CREDIT QUALITY Dec 31, 2012 Dec 31, 2011 Allowance for loan losses as a 1.31% percentage of total loans 1.40% Nonperforming loans as a percentage of total loans Nonperforming assets as a percentage of total assets
Slide 19: Technology
‘TECHNOLOGY > We're leveraging technology to fulfill anew our customers needs for alternative APPtitude monn > 24 Quarter 2012 —- A new App for iPad, iPhone and Droid phones. > Easier login to Mobile Banking and a map function for locating and getting directions to Bank branches. > Customers can als
Slide 20: Effectively Leveraging Capital: Shareholders' Equity to Assets
30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% EFFECTIVELY LEVERAGING CAPITAL SHAREHOLDERS’ EQUITY TO ASSETS 27.56% 23.44% 20.76% 17.85% 17.34% | | 2007 2008 2009 2010 2011 2012
Slide 21: Stable and Consistent Net Interest Margin
STABLE AND CONSISTENT NET INTEREST MARGIN FULLY TAXABLE EQUIVALENT BASIS 3.00% 2.64% % ask 2.55% 2.58% 252% 247% 2.50% 2.00% 1.50% 1.00% 3011 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12
Slide 22: Conservative Securities Portfolio
CONSERVATIVE SECURITIES PORTFOLIO AS OF DECEMBER 31, 2012 — a Corporate Bonds $52.3 4% Government Sponsored. . Debt + GSE Mortgage Backed Securities Massachusetts Municipal. eae Banas. \ 73.8% $40.8 6.6% Sin millions Fae
Slide 23: Strong Underlying Credit in Securities Portfolio
STRONG UNDERLYING CREDIT IN SECURITIES PORTFOLIO AS OF DECEMBER 31, 2012 = Treasury/Ageney AAA AAG&A Less than A = Split Ratings © Not Rated
Slide 24: Capital Management
CAPITAL MANAGEMENT A COMBINATION OF FOUR INITIATIVES Fund organic growth. Repurchase shares of our common stock. Pay dividends to shareholders. Finance acquisitions. We try to effectively balance leveraging our capital to earn a return on our shareholders’ investment versus returning the capital dol
Slide 25: Capital Management: Cumulative Return of Capital
$150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 CAPITAL MANAGEMENT CUMULATIVE RETURN OF CAPITAL SINCE SECOND STEP CONVERSION 166.038 96.7% Percentages at top of bars represent cumulasve return ef capital sta ddvidende end repurchases as a percentage of net proceeds from second step conversion
Slide 26: Dividend History
DIVIDEND HISTORY $0.60 $0.40 $0.20 $0.00 7 . 2007 2008 2009 2010 2011 2012 “Regular dividends aSpecial dividends 2007 2008 2009 2010 2011 2012 Regular dividends $0.20 $0.20 $0.20 $0.24 $0.24 Dividend payout ns% 90.9% 111.1% 109.1% 92.3% Dividend yield 21% 1.9% 2.4% 3.3% 6.6% Total dividends $0.40 $0
Slide 27: Diluted Earnings Per Share
$0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2007 DILUTED EARNINGS PER SHARE $0.22 $0.22 $0.18 | $0.11 2008 2009 2010 2011 80.26 2012
Slide 28: Slide WESTFIELD FINANCIAL INC. FIG PARTNERS ANALYST MEETING FEBRUARY 21, 2013Slide 2FORWARD - LOOKING
Slide 1 WESTFIELD FINANCIAL INC. NASDAQ: WFD FIG PARTNERS ANALYST MEETING FEBRUARY 21, 2013Slide 2FORWARD - 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," "es
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