Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — Merger or Acquisition (April 2016)
15 slides from Western New England Bancorp's merger presentation, Apr 5, 2016
Slide 1: A Compelling Strategic Combination
A Compelling Strategic Combination First In-Market Merger in Over 25 Years — Creating One of the Largest Community Banks in Hampden County and the Springfield MSA Ware Pe ye sSachusetts a er CHICOPEE We BANCORP, ING. NASDAQ: CBNK s NASDAQ: WFD Stafford Salmo@rook r $ Statford Ooo! Springs Western Ne
Slide 2: Disclaimer
NardagGS: WFD CHICOPEE BANCORD, INC. Disclaimer This presentation contains some statements that may constitute forward-looking statements. esis ae ents and are subject to risks, uncertainties, assumptions and changes in circumstances that ma cause Westfield or Chiopee'sactoal results to difersignlfe
Slide 3: Safe Harbor and Legend
\\i4 Safe Harbor and Legend 3 ‘is communication does not constitute an offer to sell or the solicitation of an offer to buy any securities o1 WEBTET solletation of any vote or approval i connection withthe merge, Westie wil ile th Se Scouts and je ration statement on Form $-4 to register shares stfi
Slide 4: A Compelling Strategic & Financial Combination
y/ | \¢ Compelling Strategic & Financial Combination NardagGS: WFD CHICOPEE BANCORD, INC. estfield’s early success in Northern Connecticut + Combined com ize on We Highly compatible cultures with similar operating models, eustomer focus and strong servie an community orientation + Virtually no branc
Slide 5: Transaction Overview
y/ | WE Transaction Overview FINANGIAL, = 100% stock ~ fixed exchange ratio of 2.425 shares ING. ‘options converted to Westfield options NardagGS: WFD CHICOPEE + Bank Subsidia y will operate under the Westfield Bank name ‘+ President and CEO: James C. Hagan (current Westfield CEO) Expected close in
Slide 6: Creating Value for Both Sets of Shareholders
y/ | Wi Creating Value for Both Sets of Shareholders CHICOPEE NardagGS: WFD S Double Digit Earnings Accretion CHICOPEE BANCORD, INC. Greater Franchise Value Better Positioned for Future Growth Potential for Stock Upside Improved Stock Liquidity Retain Strong Capital Base v v v v v v 444444
Slide 7: Companies with Similar Profiles
Wi Companies with Similar Profiles... ini ante) ‘Tinanerat, @ Chicopee rrp, Inc. (8 branches) Bethertown tne wore e using: WED cHicopce 3 ee w ; ‘she Manor Bee ee suttana jag Some stford ae = Stafford Simo @roo c Saicee Westfield Financial, Inc. Chicopee Bancorp, Inc. 7 We, West, 7 Deposa 5900 mm 7
Slide 8: Combining to Create One of the Largest Banks in Hampden County and Springfield MSA
FINANGIAL, ING. Nasdaq: WFD CHICOPEE BANCORD, INC. Combining to Creat of the Larg i Banks in Hampden County and Springfield MSA 16h 715% yy Deposits 19% 14% Branches _ (Smt 1% | 1 100 12% 2 ‘Hank of America Corp. eT) 10% 3 Popstar ‘sin MW Lat | 5._Beskshire Hills Banrp Inc. (MA) 161.036 o% 6 Westfie
Slide 9: Extends Footprint and Enhances Scale and Density
\\ Extends Footprint and Enhances Scale and Density in Springfield MSA and the “Knowledge Corridor” FINANGIAL, © Chicopee, tha population af577 residents the en c cso Maseacsett and hots teary 3,00 companies EJ coven in ooo Aina gots eninge Nanda. WFD ni ethan 73000 wore aig Sprig oom ation er manta
Slide 10: Diversified Loan and Deposit Mix
ans dng. WED _— By Ne CHICOPEE SANGSRe, cnt, Home 0%, aay so Total: $818.2 Yield: 4.02% Deposits ‘Time 758 440% Total: $900.3 Cost: 0.64% Loans/Deposits: 91% inal balances a of 12/91/2015, Total: $586.9 Yield: 4.16% Time 370%, Total: $507.1 Cost: 0.56% Loans/Deposit Diversified Loan and Deposit Mix
Slide 11: Strong Pro Forma Financial Metrics
y/ | \¢ Strong Pro Forma Financial Metrics Seeger ING. 1/3/2085 vasa/0%5 ‘eee Assets (Smillions) ° SIE Gross Loans (Smillions) B18 4 theet Deposits (Smillions) 900 507 SENET Number of Branch 4 9 23 cuIeePEE Deposts/ Branch (6 milion $043 563 sors SANGORE, ING. CRE Loans / Loans 37% 49% 42% C81 Loans
Slide 12: Key Merger Assumptions
y/ | WE Key Merger Assumptions FINANGIAL, ING. NardagGS: WFD Cost Savings Restructuri Charge Deposit ngible Common Dividend Gross loan mark projected to be 1.75% of total loans base) thereafter ‘Targeting 30% dividend payout ratio post-close
Slide 13: Financial Impact
NasdagGS: WFD CHICOPEE BANCORD, INC. Financial Impact EPS Impact Tangible Bo Imp: Pro Forma nsolidated C: full year (2017) years * Pro forma tangible common equity ratio in excess of 10%; pro forma total risk based ratio in excess of 15% * Internal rate of return of approximately 17%
Slide 14: Investment Merits — A Compelling Strategic Combination
\ea . . Investment Merits — A Compelling Strategic Combination NardagGS: WFD CHICOPEE BANCORD, INC. = Virtually no branch overlap and no branch closures = Complementary areas of lending expertise = Significantly aceretive to earnings per sl + Manageable TBV dilution with attractive earn back + Inter
Slide 15: Ware
Ware e Rives 3 \em > fr 8 Monson “inanerats 2 ; ws CHICOPEE BANCORP, ING. Stafford Statford Springs Western New England Bancorp, Inc. (NASDAQ: WNEB)*
Westfield Financial — Merger or Acquisition (April 2016) on 6ix