Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Investor Presentation (September 2018)
18 slides from Western New England Bancorp's investor presentation, Sep 19, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Forward-looking statements
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 reports to shareholders and in other
Slide 3: Corporate Overview
Corporate Overview • Full service community bank with $ 2 . 1 billion in assets and 22 banking offices throughout western Massachusetts and northern Connecticut • The only stock - owned community bank ( 1 ) headquartered in the counties which we serve • One of the region’s premier commercial lenders
Slide 4: Chicopee Transaction
Chicopee Transaction • Transformative combination with Chicopee in 2016 materially enhanced market position in greater Springfield, added management depth and improved financial performance • Balance sheet more core, enhanced financial performance, improved operating efficiency • Expected cost savin
Slide 5: Springfield MSA market demographics and deposit market share
________ Source: Western Mass EDC website; deposit market share data from FDIC website as of June 30, 2018 Note: Two Westfield branches are located in Hartford County, CT and two are located in Hampshire county, MA outside of Springfield MSA Springfield MSA Total population 641,390 Median household
Slide 6: Loan Portfolio Growth and Diversification
Loan Portfolio Growth and Diversification CRE - Owner 12.5% CRE - Non - Owner 32.5% Residential 34.2% HELOC 5.7% C&I 14.8% Consumer 0.3% • Seasoned commercial lending team with strong C&I and CRE lending focus in the western Massachusetts and northern Connecticut marketplaces • Middle Market Commerc
Slide 7: Deposit Diversification
Deposit Diversification Int - bearing DDA 6% DDA 20% Savings 9% MMA 27% Time > $250,000 9% Time < $250,000 29% $1.6 Billion in Total Deposits as of June 30, 2018
Slide 8: Asset Quality Consistent and Conservative
Asset Quality Consistent and Conservative 0.41% 1.22% 0.99% 0.90% 0.78% 0.78% 2013 2014 2015 2016 2017 2018Q2 NPL / Loans 0.01% 0.16% 0.05% - 0.06% 0.04% 0.01% -0.10% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% Net Charge - offs / Average Loans 1.17% 1.10% 1.09% 0.64% 0.66% 0.72% 0.00% 0.20% 0.40% 0.60% 0.
Slide 9: Capital Management
Capital Management 2015 2016 2017 2018Q2 Total Risk-Based Capital 17.2% 15.1% 15.5% 15.5% Tier 1 Risk-Based Capital 16.2% 14.5% 14.9% 14.8% Common Equity Tier 1 16.2% 14.5% 14.9% 14.8% Leverage Ratio 11.2% 12.2% 11.8% 11.6% 10% 11% 12% 13% 14% 15% 16% 17% 18% Shares Repurchased Weighted Average Pric
Slide 10: Areas of Focus
Areas of Focus • Meaningfully grow the loan portfolio and continue to be the preferred bank in our markets for commercial credit • New lenders and displaced customers create tremendous opportunity • Moderation in extraordinary prepayment activity will make gross originations translate into higher ne
Slide 11: Appendix: Financial Information
11 Appendix: Financial Information
Slide 12: Enhancing Profitability
Enhancing Profitability 0.53% 0.48% 0.42% 0.54% 0.72% 0.82% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% Core ROAA 4.04% 4.18% 4.10% 4.94% 5.97% 7.07% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Core ROAE $0.34 $0.34 $0.33 $0.41 $0.50 $0.29 $0.00 $0.10 $0.20 $0.30 $0.40 $0.5
Slide 13: Improving Net Interest Margin
Improving Net Interest Margin 2.58% 2.60% 2.53% 2.70% 3.12% 3.19% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% 3.40%
Slide 14: Improved Operating Efficiency
Improved Operating Efficiency 76.80% 73.60% 75.50% 72.60% 65.30% 65.80% 58% 60% 62% 64% 66% 68% 70% 72% 74% 76% 78%
Slide 15: Tangible Book Value
Tangible Book Value $7.65 $7.61 $7.63 $7.25 $7.57 $7.59 $7.00 $7.10 $7.20 $7.30 $7.40 $7.50 $7.60 $7.70
Slide 16: Second Quarter 2018
2 nd Quarter 2018 2Q2018 1Q2018 2Q2017 EPS $0.18 $0.12 $0.12 “Adjusted” EPS $0.17 $0.12 $0.12 Earnings per Share 2Q2018 1Q2018 2Q2017 ROAA 0.98% 0.69% 0.73% “Adjusted” ROAA 0.95% 0.69% 0.70% Return on Average Assets Return on Average Equity 2Q2018 1Q2018 2Q2017 ROAE 8.63% 5.82% 6.05% “Adjusted” ROAE
Slide 17: June 30, 2018 Balance Sheet Changes
June 30, 2018 Balance Sheet Changes June 30, 2018 December 31, 2017 Change in $ Change in % Total Loans $1.67 billion $1.63 billion $38.2 million 4.7% annualized growth Total Deposits $1.55 billion $1.51 billion $45.7 million 6.1% annualized growth Balance Sheet Growth June 30, 2018 December 31, 201
Slide 18: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non - GAAP to GAAP Financial Measures Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2018 2018 2017 2018 2017 (Dollars in thousands, except per share data) Net Income: Net income, as presented $5,138 $3,519 $3,756 $8,657 $8,859 Merger related expe
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