Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Investor Presentation (June 2020)
28 slides from Western New England Bancorp's investor presentation, Jun 11, 2020
Slide 1: Local banking is better than ever. Investor Presentation
Local banking is better than ever. INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 2 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 report
Slide 3: 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
Slide 4: 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 Lender Officer Kevin C . O’Connor, Executive Vice President & Chief Banking Officer Leo R
Slide 5: Connecticut Strategy
CONNECTICUT STRATEGY Construction is well underway at the Bank’s 24 th and 25 th locations, in downtown West Hartford and Bloomfield, Connecticut . The new locations build off the success of the Granby and Enfield branches, expand the bank’s footprint further into Connecticut, and provide new growth
Slide 6: Connecticut Strategy
CONNECTICUT STRATEGY West Hartford will be a Financial Services Center and serve as the bank’s regional hub in Connecticut . In addition to a full - service branch, it will include a suite of offices to support Residential Lending, Commercial Lending, Business & Government Deposit Services, and West
Slide 7: Highlights
HIGHLIGHTS 7 Reported metrics: Net Income Income before provision and taxes Diluted earnings per share Dividends declared per share Book value per share Tangible book value per share Return on average assets Return on average equity Efficiency ratio Net interest margin, tax - equivalent Adjusted n e
Slide 8: COVID-Pandemic Response
COVID - 19 PANDEMIC RESPONSE 8 Employees Quickly mobilized non - branch employees to work remotely Promoted social distancing and stay - at - home orders by limiting workplace access. Branches were closed and we continue to service customers through our drive - up and by appointment only Enhanced an
Slide 9: Loan Mix – Commercial and Industrial Loans
LOAN MIX – COMMERCIAL AND INDUSTRIAL LOANS - $256.7 MILLION 9 Manufacturing , 3.8% Wholesale Trade , 3.2% Specialty Trade , 0.9% Educational Services , 0.8% Healthcare and Social Assistance, 0.7% Transportation and Warehouse, 0.7% Auto Sales , 0.4% Other , 3.7% % of total loans at March 31, 2020
Slide 10: Commercial and Industrial Loan Modifications
COMMERCIAL AND INDUSTRIAL LOAN MODIFICATIONS 10 Industry % of Total Loans Modified Balance* # of Modified Accounts % of Balance Modified Manufacturing 3.8% $2.7 million 18 3.9% Wholesale Trade 3.2 666 thousand 3 1.2 Specialty Trade 0.9 34 thousand 2 2.0 Educational Services 0.8 107 thousand 1 0.7 He
Slide 11: Loan Mix – Commercial Real Estate
LOAN MIX – COMMERCIAL REAL ESTATE $835.8 MILLION 11 Adult Care/Assisted Living , 2.0% Apartment , 9.7% Auto Sales , 2.1% Auto Service , 0.6% College/School , 1.6% Gas Station/Conv Store , 0.7% Hotel , 3.1% Industrial , 5.8% Mixed Use , 2.2% Office , 7.3% Other , 1.9% Residential non - owner , 2.2% R
Slide 12: Commercial Real Estate Loan Modifications
COMMERCIAL REAL ESTATE LOAN MODIFICATIONS 12 In response to the COVID - 19 pandemic, we have offered commercial loan customers principal and interest payment deferrals and modifications to interest only periods . At March 31 , 2020 , the commercial real estate portfolio totaled $ 835 . 8 million, or
Slide 13: Hotels - $55.1 Million, or 3.1% of Total Loans
HOTELS - $55.1 MILLION, OR 3.1% OF TOTAL LOANS 13 The hotel industry has been significantly impacted by the pandemic and the widespread travel restrictions . We continue to maintain close contact with our borrowers and monitor industry updates . We performed a review of the hotel portfolio and the i
Slide 14: Commercial Real Estate Construction $106 Million
COMMERCIAL REAL ESTATE CONSTRUCTION $106 MILLION 14 (1) Balances as of March 31, 2020 are included in the commercial real estate totals on slide 12. Construction and land portfolio distribution based on total loan commitments within the construction portfolio. Property Type % of Total Commitment % o
Slide 15: Residential and Consumer Modifications
RESIDENTIAL AND CONSUMER MODIFICATIONS 15 In response to COVID - 19, we have offered mortgage and consumer loan payment deferrals up to 90 days with no negative credit bureau reporting and have paused foreclosures and repossessions. Loan Type % of Total Loans Modified Balance* # of Loans Modified %
Slide 16: Small Business Administration – Payroll Protection Program
SMALL BUSINESS ADMINISTRATION – PAYROLL PROTECTION PROGRAM 16 We dedicated significant bank resources to the Payroll Protection Program (PPP) and obtained SBA funding approval for over $2 28 million as of June 4, 2020: PPP Loans Total Loan Amount # of Loans Average Balance Phase 1 – approved $185.0
Slide 17: Commercial Line of Credit Utilization
COMMERCIAL LINE OF CREDIT UTILIZATION 17 The table below breaks out the commercial line utilization since December 31, 2019. Balance 5/31/2020 4/30/2020 3/31/2020 2/29/2020 12/31/2019 Pass - rated $51.8 million $57.8 million $77.6 million $59.2 million $65.2 million Classified 23.4 million 24.2 mill
Slide 18: Asset Quality
ASSET QUALITY 18 We entered the pandemic with strong asset quality and we continue to work with our borrowers during these uncertain times. 3/31/2020 12/31/2019 3/31/2019 Total Delinquency $12.4 million $13.8 million $15.1 million Delinquency as a % of total loans 0.69% 0.78% 0.90% Non - performing
Slide 19: Low Interest Rate Environment: Liability Sensitive Balance Sheet
LOW INTEREST RATE ENVIRONMENT LIABILITY SENSITIVE BALANCE SHEET 19 The Federal Open Market Committee decreased the federal funds rate 150 basis points to near - zero at two emergency meetings in March 2020 within 13 days of each other, while also introducing various emergency lending programs to mak
Slide 20: Low Interest Rate Environment: Deposit Repricing
LOW INTEREST RATE ENVIRONMENT 20 $163 $222 $132 2.25 2.14 1.82 1.00 1.50 2.00 2.50 $50 $100 $150 $200 $250 3-Months 6-Months 9-Months Balance WAR Deposit Repricing Opportunities Total time deposit portfolio: $649 million, or 38% of total deposits • $514 million, or 79% repricing by 12/31/2020 • Aver
Slide 21: Deposit Market Share in Hampden County, MA
________ Source: SNL Financial as of June 30, 2019. Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Two Westf iel d branches are located in Hampshire County, MA and two Westfield branches are located in Hartford County, CT outside of
Slide 22: Low Interest Rate Environment: Wholesale Funding Repricing
LOW INTEREST RATE ENVIRONMENT 22 $25 $30 $55 1.51 2.20 1.92 0.25 0.75 1.25 1.75 2.25 $0 $25 $50 $75 3-Months 6-Months 9-Months Balance WAR Wholesale Funding Repricing Opportunities Product Balance Rate 3 - Months $25.0 1.51% 6 - Months 30.2 2.20 9 - Months 55.0 1.92 12 - Months 15.4 2.57 24 - Months
Slide 23: Capital Management
CAPITAL MANAGEMENT 23 We are well - capitalized with excess capital. Consolidated Ratio Well Capitalized Excess Consolidated Capital Leverage Ratio 10.13% 5.00% 5.13% $219.3 Common Equity Tier 1 Ratio 12.60% 6.50% 6.10% $219.3 Tier 1 Capital Ratio 12.60% 8.00% 4.60% $219.3 Total Capital Ratio 13.51%
Slide 24: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 24 Year # of Shares 2017 606,391 2018 2,189,276 2019 1,938,667 2020 1,009,731 Year Annualized Dividend per Share 2017 $0.12 2018 $0.16 2019 $0.20 2020 $0.20 Although we have historically paid quarterly dividends, payment of such dividends depends on a number of factors
Slide 25: Capital Management
CAPITAL MANAGEMENT 25 $8.88 $8.74 $8.35 $8.11 $8.27 $8.14 $7.78 $7.57 Book Value per Share Tangible Book Value per Share Book Value Tangible Book Value
Slide 26: Liquidity
LIQUIDITY 26 We have access to over $705.8 million of liquidity from multiple sources: Liquidity Source Availability Overnight Funds $12,000 FHLB 242,700 Federal Reserve 24,000 Unpledged Securities 164,800 Fed Fund Lines 65,000 Brokered Deposit Capacity 197,300 Total: $705,800 We have also establish
Slide 27: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 27 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 i ts financial condition. Because not all companies use the same cal
Slide 28: Westfield Bank: What Better Banking's All About
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , Vice President and Investor Relations Officer 28 141 Elm Street, Westfield, MA
Western New England Bancorp — Investor Presentation (June 2020) on 6ix