Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q1 2026 Earnings Presentation
37 slides from Western New England Bancorp's earnings presentation, Apr 28, 2026
Slide 1: Investor Presentation 1st Quarter 2026
Local banking is better than ever. INVESTOR PRESENTATION 1ST QUARTER 2026
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: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 3 severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business ; declines in real estate values in the Company’s market area, which may adversely affect our loan production ; decreases in the va
Slide 4: 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 5: 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 Lending Officer Kevin C . O’Connor, Executive Vice President & Chief Operating Officer Joh
Slide 6: 1Q2026 Quarterly Earnings
1Q2026 QUARTERLY EARNINGS 6 1Q2025 2Q2025 (2) 3Q2025 4Q2025 1Q2026 (1) ($ in thousands, except EPS) $ 15,534 $ 17,642 $ 18,092 $ 18,829 $ 18,825 Net interest income 142 (615) 1,293 (485) 75 Provision for (reversal of) credit losses 2,759 3,411 3,173 3,173 3,433 Non - interest income 15,184 15,656 15
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $15.5 $17.6 $18.1 $18.8 $18.8 2.49% 2.80% 2.81% 2.89% 2.95% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 $24.0 Net interest income ($) Net interest margin (%) ($ in millions) (1) See slides 34 - 36 for t
Slide 8: Total Loans
TOTAL LOANS 8 Residential Real Estate 33% Home Equity Lines and Loans 6% CRE - Owner Occupied 9% CRE - Non - Owner Occupied 41% C&I 11% Total Loans $2.2 Billion HIGHLIGHTS • Total loans increased $ 17 . 2 million, or 0 . 8 % , from $ 2 . 2 billion, or 79 . 7 % of total assets, at December 31 , 2025
Slide 9: Total Loans
TOTAL LOANS 9 $2,073 $2,081 $2,112 $2,167 $2,187 4.91% 5.08% 5.04% 5.06% 5.11% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 5.15% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $2,000 $2,025 $2,050 $2,075 $2,100 $2,125 $2,150 $2,175 $2,200 AVERAGE LOANS OUTSTANDING ($ in millions) Average Loans Outstanding Average
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 10 $216 $235 $219 $222 $228 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $205 $210 $215 $220 $225 $230 $235 $240 Total C&I loans increased $ 6 . 0 million, or 2 . 7 % , from $ 221 . 8 million, or 10 . 2 % of total loans, at December 31 , 2025 to $ 227 . 8 million, or 10 . 4 % o
Slide 11: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 11 (1) % of total loans as of March 31, 2026. Other , 2.9% Manufacturing , 2.6% Merchant Wholesalers , 1.7% Educational Services , 1.1% Construction, Sand and Gravel Mining , 0.7% Specialty Trade Contractors , 0.5% Healthcare , 0.4% Heavy and Civil Engineering C
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 12 $185 $181 $194 $189 $183 $887 $865 $884 $910 $918 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $- $200 $400 $600 $800 $1,000 $1,200 Owner Non-Owner At March 31 , 2026 , total CRE loans increased $ 2 . 1 million, or 0 . 2 % , to $ 1 . 1 billion from December 31 , 2025 . ($ in mi
Slide 13: Commercial Real Estate Loans (CRE) – March 31, 2026
COMMERCIAL REAL ESTATE LOANS (CRE) – MARCH 31, 2026 13 (1) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC ma y d iffer from the Call Report. At March 31 , 2026 , the commercial real estate portfolio totaled $ 1 . 1 billion and re
Slide 14: CRE Concentration
CRE CONCENTRATION 14 (1) Westfield Bank Total Risk - Based Capital as of March 31, 2026. $887 $865 $884 $910 $918 328% 319% 322% 329% 330% 300% 305% 310% 315% 320% 325% 330% 335% 340% 345% 350% $830 $840 $850 $860 $870 $880 $890 $900 $910 $920 $930 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 Non - Owner Occu
Slide 15: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED – MARCH 31, 2026 15 At March 31 , 2026 , the non - owner occupied CRE portfolio totaled $ 918 . 2 million, or 329 . 8 % of total RBC . Of the $ 918 . 2 million, $ 492 . 2 million, or 53 . 6 % of non - owner occupied CRE, was concentrated in Massachusetts
Slide 16: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS – MARCH 31, 2026 16 (1) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC may dif fer from the Call Report. % of Total Bank RBC (1) % of Office Portfolio Total Owner Occupied Non - Owner Occ
Slide 17: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS 17 $784 $805 $828 $857 $866 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $740 $760 $780 $800 $820 $840 $860 $880 At March 31 , 2026 , residential real estate loans, including home equity loans, increased $ 9 . 6 million, or 1 . 1 % , from $ 856 . 9 million, or 39 . 3 % of total l
Slide 18: Investment Portfolio
INVESTMENT PORTFOLIO 18 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio totaled $ 358 . 6 million and represented 13 . 0 % of total assets at March 31 , 2026 and $ 364 . 6 million, or 13 . 3 % of total assets, at December 31 , 2025 . The HTM unrealized losses
Slide 19: Total Deposits - March 31, 2026
TOTAL DEPOSITS - MARCH 31, 2026 19 Time Deposits 30% Money Market 31% Demand (Non - interest bearing) 25% Savings 8% Interest - bearing checking 6% Total Deposits $2.4 Billion HIGHLIGHTS • Average cost of total deposits decreased one basis point from 1 . 73 % for the three months ended December 31 ,
Slide 20: Total Deposits
TOTAL DEPOSITS 20 $1,629 $1,640 $1,657 $1,671 $1,672 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $1,600 $1,610 $1,620 $1,630 $1,640 $1,650 $1,660 $1,670 $1,680 PERIOD - END CORE DEPOSITS At March 31 , 2026 , total deposits of $ 2 . 4 billion increased $ 20 . 9 million, or 0 . 9 % , from December 31 , 2025 .
Slide 21: Average Total Deposits
AVERAGE TOTAL DEPOSITS 21 $1,732 $1,732 $1,744 $1,761 $1,759 $570 $573 $582 $596 $589 2.00% 1.82% 1.77% 1.73% 1.72% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 $2,500 AVERAGE DEPOSITS AND RATES Interest-bearin
Slide 22: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 22 $1,599 $1,614 $1,633 $1,671 $1,656 1.08% 1.01% 1.04% 1.02% 1.02% 0.96% 0.98% 1.00% 1.02% 1.04% 1.06% 1.08% 1.10% $1,500 $1,520 $1,540 $1,560 $1,580 $1,600 $1,620 $1,640 $1,660 $1,680 $1,700 AVERAGE CORE DEPOSITS AND RATES During the three months ended March 31 , 202
Slide 23: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 23 89.3% 89.8% 90.7% 92.5% 92.4% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 87% 88% 89% 90% 91% 92% 93% Loan to Deposit Ratio 70% 70% 71% 71% 70% 30% 30% 30% 29% 30% 25% 26% 25% 25% 25% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 0% 20% 40% 60% 80% Deposits as a Percent of Total Deposits De
Slide 24: Wholesale Funding
WHOLESALE FUNDING 24 $122 $122 $121 $106 $117 5.04% 5.04% 5.03% 4.96% 4.75% 4.55% 4.65% 4.75% 4.85% 4.95% 5.05% 5.15% 1Q2025 2Q2025 3Q2025 4Q2025 1Q2026 $25 $45 $65 $85 $105 $125 $145 $165 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) ($ in millions) Wholesale Funding Average Cost of
Slide 25: Liquidity Position
25 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At March 31 , 2026 , the Company had available borrowing capacity with the FHLB of $ 485 . 1 million, including its overnight Ideal Wa
Slide 26: Deposit Market Share in Hampden County, MA
________ Source: SNL Financial as of June 30, 2025 Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Three Westfield branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside of
Slide 27: Asset Quality Indicators
ASSET QUALITY INDICATORS 27 1Q2026 4Q2025 3Q2025 2Q2025 1Q2025 ($ in thousands) $3,157 $3,145 $4,548 $3,853 $4,486 Total delinquent loans 0.14% 0.14% 0.21% 0.18% 0.22% Delinquent loans as a % of total loans $4,681 $5,162 $5,649 $5,752 $6,014 Nonaccrual loans 0.21% 0.24% 0.27% 0.27% 0.29% Nonaccrual
Slide 28: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (“ACL”) 28 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 93 % at March 31
Slide 29: Asset Quality
ASSET QUALITY 29 1Q2026 4Q2025 3Q2025 2Q2025 1Q2025 $37.6 $17.2 $13.0 $1.5 $10.7 Special Mention 1.7% 0.8% 0.6% 0.1% 0.5% % of Total Loans $21.1 $22.5 $27.0 $24.6 $25.6 Substandard 1.0% 1.0% 1.3% 1.2% 1.2% % of Total Loans $58.7 $39.7 $40.0 $26.1 $36.3 Total Criticized Loans 2.7% 1.8% 1.9% 1.2% 1.7%
Slide 30: Asset Quality
ASSET QUALITY 30 ($ in thousands) At March 31 , 2026 , of the loans designated special mention, $ 14 . 7 million, or 39 . 1 % are commercial and industrial loans and $ 22 . 9 million, or 60 . 9 % are commercial real estate loans . Of the loans categorized as substandard, $ 7 . 3 million, or 34 . 4 %
Slide 31: Capital Management
CAPITAL MANAGEMENT 31 We are well - capitalized with excess capital. December 31, 2025 March 31, 2026 Consolidated 9.13% 9.16% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.21% 12.17% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.21% 12.17% Tier 1 Capital (to Risk Weighted Assets
Slide 32: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 32 # of Shares Year 2,758,051 2021 720,975 2022 649,744 2023 934,282 2024 599,853 2025 186,000 1Q - 2026 Annual Dividends per Share Year $0.20 2021 $0.24 2022 $0.28 2023 $0.28 2024 $0.28 2025 $0.07 1Q - 2026 SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK On April 22
Slide 33: Capital Management
CAPITAL MANAGEMENT 33 $11.44 $11.68 $11.89 $12.16 $12.26 $10.78 $11.01 $11.22 $11.49 $11.59 BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE (non - GAAP) (1) Book Value Tangible Book Value (non-GAAP) The Company’s book value per share was $12.26 at March 31, 2026, compared to $12.16 at December 31
Slide 34: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 34 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding i ts results of operations and financial condition. Because not all
Slide 35: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 35 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Net interest income (no tax adjustment) 18,825$ 18,829$ 18,092$ 17,642$ 15,534$ Tax equivalent adjustment 119 125 120 121 121 Net interest income (tax-equivalent basis) 18,944$ 18,954$ 18,212$ 17,763$ 1
Slide 36: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 36 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Total Bank Equity (GAAP) 253,406$ 252,553$ 248,575$ 244,460$ 242,981$ Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposit intangible, net of associated deferred (696
Slide 37: 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 , First Vice President and Investor Relations Officer 37 141 Elm Street, Westfield, MA
Western New England Bancorp — Q1 2026 Earnings Presentation on 6ix