Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q2 2026 Earnings Presentation
38 slides from Western New England Bancorp's earnings presentation, Jul 28, 2026
Slide 1: Investor Presentation 2nd Quarter 2026
Western New England Bancorp INVESTOR PRESENTATION 2ND QUARTER 2026 than ever.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This Investor Presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company's financial condition, liquidity, r
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS * the risk that we may not be successful in the implementation of our business strategy; * severe weather, natural disasters, pandemics, acts of war or terrorism and other external events which could significantly impact our business: * declines in real estate values in th
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 Fo
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 John E.
Slide 6: 2Q2026 Quarterly Earnings
2Q2026 QUARTERLY EARNINGS ($ in thousands, except EPS) 22026 1Q2026() 4Q2025 3Q2025 2Q2025(2) Net interest income $ 19,321$ 18825 $ 18,829 $ 18,092 $ 17,642 Provision for (reversal of) credit losses 1,557 75 (485) 1,293 (615) Non-interest income 3,394 3,433 3,173 3,173 3,411 Non-interest expense 16,
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 3.08% HIGHLIGHTS $24.0 500% Net interest income, our primary driver of .00% 3.00% revenues, increased $1.7 million, or 9.5%, from $17.6 million for the three months ended June 30, $228. 2.95% 2025 to $19.3 million for the three months ended June 30, 2026 a
Slide 8: Total Loans
TOTAL LOANS” HIGHLIGHTS Total Loans + Total loans increased $9.9 million, or 0.5%, from $2.2 billion, or $2.2 Billion 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 80.2% of total assets, at June 30, 2026. Consumer cal 0% + Commercial and industrial loans (“C&l”) increased $12.5 mil
Slide 9: Total Loans
TOTAL LOANS $2,225 $2,200 $2,175 $2,150 $2,125 $2,100 $2,075 $2,050 $2,025 $2,000 The average loan yield, on a tax-equivalent basis, a non-GAAP financial measure ‘"), increased six basis points from 5.08% for the three months ended June 30, 2025 to 5.14% for the three months ended June 30, 2026, whi
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS $240 3235 $235 : $234 $230 $228 $225 $222 $220 $219 $215 $210 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Total C&I loans increased $12.5 million, or 5.6%, from $221.8 million, or 10.2% of total loans, at December 31, 2025 to $234.3 million, or 10.7% of total loans, at June 30
Slide 11: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO” Heavy and Civil Engineering HOTELS, 0.1% Construction, 0.6% _ Auto Sales/Service, 0.3% Healthcare, 0.4% = — Other, 2.5% Specialty Trade_- Contractors, 0.5% Construction, Sand and _/ Gravel Mining, 0.7% _____Manufacturing, 2.5% Educational Services, / 1.2% Merchant
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS $1,200 $1,000 $865 $884 $918 $883 $800 $600 $400 $200 $181 $194 $189 $183 $182 . 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Owner = Non-Owner At June 30, 2026, total CRE loans decreased $33.7 million, or 3.1%, to $1.1 billion from December 31, 2025. Non-owner occupied CRE loans
Slide 13: Commercial Real Estate Loans (CRE) — June 30, 2026
COMMERCIAL REAL ESTATE LOANS (CRE) — JUNE 30, 2026 % of Total Non-Owner Owner f CRE Based Proj Occupied Occupied Total Portfoli Cay (RBC) (Sin thousands) Office $169,471 $ 20,946 $ 190,417 18.0% 68.5% Apartment 170,511 4 170,511 16.0% 61.3% Industrial 109,511 40,149 149,660 14.0% 53.8% Retail 111,31
Slide 14: CRE Concentration
CRE CONCENTRATION Non-Owner Occupied Commercial Real Estate as a Percent of Total Risk-Based Capital 220 ($in millions) $920 $918 $910 10 $900 $890 $884 $880 $870 319% $860 318% $850 $840 $830 292025 3Q2025 4Q2025 192026 292026 CRE Non-Owner Occupied ——CRE Non-Owner Occupied as a percentage of Risk-
Slide 15: Commercial Real Estate — Non-Owner Occupied — June 30, 2026
COMMERCIAL REAL ESTATE — NON-OWNER OCCUPIED — JUNE 30, 2026 Weighted Average Loan to % of Total Prope Total_|_RBC(? (Sin thousands) Office $63,054 $57,296 $38,023 $11,098 - $169,741 61.0% 61.8% Apartment 106,140 43,169 - en (202 - 170,511 61.3% 51.1% Retail 52892/ 25,432 13,647 5.994) 13,354 = 111,3
Slide 16: Commercial Real Estate — Office Buildings — June 30, 2026
COMMERCIAL REAL ESTATE — OFFICE BUILDINGS — JUNE 30, 2026 As of June 30, 2026, the office portfolio totaled $190.4 million, or 68.5% of total RBC. Non-owner occupied office totaled $169.5 million, or 61.0% of total RBC, and owner-occupied office totaled $20.9 million, or 7.5% of total % of Total Ban
Slide 17: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS $900 $880 $860 $840 $820 $800 $780 $760 $805 202025 $828 302025 $857 4Q2025 $866 102026 $889 202026 Residential Real Estate Loans As of June 30, 2026 Home Equity 16% Residential Real Estate 84% At June 30, 2026, residential real estate loans, including home equity loans
Slide 18: Investment Portfolio
INVESTMENT PORTFOLIO The table below displays the investment portfolio as of June 30, 2026. % of Net of Tax Investment Net of Tax Loss asa Portfolio Unrealized | Loss asa% Amortized Fair (Amortized of Amortized Cost Basis Value_| Cost Basis) Cost Basis HTM $181.7 $151.2 48.4% ($22.2) (12.2%) Duratio
Slide 19: Total Deposits - June 30, 2026
TOTAL DEPOSITS - JUNE 30, 2026 Total Deposits HISHEIGHIS 2.4 Billi s mon + Average cost of total deposits increased two basis Savings — interest-bearing points from 1.72% for the three months ended March 8% checking 31, 2026 to 1.74% for the three months ended June 30, 6% 2026. Demand_ + At June 30,
Slide 20: Total Deposits
TOTAL DEPOSITS $1,680 $1,670 $1,660 $1,650 $1,640 $1,630 $1,620 PERIOD-END CORE DEPOSITS $1,671 $1,672 $1,666 $1,657 $1,640 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 $740 $730 $720 $710 $700 $690 $680 $670 $660 PERIOD-END TIME DEPOSITS $736 $710 $693 $690 $690 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Total depos
Slide 21: Average Total Deposits
AVERAGE TOTAL DEPOSITS $2,500 $2,300 $2,100 $1,900 $1,700 $1,500 $1,300 $1,100 $900 $700 $500 AVERAGE DEPOSITS AND RATES 9 sal ATT 1.73% 1.72% 1.74% $1,732 $1,744 $1,761 $1,759 $1,792 $573 $582 $596 $589 $593 = =a = = = 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 Interest-bearing deposits === Non-interest-be
Slide 22: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS AVERAGE CORE DEPOSITS AND RATES AVERAGE TIME DEPOSITS AND RATES $1,700 1.05% $800 4.25% $1,680 4% $1,671 1.04% 3.69% 5 prog $723 3.25% $1,640 1.03% $700 $691 $693 g6g7 ggg0 $1,620 $1,614 % ee 1.03% 2.75% $1,600 _ 1.02% 2.25% $1,580 1.02% 1.75% 1.04 9 $600 , $1,560 1.01
Slide 23: Loan-to-Deposit Ratio
LOAN-TO-DEPOSIT RATIO Poanita|peposit Rano Deposits as a Percent of Total Deposits 93% 92.5% io -_ 202026 mm 3194 ——— 92% 7 69% 02% 91.4% 25% 192026 a 30% — 91% 90.7% ° 5 25% veal 402025 29% 5 90% 89.8% 71% , 25% 90% 302025 I 30% sim, 89% ° 26% 89% 202025 IT 509 a 30% sa 88% 202025 3Q2025 4Q2025 102
Slide 24: Wholesale Funding
WHOLESALE FUNDING $165 $145 $125 $105 $85 $65 $45 $25 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (S in millions) 4.75% ° $63 2Q2025 3Q2025 4Q2025 1Q2026 2Q2026 5.20% 5.10% 5.00% 4.90% 4.80% 4.70% 4.60% 4.50% Wholesale Funding 9——Average Cost of Funds 2 well-capitalized as defined
Slide 25: Liquidity
LIQUIDITY Internal Sources: Cash and cash equivalents $37.7 Unpledged securities $165.6 Excess pledged securities ay External Sources: FHLB $634.3 FRB Discount Window $392.7 Other Unsecured: Correspondent banks $25.0 Total Liquidity $1,256.7 Uninsured deposits Liquidity/Total $86.8 $86.8 $377 $165.6
Slide 26: Deposit Market Share in Hampden County, MA
DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA Total Deposit Deposits in Rank 2025 _ Parent Company Name Market ($000) Market Share _ # of Branches AD PeoplesBank 2,418,846 17.13% ae 2 TD Bank 2,266,902 16.05% 14 4 Bank of America 1,572,220 11.13% 8 5 Berkshire Bank 1,151,420 8.15% ai 6 M&T Bank 1,060,5
Slide 27: Asset Quality Indicators
ASSET QUALITY INDICATORS 2Q2025 _ 3Q2025 42025 1Q2026 2Q2026 ($ in thousands) Total delinquent loans $3,853 $4,548 $3,145 $3,157 $4,658 Delinquent loans as a % of total loans 0.18% 0.21% 0.14% 0.14% 0.21% Nonaccrual loans $5,752 $5,649 $5,162 $4,681 $7,759 Nonaccrual loans as a % of total loans 0.27
Slide 28: Asset Quality Indicators
ASSET QUALITY INDICATORS 2Q2025 3Q2025___- 4Q2025 102026 2Q2026 ($ in thousands) Allowance for credit losses % of total loans 0.94% 0.96% 0.93% 0.93% 0.92% Allowance for credit losses % of nonaccrual loans 343% 364% 393% 437% 260.2% Net charge-offs/(recoveries) ($585) $43 $41 $55 $1,789 Net charge-o
Slide 29: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (“ACL”) June 30, 2026 December 31, 2025 Total Loans Total Loans Cal $ 2,530 $ 234,269 1.08% $ 2,245 $ 221,790 1.01% CRE 13,016 1,065,350 1.22% 13,718 1,099,063 1.25% Residential) 4,520 888,617 0.51% 4,186 856,871 0.49% Consumer 119 2,338. 5.09% 148 2,929 5.05% Unallocated
Slide 30: Asset Quality
ASSET QUALITY 2Q2025 3Q2025 4Q2025 |Q2026 2Q2026 Special Mention $1.5 $13.0 $17.2 $37.6 $40.3 % of Total Loans 0.1% 0.6% 0.8% 1.7% 1.8% Substandard $24.6 $27.0 $22.5 $21.1 $23.6 % of Total Loans 1.2% 1.3% 1.0% 1.0% 1.1% Total Cr ized Loans $26.1 $40.0 $39.7 $58.7 $63.9 ‘% of Total Loans 1.2% 1.9% 1.
Slide 31: Asset Quality
ASSET QUALITY $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- (Sin thousands) Total Criticized Loans $22,463 $5,901 $10,532 Special Mention Substandard Residential Commercial Real Estate Loans = Commercial and Industrial Loans At June 30, 2026, special mention loans totaled
Slide 32: Capital Management
CAPITAL MANAGEMENT We are well-capitalized with excess capital. Consolidatec Tier 1 Leverage Ratio (to Adjusted Average Assets) Common Equity Tier 1 Capital (to Risk Weighted Assets) Tier 1 Capital (to Risk Weighted Assets) Total Capital (to Risk Weighted Assets) Westfield Bank Tier 1 Leverage Ratio
Slide 33: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK Year # of Shares Year Annual 2021 2,758,051 2021 2022 720,975 2022 2023 649,744 2023 2024 934,282 2024 2025 599,853 2025 1Q-2026 186,000 1Q-2026 $0.07 2Q-2026 195,000 2Q-2026 $0.07 On April 22, 2025, the Board of Directo
Slide 34: Capital Management
CAPITAL MANAGEMENT BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE (non-GAAP) $12.16 $12.26 $12.39 $11.89 $11.68 $11.72 $11.49 $11.59 $11.22 $11.01 | Sa) Ja) Sa) 16 6 ggg” ane sv yao 2 Book Value = Tangible Book Value (non-GAAP) The Company's book value per share was $12.39 at June 30, 2026, comp
Slide 35: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION 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 its results of operations and financial condition. Because not all companies
Slide 36: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 6/30/2026 _3/31/2026 12/31/2025 9/30/2025 _ 6/30/2025 (Dollars in thousands) Net interest income (no tax adjustment) $ 19321 $ 18825 $ 18829 $ 18092 $ 17,642 Tax equivalent adjustment 124 119 25 120 121 Net interest income (tax-equivale
Slide 37: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 6/30/2026 3/31/2026 _ 12/31/2025 9/30/2025 6/30/2025 (Doilarsin thousands) Total Bank Equity (GAAP. $ 253,495 $ 253,406 $ 252,553 $ 248,575 $244,460 Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposi
Slide 38: Westfield Bank
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” 141 Elm Street, Westfield, MA 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
Western New England Bancorp — Q2 2026 Earnings Presentation on 6ix