Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — 14th Annual KBW Community Bank Investor Conference 2013
30 slides from Western New England Bancorp's conference presentation, Jul 30, 2013
Slide 1: Westfield Financial, Inc. 14th Annual KBW Community Bank Investor Conference
Slide: 1 Westfield Financial, Inc.14th Annual KBW Community Bank Investor Conference July 30 – 31, 2013
Slide 2: Forward-looking statements
Slide: 2 Forward – looking statements Today’s presentation may contain “forward-looking statements” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not li
Slide 3: Overview
Slide: 3 Overview A bank holding company headquartered in Westfield, MA with $1.3 billion in assets, 11 branches throughout Hampden County in western Massachusetts and a new banking center in Granby, CTStrong lending culture and historical focus on commercial business lending;Key differentiator from
Slide 4: Strategy
Slide: 4 Strategy Our markets are poised for significant recovery as the economy improves.Large banks are not focused on small and mid-sized consumers and businesses.Grow our business by focusing on our strengths, and leveraging our capital:continue attracting top bankers and targeting high growth a
Slide 5: Total Loans
Slide: 5 $ in millions Total Loans
Slide 6: Experienced Commercial Lending Team
Slide: 6 Experienced Commercial Lending Team EXPERIENCED COMMERCIAL LENDING TEAM Years Lending Years with Westfield Bank Prior Experience James Hagan President and CEO 29 19 Fleet Bank Allen Miles EVP and Senior Lender 25 15 Westbank, Bank of New England Dennis Keefe 34 2 Berkshire Bank, Fleet Bank
Slide 7: Diversified Loan Portfolio
Slide: 7 Diversified Loan Portfolio As of June 30, 2013 $ in millions
Slide 8: Commercial Loan Portfolio By Market Segment
Slide: 8 As of June 30, 2013 $ in millions Commercial Loan Portfolio By Market Segment
Slide 9: Granularity Of Commercial Loan Relationships
Slide: 9 As of June 30, 2012 $ in millions Granularity Of Commercial Loan Relationships
Slide 10: Consistently Strong Credit Quality
Slide: 10 Consistently Strong Credit Quality Jun 30, 2013 Dec 31, 2012 Allowance for loan losses as a 1.23% 1.31%percentage of total loans Nonperforming loans as a 0.54% 0.51%percentage of total loans Nonperforming assets as a 0.25% 0.31%percentage of total assets
Slide 11: Commercial Business Lending: C&I Loans as % of Total Loans
Slide: 11 (1) As of 3/31/ 2013 or the most recent quarter for which regulatory filings are available; excludes NBN which has unique business planSource: Company SEC filings and call reports Commercial Business Lending C&I Loans as % of Total Loans All public banks in New England between $500 million
Slide 12: Price to Tangible Book Value
Slide: 12 Price to Tangible Book Value (1) As of 3/31/2013 or the most recent quarter for which regulatory filings are available; excludes NBN which has unique business planSource: Company SEC filings and call reports; stock prices as of 7/25/13 . . . But our valuation does not reflect our strong co
Slide 13: Branch Footprint
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Slide 14: Total Deposits
Slide: 14 $ in millions Total Deposits
Slide 15: Our Current Deposit Market, Hampden County
Slide: 15 $ in thousandsSource: SNL Financial Our Current Deposit Market Hampden County, Massachusetts By amount of deposits Our market places value on locally owned banks as demonstrated by deposit growth, as compared to out of state owned banks 2012 June 2012 One Year Five Years Ten Years Branches
Slide 16: Focus on Core Deposits
Slide: 16 Focus on Core Deposits Total Deposits Grew $176 million (29.18%)Non-Maturity Deposits Grew $206 million (82.73%) June 30, 2013 December 31, 2007
Slide 17: Our Current Deposit Market: Cities & Towns With Branches
Slide: 17 OUR CURRENT DEPOSITMARKET CITIES & TOWNS WHERE WE HAVE BRANCHES Deposits Market Bank Name Branches 06/30/2012 Share 1 TD Bank National Association 13 1,045,617 18.26% 2 United Bank 11 796,686 13.91% 3Westfield Bank 11 748,216 13.07% 4 PeoplesBank 10 713,799 12.46% 5Bank of America, NA 13 6
Slide 18: Granby Banking Center
Slide: 18 Granby Banking Center Full service banking center in Farmington Valley area.Commercial lending reach into Bloomfield, East Granby, Windsor, greater Hartford. Targeting areas with more affluent customers, including the Farmington Valley, which offers a strong residential lending opportunity
Slide 19: Granby Target Areas
Slide: 19 Granby Target areas The map shows the market 3, 5, and 10 miles from the Granby banking center
Slide 20: Leveraging Technology
Slide: 20 Leveraging Technology We’re leveraging technology to fulfill our customers needs for alternative ways to bank.Mobile App for iPhone, iPad, & Android introduced in 2012 Customers can also view account balances and transaction history, transfer money between accounts and pay bills all from t
Slide 21: Stable and Consistent Net Interest Margin
Slide: 21 Stable and Consistent Net Interest Margin Fully Taxable Equivalent Basis
Slide 22: Conservative Securities Portfolio
Slide: 22 Conservative Securities Portfolio As of June 30, 2013 $ in millions
Slide 23: Strong Underlying Credit in Securities Portfolio
Slide: 23 As of June 30, 2013 Strong Underlying Credit in Securities Portfolio
Slide 24: Capital Management: A Combination of Four Initiatives
Slide: 24 Capital Management A Combination of Four Initiatives Fund organic growth.Repurchase shares of our common stock.Pay dividends to shareholders.Finance acquisitions. We try to effectively balance leveraging our capital to earn a return on our shareholders’ investment versus returning the capi
Slide 25: Effectively Leveraging Capital
Slide: 25 Effectively Leveraging Capital Shareholders’ equity to assets
Slide 26: Capital Management: Cumulative Return of Capital
Slide: 26 Capital Management Cumulative Return of Capital Since Second Step Conversion On May 1, 2013 the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,092,000 shares, or 5% of its outstanding common stock. This repurchase program was completed
Slide 27: Effective Price Execution of Repurchases
Slide: 27 Effective Price Execution of Repurchases Shares Repurchased by Quarter and P/TBV of Repurchases The lower the price, the more active WFD has been in its repurchase activity. By repurchasing significant numbers of shares below TBV the bank has BOTH right-sized its capital level while ALSO i
Slide 28: Dividend History
Slide: 28 DIVIDEND HISTORY $0.00 $0.20 $0.40 $0.60 2008 2009 2010 2011 2012 Jan - Jun 2013 $0.20 $0.20 $0.22 $0.24 $0.24 $0.12 $0.40 $0.30 $0.30 $0.30 $0.20 $0.05 Regular dividends Special dividends 2008 2009 2010 2011 2012 Jan - Jun 2013 Regular dividends $0.20 $0.20 $0.22 $0.24 $0.24 $0.12 Dividen
Slide 29: Diluted Earnings Per Share
Slide: 29 Diluted Earnings Per Share
Slide 30: Total Return Performance
Slide: 30 Total Return Performance * Three Year Total Return Versus SNL Thrift Index * Source: SNL Financial, data as of close of business July 23, 2013.
Westfield Financial — 14th Annual KBW Community Bank Investor Conference 2013 on 6ix