Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q3 2025 Earnings Presentation
35 slides from Western New England Bancorp's earnings presentation, Oct 28, 2025
Slide 1: Investor Presentation 3rd Quarter 2025
Local banking is better than ever. INVESTOR PRESENTATION 3RD QUARTER 2025
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 failure or circumvention of our internal controls or procedures ; changes in the securities markets which affect investment management revenues ; increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments ; the soundness of ot
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: 3Q2025 Quarterly Earnings
3Q2025 QUARTERLY EARNINGS 6 3Q2024 4Q2024 (2) 1Q2025 2Q2025 (1) 3Q2025 ($ in thousands, except EPS) $ 14,728 $ 15,273 $ 15,534 $ 17,642 $ 18,092 Net interest income 941 (762) 142 (615) 1,293 Provision for (reversal of) credit losses 3,141 3,254 2,759 3,411 3,173 Non - interest income 14,406 14,926 1
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $14.7 $15.3 $15.5 $17.6 $18.1 2.40% 2.41% 2.49% 2.80% 2.81% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Net interest income ($) Net interest margin (%) ($ in millions) (
Slide 8: Total Loans
TOTAL LOANS 8 Residential Real Estate 33% Home Equity Lines and Loans 6% CRE - Owner Occupied 10% CRE - Non - Owner Occupied 41% C&I 10% Total Loans $2.1 Billion HIGHLIGHTS • Total loans increased $ 60 . 8 million, or 2 . 9 % , from December 31 , 2024 to September 30 , 2025 ; • Commercial and indust
Slide 9: Total Loans
TOTAL LOANS 9 $2,039 $2,063 $2,073 $2,081 $2,112 4.93% 4.88% 4.91% 5.08% 5.04% 4.75% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $2,000 $2,025 $2,050 $2,075 $2,100 $2,125 AVERAGE LOANS OUTSTANDING Average Loans Outstanding Average Loan Yield, Tax-Equivalent Basis ($
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 10 $210 $212 $216 $235 $219 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $195 $200 $205 $210 $215 $220 $225 $230 $235 $240 Total commercial and industrial (“C&I”) loans increased $ 7 . 3 million, or 3 . 4 % , to $ 219 . 0 million at September 30 , 2025 , from $ 211 . 7 million
Slide 11: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 11 (1) % of total loans as of September 30, 2025. Other , 2.8% Manufacturing , 2.7% Merchant Wholesalers , 1.5% Educational Services , 1.0% Construction Sand and Gravel Mining , 0.8% Specialty Trade Contractors , 0.5% Healthcare , 0.4% Heavy and Civil Engineerin
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 12 $1,083 $1,076 $1,073 $1,046 $1,078 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 At September 30 , 2025 , total commercial real estate (“CRE”) loans increased $ 2 . 4 million, or 0 . 2 % , to $ 1 . 1 bi
Slide 13: Commercial Real Estate Loans (CRE)
COMMERCIAL REAL ESTATE LOANS (CRE) (1) 13 ($ in thousands) (1) As of September 30, 2025. (2) 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 September 30 , 2025 , the commercial real estate po
Slide 14: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 14 At September 30 , 2025 , the non - owner occupied CRE portfolio totaled $ 877 . 9 million, or 319 . 8 % of total RBC . Of the $ 877 . 9 million, $ 453 . 9 million, or 51 . 7 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 27
Slide 15: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 15 ($ in thousands) (1) As of September 30, 2025. (2) 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 (2) % of Office Portfolio To
Slide 16: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS (1) 16 $749 $776 $784 $805 $828 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $700 $720 $740 $760 $780 $800 $820 $840 At September 30 , 2025 , residential real estate loans, including home equity loans, increased $ 52 . 3 million, or 6 . 7 % , from $ 775 . 7 million at December 31
Slide 17: Investment Portfolio
INVESTMENT PORTFOLIO 17 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio totaled $ 372 . 7 million and represented 13 . 6 % of total assets at September 30 , 2025 and $ 365 . 7 million, or 13 . 8 % of total assets, at December 31 , 2024 . The HTM unrealized lo
Slide 18: Total Deposits
TOTAL DEPOSITS 18 ($ in millions) (1) As of September 30, 2025. Time Deposits 29% Money Market 30% Demand (Non - interest bearing) 25% Savings 8% Interest - bearing 8% Total Deposits $2.3 Billion HIGHLIGHTS • Average cost of total deposits of 1.77%, decreased 5 basis points from June 30, 2025 to Sep
Slide 19: Total Deposits
TOTAL DEPOSITS 19 $1,524 $1,559 $1,629 $1,640 $1,657 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 PERIOD - END CORE DEPOSITS At September 30 , 2025 , total deposits of $ 2 . 3 billion increased $ 87 . 2 million, or 3 . 9 % , from December 31 , 2024 . Core deposits, wh
Slide 20: Average Total Deposits
AVERAGE TOTAL DEPOSITS 20 $1,621 $1,684 $1,732 $1,732 $1,744 $559 $579 $570 $573 $582 2.04% 2.01% 2.00% 1.82% 1.77% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $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 21: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 21 $1,492 $1,562 $1,599 $1,614 $1,633 0.93% 0.98% 1.08% 1.01% 1.04% 0.85% 0.90% 0.95% 1.00% 1.05% 1.10% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 AVERAGE CORE DEPOSITS AND RATES During the three months ended September 30 , 2025 , average core depos
Slide 22: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 22 92.1% 91.5% 89.3% 89.8% 90.7% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 88% 88% 89% 89% 90% 90% 91% 91% 92% 92% 93% PERIOD - END LOAN - TO - DEPOSIT RATIO 68.5% 68.9% 70.0% 70.4% 70.5% 31.5% 31.1% 30.0% 29.6% 29.5% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 0% 10% 20% 30% 40% 50% 60% 7
Slide 23: Wholesale Funding
WHOLESALE FUNDING 23 $152 $123 $122 $122 $121 5.05% 5.04% 5.04% 5.04% 5.03% 4.90% 4.95% 5.00% 5.05% 5.10% 5.15% 5.20% 5.25% 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 $25 $45 $65 $85 $105 $125 $145 $165 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (1) Wholesale Funding Average Cost of Funds
Slide 24: Liquidity Position
24 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At September 30 , 2025 , the Company had available borrowing capacity with the FHLB of $ 468 . 7 million, including its overnight Idea
Slide 25: 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 Wes tfi eld branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside
Slide 26: Asset Quality Indicators
ASSET QUALITY INDICATORS 26 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 $4.5M $3.9M $4.5M $5.0M $4.3M Total delinquent loans 0.21% 0.18% 0.22% 0.24% 0.21% Delinquent loans as a % of total loans $5.6M $5.8M $6.0M $5.4M $4.9M Nonaccrual loans 0.27% 0.27% 0.29% 0.26% 0.24% Nonaccrual loans as a % of total loans
Slide 27: Asset Quality
ASSET QUALITY 27 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 96 % at September 30 , 2025 and 0 . 94
Slide 28: Asset Quality
ASSET QUALITY 28 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 ($ in millions) $13.0 $1.5 $10.7 $11.4 $21.3 Special Mention 0.6% 0.1% 0.5% 0.6% 1.0% % of Total Loans $27.0 $24.6 $25.6 $27.0 $21.9 Substandard 1.3% 1.2% 1.2% 1.3% 1.1% % of Total Loans $40.0 $26.1 $36.3 $38.4 $43.2 Total Classified Loans 1.9% 1.2
Slide 29: Capital Management
CAPITAL MANAGEMENT 29 We are well - capitalized with excess capital. December 31, 2024 September 30, 2025 Consolidated 9.14% 9.11% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.37% 12.26% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.37% 12.26% Tier 1 Capital (to Risk Weighted As
Slide 30: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 30 # of Shares Year 2,758,051 2021 720,975 2022 649,744 2023 934,282 2024 206,709 1Q - 2025 290,609 2Q - 2025 2,535 3Q - 2025 Annual Dividends per Share Year $0.20 2021 $0.24 2022 $0.28 2023 $0.28 2024 $0.07 1Q - 2025 $0.07 2Q - 2025 $0.07 3Q - 2025 SHARE REPURCHASES D
Slide 31: Capital Management
CAPITAL MANAGEMENT 31 $11.40 $11.30 $11.44 $11.68 $11.89 $10.73 $10.63 $10.78 $11.01 $11.22 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 $11.89 at September 30, 2025, compared to $11.30 at Decemb
Slide 32: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 32 Reconciliation of Non - GAAP to GAAP Financial Measures The Company believes that certain non - GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all c
Slide 33: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 33 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Net interest income (no tax adjustment) 18,092$ 17,642$ 15,534$ 15,273$ 14,728$ Tax equivalent adjustment 120 121 121 128 119 Net interest income (tax-equivalent basis) 18,212$ 17,763$ 15,655$ 15,401$ 1
Slide 34: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 34 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Total Bank Equity (GAAP) 248,575$ 244,460$ 242,981$ 240,994$ 245,786$ Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposit intangible net of associated deferred (831)
Slide 35: 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 35 141 Elm Street, Westfield, MA
Western New England Bancorp — Q3 2025 Earnings Presentation on 6ix