Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Investor Presentation (June 2017)
21 slides from Western New England Bancorp's investor presentation, Jun 8, 2017
Slide 1: Local banking is better than ever.
Local banking is better than ever. Investor Presentation June 2017
Slide 2: Forward-Looking Statements
Forward - Looking Statements 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 reports
Slide 3: Overview of Western New England Bancorp
Overview of Western New England Bancorp 3 ▪ Assets : $2.1 billion ▪ Loans: $1.6 billion ▪ Deposits: $1.5 billion ▪ Core Net Income: $3.8 million ▪ Shareholders ’ Equity: $245.8 million ▪ Market Capitalization: $312.5 million ▪ P/TBV: 136.4% ▪ P/LTM Core EPS: 24.2x ▪ Dividend Yield: 1.2% ▪ 21 branche
Slide 4: Experienced Management Team
Years in Banking Years at WNEB Prior Experience James Hagan President & CEO 33 23 Fleet Bank, Bank of New England William Wagner Vice Chairman & Chief Business Development Officer 52 1 Chicopee Savings Bank, Park West Bank, Security National Bank of Springfield Guida R. Sajdak EVP & CFO 28 1 Chicope
Slide 5: Growth-Oriented Strategy
Growth - Oriented Strategy 5 ▪ Executing a growth - oriented strategy that is focused on increasing commercial lending, increasing deposit relationships, and broadening our product lines and services that complements our existing commitment to high - quality customer service. In connection with our
Slide 6: Acquisition of Chicopee Bancorp
Acquisition of Chicopee Bancorp 6 ▪ Completed the Chicopee acquisition on October 21, 2016 ▪ Renamed the holding company Western New England Bancorp, Inc. (“WNEB ”) to reflect the broadened reach and market focus ▪ First in - market merger in Hampden County in over 25 years, creating the largest com
Slide 7: Attractive Market Demographics
Attractive Market Demographics 7 _______ Source: SNL Financial based on deposit market share as of June 30, 2016 Springfield MSA Hampden County Hampshire County Hartford County Population (2017) 634,548 472,757 161,791 895,271 Median HH Income $54,693 $52,159 $62,428 $70,395 # Businesses 23,844 17,2
Slide 8: Largest Community Bank in Hampden County
14.58 14.48 14.10 13.48 11.42 11.29 9.12 5.36 3.88 3.58 2.79 Largest Community Bank in Hampden County 8 ________ Source: SNL Financial as of June 30, 2016 Note: Two Westfield branches are located in Hartford County, CT outside of Springfield MSA 2016 RankInstitution (ST) # of Branches Deposits in Ma
Slide 9: Top 5 Deposit Market Share in Springfield MSA
13.89 12.04 12.01 10.23 8.22 8.14 7.63 7.61 6.28 5.75 3.95 Top 5 Deposit Market Share in Springfield MSA 9 ________ Source: SNL Financial as of June 30, 2016 Note: Two Westfield branches are located in Hartford County, CT outside of Springfield MSA 2016 RankInstitution (ST) 2016 Number of Branches 2
Slide 10: Springfield, MA Economic Mini-Revival
_______ Source: westernmassedc.com; masslive.com; reuters.com; SNL Financial Springfield, MA Economic “Mini - Revival” New England’s “Knowledge Corridor” The Greater Springfield - Hartford metropolitan area has been dubbed the “Knowledge Corridor” • Academic Powerhouse : Home to 29 universities and
Slide 11: Increasing Profitability
Increasing Profitability 11 First quarter of 2017 first full quarter with Chicopee 2015Y 2016Y 2017Q1 0.42 0.54 0.74 Core ROAA (%) 2015Y 2016Y 2017Q1 4.10 4.94 6.28 Core ROAE (%) ________ Core EPS, ROAA and ROAE excludes tax benefits in 2017 and merger costs, net of tax, in 2016 and 2017. See Append
Slide 12: Improved Operating Efficiency
Improved Operating Efficiency 12 First quarter of 2017 first full quarter with Chicopee 2015Y 2016Y 2017Q1 75.34 72.60 63.70 Efficiency Ratio (%)
Slide 13: Strengthening Balance Sheet Mix
Strengthening Balance Sheet Mix 13 2015Y 2016Y 2017Q1 $818,213 $1,566,410 $1,599,607 Loans 61.1 75.5 76.7 55 60 65 70 75 80 2015Y 2016Y 3/31/2017 Loans / Assets (%) $ in thousands 90.9 103.2 105.2 85 90 95 100 105 110 2015Y 2016Y 3/31/2017 Loans / Deposits (%)
Slide 14: Strengthening Balance Sheet Mix: Deposits
2015Y 2016Y 2017Q1 56% 62% 63% 44% 38% 37% Deposit Mix Core Deposits Time Deposits Strengthening Balance Sheet Mix 14 2015Y 2016Y 2017Q1 $900,363 $1,518,071 $1,521,219 Deposits $ in thousands
Slide 15: Loan and Deposit Composition
Loan and Deposit Composition 15 Residential 34% CRE & Multifamily 45% C&I 14% Home Equity 6% Other Consumer 1% Loan Mix Deposit Mix Non - Interest Bearing 21% Interest - Bearing DDA 6% MMDA & Savings 36% Time Deposits 37% As of March 31, 2017
Slide 16: Net Interest Margin
Net Interest Margin 16 2015Y 2016Y 2017Q1 2.53 2.70 3.08 Net Interest Margin (%) Strengthened balance sheet mix results in improved NIM NIM, exclusive of purchase accounting adjustments, was 2.68% and 2.94% for 2016Y and 2017Q1, respectively
Slide 17: Strong Regulatory Capital and Growing Valuation
Strong Regulatory Capital and Growing Valuation 17 TCE / TA Leverage Ratio Tier 1 Ratio Total Risk Based Ratio 10.4 11.2 16.2 17.2 10.7 12.2 14.5 15.1 11.1 11.7 15.0 15.6 12/31/2015 12/31/2016 3/31/2017 2015Y 2016Y 3/31/2017 $139,466 $220,211 $228,973 $153,449 $284,055 $323,176 Tangible Common Equit
Slide 18: Competitive Shareholder Returns
Competitive Shareholder Returns 18 47.4% 43.9% 35.4% 3 - Year Total Return Total return includes stock price appreciation and dividends paid through May 26, 2017 (10) 0 10 20 30 40 50 60 WNEB SNL U.S. Bank and Thrift S&P 500
Slide 19: Investment Considerations
Investment Considerations 19 ▪ Largest community bank in Hampden County and one of the largest in the Springfield MSA ; taking advantage of dislocation and opportunity with our core customer base ▪ Enhanced branch network provides greater density in attractive markets with significant retail and com
Slide 20: Western New England Bancorp
Western 7 New England Bancorp
Slide 21: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non - GAAP to GAAP Financial Measures 21 ________ Core ROAA and ROAE excludes tax benefits in 2017 and merger costs, net of tax, in 2016 and 2017 March 31, December 31, March 31, December 31, 2017 2016 2016 2016 2015 Net Income: Net income, as presented 5,103$ 1,852$ 1,964$ 4,834$
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