Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q2 2025 Earnings Presentation
33 slides from Western New England Bancorp's earnings presentation, Jul 22, 2025
Slide 1: Local banking is better than ever. Investor Presentation 2nd Quarter 2025
Local banking is better than ever. INVESTOR PRESENTATION 2ND 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: Quarterly Earnings
2 Q2025 QUARTERLY EARNINGS 6 2Q2024 (3) 3Q2024 4Q2024 (2) 1Q2025 2Q2025 (1) ($ in thousands , except EPS ) $ 14,470 $ 14,728 $ 15,273 $ 15,534 $ 17,642 Net interest income (294) 941 (762) 142 (615) (Reversal of) provision for credit losses 3,834 3,141 3,254 2,759 3,411 Non - interest income 14,314 1
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $14.5 $14.7 $15.3 $15.5 $17.6 2.42% 2.40% 2.41% 2.49% 2.80% 2.00% 2.10% 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Net interest income ($) Net interest margin (%) On a sequential q
Slide 8: Total Loans
TOTAL LOANS 8 $2,017 $2,039 $2,063 $2,073 $2,081 4.88% 4.93% 4.88% 4.91% 5.08% 4.75% 4.80% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $1,975 $2,000 $2,025 $2,050 $2,075 $2,100 AVERAGE LOANS OUTSTANDING Average Loans Outstanding Average Loan Yield, Tax-Equivalent Basis $2,
Slide 9: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS 9 $216 $210 $212 $216 $235 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $195 $200 $205 $210 $215 $220 $225 $230 $235 $240 Total commercial and industrial (“C&I”) loans increased $ 22 . 8 million, or 10 . 8 % , to $ 234 . 5 million at June 30 , 2025 , from $ 211 . 7 million at D
Slide 10: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 10 (1) % of total loans as of June 30, 2025. Other , 2.9% Manufacturing , 2.6% Merchant Wholesalers , 1.7% Educational Services , 1.3% Construction Sand and Gravel Mining , 1.1% Specialty Trade Contractors , 0.6% Healthcare , 0.4% Heavy and Civil Engineering Con
Slide 11: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS 11 $1,057 $1,083 $1,076 $1,073 $1,046 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 At June 30 , 2025 , total commercial real estate (“CRE”) loans decreased $ 29 . 5 million, or 2 . 7 % , to $ 1 . 0 billio
Slide 12: Commercial Real Estate Loans (CRE)
COMMERCIAL REAL ESTATE LOANS (CRE) (1) 12 ($ in thousands) (1) As of June 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 June 30 , 2025 , the commercial real estate portfolio to
Slide 13: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 13 At June 30 , 2025 , the non - owner occupied CRE portfolio totaled $ 859 . 2 million, or 316 . 9 % of total RBC . Of the $ 859 . 2 million, $ 436 . 6 million, or 50 . 8 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 275 . 7
Slide 14: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 14 ($ in thousands) (1) As of June 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 Total O
Slide 15: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS (1) 15 $746 $749 $776 $784 $805 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $710 $720 $730 $740 $750 $760 $770 $780 $790 $800 $810 At June 30 , 2025 , residential real estate loans, including home equity loans, increased $ 29 . 7 million, or 3 . 8 % , from $ 775 . 7 million at D
Slide 16: Investment Portfolio
INVESTMENT PORTFOLIO 16 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio totaled $ 376 . 5 million and represented 13 . 9 % of total assets at June 30 , 2025 and $ 365 . 7 million, or 13 . 8 % of total assets, at December 31 , 2024 . The HTM unrealized losses,
Slide 17: Total Deposits
TOTAL DEPOSITS 17 $1,500 $1,524 $1,559 $1,629 $1,640 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 PERIOD - END CORE DEPOSITS At June 30 , 2025 , total deposits of $ 2 . 3 billion increased $ 67 . 5 million , or 3 . 0 % , from December 31 , 2024 . Core deposits,
Slide 18: Average Total Deposits
AVERAGE TOTAL DEPOSITS 18 $1,589 $1,621 $1,684 $1,732 $1,732 $549 $559 $579 $570 $573 1.94% 2.04% 2.01% 2.00% 1.82% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $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 19: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS 19 $1,488 $1,492 $1,562 $1,599 $1,614 0.87% 0.93% 0.98% 1.08% 1.01% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 AVERAGE CORE DEPOSITS AND RATES During the three months ended June 30 , 2025 , ave
Slide 20: Loan-to-Deposit Ratio
LOAN - TO - DEPOSIT RATIO 20 93.3% 92.1% 91.5% 89.3% 89.8% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 87% 88% 89% 90% 91% 92% 93% 94% PERIOD - END LOAN - TO - DEPOSIT RATIO 69.1% 68.5% 68.9% 70.0% 70.4% 30.9% 31.5% 31.1% 30.0% 29.6% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 0% 10% 20% 30% 40% 50% 60% 70% 80% CORE
Slide 21: Wholesale Funding
WHOLESALE FUNDING 21 $155 $152 $123 $122 $122 5.00% 5.05% 5.04% 5.04% 5.04% 4.85% 4.90% 4.95% 5.00% 5.05% 5.10% 5.15% 5.20% 5.25% 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 $25 $45 $65 $85 $105 $125 $145 $165 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (1) Wholesale Funding Average Cost of
Slide 22: Liquidity position
22 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At June 30 , 2025 , the Company had available borrowing capacity with the FHLB of $ 452 . 7 million, including its overnight Ideal Way
Slide 23: Deposit Market Share in Hampden County, MA
________ Source: SNL Financial as of June 30, 2024 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 24: Asset Quality Indicators
ASSET QUALITY INDICATORS 24 2Q2025 1Q2025 4Q2024 3Q2024 2Q2024 $3.9M $4.5M $5.0M $4.3M $5.6M Total delinquent loans 0.18% 0.22% 0.24% 0.21% 0.27% Delinquent loans as a % of total loans $5.8M $6.0M $5.4M $4.9M $5.8M Nonaccrual loans 0.27% 0.29% 0.26% 0.24% 0.29% Nonaccrual loans as a % of total loans
Slide 25: Asset Quality
ASSET QUALITY 25 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 94 % at June 30 , 2025 and at December
Slide 26: Asset Quality
ASSET QUALITY 26 2Q2025 1Q2025 4Q2024 3Q2024 2Q2024 ($ in millions) $1.5 $10.7 $11.4 $21.3 $14.6 Special Mention 0.1% 0.5% 0.6% 1.0% 0.7% % of Total Gross Loans $24.6 $25.6 $27.0 $21.9 $22.1 Substandard 1.2% 1.2% 1.3% 1.1% 1.1% % of Total Gross Loans $26.1 $36.3 $38.4 $43.2 $36.7 Total Classified Lo
Slide 27: Capital Management
CAPITAL MANAGEMENT 27 We are well - capitalized with excess capital. December 31, 2024 June 30, 2025 Consolidated 9.14% 9.10% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.37% 12.40% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.37% 12.40% Tier 1 Capital (to Risk Weighted Assets)
Slide 28: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS 28 # of Shares Year 2,758,051 2021 720,975 2022 649,744 2023 934,282 2024 206,709 1Q - 2025 290,609 2Q - 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 SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK On
Slide 29: Capital Management
CAPITAL MANAGEMENT 29 $11.07 $11.40 $11.30 $11.44 $11.68 $10.41 $10.73 $10.63 $10.78 $11.01 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 $ 11.68 at June 30, 2025, compared to $11.30 at December
Slide 30: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 30 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 31: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 31 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 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 i ts results of operations and financial condition. Because not all
Slide 33: 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 33 141 Elm Street, Westfield, MA
Western New England Bancorp — Q2 2025 Earnings Presentation on 6ix