Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — FIG Partners' 9th Annual Bank CEO Forum (September 2013)
30 slides from Western New England Bancorp's conference presentation, Sep 16, 2013
Slide 1: Westfield Financial, Inc. - FIG Partners' 9th Annual Bank CEO Forum
Slide: 1 Westfield Financial, Inc.FIG Partners' 9th Annual Bank CEO ForumSeptember 16 – 17, 2013Atlanta, GeorgiaOther Placeholder: 1
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, CT.Strong lending culture and historical focus on commercial business lending.Key differentiator fro
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 an
Slide 5: Total Loans
Slide: 5 $ in millions Total Loans TOTAL LOANS 300 350 400 450 500 550 600 650 2008 2009 2010 2011 2012 Jun-13 481 477 509 554 595 607 5 Other Placeholder: 5
Slide 6: Experienced Commercial Lending Team
Slide: 6 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 Richard Hanchett 27 6 New Alliance B
Slide 7: Diversified Loan Portfolio
Slide: 7 Diversified Loan Portfolio As of June 30, 2013 $ in millions Owner Occupied $115.0 19% Non-Owner Occupied $128.5 21% Consumer Loans $1.7 1% Home Equity $34.2 5% Residential Real Estate $198.5 33% Commercial & Industrial $128.7 21% Other Placeholder: 7
Slide 8: Commercial Loan Portfolio By Market Segment
Slide: 8 As of June 30, 2013 $ in millions Commercial Loan Portfolio By Market Segment Manufacturing $58.1 16% Wholesale Trade $39.8 11% Retail Trade $30.0 8% Real Estate, Rental & Leasing $117.4 31% Professional, Scientific & Technical $26.3 7% Educational & Health Care $33.1 9% Arts, Entertainment
Slide 9: Granularity Of Commercial Loan Relationships
Slide: 9 As of June 30, 2013 $ in millions Granularity Of Commercial Loan Relationships < $6 Million & > $12 million $139.5 35% Over $12 million $31.9 9% Under $6 Million $200.8 56%
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 loansNonperforming assets as a 0.25% 0.31%percentage of total assetsOther Placeholder:10
Slide 11: Commercial Business Lending: C&I Loans as % of Total Loans
Slide: 11 (1) As of 6/30/2013 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 6/30/2013 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 9/06/2013. BNFI is as of 3/31/2013. . . . But our valuation do
Slide 13: Branch Footprint
Slide: 13 Branch Footprint Other Placeholder: 13
Slide 14: Total Deposits
Slide: 14 $ in millions Total Deposits 400 450 500 550 600 650 700 750 800 2008 2009 2010 2011 2012 Jun-13 588 648 700 733 753 783 Other Placeholder: 14
Slide 15: Our Current Deposit Market: Hampden County, Massachusetts
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 Out of market banks, 35% Local banks, 48% Credit unio
Slide 16: Focus on Core Deposits
Slide: 16 Focus on Core Deposits Total Deposits Grew $195 million (33.16%)Non-Maturity Deposits Grew $198 million (75.86%) June 30, 2013 December 31, 2008 December 31, 2008 Non interest checking, 9% NOW, 14% Savings and MMDA, 21% Time, 56% Non interest checking, 16% NOW, 6% Savings and MMDA, 37% Tim
Slide 17: Our Current Deposit Market: Cities & Towns where we have branches
Slide: 17 Our Current Deposit Market Cities & Towns where we have branches $ in thousandsSource: SNL Financial 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% 3. Westfield Bank 11 748,216 13.07% 4. PeoplesBank 1
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 Other Placeholder: 19
Slide 20: Leveraging Technology
Slide: 20 Leveraging Technology We are 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 Tax Equivalent Basis 1.00% 1.50% 2.00% 2.50% 3.00% 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 2.55% 2.58% 2.52% 2.47% 2.59% 2.55% Other Placeholder: 21
Slide 22: Conservative Securities Portfolio
Slide: 22 Conservative Securities Portfolio As of June 30, 2013 $ in millions GSE Mortgage - Backed Securities 74.0% New England Municipal Bonds 5.0% Government Sponsored Enterprise Debt 10.4% Equity Securities 1.3% Corporate Bonds 9.1% Other Placeholder: 22
Slide 23: Strong Underlying Credit in Securities Portfolio
Slide: 23 As of June 30, 2013 Strong Underlying Credit in Securities Portfolio 84.6% Treasury/ Agency AAA 0.2% AA&A 11.1% Less than A 1.8% Split Ratings 1.0% Not Rated 1.3% Treasury/Agency AAA AA & A Less than A Split Ratings Not Rated [Lower Medium Investment Grade] Other Placeholder: 23
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 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2008 2009 2010 2011 2012 Jun-13 23.44% 20.76% 17.85% 17.34% 14.53% 12.40% Other Placeholder: 25
Slide 26: Capital Management: Cumulative Return of Capital Since Second Step Conversion
Slide: 26 Capital Management Cumulative Return of Capital Since Second Step Conversion On September 12, 2013, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,037,000 shares, or 5% of its outstanding common stock. Percentages at top of bars re
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, WFD has BOTH right-sized its capital level while ALSO incre
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 January – June 2013 Regular dividends $0.20 $0.20 $0.22 $0.24 $0.24 $0.12 Di
Slide 29: Diluted Earnings Per Share
Slide: 29 Diluted Earnings Per Share $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 2008 2009 2010 2011 2012 Jan - Jun 2013 $0.22 $0.18 $0.11 $0.22 $0.26 $0.16 Other Placeholder: 29
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 September 6, 2013. (25.00) (20.00) (15.00) (10.00) (5.00) 0.00 5.00 10.00 15.00 20.00 25.00 30.00 WFD SNL U.S. thrift Other Placeholder: 30
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