Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — Sterne Agee 2012 Financial Institutions Investor Conference
24 slides from Western New England Bancorp's conference presentation, Feb 13, 2012
Slide 1: Sterne Agee 2012 Financial Institutions Investor Conference
WESTFIELD FINANCIAL INC. NASDAQ: WFD STERNE AGEE 2012 FINANCIAL INSTITUTIONS INVESTOR CONFERENCE FEBRUARY 12 - 14, 2012 1
Slide 2: Forward-Looking Statements
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 limited to,
Slide 3: Overview
OVERVIEW $1.3 billion asset BHC headquartered in Westfield, MA – 11 branch offices located throughout Hampden County #5 ranked deposit market share in Hampden County – ranked third of banks headquartered locally Growth in gross loans of 8.8% in 2011 over 2010, and EPS doubled from $0.11 per share in
Slide 4: Strategy
STRATEGY Focus on Commercial & Industrial (“C&I”) and Commercial Real Estate portfolios by targeting businesses in western Massachusetts and northern Connecticut. C&I relationships include transactional deposit account relationships. Growth in residential real estate portfolio to diversify risk and
Slide 5: Net Income
NET INCOME $ in millions $10 $8 $6 $4 $2 $0 4.7 8.7 6.7 5.5 3.0 5.9 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 5
Slide 6: Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE $0.40 $0.30 $0.20 $0.10 $0.00 0.15 0.28 0.22 0.18 0.11 0.22 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 6
Slide 7: Effectively Leveraging Capital: Stockholders' Equity/Total Assets
EFFECTIVELY LEVERAGING CAPITAL STOCKHOLDER’S EQUITY/TOTAL ASSETS 29.03 27.56 23.44 20.76 17.85 17.30 0.00% 10.00% 20.00% 30.00% 40.00% Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 7
Slide 8: Total Assets
TOTAL ASSETS 997 1,040 1,109 1,191 1,239 1,263 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 8 $ in millions
Slide 9: Total Deposits
TOTAL DEPOSITS 9 627 603 588 648 700 733 $0 $200 $400 $600 $800 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 $ in millions
Slide 10: Focus on Core Deposits
FOCUS ON CORE DEPOSITS TOTAL DEPOSITS GREW BY $130.3 MILLION OR 21.6% NON-MATURITY DEPOSITS GREW BY $167.9 MILLION OR 67.3% 10 Time $353.4 59% Savings/ Money Market $121.6 20% Int. Bearing Checking $42.4 7% Non-interest Checking $85.3 14% Time $315.8 43% Savings / Money Market $245.6 33% Int. Bearin
Slide 11: Net Loans
NET LOANS 385 415 472 469 502 546 $350 $425 $500 $575 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 11 $ in millions
Slide 12: Total Loan Portfolio
TOTAL LOAN PORTFOLIO Commercial real estate (owner occupied) $109.7 20% Commercial real estate (non-owner occupied) $122.8 22% Consumer loans $2.4 1% Residential real estate $156.0 28% Home equity $36.5 6% Commercial and industrial $125.7 23% 12 $ in millions
Slide 13: Market Segment Breakdown
MARKET SEGMENT BREAKDOWN 13 Manufacturing $55.5 15% Wholesale Trade $38.4 11% Retail Trade $27.8 8% Real Estate, Rental & Leasing $112.5 31% Professional, Scientific & Technical $28.3 8% Educational & Health Care $36.0 10% Arts, Entertainment & Recreation $24.7 7% Other $35.8 10% $ in millions
Slide 14: Commercial Loan Relationships
COMMERCIAL LOAN RELATIONSHIPS Between $6 million & $15 million $169.9 47% Over $15 million $38.1 11% Under $6 million $150.1 42% 14 $ in millions
Slide 15: Strong Credit Quality
STRONG CREDIT QUALITY Dec 31, 2011 Dec 31, 2010 Allowance loan loss as a 1.40% 1.36% percentage to total loans Nonperforming loans as a 0.53% 0.63% percentage of total loans Nonperforming assets as a 0.32% 0.28% percentage of total assets 15
Slide 16: Net Interest Margin
NET INTEREST MARGIN (fully taxable equivalent basis) 16 2.58 2.40 2.72 2.72 2.64 2.60 0.00% 1.00% 2.00% 3.00% 4.00% 3Q '10 4Q '10 1Q '11 2Q '11 3Q '11 4Q '11
Slide 17: Capital Management
CAPITAL MANAGEMENT Possible uses of capital: Fund organic growth. Finance acquisitions. Repurchase shares of our common stock. Pay dividends to shareholders. 17
Slide 18: Stock Repurchase Plan
STOCK REPURCHASE PLAN May 2010: the Board of Directors authorized the repurchase program of 2.9 million or 10% of outstanding shares. This was completed in January 2012. December 2011: Board of Directors authorized another repurchase program of 1.3 million or 5% of outstanding shares, which commence
Slide 19: Dividends Declared
DIVIDENDS DECLARED 2011 Regular Dividends $ 0.24 Special Dividends 0.30 Calendar Year 2011 $ 0.54 2010 Regular Dividends $ 0.22 Special Dividends 0.30 Calendar Year 2010 $ 0.52 19
Slide 20: Securities Portfolio
SECURITIES PORTFOLIO Government Sponsored Enterprise Debt $24.7 4.0% Equity Securities $6.2 1.0% Private Label Mortgage Backed Securities $1.6 0.3% GSE Mortgage Backed Securities $539.1 87.3% Massachusetts Municipal Bonds $45.9 7.4% 20 $ in millions
Slide 21: Securities Portfolio: Private Label MBS
SECURITIES PORTFOLIO PRIVATE LABEL MBS AMORTIZED COST: $2.1 MILLION MARKET VALUE: $1.6 MILLION 21 91.2% 0.2% 6.9% 0.3% 0.4% 1.0% Treasury/Agency AAA AA & A Less than A Split Ratings Not Rated
Slide 22: Favorable Change in Earning Assets
FAVORABLE CHANGE IN EARNING ASSETS 22 655 670 686 655 636 620 640 630 459 470 478 502 518 536 537 546 $400 $450 $500 $550 $600 $650 $700 $750 1Q '10 2Q '10 3Q '10 4Q '10 1Q '11 2Q '11 3Q '11 4Q '11 Securities Loans Loans increased $87 million Securities decreased $25 million $ in millions
Slide 23: Total Return Performance
TOTAL RETURN PERFORMANCE* 23 *Source: SNL Financial
Slide 24: Thank You
Thank You 24
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