Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Westfield Financial — Keefe, Bruyette & Woods 2010 Community Bank Conference
27 slides from Western New England Bancorp's conference presentation, Jul 27, 2010
Slide 1: Westfield Financial, Inc.
Westfield Financial, Inc. NASDAQ: WFD Keefe, Bruyette & Woods 2010 Community Bank Conference July 27 & 28, 2010 Investor Handouts
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
WESTFIELD FINANCIAL, ING. OVERVIEW + Headquartered in Westfield, MA + 11 branches offices located throughout Hampden County - Preferred SBA Lender - Did not participate in TARP
Slide 4: Overview
WESTFIELD FINANCIAL, ING. | OVERVIEW Very well capitalized. Stockholders’ equity/total asset ratio of 19.40% Recently increased regular dividend by 20%. Recently announced a second repurchase program. Nonperforming loans/total loans of 1.15% Nonperforming assets as a percent of total assets 0.60%
Slide 5: Management: Possible uses of capital
WESTFIELD FINANCIAL, ING. MANAGEMENT Possible uses of capital: ¢ Pay dividends to shareholders + Repurchase shares of our common stock -Fund organic growth or leverage the balance sheet -Finance acquisitions of other financial institutions or other businesses related to banking
Slide 6: Dividends Declared
| WESTFIELD FINANCIAL, ING. | | DIVIDENDS DECLARED JULY 21, 2010; ANNOUNCED A 20% INCREASE IN REGULAR DIVIDEND | j 2010 Regular Dividends _$ 0.16 Special Dividends 0.15 Year-to-Date 2010 $ 0.31 2009 Regular Dividends $0.20 Special Dividends 0.30 Calendar Year 2009 $0.50
Slide 7: Stock Repurchase Plan
STOCK REPURCHASE PLAN Second Quarter 2010: Westfield Financial completed the repurchase of 3.2 million shares. On May 25, 2010 the Board of Directors authorized a second repurchase for up to 2.9 million shares or 10% outstanding shares.
Slide 8: Total Assets
$1,300 $1,200 $1,100 $1,000 Millions $900 $800 $700 WESTFIELD FINANCIAL, ING. TOTAL ASSETS 1,235 1,191 1,109 1,040 - | | Dec-05 ‘Dec-06 ‘Dec-07 Dec-08 Dec-09 Jun-10
Slide 9: Stockholders' Equity to Total Assets
WESTFIELD FINANCIAL, ING. STOCKHOLDER SUG PPyPO ne 40.00% 30.00% 20.00% o &p 3 Ss =| 3 ~ o Aa 10.00% 0.00% ASSET The decrease in equity was primarily due to stock repurchases, along with regular and special dividends 29.03 27.56 23.44 20.76 19.40 i 39 | | Dec-05 ‘Dec-06 ‘Dee-07 Dec-08 Dec-09 ‘Jun-10
Slide 10: Total Loan Portfolio
WESTFIELD FINANCIAL, ING. TOTAL LOAN PORTFOLIO (DOLLARS IN MILLIONS) Commercial real estate (owner occupied) Commercial and industrial $98.5 S144 21% 30% ‘Commercial real estate (non-owner occupied) $1208 Home equity a ‘$35.8 7% __Consumer loans $3.2 1%
Slide 11: Market Breakdown
ARK ET sooo eeeeena BREAKDOWN (DOLLARS IN MILLIONS) ib
Slide 12: Loan Relationships
WESTFIELD FINANGIAL, ING. LOAN RELATIONSHIPS (DOLLARS IN MILLIONS) S6 Million & < $15 million $150.1 31% Over $15 million $54.8 12%
Slide 13: Commercial Loans
C OMMERCIA LOANS WESTFIELD 154 145 144 117 100 100 : Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Jun-10 13
Slide 14: Asset Quality Ratios
oe eee ASSET QUALITY RATIOS Allowance for loan loss asa ge Refreniage ef + = total loans =@Nonperfoming loans as a percentage of total loans t _————$—_, —__ ==Nonperforming assets as a percentage of nonperforming assets Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
Slide 15: Asset Quality
WESTFIELD | FINANGIAL, ING. ASSET QUALITY ¢ Nonperforming loans of $7.4 million or 1.55% of | total loans ¢ Primarily made up of 3 borrowers totaling $6.7 million ¢ Primarily made up of one borrower totaling $15.0 million Loans delinquent 30-89 days totaling $18.1 million
Slide 16: Loans
\ | WESTFIELD HO FINAN SIAL, Inc. LOANS (DOLLARS IN MILLIONS) Commercial Real Estate $5.3 69%
Slide 17: Securities Portfolio
SECURITIES PORTFOLIO (DOLLARS IN MILLIONS) Ho Seca Private Label Eien ee Mortgage Backed ny 7 Securities $9.7 2% Government Sponsored _—-# Enterprise Debt $36.3 5% y GSE Mortgage Backed Massachusetts. Securities Municipal Bonds $578.4 $38.7, 86% 6%
Slide 18: Private Label MBS
PRIVATE LABEL MBS. BOOK: $15.3 MILLION SECURITIES PORTFOLIO = Treasury/Agency ~ AAA BAA&A B Less than A Split Ratings = Not Rated MARKET: $13.1 MILLION 18
Slide 19: Total Deposits
WESTFIELD FINANCIAL, ING. TOTAL DEPOSITS f In 2007 and 2008 management placed less emphasis on gathering time deposits in favor of alternative funding $690 670 648 623 627 603 i 588 $570 T T T [I T T Millions & & 8 8 $600 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Jun-10
Slide 20: Deposit Mix
WESTFIELD FINANCIAL, ING. DEPOSIT MIX (DOLLARS IN MILLIONS) June 30,2010 Favorable shift in deposit mix to lower cost funding Non-interest June 30, 2007 Checking $83.4 Money Market $49.1 1% Money Market $86.2 14% Savings $121.2 18%
Slide 21: Short and Long-Term Borrowings
WESTFIELD SHORT AND BORROWINGS ; $375 | $300 4 $225 4 $150 4 $75 a il $0 Dec-05 "Dee- 06 Dec-07 “Dec. 08 ‘Dec. 09. Jun-10 Millions 2
Slide 22: Net Income
Amit q = | i | |e WESTFIELD FINANGIAL, ING. NET INCOME $10 $8 5 8.7 6.7 6.2 $6 | 5.5 4.7 $4 $2 4 10 (i i i i oe Millions Dec-05 Dec-06 Dec07 Dec-08 Dec09 Jun-10
Slide 23: Diluted Earnings Per Share
DILUTED FAl i SHARE 0.20 ] 7 15 ] Te 0.03 Dee. 5- Dec-6- Dec- ” Dec-08 Dec-09 Jun-10 23
Slide 24: Net Interest Margin
4.00% 3.00% 2.00% 1.00% 0.00% | |e 4 WESTFIELD FINANGIAL, ING. NET INTEREST MARGIN (fully taxable equivalent basis) 3.17 3.1 3.07 3.04 ) ; | ; | i Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 24
Slide 25: Total Return Performance
FINANCIAL, ING. TOTAL he PERFORMANCE i” WESTFIELD z = s g el 50 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 Westfield Financial, Inc. Russell 2000 —*-NASDAQ Bank
Slide 26: Total Return
WESTFIELD FINANCIAL, ING. TOTAL RETURN Westfield Financial, Inc. - Total Return (%) wero (3.875) sn thet (28.40%) 9 & § 3 2 “SOURCE: SNL FINANCIAL LC. CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM SNL. FOR RECIPIENT'S INTERNAL USE ONLY,"
Slide 27: Thank You
Westfield Financial — Keefe, Bruyette & Woods 2010 Community Bank Conference on 6ix