Western New England Bancorp, Inc. Reports Results for Three and Six Months Ended June 30, 2024 and Declares Quarterly Cash Dividend
Western New England Bancorp (WNEB) reported Q2 2024 net income of $3.5 million, or $0.17 per diluted share, an increase from Q2 2023's $2.8 million, or $0.13 per diluted share. Six-month net income was $6.5 million, down from $8.1 million in the same period last year. The company declared a quarterly cash dividend of $0.07 per share, payable August 21, 2024, to shareholders of record on August 7, 2024.
Key metrics: total loans decreased by $1.1 million, while deposits increased by $28.1 million. Nonperforming loans decreased to 0.29% of total loans. The net interest margin fell to 2.42%, from 2.57% in Q1. The company repurchased 470,000 shares at an average price of $7.32 during the six months ended June 30, 2024.
CEO James Hagan emphasized the challenges posed by the inverted yield curve but highlighted strong capital, liquidity, and focus on cost management.
Western New England Bancorp (WNEB) ha riportato un utile netto per il secondo trimestre 2024 di 3,5 milioni di dollari, ovvero 0,17 dollari per azione diluita, in aumento rispetto ai 2,8 milioni di dollari, o 0,13 dollari per azione diluita del secondo trimestre 2023. L'utile netto semestrale è stato di 6,5 milioni di dollari, in calo rispetto agli 8,1 milioni di dollari dello stesso periodo dell'anno precedente. L’azienda ha dichiarato un dividendo in contante trimestrale di 0,07 dollari per azione, pagabile il 21 agosto 2024, agli azionisti registrati il 7 agosto 2024.
Metrica chiave: i prestiti totali sono diminuiti di 1,1 milioni di dollari, mentre i depositi sono aumentati di 28,1 milioni di dollari. I prestiti non performanti sono scesi allo 0,29% dei prestiti totali. Il margine di interesse netto è diminuito al 2,42%, rispetto al 2,57% del primo trimestre. L'azienda ha riacquistato 470.000 azioni a un prezzo medio di 7,32 dollari durante i sei mesi terminati il 30 giugno 2024.
Il CEO James Hagan ha sottolineato le sfide rappresentate dalla curva dei rendimenti invertita, ma ha messo in evidenza il forte capitale, la liquidità e l'attenzione alla gestione dei costi.
Western New England Bancorp (WNEB) reportó un ingreso neto del segundo trimestre de 2024 de 3,5 millones de dólares, o 0,17 dólares por acción en circulación, un aumento desde los 2,8 millones de dólares, o 0,13 dólares por acción en circulación en el segundo trimestre de 2023. El ingreso neto semestral fue de 6,5 millones de dólares, una disminución desde los 8,1 millones de dólares en el mismo período del año pasado. La compañía declaró un dividendo en efectivo trimestral de 0,07 dólares por acción, pagadero el 21 de agosto de 2024, a los accionistas registrados el 7 de agosto de 2024.
Métricas clave: los préstamos totales disminuyeron en 1,1 millones de dólares, mientras que los depósitos aumentaron en 28,1 millones de dólares. Los préstamos en mora disminuyeron al 0,29% de los préstamos totales. El margen de interés neto cayó al 2,42%, desde el 2,57% en el primer trimestre. La compañía recompró 470,000 acciones a un precio promedio de 7,32 dólares durante los seis meses que terminaron el 30 de junio de 2024.
El CEO James Hagan enfatizó los desafíos que plantea la curva de rendimientos invertida, pero destacó el fuerte capital, la liquidez y el enfoque en la gestión de costos.
Western New England Bancorp (WNEB)는 2024년 2분기 순이익이 350만 달러, 또는 희석주당 0.17달러로 보고했으며, 이는 2023년 2분기의 280만 달러, 또는 희석주당 0.13달러에서 증가한 수치입니다. 6개월 순이익은 650만 달러로, 작년 같은 기간의 810만 달러에서 감소했습니다. 회사는 2024년 8월 21일 지급될 주당 0.07달러의 분기 현금 배당금을 선언했으며, 이는 2024년 8월 7일 기준 주주에게 지급됩니다.
주요 지표: 총 대출은 110만 달러 감소했으며, 예금은 2810만 달러 증가했습니다. 부실채권 비율은 총 대출의 0.29%로 감소했습니다. 순이자 마진은 2.42%로, 1분기 2.57%에서 떨어졌습니다. 회사는 2024년 6월 30일 종료된 6개월 동안 평균 가격 7.32달러에 470,000주를 재매입했습니다.
CEO 제임스 해건은 역전된 수익 곡선이 제기하는 도전 과제를 강조했지만, 강력한 자본, 유동성, 비용 관리에 대한 집중을 부각시켰습니다.
Western New England Bancorp (WNEB) a annoncé un bénéfice net de 3,5 millions de dollars pour le deuxième trimestre de 2024, soit 0,17 dollar par action diluée, en hausse par rapport à 2,8 millions de dollars, ou 0,13 dollar par action diluée au deuxième trimestre de 2023. Le bénéfice net semestriel s’est élevé à 6,5 millions de dollars, en baisse par rapport à 8,1 millions de dollars pour la même période l’an dernier. La société a déclaré un dividende en espèces trimestriel de 0,07 dollar par action, payable le 21 août 2024, aux actionnaires enregistrés le 7 août 2024.
Métriques clés : les prêts totaux ont diminué de 1,1 million de dollars, tandis que les dépôts ont augmenté de 28,1 millions de dollars. Les prêts non performants ont diminué à 0,29 % des prêts totaux. La marge d’intérêt nette est tombée à 2,42 %, contre 2,57 % au premier trimestre. L’entreprise a racheté 470000 actions à un prix moyen de 7,32 dollars pendant les six mois se terminant le 30 juin 2024.
Le PDG James Hagan a souligné les défis posés par la courbe des rendements inversés, tout en mettant en avant le solide capital, la liquidité et l’accent mis sur la gestion des coûts.
Western New England Bancorp (WNEB) meldete im zweiten Quartal 2024 einen Nettogewinn von 3,5 Millionen Dollar, oder 0,17 Dollar pro verwässerter Aktie, ein Anstieg im Vergleich zu 2,8 Millionen Dollar oder 0,13 Dollar pro verwässerter Aktie im zweiten Quartal 2023. Der Nettogewinn für das erste Halbjahr betrug 6,5 Millionen Dollar, ein Rückgang von 8,1 Millionen Dollar im gleichen Zeitraum des Vorjahres. Das Unternehmen erklärte eine vierteljährliche Bardividende von 0,07 Dollar pro Aktie, zahlbar am 21. August 2024, an Aktionäre, die am 7. August 2024 registriert sind.
Wichtige Kennzahlen: Die Gesamtdarlehen verringerten sich um 1,1 Millionen Dollar, während die Einlagen um 28,1 Millionen Dollar zunahmen. Die notleidenden Kredite sanken auf 0,29 % der Gesamtdarlehen. Die Nettomarge fiel auf 2,42 %, von 2,57 % im ersten Quartal. Das Unternehmen hat im Zeitraum von sechs Monaten bis zum 30. Juni 2024 470.000 Aktien zu einem Durchschnittspreis von 7,32 Dollar zurückgekauft.
CEO James Hagan betonte die Herausforderungen, die durch die invertierte Zinskurve entstehen, hob jedoch das starke Kapital, die Liquidität und den Fokus auf das Kostenmanagement hervor.
- Q2 2024 net income increased to $3.5 million from $2.8 million in Q2 2023.
- Declared a $0.07 per share dividend, payable on August 21, 2024.
- Deposits increased by $28.1 million.
- Nonperforming loans decreased to 0.29% of total loans.
- Repurchased 470,000 shares at an average price of $7.32.
- Six-month net income decreased to $6.5 million from $8.1 million in the same period last year.
- Total loans decreased by $1.1 million.
- Net interest margin fell to 2.42% from 2.57% in Q1.
WESTFIELD, Mass., July 23, 2024 (GLOBE NEWSWIRE) -- Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and six months ended June 30, 2024. For the three months ended June 30, 2024, the Company reported net income of
The Company also announced that the Board of Directors declared a quarterly cash dividend of
James C. Hagan, President and Chief Executive Officer, commented, “It has been widely publicized that the economy and the banking industry is in the midst of the longest inverted yield curve in U.S. history, which continues to create net interest margin compression and funding challenges for banks across the country, including Western New England Bancorp. We believe our Company continues to be well positioned with strong capital and access to liquidity to sustain us through this unprecedented interest rate cycle. Our quarterly financial performance has been largely impacted by higher funding costs in response to the sustained increase in interest rates over the last 18-24 months. As we continue to manage the balance sheet in this uncertain environment, we are also focused on expense management initiatives to mitigate top line pressures and improve efficiencies over the long-term. The Company also continues to focus on our loan and deposit growth initiatives and retention of our customers. Total deposits increased
Hagan concluded, “The Company is considered to be well-capitalized as defined by the regulators and we remain disciplined in our capital management strategies. During the six months ended June 30, 2024, we repurchased approximately 470,000 shares of the Company’s common stock at an average price per share of
Key Highlights:
Loans and Deposits
At June 30, 2024, total loans were
At June 30, 2024, total deposits were
Liquidity
The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At June 30, 2024, the Company had
Allowance for Loan Losses and Credit Quality
At June 30, 2024, the allowance for credit losses was
Net Interest Margin
The net interest margin was
Stock Repurchase Program
On June 10, 2024, the Company announced the completion of its previously authorized stock repurchase plan (the “2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1.1 million shares, or approximately
The table below breaks out the shares repurchased under the 2022 Plan and 2024 Plan for the period noted:
| Shares Repurchased | Price per Share | Shares Available Under Plan(s) | ||||
| Three months ended March 31, 2024: | ||||||
| 2022 Plan | 200,000 | $ | 8.26 | 206,600 | ||
| Three months ended June 30, 2024: | ||||||
| 2022 Plan | 206,600 | $ | 6.64 | - | ||
| 2024 Plan | 63,241 | 6.57 | 936,759 | |||
| Total | 269,841 | $ | 6.62 | 936,759 | ||
| Total for the six months ended June 30, 2024: | 469,841 | $ | 7.32 | 936,759 | ||
The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.
Book Value and Tangible Book Value
The Company’s book value per share was
Net Income for the Three Months Ended June 30, 2024 Compared to the Three Months Ended March 31, 2024
The Company reported net income of
Net Interest Income and Net Interest Margin
On a sequential quarter basis, net interest income, our primary driver of revenues, decreased
The net interest margin was
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was
The average cost of total funds, including non-interest bearing accounts and borrowings, increased 19 basis points from
Provision for (Reversal of) Credit Losses
During the three months ended June, 30, 2024, the Company recorded a reversal of credit losses of
During the three months ended June 30, 2024, the Company recorded net charge-offs of
Non-Interest Income
On a sequential quarter basis, non-interest income increased
Non-Interest Expense
For the three months ended June 30, 2024, non-interest expense decreased
For the three months ended June 30, 2024, the efficiency ratio was
Income Tax Provision
Income tax expense for the three months ended June 30, 2024 was
Net Income for the Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023.
The Company reported net income of
Net Interest Income and Net Interest Margin
Net interest income decreased
The net interest margin was
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was
The average cost of total funds, including non-interest bearing accounts and borrowings, increased 77 basis points from
Provision for (Reversal of) Credit Losses
During the three months ended June, 30, 2024, the Company recorded a reversal of credit losses of
The Company recorded net charge-offs of
Non-Interest Income
Non-interest income increased
Non-Interest Expense
For the three months ended June 30, 2024, non-interest expense decreased
For the three months ended June 30, 2024, the efficiency ratio was
Income Tax Provision
Income tax expense for the three months ended June 30, 2024 was
Net Income for the Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
For the six months ended June 30, 2024, the Company reported net income of
Net Interest Income and Net Interest Margin
During the six months ended June 30, 2024, net interest income decreased
The net interest margin for the six months ended June 30, 2024 was
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was
The average cost of total funds, including non-interest bearing accounts and borrowings, increased 92 basis points from
Provision for (Reversal of) Credit Losses
During the six months ended June 30, 2024, the Company recorded a reversal of credit losses of
The Company recorded net recoveries of
Non-Interest Income
For the six months ended June 30, 2024, non-interest income increased
Non-Interest Expense
For the six months ended June 30, 2024, non-interest expense decreased
For the six months ended June 30, 2024, the efficiency ratio was
Income Tax Provision
Income tax expense for the six months ended June 30, 2024 was
Balance Sheet
At June 30, 2024, total assets were
Investments
At June 30, 2024, the investment securities portfolio totaled
At June 30, 2024, the Company reported unrealized losses on the AFS securities portfolio of
The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of
Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The Company expects to strategically redeploy available cash flows from the securities portfolio to fund loan growth and deposit outflows.
Total Loans
At June 30, 2024, total loans decreased
The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:
| June 30, 2024 | December 31, 2023 | ||||
| (Dollars in thousands) | |||||
| Commercial real estate loans: | |||||
| Non-owner occupied | $ | 864,603 | $ | 881,643 | |
| Owner-occupied | 191,936 | 198,108 | |||
| Total commercial real estate loans | 1,056,539 | 1,079,751 | |||
| Residential real estate loans: | |||||
| Residential | 631,997 | 612,315 | |||
| Home equity | 113,970 | 109,839 | |||
| Total residential real estate loans | 745,967 | 722,154 | |||
| Commercial and industrial loans | 216,300 | 217,447 | |||
| Consumer loans | 4,715 | 5,472 | |||
| Total gross loans | 2,023,521 | 2,024,824 | |||
| Unamortized premiums and net deferred loans fees and costs | 2,705 | 2,493 | |||
| Total loans | $ | 2,026,226 | $ | 2,027,317 | |
Credit Quality
Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.
Total delinquency was
At June 30, 2024, the allowance for credit losses as a percentage of total loans was
Total classified loans, defined as special mention and substandard loans, decreased
Deposits
Total deposits increased
The table below is a summary of our deposit balances for the periods noted:
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||
| (Dollars in thousands) | ||||||||
| Core Deposits: | ||||||||
| Demand accounts | $ | 553,329 | $ | 559,928 | $ | 579,595 | ||
| Interest-bearing accounts | 149,100 | 125,377 | 131,031 | |||||
| Savings accounts | 186,171 | 190,732 | 187,405 | |||||
| Money market accounts | 611,501 | 624,474 | 634,361 | |||||
| Total Core Deposits | $ | 1,500,101 | $ | 1,500,511 | $ | 1,532,392 | ||
| Time Deposits: | 671,708 | 643,236 | 611,352 | |||||
| Total Deposits: | $ | 2,171,809 | $ | 2,143,747 | $ | 2,143,744 | ||
During the six months ended June 30, 2024, the Company continued to experience an unfavorable shift in deposit mix from low cost core deposits to high cost time deposits as customers continue to migrate to higher deposit rates. The Company continues to focus on the maintenance, development, and expansion of its core deposit base to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At June 30, 2024, the Bank’s uninsured deposits represented
FHLB and Subordinated Debt
At June 30, 2024, total borrowings decreased
The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was
At June 30, 2024 and December 31, 2023, borrowings also consisted of
Capital
At June 30, 2024, shareholders’ equity was
The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. Total Risk-Based Capital Ratio was
Dividends
Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.
About Western New England Bancorp, Inc.
Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements 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, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:
- unpredictable changes in general economic conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
- the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
- unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
- inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
- the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
- significant changes in accounting, tax or regulatory practices or requirements;
- new legal obligations or liabilities or unfavorable resolutions of litigation;
- disruptive technologies in payment systems and other services traditionally provided by banks;
- the highly competitive industry and market area in which we operate;
- changes in business conditions and inflation;
- operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
- 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 other financial services institutions which may adversely affect our credit risk;
- certain of our intangible assets may become impaired in the future;
- new lines of business or new products and services, which may subject us to additional risks;
- changes in key management personnel which may adversely impact our operations;
- severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
- other risk factors detailed from time to time in our SEC filings.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
| Consolidated Statements of Net Income and Other Data | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||
| Loans | $ | 24,340 | $ | 24,241 | $ | 23,939 | $ | 23,451 | $ | 22,450 | $ | 48,581 | $ | 43,779 | |||||||
| Securities | 2,141 | 2,114 | 2,094 | 2,033 | 2,094 | 4,255 | 4,243 | ||||||||||||||
| Other investments | 148 | 136 | 140 | 166 | 146 | 284 | 252 | ||||||||||||||
| Short-term investments | 173 | 113 | 597 | 251 | 119 | 286 | 173 | ||||||||||||||
| Total interest and dividend income | 26,802 | 26,604 | 26,770 | 25,901 | 24,809 | 53,406 | 48,447 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||
| Deposits | 10,335 | 9,293 | 8,773 | 7,704 | 6,069 | 19,628 | 10,172 | ||||||||||||||
| Short-term borrowings | 186 | 283 | 123 | 117 | 646 | 469 | 1,349 | ||||||||||||||
| Long-term debt | 1,557 | 1,428 | 1,444 | 1,444 | 995 | 2,985 | 1,069 | ||||||||||||||
| Subordinated debt | 254 | 254 | 254 | 253 | 253 | 508 | 507 | ||||||||||||||
| Total interest expense | 12,332 | 11,258 | 10,594 | 9,518 | 7,963 | 23,590 | 13,097 | ||||||||||||||
| Net interest and dividend income | 14,470 | 15,346 | 16,176 | 16,383 | 16,846 | 29,816 | 35,350 | ||||||||||||||
| (REVERSAL OF) PROVISION FOR CREDIT LOSSES | (294 | ) | (550 | ) | 486 | 354 | 420 | (844 | ) | 32 | |||||||||||
| Net interest and dividend income after (reversal of) provision for credit losses | 14,764 | 15,896 | 15,690 | 16,029 | 16,426 | 30,660 | 35,318 | ||||||||||||||
| NON-INTEREST INCOME: | |||||||||||||||||||||
| Service charges and fees on deposits | 2,341 | 2,219 | 2,283 | 2,145 | 2,241 | 4,560 | 4,428 | ||||||||||||||
| Income from bank-owned life insurance | 502 | 453 | 432 | 454 | 494 | 955 | 934 | ||||||||||||||
| Unrealized gain (loss) on marketable equity securities | 4 | 8 | (1 | ) | - | - | 12 | - | |||||||||||||
| Gain on non-marketable equity investments | 987 | - | - | 238 | - | 987 | 352 | ||||||||||||||
| Loss on disposal of premises and equipment | - | (6 | ) | - | (3 | ) | - | (6 | ) | - | |||||||||||
| Loss on defined benefit plan termination | - | - | - | - | (1,143 | ) | - | (1,143 | ) | ||||||||||||
| Gain on bank-owned life insurance death benefit | - | - | - | 778 | - | - | - | ||||||||||||||
| Total non-interest income | 3,834 | 2,674 | 2,714 | 3,612 | 1,592 | 6,508 | 4,571 | ||||||||||||||
| NON-INTEREST EXPENSE: | |||||||||||||||||||||
| Salaries and employees benefits | 7,901 | 8,244 | 7,739 | 7,955 | 8,089 | 16,145 | 16,520 | ||||||||||||||
| Occupancy | 1,218 | 1,363 | 1,198 | 1,159 | 1,203 | 2,581 | 2,551 | ||||||||||||||
| Furniture and equipment | 483 | 484 | 494 | 482 | 492 | 967 | 978 | ||||||||||||||
| Data processing | 846 | 862 | 788 | 824 | 792 | 1,708 | 1,545 | ||||||||||||||
| Software | 566 | 699 | 598 | 529 | 526 | 1,265 | 1,040 | ||||||||||||||
| Debit/ATM card processing expense | 643 | 552 | 559 | 562 | 528 | 1,195 | 1,018 | ||||||||||||||
| Professional fees | 581 | 569 | 674 | 643 | 803 | 1,150 | 1,560 | ||||||||||||||
| FDIC insurance | 323 | 410 | 338 | 341 | 290 | 733 | 642 | ||||||||||||||
| Advertising | 339 | 349 | 377 | 362 | 339 | 688 | 756 | ||||||||||||||
| Other | 1,414 | 1,250 | 2,020 | 1,261 | 1,489 | 2,664 | 2,837 | ||||||||||||||
| Total non-interest expense | 14,314 | 14,782 | 14,785 | 14,118 | 14,551 | 29,096 | 29,447 | ||||||||||||||
| INCOME BEFORE INCOME TAXES | 4,284 | 3,788 | 3,619 | 5,523 | 3,467 | 8,072 | 10,442 | ||||||||||||||
| INCOME TAX PROVISION | 771 | 827 | 1,108 | 1,033 | 704 | 1,598 | 2,375 | ||||||||||||||
| NET INCOME | $ | 3,513 | $ | 2,961 | $ | 2,511 | $ | 4,490 | $ | 2,763 | $ | 6,474 | $ | 8,067 | |||||||
| Basic earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.12 | $ | 0.21 | $ | 0.13 | $ | 0.31 | $ | 0.37 | |||||||
| Weighted average shares outstanding | 21,056,173 | 21,180,968 | 21,253,452 | 21,560,940 | 21,634,683 | 21,118,571 | 21,666,713 | ||||||||||||||
| Diluted earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.12 | $ | 0.21 | $ | 0.13 | $ | 0.31 | $ | 0.37 | |||||||
| Weighted average diluted shares outstanding | 21,163,762 | 21,271,323 | 21,400,664 | 21,680,113 | 21,648,235 | 21,217,543 | 21,682,402 | ||||||||||||||
| Other Data: | |||||||||||||||||||||
| Return on average assets (1) | 0.55 | % | 0.47 | % | 0.39 | % | 0.70 | % | 0.43 | % | 0.51 | % | 0.64 | % | |||||||
| Return on average equity (1) | 6.03 | % | 5.04 | % | 4.31 | % | 7.60 | % | 4.72 | % | 5.53 | % | 6.98 | % | |||||||
| Efficiency ratio | 78.20 | % | 82.03 | % | 78.27 | % | 70.61 | % | 78.92 | % | 80.10 | % | 73.76 | % | |||||||
| Adjusted efficiency ratio (2) | 82.68 | % | 82.04 | % | 78.26 | % | 74.38 | % | 74.31 | % | 82.35 | % | 72.33 | % | |||||||
| Net interest margin | 2.42 | % | 2.57 | % | 2.64 | % | 2.70 | % | 2.81 | % | 2.50 | % | 2.97 | % | |||||||
| Net interest margin, on a fully tax-equivalent basis | 2.44 | % | 2.59 | % | 2.66 | % | 2.72 | % | 2.83 | % | 2.52 | % | 2.99 | % | |||||||
| (1) Annualized. | |||||||||||||||||||||
| (2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, and loss on defined benefit plan termination. | |||||||||||||||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
| Cash and cash equivalents | $ | 53,458 | $ | 22,613 | $ | 28,840 | $ | 62,267 | $ | 31,689 | |||||||||
| Securities available-for-sale, at fair value | 135,089 | 138,362 | 137,115 | 130,709 | 141,481 | ||||||||||||||
| Securities held to maturity, at amortized cost | 217,632 | 221,242 | 223,370 | 225,020 | 222,900 | ||||||||||||||
| Marketable equity securities, at fair value | 233 | 222 | 196 | - | - | ||||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 7,143 | 3,105 | 3,707 | 3,063 | 3,226 | ||||||||||||||
| Loans | 2,026,226 | 2,025,566 | 2,027,317 | 2,014,820 | 2,015,593 | ||||||||||||||
| Allowance for credit losses | (19,444 | ) | (19,884 | ) | (20,267 | ) | (19,978 | ) | (19,647 | ) | |||||||||
| Net loans | 2,006,782 | 2,005,682 | 2,007,050 | 1,994,842 | 1,995,946 | ||||||||||||||
| Bank-owned life insurance | 76,100 | 75,598 | 75,145 | 74,713 | 75,554 | ||||||||||||||
| Goodwill | 12,487 | 12,487 | 12,487 | 12,487 | 12,487 | ||||||||||||||
| Core deposit intangible | 1,625 | 1,719 | 1,813 | 1,906 | 2,000 | ||||||||||||||
| Other assets | 75,521 | 76,206 | 74,848 | 79,998 | 77,001 | ||||||||||||||
| TOTAL ASSETS | $ | 2,586,070 | $ | 2,557,236 | $ | 2,564,571 | $ | 2,585,005 | $ | 2,562,284 | |||||||||
| Total deposits | $ | 2,171,809 | $ | 2,143,747 | $ | 2,143,744 | $ | 2,176,303 | $ | 2,157,974 | |||||||||
| Short-term borrowings | 6,570 | 11,470 | 16,100 | 8,890 | 7,190 | ||||||||||||||
| Long-term debt | 128,277 | 120,646 | 120,646 | 121,178 | 121,178 | ||||||||||||||
| Subordinated debt | 19,731 | 19,722 | 19,712 | 19,702 | 19,692 | ||||||||||||||
| Securities pending settlement | 102 | - | 140 | 2,253 | - | ||||||||||||||
| Other liabilities | 23,104 | 25,855 | 26,820 | 25,765 | 22,252 | ||||||||||||||
| TOTAL LIABILITIES | 2,349,593 | 2,321,440 | 2,327,162 | 2,354,091 | 2,328,286 | ||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 236,477 | 235,796 | 237,409 | 230,914 | 233,998 | ||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,586,070 | $ | 2,557,236 | $ | 2,564,571 | $ | 2,585,005 | $ | 2,562,284 | |||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Other Data | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||
| Shares outstanding at end of period | 21,357,849 | 21,627,690 | 21,666,807 | 21,927,242 | 22,082,403 | ||||||||||
| Operating results: | |||||||||||||||
| Net interest income | $ | 14,470 | $ | 15,346 | $ | 16,176 | $ | 16,383 | $ | 16,846 | |||||
| (Reversal of) provision for credit losses | (294) | (550) | 486 | 354 | 420 | ||||||||||
| Non-interest income | 3,834 | 2,674 | 2,714 | 3,612 | 1,592 | ||||||||||
| Non-interest expense | 14,314 | 14,782 | 14,785 | 14,118 | 14,551 | ||||||||||
| Income before income provision for income taxes | 4,284 | 3,788 | 3,619 | 5,523 | 3,467 | ||||||||||
| Income tax provision | 771 | 827 | 1,108 | 1,033 | 704 | ||||||||||
| Net income | 3,513 | 2,961 | 2,511 | 4,490 | 2,763 | ||||||||||
| Performance Ratios: | |||||||||||||||
| Net interest margin | |||||||||||||||
| Net interest margin, on a fully tax-equivalent basis | |||||||||||||||
| Interest rate spread | |||||||||||||||
| Interest rate spread, on a fully tax-equivalent basis | |||||||||||||||
| Return on average assets | |||||||||||||||
| Return on average equity | |||||||||||||||
| Efficiency ratio (GAAP) | |||||||||||||||
| Adjusted efficiency ratio (non-GAAP)(1) | |||||||||||||||
| Per Common Share Data: | |||||||||||||||
| Basic earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.12 | $ | 0.21 | $ | 0.13 | |||||
| Earnings per diluted share | 0.17 | 0.14 | 0.12 | 0.21 | 0.13 | ||||||||||
| Cash dividend declared | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||
| Book value per share | 11.07 | 10.90 | 10.96 | 10.53 | 10.60 | ||||||||||
| Tangible book value per share (non-GAAP)(2) | 10.41 | 10.25 | 10.30 | 9.87 | 9.94 | ||||||||||
| Asset Quality: | |||||||||||||||
| 30-89 day delinquent loans | $ | 3,270 | $ | 3,000 | $ | 4,605 | $ | 4,097 | $ | 4,092 | |||||
| 90 days or more delinquent loans | 2,280 | 1,716 | 1,394 | 1,527 | 1,324 | ||||||||||
| Total delinquent loans | 5,550 | 4,716 | 5,999 | 5,624 | 5,416 | ||||||||||
| Total delinquent loans as a percentage of total loans | |||||||||||||||
| Nonperforming loans | $ | 5,845 | $ | 5,837 | $ | 6,421 | $ | 6,290 | $ | 5,755 | |||||
| Nonperforming loans as a percentage of total loans | |||||||||||||||
| Nonperforming assets as a percentage of total assets | |||||||||||||||
| Allowance for credit losses as a percentage of nonperforming loans | |||||||||||||||
| Allowance for credit losses as a percentage of total loans | |||||||||||||||
| Net loan charge-offs (recoveries) | $ | 10 | $ | (67) | $ | 136 | $ | 78 | $ | (25) | |||||
| Net loan charge-offs (recoveries) as a percentage of average loans | |||||||||||||||
____________________________
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, and loss on defined benefit plan termination.
(2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.
The following table sets forth the information relating to our average balances and net interest income for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||||||
| Balance | Interest | Cost(8) | Balance | Interest | Cost(8) | Balance | Interest | Cost(8) | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||
| Loans(1)(2) | $ | 2,017,127 | $ | 24,454 | 4.88 | % | $ | 2,021,713 | $ | 24,351 | 4.84 | % | $ | 2,006,909 | $ | 22,572 | 4.51 | % | ||||||||||||
| Securities(2) | 354,850 | 2,141 | 2.43 | 359,493 | 2,114 | 2.37 | 374,513 | 2,094 | 2.24 | |||||||||||||||||||||
| Other investments | 14,328 | 148 | 4.15 | 12,494 | 136 | 4.38 | 13,329 | 146 | 4.39 | |||||||||||||||||||||
| Short-term investments(3) | 14,328 | 173 | 4.86 | 9,386 | 113 | 4.84 | 10,326 | 119 | 4.62 | |||||||||||||||||||||
| Total interest-earning assets | 2,400,633 | 26,916 | 4.51 | 2,403,086 | 26,714 | 4.47 | 2,405,077 | 24,931 | 4.16 | |||||||||||||||||||||
| Total non-interest-earning assets | 156,701 | 154,410 | 154,490 | |||||||||||||||||||||||||||
| Total assets | $ | 2,557,334 | $ | 2,557,496 | $ | 2,559,567 | ||||||||||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||
| Interest-bearing checking accounts | $ | 131,449 | 253 | 0.77 | $ | 135,559 | 234 | 0.69 | $ | 143,547 | 248 | 0.69 | ||||||||||||||||||
| Savings accounts | 185,690 | 51 | 0.11 | 186,125 | 39 | 0.08 | 208,983 | 56 | 0.11 | |||||||||||||||||||||
| Money market accounts | 622,062 | 2,930 | 1.89 | 626,267 | 2,587 | 1.66 | 701,116 | 2,330 | 1.33 | |||||||||||||||||||||
| Time deposit accounts | 650,054 | 7,101 | 4.39 | 627,699 | 6,433 | 4.12 | 502,062 | 3,435 | 2.74 | |||||||||||||||||||||
| Total interest-bearing deposits | 1,589,255 | 10,335 | 2.62 | 1,575,650 | 9,293 | 2.37 | 1,555,708 | 6,069 | 1.56 | |||||||||||||||||||||
| Borrowings | 160,484 | 1,997 | 5.00 | 160,802 | 1,965 | 4.91 | 155,826 | 1,894 | 4.88 | |||||||||||||||||||||
| Interest-bearing liabilities | 1,749,739 | 12,332 | 2.83 | 1,736,452 | 11,258 | 2.61 | 1,711,534 | 7,963 | 1.87 | |||||||||||||||||||||
| Non-interest-bearing deposits | 548,781 | 557,711 | 591,437 | |||||||||||||||||||||||||||
| Other non-interest-bearing liabilities | 24,453 | 27,078 | 21,832 | |||||||||||||||||||||||||||
| Total non-interest-bearing liabilities | 573,234 | 584,789 | 613,269 | |||||||||||||||||||||||||||
| Total liabilities | 2,322,973 | 2,321,241 | 2,324,803 | |||||||||||||||||||||||||||
| Total equity | 234,361 | 236,255 | 234,764 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 2,557,334 | $ | 2,557,496 | $ | 2,559,567 | ||||||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (114 | ) | (110 | ) | (122 | ) | ||||||||||||||||||||||||
| Net interest and dividend income | $ | 14,470 | $ | 15,346 | $ | 16,846 | ||||||||||||||||||||||||
| Net interest rate spread(4) | 1.66 | % | 1.85 | % | 2.27 | % | ||||||||||||||||||||||||
| Net interest rate spread, on a tax-equivalent basis(5) | 1.67 | % | 1.86 | % | 2.29 | % | ||||||||||||||||||||||||
| Net interest margin(6) | 2.42 | % | 2.57 | % | 2.81 | % | ||||||||||||||||||||||||
| Net interest margin, on a tax-equivalent basis(7) | 2.44 | % | 2.59 | % | 2.83 | % | ||||||||||||||||||||||||
| Ratio of average interest-earning | ||||||||||||||||||||||||||||||
| assets to average interest-bearing liabilities | 137.20 | % | 138.39 | % | 140.52 | % | ||||||||||||||||||||||||
The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Six Months Ended June 30, | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| Average Balance | Interest | Average Yield/ Cost(8) | Average Balance | Interest | Average Yield/ Cost(8) | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| ASSETS: | |||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans(1)(2) | $ | 2,019,420 | $ | 48,805 | 4.86 | % | $ | 2,000,055 | $ | 44,018 | 4.44 | % | |||||||
| Securities(2) | 357,171 | 4,255 | 2.40 | 378,421 | 4,243 | 2.26 | |||||||||||||
| Other investments | 13,411 | 284 | 4.26 | 12,717 | 252 | 4.00 | |||||||||||||
| Short-term investments(3) | 11,857 | 286 | 4.85 | 8,130 | 173 | 4.29 | |||||||||||||
| Total interest-earning assets | 2,401,859 | 53,630 | 4.49 | 2,399,323 | 48,686 | 4.09 | |||||||||||||
| Total non-interest-earning assets | 155,555 | 153,520 | |||||||||||||||||
| Total assets | $ | 2,557,414 | $ | 2,552,843 | |||||||||||||||
| LIABILITIES AND EQUITY: | |||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Interest-bearing checking accounts | $ | 133,504 | 488 | 0.74 | % | $ | 141,662 | 511 | 0.73 | % | |||||||||
| Savings accounts | 185,907 | 90 | 0.10 | 213,863 | 101 | 0.10 | |||||||||||||
| Money market accounts | 624,164 | 5,517 | 1.78 | 739,182 | 4,325 | 1.18 | |||||||||||||
| Time deposit accounts | 638,970 | 13,533 | 4.26 | 465,184 | 5,235 | 2.27 | |||||||||||||
| Total interest-bearing deposits | 1,582,545 | 19,628 | 2.49 | 1,559,891 | 10,172 | 1.32 | |||||||||||||
| Short-term borrowings and long-term debt | 160,643 | 3,962 | 4.96 | 121,285 | 2,925 | 4.86 | |||||||||||||
| Total interest-bearing liabilities | 1,743,188 | 23,590 | 2.72 | 1,681,176 | 13,097 | 1.57 | |||||||||||||
| Non-interest-bearing deposits | 553,246 | 615,168 | |||||||||||||||||
| Other non-interest-bearing liabilities | 25,672 | 23,572 | |||||||||||||||||
| Total non-interest-bearing liabilities | 578,918 | 638,740 | |||||||||||||||||
| Total liabilities | 2,322,106 | 2,319,916 | |||||||||||||||||
| Total equity | 235,308 | 232,927 | |||||||||||||||||
| Total liabilities and equity | $ | 2,557,414 | $ | 2,552,843 | |||||||||||||||
| Less: Tax-equivalent adjustment (2) | (224 | ) | (239 | ) | |||||||||||||||
| Net interest and dividend income | $ | 29,816 | $ | 35,350 | |||||||||||||||
| Net interest rate spread (4) | 1.75 | % | 2.50 | % | |||||||||||||||
| Net interest rate spread, on a tax-equivalent basis (5) | 1.77 | % | 2.52 | % | |||||||||||||||
| Net interest margin (6) | 2.50 | % | 2.97 | % | |||||||||||||||
| Net interest margin, on a tax-equivalent basis (7) | 2.52 | % | 2.99 | % | |||||||||||||||
| Ratio of average interest-earning | |||||||||||||||||||
| assets to average interest-bearing liabilities | 137.79 | % | 142.72 | % | |||||||||||||||
(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.
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 its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.
| For the quarter ended | |||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Loan interest (no tax adjustment) | $ | 24,340 | $ | 24,241 | $ | 23,939 | $ | 23,451 | $ | 22,450 | |||||||||
| Tax-equivalent adjustment | 114 | 110 | 113 | 117 | 122 | ||||||||||||||
| Loan interest (tax-equivalent basis) | $ | 24,454 | $ | 24,351 | $ | 24,052 | $ | 23,568 | $ | 22,572 | |||||||||
| Net interest income (no tax adjustment) | $ | 14,470 | $ | 15,346 | $ | 16,176 | $ | 16,383 | $ | 16,846 | |||||||||
| Tax equivalent adjustment | 114 | 110 | 113 | 117 | 122 | ||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 14,584 | $ | 15,456 | $ | 16,289 | $ | 16,500 | $ | 16,968 | |||||||||
| Average interest-earning assets | $ | 2,400,633 | $ | 2,403,086 | $ | 2,427,112 | $ | 2,402,987 | $ | 2,405,077 | |||||||||
| Net interest margin (no tax adjustment) | 2.42 | % | 2.57 | % | 2.64 | % | 2.70 | % | 2.81 | % | |||||||||
| Net interest margin, tax-equivalent | 2.44 | % | 2.59 | % | 2.66 | % | 2.72 | % | 2.83 | % | |||||||||
| Book Value per Share (GAAP) | $ | 11.07 | $ | 10.90 | $ | 10.96 | $ | 10.53 | $ | 10.60 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Goodwill | (0.58 | ) | (0.58 | ) | (0.58 | ) | (0.57 | ) | (0.57 | ) | |||||||||
| Core deposit intangible | (0.08 | ) | (0.07 | ) | (0.08 | ) | (0.09 | ) | (0.09 | ) | |||||||||
| Tangible Book Value per Share (non-GAAP) | $ | 10.41 | $ | 10.25 | $ | 10.30 | $ | 9.87 | $ | 9.94 | |||||||||
| For the quarter ended | |||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Efficiency Ratio: | |||||||||||||||||||
| Non-interest Expense (GAAP) | $ | 14,314 | $ | 14,782 | $ | 14,785 | $ | 14,118 | $ | 14,551 | |||||||||
| Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP) | $ | 14,314 | $ | 14,782 | $ | 14,785 | $ | 14,118 | $ | 14,551 | |||||||||
| Net Interest Income (GAAP) | $ | 14,470 | $ | 15,346 | $ | 16,176 | $ | 16,383 | $ | 16,846 | |||||||||
| Non-interest Income (GAAP) | $ | 3,834 | $ | 2,674 | $ | 2,714 | $ | 3,612 | $ | 1,592 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Unrealized (gains) losses on marketable equity securities | (4 | ) | (8 | ) | 1 | - | - | ||||||||||||
| Gain on non-marketable equity investments | (987 | ) | - | - | (238 | ) | - | ||||||||||||
| Loss on disposal of premises and equipment | - | 6 | - | 3 | - | ||||||||||||||
| Gain on bank-owned life insurance death benefit | - | - | - | (778 | ) | - | |||||||||||||
| Loss on defined benefit plan termination | - | - | - | - | 1,143 | ||||||||||||||
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $ | 2,843 | $ | 2,672 | $ | 2,715 | $ | 2,599 | $ | 2,735 | |||||||||
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $ | 17,313 | $ | 18,018 | $ | 18,891 | $ | 18,982 | $ | 19,581 | |||||||||
| Efficiency Ratio (GAAP) | 78.20 | % | 82.03 | % | 78.27 | % | 70.61 | % | 78.92 | % | |||||||||
| Adjusted Efficiency Ratio (Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) | 82.68 | % | 82.04 | % | 78.26 | % | 74.38 | % | 74.31 | % | |||||||||
| For the six months ended | ||||||
| 6/30/2024 | 6/30/2023 | |||||
| (Dollars in thousands) | ||||||
| Loan income (no tax adjustment) | $ | 48,581 | $ | 43,779 | ||
| Tax-equivalent adjustment | 224 | 239 | ||||
| Loan income (tax-equivalent basis) | $ | 48,805 | $ | 44,018 | ||
| Net interest income (no tax adjustment) | $ | 29,816 | $ | 35,350 | ||
| Tax equivalent adjustment | 224 | 239 | ||||
| Net interest income (tax-equivalent basis) | $ | 30,040 | $ | 35,589 | ||
| Average interest-earning assets | $ | 2,401,859 | $ | 2,399,323 | ||
| Net interest margin (no tax adjustment) | ||||||
| Net interest margin, tax-equivalent | ||||||
| Adjusted Efficiency Ratio: | ||||||
| Non-interest Expense (GAAP) | $ | 29,096 | $ | 29,447 | ||
| Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP) | $ | 29,096 | $ | 29,447 | ||
| Net Interest Income (GAAP) | $ | 29,816 | $ | 35,350 | ||
| Non-interest Income (GAAP) | $ | 6,508 | $ | 4,571 | ||
| Non-GAAP adjustments: | ||||||
| Unrealized gains on marketable equity securities | (12) | - | ||||
| Loss on disposal of premises and equipment, net | 6 | - | ||||
| Gain on non-marketable equity investments | (987) | (352) | ||||
| Loss on defined benefit plan curtailment | - | 1,143 | ||||
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $ | 5,515 | $ | 5,362 | ||
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $ | 35,331 | $ | 40,712 | ||
| Efficiency Ratio (GAAP) | ||||||
| Adjusted Efficiency Ratio (Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) | ||||||
For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911
FAQ
What was WNEB's net income for Q2 2024?
What is the dividend amount declared by WNEB?
When is WNEB's dividend payable?
How did WNEB's net interest margin change in Q2 2024?
How much did WNEB repurchase in shares during the six months ended June 30, 2024?
