Western New England Bancorp, Inc. Reports Results for Three Months Ended March 31, 2025 and Declares Quarterly Cash Dividend
Western New England Bancorp (WNEB) reported net income of $2.3 million ($0.11 per diluted share) for Q1 2025, down from $3.0 million ($0.14 per share) in Q1 2024. The Board declared a quarterly cash dividend of $0.07 per share, payable May 21, 2025.
Key financial metrics include:
- Net interest margin increased to 2.49% (up 8 basis points)
- Total gross loans grew by $9.3 million to $2.1 billion
- Core deposits increased by $70.2 million (4.5%)
- Loan-to-deposit ratio decreased to 89.3%
The company announced a new stock repurchase plan (2025 Plan) to repurchase up to 1.0 million shares (4.8% of outstanding shares), which will commence after completing the existing 2024 Plan. Asset quality remains strong with nonaccrual loans at 0.29% of total loans.
Western New England Bancorp (WNEB) ha riportato un utile netto di 2,3 milioni di dollari (0,11 dollari per azione diluita) nel primo trimestre 2025, in calo rispetto ai 3,0 milioni di dollari (0,14 dollari per azione) del primo trimestre 2024. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale in contanti di 0,07 dollari per azione, pagabile il 21 maggio 2025.
Principali indicatori finanziari:
- Margine di interesse netto aumentato al 2,49% (in crescita di 8 punti base)
- Totale prestiti lordi cresciuti di 9,3 milioni di dollari, raggiungendo 2,1 miliardi
- Depositi core aumentati di 70,2 milioni di dollari (4,5%)
- Rapporto prestiti su depositi diminuito al 89,3%
L’azienda ha annunciato un nuovo piano di riacquisto azionario (Piano 2025) per riacquistare fino a 1,0 milione di azioni (4,8% delle azioni in circolazione), che inizierà dopo il completamento del Piano 2024 attuale. La qualità degli attivi resta solida con prestiti non accreditati allo 0,29% del totale prestiti.
Western New England Bancorp (WNEB) reportó un ingreso neto de 2,3 millones de dólares (0,11 dólares por acción diluida) en el primer trimestre de 2025, una disminución respecto a los 3,0 millones de dólares (0,14 dólares por acción) del primer trimestre de 2024. La Junta declaró un dividendo trimestral en efectivo de 0,07 dólares por acción, pagadero el 21 de mayo de 2025.
Principales indicadores financieros:
- Margen de interés neto incrementado a 2,49% (subió 8 puntos básicos)
- Los préstamos brutos totales crecieron 9,3 millones de dólares hasta 2,1 mil millones
- Depósitos core aumentaron 70,2 millones de dólares (4,5%)
- La relación préstamos a depósitos disminuyó a 89,3%
La compañía anunció un nuevo plan de recompra de acciones (Plan 2025) para recomprar hasta 1,0 millón de acciones (4,8% de las acciones en circulación), que comenzará tras finalizar el Plan 2024 vigente. La calidad de los activos se mantiene sólida, con préstamos en mora en 0,29% del total de préstamos.
Western New England Bancorp (WNEB)는 2025년 1분기에 230만 달러(희석 주당 0.11달러)의 순이익을 보고했으며, 이는 2024년 1분기의 300만 달러(주당 0.14달러) 대비 감소한 수치입니다. 이사회는 2025년 5월 21일 지급 예정인 주당 0.07달러의 분기 현금 배당금을 선언했습니다.
주요 재무 지표:
- 순이자마진이 2.49%로 8bp 상승
- 총 대출금은 930만 달러 증가하여 21억 달러 달성
- 핵심 예금은 7,020만 달러(4.5%) 증가
- 대출 대비 예금 비율은 89.3%로 감소
회사는 기존 2024년 계획 완료 후 시작할 최대 100만 주(유통 주식의 4.8%)의 주식 재매입 계획(2025 계획)을 발표했습니다. 자산 품질은 견고하며 부실 대출 비율은 총 대출의 0.29%입니다.
Western New England Bancorp (WNEB) a annoncé un bénéfice net de 2,3 millions de dollars (0,11 dollar par action diluée) pour le premier trimestre 2025, en baisse par rapport à 3,0 millions de dollars (0,14 dollar par action) au premier trimestre 2024. Le conseil d'administration a déclaré un dividende trimestriel en espèces de 0,07 dollar par action, payable le 21 mai 2025.
Principaux indicateurs financiers :
- La marge nette d’intérêt a augmenté à 2,49 % (en hausse de 8 points de base)
- Le total des prêts bruts a augmenté de 9,3 millions de dollars pour atteindre 2,1 milliards
- Les dépôts de base ont augmenté de 70,2 millions de dollars (4,5 %)
- Le ratio prêts/dépôts a diminué à 89,3 %
La société a annoncé un nouveau programme de rachat d’actions (Plan 2025) visant à racheter jusqu’à 1,0 million d’actions (4,8 % des actions en circulation), qui débutera après l’achèvement du Plan 2024 en cours. La qualité des actifs reste solide avec des prêts non productifs représentant 0,29 % du total des prêts.
Western New England Bancorp (WNEB) meldete für das erste Quartal 2025 einen Nettogewinn von 2,3 Millionen US-Dollar (0,11 US-Dollar je verwässerter Aktie), gegenüber 3,0 Millionen US-Dollar (0,14 US-Dollar je Aktie) im ersten Quartal 2024. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,07 US-Dollar je Aktie, zahlbar am 21. Mai 2025.
Wichtige Finanzkennzahlen:
- Nettozinsmarge stieg auf 2,49 % (plus 8 Basispunkte)
- Gesamtdarlehen stiegen um 9,3 Millionen US-Dollar auf 2,1 Milliarden US-Dollar
- Kern-Einlagen erhöhten sich um 70,2 Millionen US-Dollar (4,5 %)
- Das Kredit-zu-Einlagen-Verhältnis sank auf 89,3 %
Das Unternehmen kündigte einen neuen Aktienrückkaufplan (2025-Plan) an, um bis zu 1,0 Million Aktien (4,8 % der ausstehenden Aktien) zurückzukaufen, der nach Abschluss des bestehenden 2024-Plans starten wird. Die Vermögensqualität bleibt stark mit notleidenden Krediten in Höhe von 0,29 % der Gesamtkredite.
- Core deposits increased by $70.2 million (4.5%)
- Net interest margin improved by 8 basis points to 2.49%
- Strong asset quality with low nonaccrual loans at 0.29% of total loans
- Total gross loans grew by $9.3 million
- Strong liquidity position with $1.1 billion in immediately available liquidity
- Net income decreased to $2.3M from $3.0M year-over-year
- Earnings per share declined to $0.11 from $0.14 year-over-year
- Average demand deposits decreased by $9.6 million (1.6%)
- Return on average assets declined to 0.35% from 0.49% quarter-over-quarter
The Company Also Announces a New Share Repurchase Plan
WESTFIELD, Mass., April 22, 2025 (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 months ended March 31, 2025. The Company reported net income of
The Company also announced that its Board of Directors declared a quarterly cash dividend of
In addition, the Company announced that its Board of Directors authorized a new stock repurchase plan (the “2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of the Company’s common stock, or approximately
James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the first quarter of 2025. Our strong, diversified core deposit base and our disciplined approach to managing our funding costs have resulted in an increase in net interest income for the third consecutive quarter. The net interest margin increased eight basis points to
“We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. Our asset quality remains strong, with nonaccrual loans at
“The Company is considered to be well-capitalized, as defined by regulators and internal Company targets, and we remain disciplined in our capital management strategies. We continue to believe that buying back shares represents a valuable use of the Company’s capital. Today, we announced the 2025 Plan, which will commence upon the completion of the 2024 Plan. Our stock repurchase programs are an integral element of our capital management strategies. As such, we believe that repurchasing common stock enhances shareholder value. We are pleased to be able to continue to return value to shareholders through share repurchases.”
Hagan concluded, “Our commitment to strong capital and liquidity levels gives us a solid foundation to take advantage of opportunities in the markets we serve and to enhance shareholder value in the long term.”
Key Highlights:
Loans and Deposits
Total gross loans increased
At March 31, 2025, total deposits of
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 March 31, 2025, the Company had
Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep account or a reciprocal time deposit through the Certificate of Deposit Account Registry System. IntraFi allows for up to
Allowance for Credit Losses and Credit Quality
At March 31, 2025, the allowance for credit losses was
Net Interest Margin
The net interest margin increased eight basis points from
Stock Repurchase Program
On May 21, 2024, the Board of Directors authorized the 2024 Plan under which the Company may repurchase up to 1.0 million shares of its common stock, or approximately
On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of common stock, or approximately
The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under both the 2024 Plan and the 2025 Plan have been and will continue to be, as applicable, 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 both the 2024 Plan and the 2025 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
At March 31, 2025, the Company’s book value per share was
Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended December 31, 2024.
For the three months ended March 31, 2025, the Company reported a decrease in net income of
Net Interest Income and Net Interest Margin
On a sequential quarter basis, net interest income, our primary driver of revenues, increased
The net interest margin increased eight basis points from
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, decreased four basis points from
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2025, the Company recorded a provision for credit losses of
During the three months ended March 31, 2025, the Company recorded net charge-offs of
Non-Interest Income
On a sequential quarter basis, non-interest income decreased
Non-Interest Expense
For the three months ended March 31, 2025, non-interest expense increased
For the three months ended March 31, 2025 and the three months ended December 31, 2024, the efficiency ratio was
Income Tax Provision
Income tax expense for the three months ended March 31, 2025 was
Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024.
The Company reported net income of
Net Interest Income and Net Interest Margin
Net interest income increased
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 11 basis points from
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 March 31, 2025, the Company recorded a provision for credit losses of
During the three months ended March 31, 2025, the Company recorded net charge-offs of
Non-Interest Income
Non-interest income increased
Non-Interest Expense
Non-interest expense increased
For the three months ended March 31, 2025 and the three months ended March 31, 2024, the efficiency ratio was
Income Tax Provision
For the three months ended March 31, 2025, income tax expense was
Balance Sheet
At March 31, 2025, total assets were
Investments
At March 31, 2025, the investment securities portfolio totaled
At March 31, 2025, the Company reported unrealized losses on the available-for-sale 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 March 31, 2025 and December 31, 2024, 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 available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support’s the Bank's objective to provide liquidity.
Total Loans
Total gross loans increased
The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:
| March 31, 2025 | December 31, 2024 | ||||||
| (Dollars in thousands) | |||||||
| Commercial real estate loans: | |||||||
| Non-owner occupied | $ | 881,105 | $ | 880,828 | |||
| Owner-occupied | 191,582 | 194,904 | |||||
| Total commercial real estate loans | 1,072,687 | 1,075,732 | |||||
| Residential real estate loans: | |||||||
| Residential | 659,984 | 653,802 | |||||
| Home equity | 123,804 | 121,857 | |||||
| Total residential real estate loans | 783,788 | 775,659 | |||||
Commercial and industrial loans | 216,368 | 211,656 | |||||
| Consumer loans | 3,865 | 4,391 | |||||
| Total gross loans | 2,076,708 | 2,067,438 | |||||
| Unamortized premiums and net deferred loans fees and costs | 2,853 | 2,751 | |||||
| Total loans | $ | 2,079,561 | $ | 2,070,189 | |||
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 March 31, 2025, the allowance for credit losses was
Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At March 31, 2025, the commercial real estate portfolio totaled
Deposits
At March 31, 2025, total deposits were
Time deposits decreased
The table below is a summary of our deposit balances for the periods noted:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Core Deposits: | ||||||||||||
| Demand accounts | $ | 589,996 | $ | 565,620 | $ | 559,928 | ||||||
| Interest-bearing accounts | 140,769 | 150,348 | 125,377 | |||||||||
| Savings accounts | 191,398 | 181,618 | 190,732 | |||||||||
| Money market accounts | 707,153 | 661,478 | 624,474 | |||||||||
| Total Core Deposits | $ | 1,629,316 | $ | 1,559,064 | $ | 1,500,511 | ||||||
| Time Deposits: | 699,277 | 703,583 | 643,236 | |||||||||
| Total Deposits: | $ | 2,328,593 | $ | 2,262,647 | $ | 2,143,747 | ||||||
FHLB and Subordinated Debt
At March 31, 2025, total borrowings decreased
As of March 31, 2025, the Company had
Capital
At March 31, 2025, shareholders’ equity was
| March 31, 2025 | December 31, 2024 | ||||||||||
| Company | Bank | Company | Bank | ||||||||
| Total Capital (to Risk Weighted Assets) | 14.28 | % | 13.56 | % | 14.38 | % | 13.65 | % | |||
| Tier 1 Capital (to Risk Weighted Assets) | 12.27 | % | 12.55 | % | 12.37 | % | 12.64 | % | |||
| Common Equity Tier 1 Capital (to Risk Weighted Assets) | 12.27 | % | 12.55 | % | 12.37 | % | 12.64 | % | |||
| Tier 1 Leverage Ratio (to Adjusted Average Assets) | 9.06 | % | 9.26 | % | 9.14 | % | 9.34 | % | |||
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 or political 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, including changes in tariff policies, 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;
- 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 | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||
| Loans | $ | 24,984 | $ | 25,183 | $ | 25,134 | $ | 24,340 | $ | 24,241 | |||||||||
| Securities | 2,422 | 2,273 | 2,121 | 2,141 | 2,114 | ||||||||||||||
| Other investments | 191 | 214 | 189 | 148 | 136 | ||||||||||||||
| Short-term investments | 840 | 916 | 396 | 173 | 113 | ||||||||||||||
| Total interest and dividend income | 28,437 | 28,586 | 27,840 | 26,802 | 26,604 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||
| Deposits | 11,376 | 11,443 | 11,165 | 10,335 | 9,293 | ||||||||||||||
| Short-term borrowings | 54 | 60 | 71 | 186 | 283 | ||||||||||||||
| Long-term debt | 1,219 | 1,557 | 1,622 | 1,557 | 1,428 | ||||||||||||||
| Subordinated debt | 254 | 253 | 254 | 254 | 254 | ||||||||||||||
| Total interest expense | 12,903 | 13,313 | 13,112 | 12,332 | 11,258 | ||||||||||||||
| Net interest and dividend income | 15,534 | 15,273 | 14,728 | 14,470 | 15,346 | ||||||||||||||
| PROVISION FOR (REVERSAL OF) CREDIT LOSSES | 142 | (762 | ) | 941 | (294 | ) | (550 | ) | |||||||||||
| Net interest and dividend income after provision for (reversal of) credit losses | 15,392 | 16,035 | 13,787 | 14,764 | 15,896 | ||||||||||||||
| NON-INTEREST INCOME: | |||||||||||||||||||
| Service charges and fees on deposits | 2,284 | 2,301 | 2,341 | 2,341 | 2,219 | ||||||||||||||
| Income from bank-owned life insurance | 473 | 486 | 470 | 502 | 453 | ||||||||||||||
| Unrealized (loss) gain on marketable equity securities | (5 | ) | (9 | ) | 10 | 4 | 8 | ||||||||||||
| Gain (loss) on sale of mortgages | 7 | (11 | ) | 246 | - | - | |||||||||||||
| Gain on non-marketable equity investments | - | 300 | - | 987 | - | ||||||||||||||
| Loss on disposal of premises and equipment | - | - | - | - | (6 | ) | |||||||||||||
| Other income | - | 187 | 74 | - | - | ||||||||||||||
| Total non-interest income | 2,759 | 3,254 | 3,141 | 3,834 | 2,674 | ||||||||||||||
| NON-INTEREST EXPENSE: | |||||||||||||||||||
| Salaries and employees’ benefits | 8,413 | 8,429 | 8,112 | 7,901 | 8,244 | ||||||||||||||
| Occupancy | 1,412 | 1,256 | 1,217 | 1,218 | 1,363 | ||||||||||||||
| Furniture and equipment | 487 | 505 | 483 | 483 | 484 | ||||||||||||||
| Data processing | 882 | 900 | 869 | 846 | 862 | ||||||||||||||
| Software | 659 | 642 | 612 | 566 | 699 | ||||||||||||||
| Debit/ATM card processing expense | 577 | 593 | 649 | 643 | 552 | ||||||||||||||
| Professional fees | 546 | 471 | 540 | 581 | 569 | ||||||||||||||
| FDIC insurance | 431 | 389 | 338 | 323 | 410 | ||||||||||||||
| Advertising | 429 | 310 | 271 | 339 | 349 | ||||||||||||||
| Other | 1,348 | 1,431 | 1,315 | 1,414 | 1,250 | ||||||||||||||
| Total non-interest expense | 15,184 | 14,926 | 14,406 | 14,314 | 14,782 | ||||||||||||||
| INCOME BEFORE INCOME TAXES | 2,967 | 4,363 | 2,522 | 4,284 | 3,788 | ||||||||||||||
| INCOME TAX PROVISION | 664 | 1,075 | 618 | 771 | 827 | ||||||||||||||
| NET INCOME | $ | 2,303 | $ | 3,288 | $ | 1,904 | $ | 3,513 | $ | 2,961 | |||||||||
| Basic earnings per share | $ | 0.11 | $ | 0.16 | $ | 0.09 | $ | 0.17 | $ | 0.14 | |||||||||
| Weighted average shares outstanding | 20,385,481 | 20,561,749 | 20,804,162 | 21,056,173 | 21,180,968 | ||||||||||||||
| Diluted earnings per share | $ | 0.11 | $ | 0.16 | $ | 0.09 | $ | 0.17 | $ | 0.14 | |||||||||
| Weighted average diluted shares outstanding | 20,514,098 | 20,701,276 | 20,933,833 | 21,163,762 | 21,271,323 | ||||||||||||||
| Other Data: | |||||||||||||||||||
| Return on average assets (1) | 0.35 | % | 0.49 | % | 0.29 | % | 0.55 | % | 0.47 | % | |||||||||
| Return on average equity (1) | 3.94 | % | 5.48 | % | 3.19 | % | 6.03 | % | 5.04 | % | |||||||||
| Efficiency ratio | 83.00 | % | 80.56 | % | 80.62 | % | 78.20 | % | 82.03 | % | |||||||||
| Adjusted efficiency ratio (2) | 82.98 | % | 81.85 | % | 80.67 | % | 82.68 | % | 82.04 | % | |||||||||
| Net interest margin | 2.49 | % | 2.41 | % | 2.40 | % | 2.42 | % | 2.57 | % | |||||||||
| Net interest margin, on a fully tax-equivalent basis | 2.51 | % | 2.43 | % | 2.42 | % | 2.44 | % | 2.59 | % | |||||||||
| (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, and loss on disposal of premises and equipment. | |||||||||||||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited) | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Cash and cash equivalents | $ | 110,579 | $ | 66,450 | $ | 72,802 | $ | 53,458 | $ | 22,613 | |||||||||
| Securities available-for-sale, at fair value | 167,800 | 160,704 | 155,889 | 135,089 | 138,362 | ||||||||||||||
| Securities held to maturity, at amortized cost | 201,557 | 205,036 | 213,266 | 217,632 | 221,242 | ||||||||||||||
| Marketable equity securities, at fair value | 414 | 397 | 252 | 233 | 222 | ||||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 5,818 | 5,818 | 7,143 | 7,143 | 3,105 | ||||||||||||||
| Loans | 2,079,561 | 2,070,189 | 2,049,002 | 2,026,226 | 2,025,566 | ||||||||||||||
| Allowance for credit losses | (19,669 | ) | (19,529 | ) | (19,955 | ) | (19,444 | ) | (19,884 | ) | |||||||||
| Net loans | 2,059,892 | 2,050,660 | 2,029,047 | 2,006,782 | 2,005,682 | ||||||||||||||
| Bank-owned life insurance | 77,529 | 77,056 | 76,570 | 76,100 | 75,598 | ||||||||||||||
| Goodwill | 12,487 | 12,487 | 12,487 | 12,487 | 12,487 | ||||||||||||||
| Core deposit intangible | 1,344 | 1,438 | 1,531 | 1,625 | 1,719 | ||||||||||||||
| Other assets | 71,864 | 73,044 | 71,492 | 75,521 | 76,206 | ||||||||||||||
| TOTAL ASSETS | $ | 2,709,284 | $ | 2,653,090 | $ | 2,640,479 | $ | 2,586,070 | $ | 2,557,236 | |||||||||
| Total deposits | $ | 2,328,593 | $ | 2,262,647 | $ | 2,224,206 | $ | 2,171,809 | $ | 2,143,747 | |||||||||
| Short-term borrowings | 4,520 | 5,390 | 4,390 | 6,570 | 11,470 | ||||||||||||||
| Long-term debt | 98,000 | 98,000 | 128,277 | 128,277 | 120,646 | ||||||||||||||
| Subordinated debt | 19,761 | 19,751 | 19,741 | 19,731 | 19,722 | ||||||||||||||
| Securities pending settlement | 2,093 | 8,622 | 2,513 | 102 | - | ||||||||||||||
| Other liabilities | 18,641 | 22,770 | 20,697 | 23,104 | 25,855 | ||||||||||||||
| TOTAL LIABILITIES | 2,471,608 | 2,417,180 | 2,399,824 | 2,349,593 | 2,321,440 | ||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 237,676 | 235,910 | 240,655 | 236,477 | 235,796 | ||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,709,284 | $ | 2,653,090 | $ | 2,640,479 | $ | 2,586,070 | $ | 2,557,236 | |||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Shares outstanding at end of period | 20,774,319 | 20,875,713 | 21,113,408 | 21,357,849 | 21,627,690 | ||||||||||||||
| Operating results: | |||||||||||||||||||
| Net interest income | $ | 15,534 | $ | 15,273 | $ | 14,728 | $ | 14,470 | $ | 15,346 | |||||||||
| Provision for (reversal of) credit losses | 142 | (762 | ) | 941 | (294 | ) | (550 | ) | |||||||||||
| Non-interest income | 2,759 | 3,254 | 3,141 | 3,834 | 2,674 | ||||||||||||||
| Non-interest expense | 15,184 | 14,926 | 14,406 | 14,314 | 14,782 | ||||||||||||||
| Income before income provision for income taxes | 2,967 | 4,363 | 2,522 | 4,284 | 3,788 | ||||||||||||||
| Income tax provision | 664 | 1,075 | 618 | 771 | 827 | ||||||||||||||
| Net income | 2,303 | 3,288 | 1,904 | 3,513 | 2,961 | ||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Net interest margin | 2.49 | % | 2.41 | % | 2.40 | % | 2.42 | % | 2.57 | % | |||||||||
| Net interest margin, on a fully tax-equivalent basis | 2.51 | % | 2.43 | % | 2.42 | % | 2.44 | % | 2.59 | % | |||||||||
| Interest rate spread | 1.74 | % | 1.63 | % | 1.60 | % | 1.66 | % | 1.85 | % | |||||||||
| Interest rate spread, on a fully tax-equivalent basis | 1.76 | % | 1.65 | % | 1.62 | % | 1.67 | % | 1.86 | % | |||||||||
| Return on average assets | 0.35 | % | 0.49 | % | 0.29 | % | 0.55 | % | 0.47 | % | |||||||||
| Return on average equity | 3.94 | % | 5.48 | % | 3.19 | % | 6.03 | % | 5.04 | % | |||||||||
| Efficiency ratio (GAAP) | 83.00 | % | 80.56 | % | 80.62 | % | 78.20 | % | 82.03 | % | |||||||||
| Adjusted efficiency ratio (non-GAAP)(1) | 82.98 | % | 81.85 | % | 80.67 | % | 82.68 | % | 82.04 | % | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Basic earnings per share | $ | 0.11 | $ | 0.16 | $ | 0.09 | $ | 0.17 | $ | 0.14 | |||||||||
| Earnings per diluted share | 0.11 | 0.16 | 0.09 | 0.17 | 0.14 | ||||||||||||||
| Cash dividend declared | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
| Book value per share | 11.44 | 11.30 | 11.40 | 11.07 | 10.90 | ||||||||||||||
| Tangible book value per share (non-GAAP)(2) | 10.78 | 10.63 | 10.73 | 10.41 | 10.25 | ||||||||||||||
| Asset Quality: | |||||||||||||||||||
| 30-89 day delinquent loans | $ | 2,459 | $ | 3,694 | $ | 3,059 | $ | 3,270 | $ | 3,000 | |||||||||
| 90 days or more delinquent loans | 2,027 | 1,301 | 1,253 | 2,280 | 1,716 | ||||||||||||||
| Total delinquent loans | 4,486 | 4,995 | 4,312 | 5,550 | 4,716 | ||||||||||||||
| Total delinquent loans as a percentage of total loans | 0.22 | % | 0.24 | % | 0.21 | % | 0.27 | % | 0.23 | % | |||||||||
| Nonaccrual loans | $ | 6,014 | $ | 5,381 | $ | 4,873 | $ | 5,845 | $ | 5,837 | |||||||||
| Nonaccrual loans as a percentage of total loans | 0.29 | % | 0.26 | % | 0.24 | % | 0.29 | % | 0.29 | % | |||||||||
| Nonaccrual assets as a percentage of total assets | 0.22 | % | 0.20 | % | 0.18 | % | 0.23 | % | 0.23 | % | |||||||||
| Allowance for credit losses as a percentage of nonaccrual loans | 327.05 | % | 362.93 | % | 409.50 | % | 332.66 | % | 340.65 | % | |||||||||
| Allowance for credit losses as a percentage of total loans | 0.95 | % | 0.94 | % | 0.97 | % | 0.96 | % | 0.98 | % | |||||||||
| Net loan charge-offs (recoveries) | $ | 29 | $ | (128 | ) | $ | 98 | $ | 10 | $ | (67 | ) | |||||||
| Net loan charge-offs (recoveries) as a percentage of average loans | 0.00 | % | (0.01 | )% | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||
| (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, gains on non-marketable equity investments, and loss on disposal of premises and equipment. | |||||||||||||||||||
| (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 March 31, 2025, December 31, 2024 and March 31, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||||||||||||||||||
| 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) | $ | 2,073,486 | $ | 25,105 | 4.91 | % | $ | 2,062,822 | $ | 25,311 | 4.88 | % | $ | 2,021,713 | $ | 24,351 | 4.84 | % | ||||||||||||||||||
| Securities(2) | 365,371 | 2,422 | 2.69 | 361,476 | 2,273 | 2.50 | 359,493 | 2,114 | 2.37 | |||||||||||||||||||||||||||
| Other investments | 14,819 | 191 | 5.23 | 15,924 | 214 | 5.35 | 12,494 | 136 | 4.38 | |||||||||||||||||||||||||||
| Short-term investments(3) | 76,039 | 840 | 4.48 | 76,795 | 916 | 4.75 | 9,386 | 113 | 4.84 | |||||||||||||||||||||||||||
| Total interest-earning assets | 2,529,715 | 28,558 | 4.58 | 2,517,017 | 28,714 | 4.54 | 2,403,086 | 26,714 | 4.47 | |||||||||||||||||||||||||||
| Total non-interest-earning assets | 156,733 | 155,538 | 154,410 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 2,686,448 | $ | 2,672,555 | $ | 2,557,496 | ||||||||||||||||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Interest-bearing checking accounts | $ | 140,960 | 250 | 0.72 | $ | 149,231 | 264 | 0.70 | $ | 135,559 | 234 | 0.69 | ||||||||||||||||||||||||
| Savings accounts | 183,869 | 40 | 0.09 | 179,122 | 38 | 0.08 | 186,125 | 39 | 0.08 | |||||||||||||||||||||||||||
| Money market accounts | 704,215 | 3,968 | 2.29 | 654,965 | 3,553 | 2.16 | 626,267 | 2,587 | 1.66 | |||||||||||||||||||||||||||
| Time deposit accounts | 702,748 | 7,118 | 4.11 | 700,324 | 7,588 | 4.31 | 627,699 | 6,433 | 4.12 | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,731,792 | 11,376 | 2.66 | 1,683,642 | 11,443 | 2.70 | 1,575,650 | 9,293 | 2.37 | |||||||||||||||||||||||||||
| Short-term borrowings and long-term debt | 122,786 | 1,527 | 5.04 | 147,748 | 1,870 | 5.04 | 160,802 | 1,965 | 4.91 | |||||||||||||||||||||||||||
| Interest-bearing liabilities | 1,854,578 | 12,903 | 2.82 | 1,831,390 | 13,313 | 2.89 | 1,736,452 | 11,258 | 2.61 | |||||||||||||||||||||||||||
| Non-interest-bearing deposits | 569,638 | 579,168 | 557,711 | |||||||||||||||||||||||||||||||||
| Other non-interest-bearing liabilities | 25,464 | 23,380 | 27,078 | |||||||||||||||||||||||||||||||||
| Total non-interest-bearing liabilities | 595,102 | 602,548 | 584,789 | |||||||||||||||||||||||||||||||||
| Total liabilities | 2,449,680 | 2,433,938 | 2,321,241 | |||||||||||||||||||||||||||||||||
| Total equity | 236,768 | 238,617 | 236,255 | |||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 2,686,448 | $ | 2,672,555 | $ | 2,557,496 | ||||||||||||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (121 | ) | (128 | ) | (110 | ) | ||||||||||||||||||||||||||||||
| Net interest and dividend income | $ | 15,534 | $ | 15,273 | $ | 15,346 | ||||||||||||||||||||||||||||||
| Net interest rate spread(4) | 1.74 | % | 1.63 | % | 1.85 | % | ||||||||||||||||||||||||||||||
| Net interest rate spread, on a tax-equivalent basis(5) | 1.76 | % | 1.65 | % | 1.86 | % | ||||||||||||||||||||||||||||||
| Net interest margin(6) | 2.49 | % | 2.41 | % | 2.57 | % | ||||||||||||||||||||||||||||||
| Net interest margin, on a tax-equivalent basis(7) | 2.51 | % | 2.43 | % | 2.59 | % | ||||||||||||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 136.40 | % | 137.44 | % | 138.39 | % | ||||||||||||||||||||||||||||||
| (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 tax-equivalent 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 | |||||||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Loan interest (no tax adjustment) | $ | 24,984 | $ | 25,183 | $ | 25,134 | $ | 24,340 | $ | 24,241 | |||||||||
| Tax-equivalent adjustment | 121 | 128 | 119 | 114 | 110 | ||||||||||||||
| Loan interest (tax-equivalent basis) | $ | 25,105 | $ | 25,311 | $ | 25,253 | $ | 24,454 | $ | 24,351 | |||||||||
| Net interest income (no tax adjustment) | $ | 15,534 | $ | 15,273 | $ | 14,728 | $ | 14,470 | $ | 15,346 | |||||||||
| Tax equivalent adjustment | 121 | 128 | 119 | 114 | 110 | ||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 15,655 | $ | 15,401 | $ | 14,847 | $ | 14,584 | $ | 15,456 | |||||||||
| Average interest-earning assets | $ | 2,529,715 | $ | 2,517,017 | $ | 2,441,236 | $ | 2,400,633 | $ | 2,403,086 | |||||||||
| Net interest margin (no tax adjustment) | 2.49 | % | 2.41 | % | 2.40 | % | 2.42 | % | 2.57 | % | |||||||||
| Net interest margin, tax-equivalent | 2.51 | % | 2.43 | % | 2.42 | % | 2.44 | % | 2.59 | % | |||||||||
| Book Value per Share (GAAP) | $ | 11.44 | $ | 11.30 | $ | 11.40 | $ | 11.07 | $ | 10.90 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Goodwill | (0.60 | ) | (0.60 | ) | (0.59 | ) | (0.58 | ) | (0.58 | ) | |||||||||
| Core deposit intangible | (0.06 | ) | (0.07 | ) | (0.08 | ) | (0.08 | ) | (0.07 | ) | |||||||||
| Tangible Book Value per Share (non-GAAP) | $ | 10.78 | $ | 10.63 | $ | 10.73 | $ | 10.41 | $ | 10.25 | |||||||||
| For the quarter ended | |||||||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Efficiency Ratio: | |||||||||||||||||||
| Non-interest Expense (GAAP) | $ | 15,184 | $ | 14,926 | $ | 14,406 | $ | 14,314 | $ | 14,782 | |||||||||
| Net Interest Income (GAAP) | $ | 15,534 | $ | 15,273 | $ | 14,728 | $ | 14,470 | $ | 15,346 | |||||||||
| Non-interest Income (GAAP) | $ | 2,759 | $ | 3,254 | $ | 3,141 | $ | 3,834 | $ | 2,674 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Unrealized losses (gains) on marketable equity securities | 5 | 9 | (10 | ) | (4 | ) | (8 | ) | |||||||||||
| Gain on non-marketable equity investments | - | (300 | ) | - | (987 | ) | - | ||||||||||||
| Loss on disposal of premises and equipment | - | - | - | - | 6 | ||||||||||||||
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $ | 2,764 | $ | 2,963 | $ | 3,131 | $ | 2,843 | $ | 2,672 | |||||||||
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $ | 18,298 | $ | 18,236 | $ | 17,859 | $ | 17,313 | $ | 18,018 | |||||||||
| Efficiency Ratio (GAAP) | 83.00 | % | 80.56 | % | 80.62 | % | 78.20 | % | 82.03 | % | |||||||||
| Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) | 82.98 | % | 81.85 | % | 80.67 | % | 82.68 | % | 82.04 | % | |||||||||
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 is Western New England Bancorp's (WNEB) Q1 2025 earnings per share?
When will WNEB pay its next quarterly dividend and how much is it?
How many shares can WNEB repurchase under its new 2025 stock repurchase plan?
What is WNEB's loan-to-deposit ratio as of March 31, 2025?
How much did WNEB's core deposits increase in Q1 2025?
