8-K
Western New England Bancorp, Inc. (WNEB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2025
WESTERN NEW ENGLAND BANCORP, INC.
(Exact name of registrant as specified in its charter)
| Massachusetts | 001-16767 | 73-1627673 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 141 Elm Street | ||
| --- | --- | |
| Westfield**, Massachusetts** | 01085 | |
| (Address of principal executive offices) | (zip code) |
Registrant's telephone number, including area code: (413) 568-1911
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value per share | WNEB | NASDAQ |
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On April 22, 2025, Western New England Bancorp, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and is hereby incorporated by reference into this Item 2.02.
| Item 7.01. | Regulation FD Disclosure. |
|---|
On April 22, 2025, the Company made available an investor presentation to be used during investor meetings. The slide show for the investor presentation is attached to this report as Exhibit 99.2.
The information contained in this Item 7.01 and Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will such information or exhibits be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such filing. The furnishing of the information included in Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.
| Item 8.01. | Other Events. |
|---|
On April 22, 2025, the Board of Directors of the Company authorized a stock repurchase plan (the “2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, which is approximately 4.8% of the Company’s outstanding shares of common stock as of the date the 2025 Plan was adopted. Repurchases under the 2025 Plan may commence upon the completion of the stock repurchase plan adopted in 2024 (the “2024 Plan”). The 2024 Plan was announced on May 21, 2024, and as of April 22, 2025, there were 252,318 shares of common stock available for repurchase under the 2024 Plan.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
The exhibits required by this item are set forth on the Exhibit Index attached hereto.
| Exhibit<br><br> <br>Number | Description |
|---|---|
| 99.1 | Press Release of Western New England Bancorp, Inc. dated April 22, 2025. |
| 99.2 | Investor Presentation dated April 22, 2025 for Western New England Bancorp, Inc. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WESTERN NEW ENGLAND BANCORP, INC. | ||
|---|---|---|
| By: | /s/ Guida R. Sajdak | |
| Guida R. Sajdak | ||
| Chief Financial Officer | ||
| Dated: April 22, 2025 |
WESTERN NEW ENGLAND BANCORP, INC. 8-K
Exhibit 99.1
| 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<br>Officer |
| 413-568-1911 |
WESTERN NEW ENGLAND BANCORP, INC. REPORTS RESULTSFOR THREE MONTHS ENDED
MARCH 31, 2025 AND DECLARES QUARTERLY CASHDIVIDEND
THE COMPANY ALSO ANNOUNCES A NEW SHAREREPURCHASE PLAN
Westfield, Massachusetts, April 22, 2025: 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 $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. On a linked quarter basis, net income was $2.3 million, or $0.11 per diluted share, compared to net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about May 21, 2025 to shareholders of record on May 7, 2025.
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 4.8% of the Company’s outstanding common stock as of today. The 2025 Plan will commence upon the completion of the Company’s existing share repurchase plan (the “2024 Plan”). The 2024 Plan was approved by the Board of Directors on May 21, 2024, and as of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.
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 2.49% compared to the preceding quarter. We will continue to proactively manage our funding costs and benefit from our liability sensitive balance sheet to support net interest margin growth. In the first quarter, core deposits increased $70.2 million, or 4.5%, and represented 70.0% of total deposits while the loan-to-deposit ratio decreased to 89.3%. During the same period, average funding costs decreased four basis points.
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 0.29% of total loans as of March 31, 2025.
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.”
| 1 |
| --- |
Key Highlights:
Loans and Deposits
Total gross loans increased $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.
At March 31, 2025, total deposits of $2.3 billion increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The loan-to-deposit ratio decreased from 91.5% at December 31, 2024 to 89.3% at March 31, 2025.
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 $1.1 billion in immediately available liquidity, compared to $665.6 million in uninsured deposits, or 28.6% of total deposits, representing a coverage ratio of 171.5%.
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 $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.
Allowance for Credit Losses and CreditQuality
At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% of total loans, compared to $19.5 million, or 0.94% of total loans, at December 31, 2024. The allowance for loan losses, as a percentage of nonaccrual loans, was 327.1% and 362.9% at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. Total delinquent loans decreased from $5.0 million, or 0.24% of total loans, at December 31, 2024 to $4.5 million, or 0.22% of total loans, at March 31, 2025. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.
Net Interest Margin
The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.
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 4.6%, of the Company’s then-outstanding shares of common stock. During the three months ended March 31, 2025, the Company repurchased 206,709 shares of common stock under the 2024 Plan, with an average price per share of $9.12. As of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.
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 4.8% of the Company’s outstanding shares as of the date the 2025 Plan was announced. Repurchases under the 2025 Plan will commence upon the completion of the 2024 Plan.
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.
| 2 |
| --- |
Book Value and Tangible Book Value
At March 31, 2025, the Company’s book value per share was $11.44, compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.15, or 1.4%, from $10.63 at December 31, 2024 to $10.78 at March 31, 2025. See pages 16-17 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.
Net Income for the Three Months EndedMarch 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 $985,000, or 30.0%, from $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, to $2.3 million, or $0.11 per diluted share. Net interest income increased $261,000, or 1.7%, the provision for credit losses increased $904,000, non-interest income decreased $495,000, or 15.2%, and non-interest expense increased $258,000, or 1.7%. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.49% and 5.48%, respectively, for the three months ended December 31, 2024.
Net Interest Income and Net Interest Margin
On a sequential quarter basis, net interest income, our primary driver of revenues, increased $261,000, or 1.7%, to $15.5 million for the three months ended March 31, 2025, from $15.3 million for the three months ended December 31, 2024. The increase in net interest income was primarily due to a decrease in interest expense of $410,000, or 3.1%, partially offset by a decrease in interest income of $149,000, or 0.5%.
The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.56% for the three months ended March 31, 2025, compared to 4.52% for the three months ended December 31, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.86% for the three months ended December 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $12.7 million, or 0.5% to $2.5 billion, primarily due to an increase in average loans of $10.7 million, or 0.5%, and an increase in average securities of $3.9 million, or 1.1%.
The average cost of total funds, including non-interest bearing accounts and borrowings, decreased four basis points from 2.20% for the three months ended December 31, 2024 to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 10 basis points to 1.08% for the three months ended March 31, 2025, from 0.98% for the three months ended December 31, 2024. The average cost of time deposits decreased 20 basis points from 4.31% for the three months ended December 31, 2024, to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, was 5.04% for the three months ended December 31, 2024 and for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, decreased $9.6 million, or 1.6%, from $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.
| 3 |
| --- |
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $762,000 during the three months ended December 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the interest rate environment, changing tariff policies and concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.
During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $128,000 for the three months ended December 31, 2024.
Non-Interest Income
On a sequential quarter basis, non-interest income decreased $495,000, or 15.2%, to $2.8 million for the three months ended March 31, 2025, from $3.3 million for the three months ended December 31, 2024. During the three months ended March 31, 2025, service charges and fees on deposits decreased $17,000, or 0.7%, to $2.3 million from the three months ended December 31, 2024. Income from bank-owned life insurance (“BOLI”) decreased $13,000, or 2.7%, from the three months ended December 31, 2024 to $473,000 for the three months ended March 31, 2025. During the three months ended March 31, 2025, the Company reported a gain of $7,000 from mortgage banking activities, compared to a loss of $11,000 during the three months ended December 31, 2024. During the three months ended March 31, 2025, the Company reported unrealized losses on marketable equity securities of $5,000, compared to unrealized losses of $9,000, during the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have comparable income during the three months ended March 31, 2025. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended March 31, 2025.
Non-Interest Expense
For the three months ended March 31, 2025, non-interest expense increased $258,000, or 1.7%, to $15.2 million from $14.9 million for the three months ended December 31, 2024. Occupancy expense increased $156,000, or 12.4%, primarily due to snow removal costs of $143,000. Advertising expense increased $119,000, or 38.4%, professional fees increased $75,000, or 15.9%, FDIC insurance expense increased $42,000, or 10.8%, and software related expenses increased $17,000, or 2.6%. These increases were partially offset by a decrease in furniture and equipment expense of $18,000, or 3.6%, a decrease in data processing expense of $18,000, or 2.0%, a decrease in debit card processing and ATM network costs of $16,000, or 2.7%, a decrease in salaries and related benefits of $16,000, or 0.2%, and a decrease in other non-interest expense of $83,000, or 5.8%.
For the three months ended March 31, 2025 and the three months ended December 31, 2024, the efficiency ratio was 83.0% and 80.6%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 81.9% for the three months ended December 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses and lower non-interest income during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. The Company’s detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. See pages 16-17 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.
| 4 |
| --- |
Income Tax Provision
Income tax expense for the three months ended March 31, 2025 was $664,000, with an effective tax rate of 22.4%, compared to $1.1 million, with an effective tax rate of 24.6%, for the three months ended December 31, 2024.
Net Income for the Three Months EndedMarch 31, 2025 Compared to the Three Months Ended March 31, 2024.
The Company reported net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. Net interest income increased $188,000, or 1.2%, provision for credit losses increased $692,000, non-interest income increased $85,000, or 3.2%, and non-interest expense increased $402,000, or 2.7%, during the same period. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.47% and 5.04%, respectively, for the three months ended March 31, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $188,000, or 1.2%, to $15.5 million, for the three months ended March 31, 2025, from $15.3 million for the three months ended March 31, 2024. The increase in net interest income was due to an increase in interest and dividend income of $1.8 million, or 6.9%, partially offset by an increase in interest expense of $1.6 million, or 14.6%. The increase in interest expense was primarily due to an increase in average interest-bearing deposits of $156.1 million, or 9.9%, and an increase in the average cost of interest-bearing deposit accounts of 29 basis points from the three months ended March 31, 2024 to the three months ended March 31, 2025. As a result, the net interest margin decreased from 2.57% for the three months ended March 31, 2024, to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.51% for the three months ended March 31, 2025, compared to 2.59% for the three months ended March 31, 2024.
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 11 basis points from 4.45% for the three months ended March 31, 2024 to 4.56% for the three months ended March 31, 2025. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.82% for the three months ended March 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $126.6 million, or 5.3%, to $2.5 billion, primarily due to an increase in average loans of $51.8 million, or 2.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $66.7 million, an increase in average securities of $5.9 million, or 1.6%, and an increase in average other investments of $2.3 million, or 18.6%.
The average cost of total funds, including non-interest bearing accounts and borrowings, increased 19 basis points from 1.97% for the three months ended March 31, 2024, to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 32 basis points from 0.76% for the three months ended March 31, 2024 to 1.08% for the three months ended March 31, 2025. The average cost of time deposits decreased one basis point from 4.12% for the three months ended March 31, 2024 to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, increased 13 basis points from 4.91% for the three months ended March 31, 2024 to 5.04% for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, increased $11.9 million, or 2.1%, from $557.7 million, or 26.1% of total average deposits, for the three months ended March 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $550,000 during the three months ended March 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the interest rate environment, the continued discussion on tariffs and the concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.
During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $67,000 for the three months ended March 31, 2024.
| 5 |
| --- |
Non-Interest Income
Non-interest income increased $85,000, or 3.2%, from $2.7 million, for the three months ended March 31, 2024 to $2.8 million for the three months ended March 31, 2025, primarily due to a $65,000, or 2.9%, increase in service charges and fees and an increase in income from BOLI of $20,000, or 4.4%.
Non-Interest Expense
Non-interest expense increased $402,000, or 2.7%, from $14.8 million for the three months ended March 31, 2024 to $15.2 million for the three months ended March 31, 2025. Salaries and benefits increased $169,000, or 2.0%, advertising expense increased $80,000, or 22.9%, occupancy expense increased $49,000, or 3.6%, debit card processing and ATM network costs increased $25,000, or 4.5%, FDIC insurance expense increased $21,000, or 5.1%, data processing expense increased $20,000, or 2.3%, furniture and equipment expense increased $3,000, or 0.6%, and other non-interest expense increased $98,000, or 7.8%. These increases were partially offset by a decrease in software related expenses of $40,000, or 5.7%, and a decrease in professional fees of $23,000, or 4.0%.
For the three months ended March 31, 2025 and the three months ended March 31, 2024, the efficiency ratio was 83.0% and 82.0%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 82.0% for the three months ended March 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. See pages 16-17 for the efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.
Income Tax Provision
For the three months ended March 31, 2025, income tax expense was $664,000, with an effective tax rate of 22.4%, compared to $827,000, with an effective tax rate of 21.8%, for the three months ended March 31, 2024.
Balance Sheet
At March 31, 2025, total assets were $2.7 billion, an increase of $56.2 million, or 2.1%, from December 31, 2024. The increase in total assets was primarily due to an increase in total gross loans of $9.3 million, or 0.4%, an increase in cash and cash equivalents of $44.1 million, or 66.4%, and an increase in investment securities of $3.6 million, or 1.0%.
Investments
At March 31, 2025, the investment securities portfolio totaled $369.8 million, or 13.6% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At March 31, 2025, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $7.1 million, or 4.4%, from $160.7 million at December 31, 2024 to $167.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $3.4 million, or 1.7%, from $205.0 million at December 31, 2024 to $201.6 million at March 31, 2025.
At March 31, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $27.8 million, or 14.2% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities at December 31, 2024. At March 31, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $35.8 million, or 17.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2024.
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 $8.7 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.
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.
| 6 |
| --- |
Total Loans
Total gross loans increased $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.
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 |
| 7 |
| --- |
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 $4.5 million, or 0.22% of total loans, at March 31, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At March 31, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. Total nonaccrual assets totaled $6.0 million, or 0.22% of total assets, at March 31, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.
At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% of total loans and 327.1% of nonaccrual loans, compared to $19.5 million, or 0.94% of total loans and 362.9% of nonaccrual loans, at December 31, 2024. Total criticized loans, defined as special mention and substandard loans, decreased $2.1 million, or 5.5%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $36.3 million, or 1.7% of total loans, at March 31, 2025.
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 $1.1 billion, and represented 51.7% of total loans. Of the $1.1 billion, $881.1 million, or 82.1%, was categorized as non-owner occupied commercial real estate and represented 325.8% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.
Deposits
At March 31, 2025, total deposits were $2.3 billion and increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Non-interest-bearing deposits increased $24.4 million, or 4.3%, to $590.0 million, and represent 25.3% of total deposits, money market accounts increased $45.7 million, or 6.9%, to $707.2 million, savings accounts increased $9.8 million, or 5.4%, to $191.4 million and interest-bearing checking accounts decreased $9.6 million, or 6.4%, to $140.8 million.
Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The Company has experienced growth and movement in both money market accounts and non-interest-bearing deposits as a result of seasonal customer behaviors, relationship pricing, and the current interest rate environment, as opposed to time deposit specials or interest rate adjustments. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At March 31, 2025, the Bank’s uninsured deposits totaled $665.6 million, or 28.6% of total deposits, compared to $643.6 million, or 28.4% of total deposits, at December 31, 2024.
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 |
| 8 |
| --- |
FHLB and Subordinated Debt
At March 31, 2025, total borrowings decreased $860,000, or 0.7%, from $123.1 million at December 31, 2024 to $122.3 million. At March 31, 2025, short-term borrowings decreased $870,000, or 16.1%, to $4.5 million, compared to $5.4 million at December 31, 2024. Long-term borrowings were $98.0 million at March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.
As of March 31, 2025, the Company had $447.5 million of additional borrowing capacity at the FHLB, $378.5 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.
Capital
At March 31, 2025, shareholders’ equity was $237.7 million, or 8.8% of total assets, compared to $235.9 million, or 8.9% of total assets, at December 31, 2024. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $2.6 million, cash dividends paid of $1.4 million, repurchase of shares at a cost of $2.0 million, partially offset by net income of $2.3 million. At March 31, 2025, total shares outstanding were 20,774,319. 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.
| 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.
| 9 |
| --- |
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<br>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<br>the emergence of new variants and the response thereto; |
| • | unstable political and economic conditions, including<br>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,<br>including recent sustained increases and potential future increases in interest rates that reduce margins; |
| • | the effect on our operations of governmental legislation<br>and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new<br>requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other<br>applicable laws and regulations; |
| • | significant changes in accounting, tax or regulatory<br>practices or reqsignificant changes in accounting, tax or regulatory practices uirements; |
| • | new legal obligations or liabilities or unfavorable<br>resolutions of litigation; |
| • | disruptive technologies in payment systems and other<br>services traditionally provided by banks; |
| • | the highly competitive industry and market area in<br>which we operate; |
| • | operational risks or risk management failures by<br>us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological<br>changes, vendor issues, business interruption, and fraud risks; |
| • | failure or circumvention of our internal controls<br>or procedures; |
| • | changes in the securities markets which affect investment<br>management revenues; |
| • | increases in Federal Deposit Insurance Corporation<br>deposit insurance premiums and assessments; |
| • | the soundness of other financial services institutions<br>which may adversely affect our credit risk; |
| • | certain of our intangible assets may become impaired<br>in the future; |
| • | new lines of business or new products and services,<br>which may subject us to additional risks; |
| • | changes in key management personnel which may adversely<br>impact our operations; |
| • | severe weather, natural disasters, acts of war or<br>terrorism and other external events which could significantly impact our business; and |
| • | other risk factors detailed from time to time in<br>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.
| 10 |
| --- |
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Net Income and OtherData
(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<br> ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest<br> and dividend income and non-interest income, excluding realized and unrealized gains and<br> losses on securities, gain on non-marketable equity investments, and loss on disposal of<br> premises and equipment. |
| 11 |
| --- |
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 |
| 12 |
| --- |
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<br> sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains<br> 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<br> divided by its current outstanding shares. |
| 13 |
| --- |
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<br> 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<br> 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<br> 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 21%. The tax-equivalent<br>adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements<br>of net income. | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (3) | Short-term investments include federal funds sold. | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (4) | Net interest rate spread represents the difference between the weighted average yield on interest-earning<br>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<br>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<br>assets. | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (7) | Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income<br>as a percentage of average interest-earning assets. | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (8) | Annualized. | |||||||||||||||||||||||
| --- | --- |
| 14 |
| --- |
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 |
| 15 |
| --- | | | 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 | % |
| 16 |
| --- |
WESTERN NEW ENGLAND BANCORP, INC. 8-K
Exhibit 99.2
Local banking is better than ever. INVESTOR PRESENTATION 1ST QUARTER 2025
FORWARD - LOOKING STATEMENTS 2 We may, from time to time, make written or oral “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements contained in our filings with the Securities and Exchange Commission (the “SEC”), our reports to shareholders and in other communications by us . This Investor Presentation contains “forward - looking statements” 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 ;
FORWARD - LOOKING STATEMENTS 3 • 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 ; • f ailure or circumvention of our internal controls or procedures ; • c hanges in the securities markets which affect investment management revenues ; • i ncreases 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 the se forward - looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised for ward - 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.
WHO WE ARE Every day, we focus on showing Westfield Bank customers “ what better banking is all about . ” For us, the idea of better banking starts with putting customers first, while adhering to our core values . Our Core Values : • Integrity • Enhance Shareholder Value • Customer Focus • Community Focus Our Core Mission : Our purpose is to help customers succeed in our community, while creating and increasing shareholder value . The Company’s purpose drives the outcome we envision for Western New England Bancorp . 4 70 Center Street, Chicopee, MA.
SENIOR MANAGEMENT TEAM James C . Hagan, President & Chief Executive Officer Guida R . Sajdak, Executive Vice President, Chief Financial Officer & Treasurer Allen J . Miles III, Executive Vice President & Chief Lending Officer Kevin C . O’Connor, Executive Vice President & Chief Operating Officer John E . Bonini , Senior Vice President & General Counsel Filipe Goncalves, Senior Vice President & Chief Credit Officer Darlene Libiszewski , Senior Vice President & Chief Information Officer Daniel A . Marini , Senior Vice President, Retail Banking & Marketing Christine Phillips , Senior Vice President, Chief Human Resources Officer Leo R . Sagan, Jr . , Senior Vice President & Chief Risk Officer 5
1Q2025 QUARTERLY EARNINGS 6 1Q2024 2Q2024 (2) 3Q2024 4Q2024 (1) 1Q2025 ($ in thousands , except EPS ) $ 15,346 $ 14,470 $ 14,728 $ 15,273 $ 15,534 Net interest income (550) (294) 941 (762) 142 Provision for (reversal of) credit losses 2,674 3,834 3,141 3,254 2,759 Non - interest income 14,782 14,314 14,406 14,926 15,184 Non - interest expense 3,788 4,284 2,522 4,363 2,967 Income before taxes 827 771 618 1,075 664 Income tax expense $ 2,961 $ 3,513 $ 1,904 $ 3,288 $ 2,303 Net income $ 0.14 $ 0.17 $ 0.09 $ 0.16 $ 0.11 Diluted earnings per share (EPS) 0.47% 0.55% 0.29% 0.49% 0.35% Return on average assets (ROA) 5.04% 6.03% 3.19% 5.48% 3.94% Return on average equity (ROE) 2.57% 2.42% 2.40% 2.41% 2.49% Net interest margin 2.59% 2.44% 2.42% 2.43% 2.51% Net interest margin, on a tax - equivalent basis (1) Non - interest income includes a $300,000 gain on non - marketable equity investments. (2) Non - interest income includes a $987,000 gain on non - marketable equity investments.
NET INTEREST INCOME AND NET INTEREST MARGIN 7 $15.3 $14.5 $14.7 $15.3 $15.5 2.57% 2.42% 2.40% 2.41% 2.49% 2.00% 2.20% 2.40% 2.60% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Net interest income ($) Net interest margin (%) On a sequential quarter basis, net interest income, our primary driver of revenues, increased $ 261 , 000 , or 1 . 7 % , to $ 15 . 5 million for the three months ended March 31 , 2025 , from $ 15 . 3 million for the three months ended December 31 , 2024 . The increase in net interest income was primarily due to a decrease in interest expense of $ 410 , 000 , or 3 . 1 % , partially offset by a decrease in interest income of $ 149 , 000 , or 0 . 5 % . The net interest margin increased eight ( 8 ) basis points from 2 . 41 % for the three months ended December 31 , 2024 to 2 . 49 % for the three months ended March 31 , 2025 . ($ in millions)
TOTAL LOANS 8 $2,022 $2,017 $2,039 $2,063 $2,073 4.84% 4.88% 4.93% 4.88% 4.91% 4.25% 4.35% 4.45% 4.55% 4.65% 4.75% 4.85% 4.95% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $2,000 $2,025 $2,050 $2,075 $2,100 AVERAGE LOANS OUTSTANDING Average Loans Outstanding Average Loan Yield, Tax-Equivalent Basis $2,023 $2,024 $2,046 $2,067 $2,077 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $2,000 $2,025 $2,050 $2,075 $2,100 PERIOD - END LOANS OUTSTANDING (1 ) Total gross loans increased $ 9 . 3 million, or 0 . 4 % , from December 31 , 2024 , to $ 2 . 1 billion at March 31 , 2025 . Residential real estate loans, including home equity loans , increased $ 8 . 1 million, or 1 . 0 % , and commercial and industrial loans increased $ 4 . 7 million, or 2 . 2 % , while commercial real estate loans decreased $ 3 . 0 million, or 0 . 3 % , and consumer loans decreased $ 526 , 000 , or 12 . 0 % . ($ in millions) (1 ) Represents gross loans for the periods noted.
COMMERCIAL AND INDUSTRIAL LOANS 9 $207 $216 $210 $212 $216 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $200 $205 $210 $215 $220 Total commercial and industrial (“C&I”) loans increased $ 4 . 7 million, or 2 . 2 % , to $ 216 . 4 million at March 31 , 2025 , from $ 211 . 7 million at December 31 , 2024 . ($ in millions)
COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 10 (1) % of total loans as of March 31, 2025. Other , 2.8% Manufacturing , 2.2% Merchant Wholesalers , 1.6% Educational Services , 1.2% Construction, Sand, and Gravel Mining , 1.1% Specialty Trade Contractors , 0.5% Healthcare , 0.4% Heavy and Civil Engineering Construction , 0.6% Hotels , 0.1%
COMMERCIAL REAL ESTATE LOANS 11 $1,084 $1,057 $1,083 $1,076 $1,073 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 Total commercial real estate (“CRE”) loans decreased $ 3 . 0 million, or 0 . 3 % , to $ 1 . 1 billion from December 31 , 2024 to March 31 , 2025 . ($ in millions)
COMMERCIAL REAL ESTATE LOANS (CRE) (1) 12 ($ in thousands) (1) As of March 31, 2025. (2) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC ma y d iffer from the Call Report. At M arch 31 , 2025 , the commercial real estate portfolio totaled $ 1 . 1 billion, and represented 51 . 7 % of total gross loans . Of the $ 1 . 1 billion, $ 881 . 1 million, or 82 . 1 % , were categorized as non - owner occupied commercial real estate and $ 191 . 6 million, or 17 . 9 % , were categorized as owner occupied commercial real estate . % of Total Bank Risk - Based Capital (RBC) (2) % of Total Loans % of CRE Portfolio Total Owner Occupied Non - Owner Occupied Property Type 73.2% 9.5% 18.5% $ 198,010 $ 22,212 $ 175,798 Office 65.8% 8.6% 16.6% 177,907 - 177,907 Apartment 62.8% 8.2% 15.8% 169,794 51,029 118,765 Industrial 42.8% 5.6% 10.8% 115,895 6,986 108,909 Retail 28.4% 3.7% 7.2% 76,926 6,272 70,654 Mixed Use 24.6% 3.2% 6.2% 66,656 30,448 36,208 Other 15.8% 2.1% 4.0% 42,735 - 42,735 Hotel/Hospitality 14.3% 1.9% 3.6% 38,684 36,016 2,668 Automotive Sales 13.9% 1.8% 3.5% 37,533 6,119 31,414 Adult Care/Assisted Living 13.5% 1.8% 3.4% 36,594 313 36,281 Self Storage 12.6% 1.6% 3.2% 33,932 9,891 24,041 Warehouse 10.9% 1.4% 2.7% 29,418 6,758 22,660 Shopping Center 9.9% 1.3% 2.5% 26,677 15,538 11,139 School/Higher Education 8.1 % 1.0% 2.0 % 21,926 - 21,926 Student Housing 396.6% 51.7% 100.0% $ 1,072,687 $ 191,582 $ 881,105 Total commercial real estate loans 396.6% 70.8% 325.8% % of Total Bank Risk - Based Capital 17.9% 82.1% % of Total CRE Loans
COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED (1) 13 At March 31 , 2025 , the non - owner occupied CRE portfolio totaled $ 881 . 1 million, or 325 . 8 % of total RBC . Of the $ 881 . 1 million, $ 459 . 4 million , or 52 . 1 % of non - owner occupied CRE, was concentrated in Massachusetts and $ 269 . 4 million, or 30 . 6 % of non - owner occupied CRE , was concentrated in Connecticut . At March 31 , 2025 , the apartment portfolio represented the largest concentration of non - owner occupied CRE at 65 . 8 % of t otal RBC with a weighted average LTV of 54 . 6 % . The office portfolio represented 65 . 0 % of total RBC with a weighted average LTV of 63 . 8 % . ($ in thousands) (1) As of March 31, 2025. (2) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC may differ fro m the Call Report . (3) Weighted average LTV is based on the original appraisal and the current loan balance. Weighted Average Loan to Value (LTV) (3) % of Total RBC (2) Total Other ME RI NH CT MA Property Type 54.6% 65.8% $ 177,907 $ - $ - $ 26,670 $ - $ 39,024 $ 112,213 Apartment 63.8% 65.0% 175,798 - 11,354 - 39,977 62,462 62,005 Office 57.9% 43.9% 118,765 4,507 - 14,983 - 33,728 65,547 Industrial 53.4% 40.3% 108,909 - 10,936 6,182 13,657 23,291 54,843 Retail 57.3% 26.1% 70,654 4,695 - 12,998 - 21,433 31,528 Mixed Use 52.6% 15.8% 42,735 - - - - 22,114 20,621 Hotel/Hospitality 63.3% 13.4% 36,281 - - - 780 9,001 26,500 Self Storage 55.6% 13.4% 36,208 - 124 - 700 5,861 29,523 Other 58.4% 11.6% 31,414 - - - - 16,482 14,932 Adult Care/Assisted Living 42.2% 8.9% 24,041 1,708 - - - 4,973 17,360 Warehouse 50.6% 8.4% 22,660 - - - 15,826 6,834 Shopping Center 61.9% 8.1% 21,926 345 - 2,660 15,226 3,695 Student Housing 44.6% 4.1% 11,139 - - - - - 11,139 School/Higher Education 38.9% 1.0% 2,668 - - - - - 2,668 Automotive Sales 57.0% 325.8% $881,105 $ 11,255 $ 22,414 $60,833 $ 57,774 $ 269,421 $459,408 Total non - owner occupied commercial real estate
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS (1) 14 ($ in thousands) (1) As of March 31 , 2025. (2) The total RBC ratio is based on Westfield Bank’s capital and due to loan classifications, the percentage of total RBC may dif fer from the Call Report. % of Total Bank RBC (2) % of Office Portfolio Total Owner Occupied Non - Owner Occupied By Collateral Type 43.2% 59.0% $ 116,658 $ 10,542 $ 106,116 Office/Medical 4.3% 5.9% 11,739 8,075 3,664 Office/Professional Metro 15.5% 21.2% 42,038 3,291 38,747 Office/Professional Suburban 10.2% 13.9% 27,575 304 27,271 Office/Professional Urban 73.2% 100.0% $ 198,010 $ 22,212 $ 175,798 Total Office Portfolio 8.2% 65.0% Percent of RBC % of Total Bank RBC (2) % of Office Portfolio Total Owner Occupied Non - Owner Occupied By State 30.2% 41.3% $ 81,725 $ 19,720 $ 62,005 Massachusetts 24.0% 32.8% 64,954 2,492 62,462 Connecticut 14.8% 20.2% 39,977 - 39,977 New Hampshire 4.2 % 5.7 % 11,354 - 11,354 Other 73.2% 100.0% $ 198,010 $ 22,212 $ 175,798 Total Office Portfolio % of Total Bank RBC (2) % of Office Portfolio Total Owner Occupied Non - Owner Occupied By Risk Rating 69.9% 95.5% $ 189,077 $ 21,204 $ 167,873 Pass 3.2% 4.4% 8,628 703 7,925 Special Mention 0.1% 0.1% 305 305 - Substandard 73.2% 100.0% $ 198,010 $ 22,212 $ 175,798 Total Office Portfolio • As of M arch 31 , 2025 , the office portfolio totaled $ 198 . 0 million, or 73 . 2 % of RBC, and represented 18 . 5 % of total CRE loans . • Non - owner occupied office totaled $ 175 . 8 million, or 65 . 0 % of total RBC, and owner - occupied office totaled $ 22 . 2 million, or 8 . 2 % of total RBC . • Office exposure is concentrated in medical - office, totaling $ 116 . 7 million, or 59 . 0 % , of the total office portfolio . • Of the $ 198 . 0 million in total office, 41 . 3 % is concentrated in Massachusetts and 32 . 8 % is concentrated in Connecticut . The Company does not have any exposure in greater Boston or New York . • Of the $ 198 . 0 million in total office, 95 . 5 % of the office portfolio is in the pass - rated category . • There is approximately $ 36 . 6 million, or 18 . 5 % of the total office portfolio, maturing by the end of 2026 .
RESIDENTIAL REAL ESTATE LOANS (1) 15 $727 $746 $749 $776 $784 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $690 $700 $710 $720 $730 $740 $750 $760 $770 $780 $790 At March 31 , 2025 , residential real estate loans, including home equity loans, increased $ 8 . 1 million, or 1 . 0 % , from $ 775 . 7 million at December 31 , 2024 to $ 783 . 8 million . At March 31 , 2025 , the Company serviced $ 83 . 1 million in loans sold to the secondary market, with servicing retained, which are not included on the Company’s balance sheet under residential real estate loans . ($ in millions) (1) Residential real estate loans includes home equity loans.
INVESTMENT PORTFOLIO 16 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio represented 13 . 6 % of total assets at March 31 , 2025 and 13 . 8 % of total assets, at December 31 , 2024 . The HTM unrealized losses, net of tax, were approximately $ 25 . 7 million, or 12 . 8 % , of the total HTM amortized cost basis . If the HTM losses, net of tax, were included in capital, the losses would represent 10 . 3 % of Tier 1 capital and negatively impact tangible common equity (“TCE”), a non - GAAP financial measure, by 1 . 0 % . The AFS unrealized losses, net of tax, were approximately $ 20 . 7 million , or 10 . 6 % of the total AFS amortized cost basis . As a percentage of Tier 1 capital, the AFS unrealized losses, net of tax, represented 8 . 3 % of Tier 1 capital and negatively impacted TCE, a non - GAAP financial measure, by 0 . 8 % . (1) Tier 1 Capital represents Westfield Bank’s Tier 1 Capital as of March 31, 2025. (2) Impact to TCE is net of tax. TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial measures . The table below displays the investment portfolio as of March 31 , 2025 : Impact to TCE ( Non - GAAP) (2) Net of Tax Loss as a % of Tier 1 Capital (1) Net of Tax Loss as a % of Amortized Cost Basis Unrealized Loss, Net of Tax Fair Value % of Investment Portfolio’s Amortized Cost Basis Amortized Cost Basis (Dollars in millions) (1.0%) 10.3% (12.8%) ($25.7) $ 165.8 50.8% $ 201.6 HTM ( 0.8%) 8.3% ( 10.6%) ($20.7) $ 167.8 49.2% $ 195.6 AFS (1.8%) 18.6% ( 11.7%) ($46.4) $ 333.6 100.0% $ 397.2 Total Investments
TOTAL DEPOSITS 17 $1,501 $1,500 $1,524 $1,559 $1,629 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 PERIOD - END CORE DEPOSITS Total deposits of $ 2 . 3 billion increased $ 66 . 0 million, or 2 . 9 % , from December 31 , 2024 to March 31 , 2025 . Core deposits, which the Company defines as all deposits except time deposits, increased $ 70 . 2 million, or 4 . 5 % , from $ 1 . 6 billion, or 68 . 9 % of total deposits, at December 31 , 2024 , to $ 1 . 6 billion, or 70 . 0 % of total deposits, at March 31 , 2025 . Time deposits decreased $ 4 . 3 million, or 0 . 6 % , from $ 703 . 6 million at December 31 , 2024 to $ 699 . 3 million at March 31 , 2025 . At March 31 , 2025 , the Bank’s uninsured deposits totaled $ 665 . 6 million, or 28 . 6 % of total deposits, compared to $ 643 . 6 million, or 28 . 4 % of total deposits, at December 31 , 2024 . $643 $672 $700 $704 $699 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $610 $620 $630 $640 $650 $660 $670 $680 $690 $700 $710 PERIOD - END TIME DEPOSITS (1 ) ($ in millions) (1) Includes $1.7 million in brokered deposits for all periods presented.
AVERAGE TOTAL DEPOSITS 18 $1,576 $1,589 $1,621 $1,684 $1,732 $558 $549 $559 $579 $570 1.75% 1.94% 2.04% 2.01% 2.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 $2,500 AVERAGE DEPOSITS AND RATES Interest-bearing deposits Non-interest-bearing deposits Average deposit cost Total average deposits, consisting of interest - bearing and non - interest bearing deposits, increased $ 38 . 6 million, or 1 . 7 % , from the three months ended December 31 , 2024 , to $ 2 . 3 billion, for the three months ended March 31 , 2025 . The average cost of deposits decreased one basis point, from 2 . 01 % for the three months ended December 31 , 2024 to 2 . 00 % for the three months ended March 31 , 2025 . ($ in millions)
AVERAGE CORE AND TIME DEPOSITS 19 $1,506 $1,488 $1,492 $1,562 $1,599 0.76% 0.87% 0.93% 0.98% 1.08% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 AVERAGE CORE DEPOSITS AND RATES During the three months ended March 31 , 2025 , average core deposits of $ 1 . 6 billion, including non - interest bearing deposits, increased $ 36 . 2 million , or 2 . 3 % , from the three months ended December 31 , 2024 . During the three months ended March 31 , 2025 , average time deposits of $ 702 . 7 million increased $ 2 . 4 million, or 0 . 3 % , from the three months ended December 31 , 2024 . During the three months ended March 31 , 2025 , the average cost of core deposits, including non - interest bearing demand deposits, increased ten basis points from the three months ended December 31 , 2024 , while the cost of time deposits decreased 20 basis points during the same period . ($ in millions) $628 $650 $689 $700 $703 4.12% 4.39% 4.44% 4.31% 4.11% 0.25% 0.75% 1.25% 1.75% 2.25% 2.75% 3.25% 3.75% 4.25% 4.75% $500 $600 $700 $800 AVERAGE TIME DEPOSITS AND RATES
LOAN - TO - DEPOSIT RATIO 20 94.5% 93.3% 92.1% 91.5% 89.3% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% PERIOD - END LOAN - TO - DEPOSIT RATIO 70.0% 69.1% 68.5% 68.9% 70.0% 30.0% 30.9% 31.5% 31.1% 30.0% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 0% 10% 20% 30% 40% 50% 60% 70% 80% CORE DEPOSITS AND TIME DEPOSITS AS A % OF TOTAL DEPOSITS Core deposits/Total deposits Time deposits/Total deposits
WHOLESALE FUNDING 21 $152 $155 $152 $123 $122 4.91% 5.00% 5.05% 5.04% 5.04% 4.65% 4.75% 4.85% 4.95% 5.05% 5.15% 5.25% 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 $- $20 $40 $60 $80 $100 $120 $140 $160 WHOLESALE FUNDING (Includes $20 million in Subordinated Debt) (1) Wholesale Funding Average Cost of Funds The Bank is considered to be well - capitalized as defined by regulators ( see slide 27 ) . The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9 . 26 % at March 31 , 2025 and 9 . 34 % at December 31 , 2024 . In addition, Westfield Bank’s TCE Ratio ( 2 ) , a non - GAAP financial measure, exceeds the Federal Home Loan Bank of Boston (“FHLB”) requirements to continue to utilize the FHLB as a funding source . At March 31 , 2025 , total borrowings decreased $ 860 , 000 , or 0 . 7 % , from $ 123 . 1 million at December 31 , 2024 to $ 122 . 3 million . At March 31 , 2025 , short - term borrowings decreased $ 870 , 000 , or 16 . 1 % , to $ 4 . 5 million, compared to $ 5 . 4 million at December 31 , 2024 . Long - term borrowings were $ 98 . 0 million at March 31 , 2025 and December 31 , 2024 . At March 31 , 2025 and December 31 , 2024 , borrowings also consisted of $ 19 . 8 million in fixed - to - floating rate subordinated notes . (1) ($ in millions) (2) TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial meas ures.
22 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At March 31 , 2025 , the Company had available borrowing capacity with the FHLB of $ 447 . 5 million, including its overnight Ideal Way Line of Credit . In addition, at March 31 , 2025 , the Company had available borrowing capacity of $ 378 . 5 million from the Federal Reserve Discount Window, with no outstanding borrowings . At March 31 , 2025 , the Company also had available borrowing capacity of $ 25 . 0 million from two unsecured credit lines with correspondent banks, with no outstanding borrowings . At March 31 , 2025 , the Company had $ 1 . 1 billion in immediately available liquidity, compared to $ 665 . 6 million in uninsured deposits, or 28 . 6 % of total deposits, representing a coverage ratio of 171 % . Lastly, the Company has access to the brokered deposit market with approval from the Board of Directors to purchase brokered deposits in an amount not to exceed 10 % of total assets . At March 31 , 2025 , the Company had $ 1 . 7 million in brokered deposits included within time deposits on the balance sheet . LIQUIDITY Net Available Amount in Use at March 31 , 2025 Total Available ($ in millions) Internal Sources: $110.6 - $110.6 Cash and cash equivalents $163.5 - $163.5 Unpledged securities $ 16.2 - $ 16.2 Excess pledged securities External Sources: $447.5 $149.2 $596.7 FHLB $378.5 - $378.5 FRB Discount Window Other Unsecured: $25.0 - $25.0 Correspondent banks $ 1,141.3 $ 149.2 $ 1,290.5 Total Liquidity $665.6 Uninsured deposits 171% Liquidity/Total
________ Source: SNL Financial as of June 30, 2024 Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Three Wes tfi eld branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside of Springfield MSA. DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA AS OF JUNE 30, 2024 23 Total Deposit Rank 2024 Parent Company Name Deposits in Market ($000) Market Share # of Branches 1 PeoplesBank 2,665,987 19.00% 12 1,762,519 13.1% 20 3 Westfield Bank 1,856,455 13.23% 20 2 TD Bank 2,110,916 15.04% 16 4 Bank of America 1,594,814 11.37% 8 5 Berkshire Bank 1,104,828 7.87% 11 6 M&T Bank 1,097,724 7.82% 14 7 KeyBank 1,012,085 7.21% 7 8 Citizens Bank 592,088 4.22% 10 9 Monson Savings Bank 583,716 4.16% 4 10 Country Bank 571,869 4.08% 4 11 New Valley Bank & Trust 287,901 2.05% 3
ASSET QUALITY INDICATORS 24 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024 $4.5M $5.0M $4.3M $5.6M $4.7M Total delinquent loans 0.22% 0.24% 0.21% 0.27% 0.23% Delinquent loans as a % of total loans $6.0M $5.4M $4.9M $5.8M $5.8M Nonaccrual loans 0.29% 0.26% 0.24% 0.29% 0.29% Nonaccrual loans as a % of total loans 0.22% 0.20% 0.18% 0.23% 0.23% Nonaccrual loans as a % of total assets 0.95% 0.94% 0.97% 0.96% 0.98% Allowance for credit losses % of total loans 327% 363% 410% 333% 341% Allowance for credit losses % of NPL $29K ($128K) $98K $10K ($67K) Net (recoveries) charge - offs 0.00% (0.01%) 0.00% 0.00% (0.00%) Net (recoveries) charge - offs as a % average loans At March 31 , 2025 , total delinquent loans totaled $ 4 . 5 million, or 0 . 22 % of total loans, compared to $ 5 . 0 million, or 0 . 24 % of total loans, at December 31 , 2024 . Of the $ 4 . 5 million in delinquent loans, $ 4 . 1 million, or 91 . 5 % , represent residential real estate loans, which includes home equity loans . Of the $ 4 . 1 million in delinquent residential real estate loans, $ 2 . 0 million, or 49 . 3 % , are 90 days or greater past due .
ASSET QUALITY 25 Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for credit losses as a percentage of total loans was 0 . 95 % at March 31 , 2025 , compared to 0 . 94 % at December 31 , 2024 . At March 31 , 2025 , the allowance for credit losses as a percentage of nonaccrual loans was 327 . 1 % , compared to 362 . 9 % at December 31 , 2024 . December 31, 2024 March 31, 2025 ACL / Total Loan Segment Loans Outstanding (1) Allowance for Credit Losses (ACL) (1) ACL / Total Loan Segment Loans Outstanding (1) Allowance for Credit Losses (ACL) (1) 1.17% $ 211,656 $ 2,477 1.17% $ 216,368 $ 2,533 Commercial and industrial 1.27% 1,075,732 13,677 1.28% 1,072,687 13,725 Commercial real estate 0.41% 775,659 3,156 0.41% 783,788 3,217 Residential (2) 4.99% 4,391 219 5.02% 3,865 194 Consumer - - - - - - Unallocated 0.94% $ 2,067,438 $ 19,529 0.95% $ 2,076,708 $ 19,669 Total Loans (1) ( $ in thousands) (2) Includes home equity loans and home equity lines of credit .
ASSET QUALITY 26 1Q2025 4Q2024 3Q2024 2Q2024 1Q2024 ($ in millions) $10.7 $11.4 $21.3 $14.6 $15.2 Special Mention 0.5% 0.6% 1.0% 0.7% 0.8% % of Total Gross Loans $25.6 $27.0 $21.9 $22.1 $21.6 Substandard 1.2% 1.3% 1.1% 1.1% 1.1% % of Total Gross Loans $36.3 $38.4 $43.2 $36.7 $36.8 Total Classified Loans 1.7% 1.9% 2.1% 1.8% 1.8% % of Total Gross Loans At March 31 , 2025 , total classified loans, defined as special mention and substandard loans, totaled $ 36 . 3 million, or 1 . 7 % of total gross loans, representing a decrease of $ 2 . 1 million , or 5 . 5 % , from December 31 , 2024 .
CAPITAL MANAGEMENT 27 We are well - capitalized with excess capital. December 31, 2024 March 31, 2025 Consolidated 9.14% 9.06% Tier 1 Leverage Ratio (to Adjusted Average Assets) 12.37% 12.27% Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.37% 12.27% Tier 1 Capital (to Risk Weighted Assets) 14.38% 14.28% Total Capital (to Risk Weighted Assets) As of March 31 , 2025 , the Bank’s Tier 1 Leverage Ratio was 9 . 26 % . The Bank’s TCE ratio ( 1 ) , a non - GAAP financial measure, was 8 . 50 % at March 31 , 2025 . At March 31 , 2025 , available - for - sale unrealized losses of $ 20 . 7 million, net of tax, negatively impacted the TCE ratio by 0 . 8 % . If the held - to - maturity unrealized losses of $ 25 . 7 million, net of tax, were factored in, the TCE ratio would decrease to 7 . 55 % . Well Capitalized December 31, 2024 March 31, 2025 Westfield Bank 5.0% 9.34% 9.26% Tier 1 Leverage Ratio (to Adjusted Average Assets) 6.5% 12.64% 12.55% Common Equity Tier 1 Capital (to Risk Weighted Assets) 8.0% 12.64% 12.55% Tier 1 Capital (to Risk Weighted Assets) 10.0% 13.65% 13.56% Total Capital (to Risk Weighted Assets) (1) TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial measures . x From a regulatory standpoint, we are well - capitalized with excess capital . x We take a prudent approach to capital management .
CAPITAL RETURN TO SHAREHOLDERS 28 # of Shares Year 2,758,051 2021 720,975 2022 649,744 2023 934,282 2024 206,709 1Q - 2025 Annual Dividends per Share Year $0.20 2021 $0.24 2022 $0.28 2023 $0.28 2024 $0.07 1Q - 2025 SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK 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 4 . 6 % , of the Company’s then - outstanding shares of common stock . During the three months ended March 31 , 2025 , the Company repurchased 206 , 709 shares of common stock under the 2024 Plan, with an average price per share of $ 9 . 12 . As of March 31 , 2025 , there were 265 , 609 shares of common stock available for repurchase under the 2024 Plan . 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 4 . 8 % , of the Company’s outstanding shares as of the date the 2025 Plan was announced . The 2025 Plan will commence upon the completion of the 2024 Plan .
CAPITAL MANAGEMENT 29 $10.90 $11.07 $11.40 $11.30 $11.44 $10.25 $10.41 $10.73 $10.63 $10.78 BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE (non - GAAP ) ( 1) Book Value Tangible Book Value (non-GAAP) The Company’s book value per share was $ 11.44 at March 31, 2025, compared to $11.30 at December 31, 2024, while tangible book value per share, a non - GAAP financial measure, increased $ 0.15, or 1.4%, from $ 10.63 at December 31, 2024 to $ 10.78 at March 31, 2025. ( 1) Tangible book value is a non - GAAP measure. See slides 30 - 32 for the related tangible book value calculation and a reconcilia tion of GAAP to non - GAAP financial measures.
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 30 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 i ts results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other simil arly titled measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 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 (Dollars in thousands)
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 31 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 i ts results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other s imilarly titled measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Total Bank Equity (GAAP) 242,981$ 240,994$ 245,786$ 241,867$ 241,480$ Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposit intangible net of associated deferred tax (966) (1,033) (1,101) (1,168) (1,236) Tangible Capital (non-GAAP) 229,528$ 227,474$ 232,198$ 228,212$ 227,757$ Tangible Capital (non-GAAP) 229,528$ 227,474$ 232,198$ 228,212$ 227,757$ Unrealized losses on HTM securities net of tax (25,698) (28,346) (22,083) (28,869) (28,441) Adjusted Tangible Capital For Impact of Unrealized Losses on HTM Securities Net of Tax (non-GAAP) 203,830$ 199,128$ 210,115$ 199,343$ 199,316$ Common Equity Tier (CET) 1 Capital 250,217$ 250,748$ 250,543$ 251,849$ 251,394$ Total Assets for Leverage Ratio (non-GAAP) 2,701,212$ 2,684,740$ 2,608,171$ 2,575,093$ 2,572,525$ Tier 1 Leverage Ratio 9.26% 9.34% 9.61% 9.78% 9.77% Tangible Common Equity (non-GAAP) =Tangible Capital (non-GAAP)/Total Assets for Leverage Ratio (non-GAAP) 8.50% 8.47% 8.90% 8.86% 8.85% Adjusted Tangible Common Equity for HTM Impact (non- GAAP) = Adjusted Tangible Capital For Impact of Unrealized Losses on HTM Securities Net of Tax (non-GAAP)/Total Assets for Leverage Ratio (non-GAAP) 7.55% 7.42% 8.06% 7.74% 7.75% For the quarter ended (Dollars in thousands)
APPENDIX: NON - GAAP TO GAAP RECONCILIATION 32 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 i ts results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other s imilarly titled measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 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-GAAP) = (Non-interest Expense (GAAP)/Total Revenue for Efficiency Ratio (non- GAAP)) 82.98% 81.85% 80.67% 82.68% 82.04% For the quarter ended (Dollars in thousands)
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , First Vice President and Investor Relations Officer 33 141 Elm Street, Westfield, MA