WESTERN NEW ENGLAND BANCORP, INC. 8-K

Exhibit 99.1

WESTERN NEW ENGLAND BANCORP, INC. REPORTS RESULTS FOR THREE MONTHS ENDED

MARCH 31, 2022 AND DECLARES QUARTERLY CASH DIVIDEND

Westfield, Massachusetts, April 26, 2022: 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, 2022. The Company reported net income of $5.3 million, or $0.24 per diluted share, for the three months ended March 31, 2022, as compared to net income of $5.8 million, or $0.24 per diluted share, for the three months ended March 31, 2021. On a linked quarter basis, net income was $5.3 million, or $0.24 per diluted share, as compared to net income of $6.2 million, or $0.28 per diluted share, for the three months ended December 31, 2021. 

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.06 per share on the Company’s common stock. The dividend will be payable on or about May 25, 2022 to shareholders of record on May 11, 2022. 

“We continue to build off a record year in 2021 and are pleased to announce strong first quarter results for the Company in 2022,” said James C. Hagan, President and Chief Executive Officer. “Notwithstanding a challenging economic and interest rate environment resulting in part from the ongoing global pandemic and geopolitical uncertainty, we remain optimistic about the Company’s growth opportunities in 2022. 

As a result of utilizing excess cash from our successful increase in core deposits, the Company continues to show strong loan growth in key loan categories. We are pleased to report that our total loan portfolio increased $80.8 million during the first quarter, or 4.4%, excluding $19.3 million in Paycheck Protection Program (“PPP”) loans that were forgiven by the Small Business Administration (“SBA”). During the first quarter, we have seen the strongest growth from our commercial real estate lending portfolio. Additionally, during the first quarter, commercial real estate loans increased $59.5 million, or 6.1%, as we continued to add new customer relationships throughout New England and in key strategic lending areas. Despite customers continuing to use their accumulated cash to fund their operations, commercial and industrial loans continue to be added to our loan portfolio and remain a strategic priority. We continue to be mindful of economic conditions, such as inflation, supply chain issues that may affect some of our business customers, as well as the anticipated Federal Reserve interest rate increases, but remain optimistic about our loan portfolio growth. 

We believe the balance sheet management steps we took in 2021 have directly resulted in an increase in net interest income and the net interest margin, which increased from 3.10% in the fourth quarter of 2021 to 3.20% in the first quarter of 2022. We are well positioned for the long awaited increase in interest rates with a strong low-cost core deposit base. Our asset quality continues to remain extremely solid with historical lows for nonperforming loans to total loans of 0.21% and our capital position continues to remain strong.” 

Hagan concluded, “Lastly, we would like to thank the West Hartford community for naming Westfield Bank the “2021 Best of West Hartford – Best Bank/Financial Institution” for the second year in a row. I would also like to thank our customers, employees, Board of Directors and shareholders for their support as we continue our efforts to grow the Company in new markets now and in the future.” 

COVID-19 Response and Actions: 

As a Preferred Lender with the SBA, the Company was in a position to react immediately to the PPP component of the March 27, 2020 stimulus bill known as the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) launched by the U.S Department of the Treasury and the SBA. As of December 31, 2021, the Company had received funding approval from the SBA for 2,146 applications totaling $302.2 million. As of March 31, 2022, the Company processed 2,093 PPP loan forgiveness applications totaling $296.1 million. Total PPP loans decreased $19.3 million, or 76.3%, from $25.3 million at December 31, 2021 to $6.1 million at March 31, 2022. 

During the three months ended March 31, 2022, the Company recognized $562,000 in PPP loan origination fee income and PPP interest income (“PPP income”), compared to $2.4 million during the three months ended March 31, 2021. As of March 31, 2022, the Company had $255,000 in remaining deferred PPP loan processing fees. 

The table below breaks out the PPP income recognized for the periods noted:

In addition to participating in the PPP, the Company implemented a modification deferral program under the CARES Act, which allowed residential, commercial and consumer borrowers who were adversely affected by the COVID-19 pandemic, to defer loan payments for a set period of time. As of March 31, 2022, the Company had two remaining commercial real estate loans, with an outstanding principal balance of $12.1 million, under CARES Act modification. The two borrowers were granted a principal deferral under the Company’s modification deferral program, but continue to make their interest and real estate tax payments. There were no outstanding deferrals related to residential and consumer loans under CARES modification as of March 31, 2022. 

Key Highlights:

Loans and Deposits 

At March 31, 2022, total loans were $1.9 billion, an increase of $61.6 million, or 3.3%, from December 31, 2021. Excluding PPP loans, total loans increased $80.8 million, or 4.4%, from December 31, 2021, primarily due to a $59.5 million, or 6.1%, increase in commercial real estate loans from December 31, 2021 to March 31, 2022. 

At March 31, 2022, total deposits were $2.3 billion, an increase of $21.3 million, or 0.9%, from December 31, 2021. Core deposits, which include non-interest bearing demand accounts, increased $44.2 million, or 2.4%, from $1.9 billion, or 82.2% of total deposits, at December 31, 2021, to $1.9 billion, or 83.4% of total deposits at March 31, 2022. The loan to deposit ratio increased from 82.6% at December 31, 2021 to 84.6% at March 31, 2022 due to the increase in loans during the same period. 

Allowance for Loan Losses and Credit Quality 

At March 31, 2022, the allowance for loan losses as a percentage of total loans and as a percentage of non-performing loans was 1.00% and 484.2%, respectively. At March 31, 2022, non-performing loans totaled $4.0 million, or 0.21% of total loans, compared to $5.0 million, or 0.27% of total loans, at December 31, 2021. Total delinquency increased $667,000, or 31.2%, from 0.11% of total loans at December 31, 2021 to 0.15% of total loans at March 31, 2022. 

Net Interest Margin 

The net interest margin was 3.18% for the three months ended March 31, 2022 compared to 3.08% for the three months ended December 31, 2021. The net interest margin, on a tax-equivalent basis, was 3.20% for the three months ended March 31, 2022, compared to 3.10% for the three months ended December 31, 2021. 

Repurchases  

On April 27, 2021, the Board of Directors authorized a stock repurchase plan (the “2021 Plan”) under which the Company is authorized to repurchase up to 2.4 million shares, or 10% of its outstanding common stock. During the three months ended March 31, 2022, the Company repurchased 112,674 shares of common stock under the 2021 Plan. At March 31, 2022, there were 564,645 shares available for repurchase under the 2021 Plan. 

The shares repurchased under the 2021 Plan will be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that management determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2021 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. 

Capital Management  

Book value per share was $9.63 at March 31, 2022, compared to $9.87 at December 31, 2021, while tangible book value per share (non-GAAP) decreased $0.24, or 2.6%, from $9.21 at December 31, 2021 to $8.97 at March 31, 2022. Accumulated other comprehensive income/loss (“AOCI”) reduced the tangible book value per common share by $0.37 as of March 31, 2022, primarily due to the impact of higher interest rates on the fair value of available-for-sale securities.  As of March 31, 2022, the Company’s and the Bank’s regulatory capital ratios continued to exceed the levels required to be considered “well-capitalized” under federal banking regulations. 

Net Income for the Three Months Ended March 31, 2022 Compared to the Three Months Ended December 31, 2021. 

The Company reported net income of $5.3 million, or $0.24 per diluted share, for the three months ended March 31, 2022, compared to net income of $6.2 million, or $0.28 per diluted share, for the three months ended December 31, 2021. Return on average assets and return on average equity were 0.85% and 9.65%, respectively, for the three months ended March 31, 2022, compared to 0.97% and 11.22%, respectively, for the three months ended December 31, 2021. 

Net Interest Income and Net Interest Margin

 On a sequential quarter basis, net interest income increased $116,000, or 0.6%, to $18.7 million for the three months ended March 31, 2022, from $18.6 million for the three months ended December 31, 2021. The increase in net interest income was primarily due to an increase in interest and dividend income of $17,000, or 0.1%, also improved by a decrease in interest expense of $99,000, or 7.4%. 

During the three months ended March 31, 2022 and the three months ended December 31, 2021, interest and dividend income included PPP income of $562,000 and $973,000, respectively. During the three months ended March 31, 2022, the Company recorded $39,000 in positive purchase accounting adjustments, compared to negative purchase accounting adjustments of $31,000 during the three months ended December 31, 2021. Excluding PPP income and purchase accounting adjustments, net interest income increased $457,000, or 2.6%, from the three months ended December 31, 2021 to the three months ended March 31, 2022. 

The net interest margin was 3.18% for the three months ended March 31, 2022 compared to 3.08% for the three months ended December 31, 2021. The net interest margin, on a tax-equivalent basis, was 3.20% for the three months ended March 31, 2022, compared to 3.10% for the three months ended December 31, 2021. Excluding PPP income, the net interest margin was 3.10% for the three months ended March 31, 2022, compared to 2.97% for the three months ended December 31, 2021. The average yield on interest-earning assets was 3.39% for the three months ended March 31, 2022, compared to 3.30% for the three months ended December 31, 2021. The average loan yield was 3.84% for the three months ended March 31, 2022, compared to 3.88% for the three months ended December 31, 2021. 

During the three months ended March 31, 2022, average interest-earning assets decreased $8.5 million, or 0.4%, to $2.4 billion, primarily due to a decrease in short-term investments of $74.8 million, or 56.8%, partially offset by an increase in average securities of $21.6 million, or 5.4%, and an increase in average loans of $44.7 million, or 2.4%. Excluding PPP loans, average loans increased $71.2 million, or 3.9%, from the three months ended December 31, 2021 to the three months ended March 31, 2022. 

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased one basis point from 0.23% for the three months ended December 31, 2021 to 0.22% for the three months ended March 31, 2022. The average cost of core deposits, including non-interest bearing demand deposits, decreased one basis point to 14 basis points for the three months ended March 31, 2022, from 15 basis points for the three months ended December 31, 2021. The average cost of time deposits decreased four basis points from 0.39% for the three months ended December 31, 2021 to 0.35% for the three months ended March 31, 2022. The average cost of borrowings, including subordinated debt, increased 23 basis points from 4.44% for the three months ended December 31, 2021 to 4.67% for the three months ended March 31, 2022. Average FHLB borrowings decreased $649,000, or 21.6%, from $3.0 million for the three months ended December 31, 2021 to $2.3 million for the three months ended March 31, 2022. Average demand deposits, an interest-free source of funds, decreased $21.2 million, or 3.3%, from $654.3 million, or 29.0% of total average deposits, for the three months ended December 31, 2021, to $633.1 million, or 28.1% of total average deposits, for the three months ended March 31, 2022. 

Provision for Loan Losses 

During the three months ended March 31, 2022, the provision for loan losses decreased $725,000, from a provision for loan losses of $300,000 for the three months ended December 31, 2021, to a credit for loan losses of $425,000. The decrease in the provision reflects management’s current assessment of the impact of the COVID-19 pandemic on the Bank’s loan portfolio. Management continues to assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic, economic trends and their potential effect on asset quality. The Company has deferred the adoption of the Current Expected Credit Loss allowance methodology, as permitted by its classification as a Smaller Reporting Company under Securities and Exchange Commission rules. Management will continue to closely monitor portfolio conditions and reevaluate the adequacy of the allowance. 

The Company recorded net charge-offs of $54,000 for the three months ended March 31, 2022, as compared to net charge-offs of $350,000 for the three months ended December 31, 2021. At March 31, 2022, non-performing loans totaled $4.0 million, or 0.21% of total loans, and total delinquency as a percentage of total loans was 0.15%.  

Non-Interest Income 

On a sequential quarter basis, non-interest income decreased $1.6 million, or 39.1%, to $2.3 million for the three months ended March 31, 2022, from $3.9 million for the three months ended December 31, 2021. During the three months ended December 31, 2021, non-interest income included the recognition of $555,000 in bank-owned life insurance (“BOLI”) death benefits and also included a $352,000 gain on non-marketable equity investments. During the three months ended March 31, 2022, service charges and fees decreased $96,000, or 4.2%, from the three months ended December 31, 2021. Mortgage banking income from the sale of fixed rate residential real estate loans decreased $287,000, or 99.3%, from $289,000 for the three months ended December 31, 2021 to $2,000 for the three months ended March 31, 2022. During the three months ended March 31, 2022, the Company reported unrealized losses on marketable equity securities of $276,000, compared to unrealized losses of $96,000 during the three months ended December 31, 2021. During the three months ended March 31, 2022, the Company reported a loss of $4,000 on securities sales. Income from BOLI decreased $38,000, or 7.8%, from the three months ended December 31, 2021 to $448,000, for the three months ended March 31, 2022. 

Non-Interest Expense 

For the three months ended March 31, 2022, non-interest expense increased $533,000, or 3.8% to $14.5 million, from the three months ended December 31, 2021. Salaries and employee benefits increased $46,000, or 0.6%, to $8.2 million. Occupancy expense increased $219,000, or 19.1%, primarily due to $140,000 in snow removal costs. Professional fees increased $100,000, or 21.0%, advertising expense increased $137,000, or 52.3%, and FDIC insurance expense increased $84,000, or 41.6%. Furniture and equipment expenses decreased $5,000, or 0.9%, data processing decreased $3,000, or 0.4%, and other non-interest expense decreased $45,000, or 1.9%. For the three months ended March 31, 2022, the efficiency ratio was 67.8%, compared to 64.4% for the three months ended December 31, 2021. The efficiency ratio is a non-GAAP measure. See page 16 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures. 

Income Tax Provision 

Income tax expense for the three months ended March 31, 2022 was $1.7 million, or an effective tax rate of 24.2%, compared to $2.0 million, or an effective tax rate of 24.3%, for three months ended December 31, 2021. 

Net Income for the Three Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021.

The Company reported net income of $5.3 million, or $0.24 per diluted share, for the three months ended March 31, 2022, compared to net income of $5.8 million, or $0.24 per diluted share, for the three months ended March 31, 2021. 

For the three months ended March 31, 2022, return on average assets and return on average equity were 0.85% and 9.65%, respectively, compared to 0.98% and 10.35%, respectively, for the three months ended March 31, 2021. The decrease in net income of $472,000, or 8.2%, was primarily due to a decrease in PPP income of $1.8 million, or 76.7%, from $2.4 million for the three months ended March 31, 2021 to $562,000 for the three months ended March 31, 2022. 

Net Interest Income and Net Interest Margin 

Net interest income increased $672,000, or 3.7%, to $18.7 million for the three months ended March 31, 2022, from $18.0 million for the three months ended March 31, 2021. The increase in net interest income was due to a decrease in interest expense of $762,000, or 38.0%, primary due to a $742,000, or 42.8%, decrease in interest expense on deposits. During the same period, interest and dividend income decreased $90,000, or 0.4%, primarily due to a $1.8 million, or 76.7%, decrease in PPP income. 

Net interest income for the three months ended March 31, 2022 included PPP income of $562,000, compared to $2.4 million for the three months ended March 31, 2021. During the three months ended March 31, 2022 interest income included $39,000 in positive purchase accounting adjustments, compared to $45,000 in negative purchase accounting adjustments during the three months ended March 31, 2021. Excluding the adjustments above, net interest income increased $2.4 million, or 15.6%, from $15.7 million during the three months ended March 31, 2021, to $18.1 million during the three months ended March 31, 2022. 

The net interest margin was 3.18% for the three months ended March 31, 2022, compared to 3.24%, for the three months ended March 31, 2021. The net interest margin, on a tax-equivalent basis, was 3.20% for the three months ended March 31, 2022, compared to 3.26% for the three months ended March 31, 2021. Excluding the adjustments discussed above, the net interest margin increased six basis points from 3.04% for the three months ended March 31, 2021 to 3.10% for the three months ended March 31, 2022. The Company’s net interest margin was positively impacted by higher average balances for loans and securities and a decrease in lower yielding interest-earning assets. 

The loan yield decreased 19 basis points from 4.03% for the three months ended March 31, 2021 to 3.84% for the three months ended March 31, 2022. Excluding PPP loans and purchase accounting adjustments, the average loan yield decreased 13 basis points from 3.87% for the three months ended March 31, 2021 to 3.74% for the three months ended March 31, 2022. The average yield on interest-earning assets decreased 21 basis points from 3.60% for the three months ended March 31, 2021 to 3.39% for the three months ended March 31, 2022. 

During the three months ended March 31, 2022, average interest-earning assets increased $130.5 million, or 5.8%, to $2.4 billion compared to the three months ended March 31, 2021. The increase was primarily due to an increase in average securities of $197.0 million, or 83.1%. Excluding average PPP loans, average loans increased $122.9 million, or 7.0%, from the three months ended March 31, 2021 to the three months ended March 31, 2022. Total average loans, excluding average PPP loans, were 78.8% of total average interest-earning assets for the three months ended March 31, 2022, compared to 77.9% for the three months ended March 31, 2021. 

During the three months ended March 31, 2022, the average cost of funds, including non-interest bearing demand accounts and borrowings, decreased 16 basis points, from 0.38% for the three months ended March 31, 2021 to 0.22% for the three months ended March 31, 2022. The average cost of core deposits, including non-interest bearing demand deposits, decreased 7 basis points from 0.21% for the three months ended March 31, 2021 to 0.14% for the three months ended March 31, 2022. The average cost of time deposits decreased 32 basis points from 0.67% for the three months ended March 31, 2021 to 0.35% for the three months ended March 31, 2022, while the average cost of borrowings increased from 2.10% for the three months ended March 31, 2021 to 4.67% for the three months ended March 31, 2022. Average demand deposits, an interest-free source of funds, increased $71.5 million, or 12.7%, from $561.6 million, or 27.0% of total average deposits, for the three months ended March 31, 2021 to $633.1 million, or 28.1%, of total average deposits, for the three months ended March 31, 2022. 

Provision for Loan Losses 

The provision for loan losses decreased $500,000, from a provision for loan losses of $75,000 for the three months ended March 31, 2021 to a credit for loan losses of $425,000 for the three months ended March 31, 2022. The Company recorded net charge-offs of $54,000 for the three months ended March 31, 2022, as compared to net charge-offs of $5,000 for the three months ended March 31, 2021. The decrease in the provision versus comparative periods reflected management’s current assessment of the impact of the COVID-19 pandemic on the Bank’s loan portfolio. Management continues to assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic, economic trends and their potential effect on asset quality. 

Non-Interest Income 

Non-interest income decreased $656,000, or 21.8%, to $2.3 million for the three months ended March 31, 2022, from $3.0 million for the three months ended March 31, 2021. The three months ended March 31, 2021, included a gain on non-marketable equity investments of $546,000. Service charges and fees on deposits increased $291,000, or 15.5%, and income from bank-owned life insurance increased $7,000, or 1.6%, from $441,000 for the three months ended March 31, 2021 to $448,000, for the three months ended March 31, 2022. Income from mortgage banking activities decreased $225,000, or 99.1%, and other income decreased $54,000. During the three months ended March 31, 2022, unrealized losses on marketable equity securities were $276,000, compared to unrealized losses of $89,000 during the three months ended March 31, 2021. During the three months ended March 31, 2022, the Company reported realized losses on the sale of securities of $4,000, compared to realized losses of $62,000 during the three months ended March 31, 2021. 

Non-Interest Expense 

For the three months ended March 31, 2022, non-interest expense increased $1.1 million, or 8.5%, to $14.5 million from $13.3 million, for the three months ended March 31, 2021. Salaries and employee benefits expense increased $638,000, or 8.4%, to $8.2 million, primarily due to annual merit increases and benefit costs. Other non-interest expense increased $280,000, or 13.7%, occupancy expense increased $74,000, or 5.7%, furniture and equipment increased $53,000, or 10.8%, professional fees increased $33,000, or 6.1%, advertising expenses increased $61,000, or 18.0%, and data processing related expenses increased $2,000, or 0.3%. FDIC insurance expense decreased $12,000, or 4.0%. The efficiency ratio was 67.8% for the three months ended March 31, 2022, compared to 64.6% for the three months ended March 31, 2021. The efficiency ratio is a non-GAAP measure. See page 16 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures. 

Income Tax Provision

Income tax expense for the three months ended March 31, 2022 was $1.7 million, or an effective tax rate of 24.2%, compared to $1.8 million, or an effective tax rate of 24.1%, for three months ended March 31, 2021. 

Balance Sheet 

At March 31, 2022, total assets were $2.6 billion, an increase of $17.0 million, or 0.7%, from December 31, 2021. During the three months ended March 31, 2022, cash and cash equivalents decreased $40.6 million, or 39.2%, to $62.9 million, investment securities decreased $5.4 million, or 1.3%, to $423.1 million and total loans, excluding PPP loans, increased $80.8 million, or 4.4%, to $1.9 billion.

Investments  

At March 31, 2022, the Company’s available-for-sale securities portfolio decreased $20.4 million, or 10.5%, from $194.4 million at December 31, 2021 to $173.9 million at March 31, 2022. The held-to-maturity securities portfolio, recorded at amortized cost, increased $15.3 million, or 6.9%, from $222.3 million at December 31, 2021 to $237.6 million at March 31, 2022. The Company allocated a portion of its excess liquidity to the investment portfolio as an alternative to cash and cash equivalents. This shift from overnight investments to held-to-maturity securities will assist the Company with managing the yield on interest-earning assets in the low interest rate environment that we are experiencing while providing ongoing cash flows from payments and pay downs. The primary objective of the investment portfolio is to provide liquidity and maximize income while preserving the safety of principal. 

Total Loans 

At March 31, 2022, total loans were $1.9 billion, an increase of $61.6 million, or 3.3%, from December 31, 2021. Excluding PPP loans, total loans increased $80.8 million, or 4.4%, driven by an increase in commercial real estate loans of $59.5 million, or 6.1%, partially offset by a decrease in total commercial and industrial loans of $10.7 million, or 4.7%. Excluding a decrease of $19.3 million in PPP loans from December 31, 2021, commercial and industrial loans increased $8.6 million, or 4.2%, at March 31, 2022. Residential real estate loans, which include home equity loans, increased $12.4 million, or 1.9%. In accordance with the Company’s asset/liability management strategy, during the three months ended March 31, 2022, the Company sold $277,000 of fixed rate, low coupon residential real estate loans to the secondary market. As of March 31, 2022, the Company serviced $85.5 million in loans sold to the secondary market, compared to $88.2 million at December 31, 2021. Servicing rights will continue to be retained on all loans written and sold to the secondary market. 

The following table is a summary of our outstanding loan balances for the periods indicated: 

Credit Quality 

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. At March 31, 2022, nonperforming loans totaled $4.0 million, or 0.21% of total loans, compared to $5.0 million, or 0.27% of total loans, at December 31, 2021. At March 31, 2022, there were no loans 90 or more days past due and still accruing interest. Nonperforming assets to total assets, was 0.16% at March 31, 2022, compared to 0.20% at December 31, 2021. The allowance for loan losses as a percentage of total loans, was 1.00% at March 31, 2022, compared to 1.06% at December 31, 2021. At March 31, 2022, the allowance for loan losses as a percentage of nonperforming loans was 484.2%, compared to 398.6%, at December 31, 2021.

Deposits 

At March 31, 2022, total deposits were $2.3 billion, an increase of $21.3 million, or 0.9%, from December 31, 2021, primarily due to an increase in core deposits of $44.2 million, or 2.4%. Core deposits, which the Company defines as all deposits except time deposits, increased from $1.9 billion, or 82.2% of total deposits, at December 31, 2021, to $1.9 billion, or 83.4% of total deposits, at March 31, 2022. Non-interest-bearing deposits decreased $11.1 million, or 1.7%, to $630.2 million, interest-bearing checking accounts decreased $6.4 million, or 4.4%, to $139.3 million, savings accounts increased $7.0 million, or 3.2%, to $224.6 million, and money market accounts increased $54.7 million, or 6.4%, to $905.1 million.

Time deposits decreased $23.0 million, or 5.7%, from $402.0 million at December 31, 2021 to $379.0 million at March 31, 2022. The Company did not have any brokered deposits at March 31, 2022 or December 31, 2021. 

FHLB and Subordinated Debt 

At March 31, 2022, total borrowings decreased $1.0 million, or 4.5%, from $22.3 million at December 31, 2021, to $21.3 million. FHLB advances decreased $1.0 million, or 36.5%, to $1.7 million and subordinated debt outstanding totaled $19.6 million at March 31, 2022 and at December 31, 2021. 

Capital 

At March 31, 2022, shareholders’ equity was $219.1 million, or 8.6% of total assets, compared to $223.7 million, or 8.8% of total assets, at December 31, 2021. The decrease in shareholders’ equity reflects $1.2 million for the repurchase of the Company’s common stock, the payment of regular cash dividends of $1.3 million and an increase in accumulated other comprehensive loss of $8.4 million, partially offset by net income of $5.3 million. Total shares outstanding as of March 31, 2022 were 22,742,189. 

Capital Management  

The Company’s book value per share was $9.63 at March 31, 2022 compared to $9.87 at December 31, 2021, while tangible book value per share (non-GAAP) decreased $0.24, or 2.6%, from $9.21 at December 31, 2021 to $8.97 at March 31, 2022. AOCI reduced the tangible book value per common share by $0.37 as of March 31, 2022, primarily due to the impact of higher interest rates on the fair value of available-for-sale securities.  

The Company’s regulatory capital ratios remain in compliance with regulatory “well capitalized” requirements and internal target minimal levels. At March 31, 2022, the Company’s Tier 1 leverage, common equity tier 1 capital, and total risk-based capital ratios were 8.9%, 11.9%, and 14.0%, respectively, and the Bank’s Tier 1 leverage, common equity tier 1 capital, and total risk-based capital ratios were 9.1%, 12.1%, and 13.1%, respectively, compared with regulatory “well capitalized” minimums of 5.00%, 6.5%, and 10.00%, respectively. 

Dividends 

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future. 

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com. 

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, business, measures being taken in response to the COVID-19 pandemic and the impact of the COVID-19 impact on the Company’s 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: 

• the duration and scope of the COVID-19 pandemic and the local, national and global impact of COVID-19;

• actions governments, businesses and individuals take in response to the COVID-19 pandemic;
• the speed and effectiveness of vaccine and treatment developments and their deployment, including public adoption rates of COVID-19 vaccines;

• the emergence of new COVID-19 variants, such as the Omicron variant, and the response thereto;
• the pace of recovery when the COVID-19 pandemic subsides;
• changes in the interest rate environment 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 Act Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), Basel guidelines, capital requirements and other applicable laws and regulations;
• the highly competitive industry and market area in which we operate;
• general economic conditions, either nationally or regionally, resulting in, among other things, a deterioration in credit quality;
• changes in business conditions and inflation;
• changes in credit market conditions;
• the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions;
• changes in the securities markets which affect investment management revenues;
• increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
• changes in technology used in the banking business;
• 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;
• our controls and procedures may fail or be circumvented;
• 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 factors detailed from time to time in our SEC filings.

 Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Net Income and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

________________

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES

Other Data

(Dollars in thousands, except per share data)

(Unaudited)

The following table sets forth the information relating to our average balances and net interest income for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

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 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.

WESTERN NEW ENGLAND BANCORP, INC. 8-K

Exhibit 99.2

Local banking is better than ever. INVESTOR PRESENTATION FIRST QUARTER 2022

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 presentation contains “forward - looking statements” with respect to the Company’s financial condition, liquidity, results of operations, future performance, business, measures being taken in response to the coronavirus disease 2019 (“COVID - 19 ”) pandemic and the impact of COVID - 19 on the Company’s 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 : • the duration and scope of the COVID - 19 pandemic and the local, national and global impact of COVID - 19; • actions governments, businesses and individuals take in response to the COVID - 19 pandemic ; • the speed and effectiveness of COVID - 19 vaccine and treatment developments and their deployment, including public adoption rates of COVID - 19 vaccines; • the emergence of new COVID - 19 variants, such as the Omicron variant, and the response thereto; • the pace of recovery when the COVID - 19 pandemic subsides; • changes in the interest rate environment that reduce margins; • the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standa rds , the nature and timing of the adoption and effectiveness of new requirements under the Dodd - Frank Act Wall Street Reform and Consumer Protection Act of 2010 ( “Dodd - Frank Act”), Basel guidelines, capital requirements and other applicable laws and regulations; • the highly competitive industry and market area in which we operate; • general economic conditions, either nationally or regionally, resulting in, among other things, a deterioration in credit qua lit y; • changes in business conditions and inflation; • changes in credit market conditions; • the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations an d other acquisitions; • changes in the securities markets which affect investment management revenues; • increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; • changes in technology used in the banking business; • 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; • our controls and procedures may fail or be circumvented; • 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 bu sin ess; and • other factors detailed from time to time in our SEC filings . Although we believe that the expectations reflected in such forward - looking statements are reasonable, actual results may differ materially from the results discussed in these forward - looking statements . You are cautioned not to place undue reliance on these forward - looking statements, which speak only as of the date hereof . We do not undertake any obligation to republish revised forward - looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law .

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 . 3 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 Lender Officer Kevin C . O’Connor, Executive Vice President & Chief Banking Officer Louis O . Gorman, Senior Vice President & Chief Credit Officer Leo R . Sagan, Jr . , Senior Vice President & Chief Risk Officer Darlene Libiszewski , Senior Vice President & Chief Information Officer John Bonini , Senior Vice President & General Counsel Christine Phillips , Senior Vice President, Human Resources Cidalia Inacio , Senior Vice President, Retail Banking & Wealth Management 4

5 CONNECTICUT STRATEGY UPDATE The Bank is well - positioned with four Hartford County, Connecticut locations . Continued mergers and consolidations throughout the state have created increased demand for a local, full - service, community - oriented bank, supporting the Bank’s deposit and loan growth objectives .

6 CONNECTICUT STRATEGY UPDATE Congratulations to the West Hartford Financial Services Center team on being recognized as “Best Bank/Financial Institution” in the annual Best of West Hartford , marking two consecutive years that the Bank has earned the top spot.

7 CONNECTICUT STRATEGY UPDATE On December 13 th , the Bank opened its new Granby Branch, replacing its former location at the Granby Village Shops with a new standalone branch located on East Granby Road/Route 20, a major travel route for both residents and commuters. The new location adds drive - up teller lanes, a drive - up ATM, safe deposit boxes, and a suite of private offices .

1Q2022 QUARTERLY EARNINGS 8 ($ in thousands , except EPS) 1Q2022 4Q2021 3Q2021 2Q2021 1Q2021 Net interest income $ 18,698 $ 18,582 $ 18,765 $ 17,804 $ 18,026 (Credit) Provision for loan losses (425) 300 (100) (1,200) 75 Non - interest income 2,348 3,856 3,295 2,409 3,004 Non - interest expense ____ 14,456 13,923 14,018 13,674 13,327 Income before taxes 7,015 8,215 8,142 7,739 7,628 Income tax expense 1,696 1,995 2,106 2,087 1,837 Net income $ 5,319 $ 6,220 $ 6,036 $ 5,652 $ 5,791 Diluted earnings per share (EPS) $ 0.24 $ 0.28 $ 0.27 $ 0.24 $ 0.24 ROA 0.85% 0.97% 0.96% 0.92% 0.98% ROE 9.65% 11.22% 10.85% 10.16% 10.35% Net interest margin 3.18% 3.08% 3.18% 3.06% 3.24% Net interest margin, on a tax - equivalent basis 3.20% 3.10% 3.20% 3.08% 3.26%

NET INTEREST INCOME ($) AND NET INTEREST MARGIN (%) 9 $18.0 $17.8 $18.8 $18.6 $18.7 3.24% 3.06% 3.18% 3.08% 3.18% 3.03% 2.98% 2.99% 2.97% 3.10% 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $17.2 $17.4 $17.6 $17.8 $18.0 $18.2 $18.4 $18.6 $18.8 $19.0 Net interest income Net interest margin (%) Adjusted net interest margin (1) Net interest income increased $ 116 , 000 , or 0 . 6 % , from $ 18 . 6 million for the quarter ended December 31 , 2021 to $ 18 . 7 million for the quarter ended March 31 , 2022 . The net interest margin increased 10 basis points from 3 . 08 % for the quarter ended December 31 , 2021 to 3 . 18 % for the quarter ended March 31 , 2022 . Excluding PPP income, the net interest margin increased 13 basis point from 2 . 97 % for the quarter ended December 31 , 2021 to 3 . 10 % for the quarter ended March 31 , 2022 , and net interest income, excluding PPP, increased $ 527 , 000 , or 3 . 0 % , from $ 17 . 6 million to $ 18 . 1 million, during the same period . (1) Adjusted net interest margin excludes PPP loan origination fee income and PPP interest income ($ in millions)

TOTAL LOANS 10 $1,757 $1,756 $1,787 $1,809 $1,880 3.86% 3.81% 3.75% 3.75% 3.75% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 Average Loans Outstanding (excludes PPP loans) Average Loans Outstanding Average Loan Yield $1,755 $1,771 $1,786 $1,839 $1,920 $170 $106 $59 $25 $6 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 $1,850 $1,900 $1,950 $2,000 Period - end Loans Outstanding Loans PPP Loans Excluding PPP loans, average loans of $ 1 . 9 billion increased $ 71 . 2 million, or 3 . 9 % , from the linked quarter . Average PPP loans of $ 15 . 1 million decreased $ 26 . 5 million, or 63 . 7 % , from the linked quarter . Total loans outstanding of $ 1 . 9 billion at March 31 , 2022 increased $ 61 . 6 million , or 3 . 3 % , from December 31 , 2021 , driven by an increase of $ 59 . 5 million, or 6 . 1 % , in commercial real estate loans, an increase of $ 12 . 4 million, or 1 . 9 % , in residential real estate loans and an increase of $ 8 . 6 million, or 4 . 2 % , in commercial and industrial loans, partially offset by a decrease in PPP loans of $ 19 . 3 million, or 76 . 1 % . Excluding PPP loans, total loans increased $ 80 . 8 million, or 4 . 4 % , from year - end . ($ in millions)

COMMERCIAL AND INDUSTRIAL LOAN TRENDS 11 $205 $215 $201 $201 $210 $170 $106 $59 $25 $6 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $100 $150 $200 $250 $300 $350 $400 C&I Loans PPP Loans Commercial and industrial loans (“C&I ”), including PPP loans of $ 215 . 9 million at March 31 , 2022 decreased $ 10 . 7 million, or 4 . 7 % , from December 31 , 2021 , driven by a decrease in PPP loans of $ 19 . 3 million, or 76 . 1 % . Excluding PPP loans, commercial and industrial loans increased $ 8 . 6 million, or 4 . 2 % , for the same period . At March 31 , 2022 , total delinquent C&I loans totaled $ 66 , 000 , or 0 . 03 % , of the C&I portfolio, excluding PPP loans . ($ in millions)

C&I PORTFOLIO (1) 12 (1) % of total C&I loans as of March 31, 2022, excluding PPP loans Manufacturing 18% Wholesale trade 21% Educational services 8% Heavy and civil engineering construction 8% Specialty trade 6% All other C&I , 39%

SMALL BUSINESS ADMINISTRATION – PAYCHECK PROTECTION PROGRAM 13 (1) Balance as of March 31, 2022 ($ in millions) (2) ($ in thousands) Original Loan Amount (1) Original # of Loans Balance Outstanding (1) # of Loans Remaining Round 1 and 2 $223.1 1,386 $1.7 15 Round 3 79.1 760 4.4 38 Total $302.2 2,146 $6.1 53 As of March 31, 2022, the Company had received funding approval from the Small Business Administration for 2,146 applications totaling $302.2 million and processed 2,093 loan forgiveness applications totaling $296.1 million. For the three months ended March 31 , 2022 , interest income included $ 562 , 000 in PPP income, compared to $ 973 , 000 during the three months ended December 31 , 2021 . On March 31 , 2022 , the Company had $ 255 , 000 in deferred PPP loan processing fees outstanding . The processing fees are deferred and recognized over the contractual life of the loan, or accelerated at forgiveness . The table below breaks out the PPP loan processing fees and interest income for the periods noted : 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 PPP Origination Fee Income (2) $1,999 $1,240 $1,556 $868 $526 PPP Interest Income (2) 412 387 201 105 36 Total PPP Income (2) $2,411 $1,627 $1,757 $973 $562

COMMERCIAL REAL ESTATE LOAN TRENDS 14 $861 $877 $918 $980 $1,039 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $500 $600 $700 $800 $900 $1,000 $1,100 • Commercial real estate (“CRE”) loans of $ 1 . 0 billion at March 31 , 2022 increased $ 59 . 5 million, or 6 . 1 % , from December 31 , 2021 . • At March 31 , 2022 , there were $ 12 . 1 million, or 1 . 2 % of the total CRE portfolio, remaining under CARES Act modifications . • At March 31 , 2022 , total CRE delinquency was $ 737 , 000 , or 0 . 07 % , of the CRE portfolio . ($ in millions) Period - end Loans Outstanding

COMMERCIAL REAL ESTATE LOANS (1) 15 (1) % of total commercial real estate loans at March 31, 2022 At March 31, 2022, there were two loans totaling $12.1 million, or 1.2% of the CRE portfolio, remaining under CARES Act modification, compared to the high point of $200.0 million, or 24.0% of the CRE portfolio as of June 30, 2020. The two loans are currently paying interest and real estate taxes. Apartment 17% Office 21% Industrial/Warehouse 14% Retail/Shopping 15% Residential Non - Owner 8% Hotel 5% Auto Sales 4% Adult Care/Assisted Living 4% Mixed - use 3% College/School 3% Other 6%

RESIDENTIAL AND CONSUMER LOAN TRENDS 16 $689 $680 $668 $656 $669 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $630 $640 $650 $660 $670 $680 $690 $700 Residential and Consumer Loans Period - end Loans Outstanding Residential loans, including home equity loans, and consumer loans increased $ 12 . 4 million, or 1 . 9 % , from December 31 , 2021 . As of March 31 , 2022 , the Company serviced $ 85 . 5 million in loans sold to the secondary market, with servicing retained, which are not included on the Company’s balance sheet . At March 31 , 2022 , total delinquent residential and consumer loans totaled $ 2 . 0 million, or 0 . 3 % of total residential and consumer loans . ($ in millions)

TOTAL DEPOSITS 17 $1,631 $1,727 $1,806 $1,855 $1,899 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 PERIOD - END CORE DEPOSITS At March 31 , 2022 , core deposits increased $ 44 . 2 million, or 2 . 4 % , from the linked quarter, while time deposits decreased $ 23 . 0 million, or 5 . 7 % , during the same period . The ratio of core deposits as a percentage of total deposits was 83 . 4 % at March 31 , 2022 compared to 82 . 2 % at December 31 , 2021 . $523 $454 $419 $402 $379 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $- $100 $200 $300 $400 $500 $600 PERIOD - END TIME DEPOSITS ($ in millions)

AVERAGE TOTAL DEPOSITS 18 $1,520 $1,561 $1,587 $1,606 $1,618 $562 $603 $615 $654 $633 0.34% 0.27% 0.22% 0.19% 0.18% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $300 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 Average Deposits and Rates Interest-bearing deposits Non-interest-bearing deposits Average deposit cost Average deposits, consisting of interest - bearing and non - interest bearing deposits, of $2.3 billion decreased $9.4 million , or 0.4%, from the linked quarter, and increased $169.1 million, or 8.1%, from 1Q2021. Average cost of deposits decreased one basis poi nt, from 0.19% for the three months ended December 31, 2021 to 0.18% for the three months ended March 31, 2022, and decreased 16 basis points year - over - year, reflecting the lower interest rate environment. ($ in millions)

AVERAGE CORE AND TIME DEPOSITS 19 $1,515 $1,676 $1,757 $1,850 $1,862 0.21% 0.19% 0.16% 0.15% 0.14% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 Average Core Deposits and Rates Average core deposits, including non - interest bearing deposits, increased $ 11 . 7 million, or 0 . 6 % , from the linked quarter, and increased $ 347 . 2 million, or 22 . 9 % , year - over - year . Average time deposits of $ 389 . 1 million decreased $ 21 . 1 million, or 5 . 1 % , from the linked quarter . The cost of time deposits decreased four basis points for the same period, reflecting the lower interest rate environment . ($ in millions) $567 $488 $445 $410 $389 0.67% 0.56% 0.47% 0.39% 0.35% 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% $- $100 $200 $300 $400 $500 $600 Average Time Deposits and Rates

LOAN - TO - DEPOSIT RATIO 20 89% 86% 83% 83% 85% 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 78% 80% 82% 84% 86% 88% 90% Period - end Loan - to - Deposit Ratio 76% 79% 81% 82% 83% 24% 21% 19% 18% 17% 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Core Deposits and Time Deposits as a % of Total Deposits Core deposits/Total deposits Time deposits/Total deposits The loan - to - deposit ratio decreased from 89 % during 1 Q 2021 to 85 % in 1 Q 2022 . We also continue to focus on the mix of deposits from time deposits to low - cost core deposits . Core deposits as a percentage of tota l deposits improved from 76 % of total deposits in 1 Q 2021 to 83 % in 1 Q 2022 .

________ Source: SNL Financial as of June 30, 2021 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, 2021 21 Total Deposit Rank 2021 Parent Company Name Deposits in Market ($000) Market Share # of Branches 1 TD Bank 2,086,558 14.9% 16 1,762,519 13.1% 20 2 Westfield Bank 1,963,689 14.0% 20 3 PeoplesBank 1,936,864 13.8 % 15 4 Bank of America 1,851,766 13.2 % 9 5 People’s United Bank 1,568,658 11.2 % 14 6 KeyBank 1,204,890 8.6% 8 7 Berkshire Bank 1,195,137 8.5 % 11 8 Country Bank 565,273 4.0 % 5 9 Citizens Bank 505,595 3.6 % 12 10 Monson Savings Bank 455,619 3.2 % 4

TOTAL BORROWINGS 22 $43 $5 $4 $3 $2 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 $- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Federal Home Loan Bank Advances (“FHLB”) Period - end Balance Outstanding ($ in millions) At March 31 , 2022 , total FHLB advances decreased $ 41 million , or 96 . 1 % , from $ 42 . 7 million at March 31 , 2021 , to $ 2 . 0 million .

ASSET QUALITY INDICATORS 23 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 Total loans modified under the CARES Act $66.9M $57.0M $42.8M $42.5M $12.1M Loans modified as a % of total loans (1) 3.8% 3.2% 2.4% 2.3% 0.6% Total delinquent loans $ $9.3M $4.4M $3.1M $2.1M $2.8M Delinquent loans as a % of total loans (1) 0.53% 0.25% 0.17% 0.12% 0.15% Nonperforming loans (NPL) $ $6.8M $6.0M $5.6M $5.0M $4.0M NPL as a % of total loans (1) 0.39% 0.34% 0.32% 0.27% 0.21% NPL as a % of total assets (1) 0.30% 0.25% 0.23% 0.20% 0.16% Allowance for loan losses % of total loans (1) 1.21% 1.12% 1.11% 1.08% 1.00% Allowance for loan losses % of NPL 313% 332% 352% 399% 484% Net charge - offs (recoveries) $5K $157K ($67K) $350K $54K Net charge - offs as a % average loans (1) 0.00% 0.01% 0.00% 0.02% 0.00% (1) Excludes PPP loans

ASSET QUALITY 24 Management continues to assess the exposure of the Company’s loan portfolio to the COVID - 19 pandemic, economic trends and their potential effect on asset quality . The Company has deferred the adoption of the Current Expected Credit Loss Model , as permitted by its classification as a Smaller Reporting Company under Securities and Exchange Commission rules . 1Q2021 1Q2022 ALLL (2) Loans Outstanding (1)(2) ALLL/ Total Loan Segment ALLL (2) Loans Outstanding (1)(2) ALLL/ Total Loan Segment Commercial and industrial $ 3,562 $ 205,086 1.74% $ 2,726 $ 209,890 1.30% Commercial real estate 13,315 861,418 1.55% 12,294 1,039,487 1.18% Residential (3) 4,113 684,150 0.60% 4,068 664,504 0.61% Consumer 223 4,785 4.66% 199 4,252 4.68% Unallocated 14 - - 21 - - Total Loans $ 21,227 $ 1,755,439 1.21% $ 19,308 $ 1,918,133 1.01% (1) Excludes PPP loans (2) $ in thousands (3) Includes home equity loans and home equity lines of credit

ASSET QUALITY 25 ($ in Millions) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 Special Mention $38.4 $41.1 $38.0 $24.2 $28.1 Special Mention - Hotel $38.6 $25.8 $26.2 $27.3 $27.1 Total Special Mention $77.0 $66.9 $64.2 $51.5 $55.2 % of Total Loans (1) 4.4% 3.8% 3.6% 2.8% 2.9% Substandard $43.0 $37.5 $32.2 $31.1 $30.8 % of Total Loans (1) 2.4% 2.1% 1.8% 1.7% 1.6% Total Watch List Loans $120.0 $104.4 $96.4 $82.6 $86.0 % of Total Loans (1) 6.8% 5.9% 5.4% 4.5% 4.5% At March 31 , 2022 , total Watch List loans decreased $ 3 . 4 million, or 4 . 1 % , from $ 82 . 6 million, or 4 . 5 % , of total loans, at December 31 , 2021 , to $ 86 . 0 million, or 4 . 5 % , of total loans . (1) Excludes PPP loans

CAPITAL MANAGEMENT 26 We are well - capitalized with excess capital. Consolidated Ratio at March 31, 2022 Leverage Ratio 8.94% Common Equity Tier 1 Ratio 11.91% Tier 1 Capital Ratio 11.91% Total Capital Ratio 13.97% x From a regulatory standpoint, we are well - capitalized with excess capital. x We take a prudent approach to capital management. ($ in millions) Westfield Bank Ratio at March 31, 2022 Well Capitalized Leverage Ratio 9.07% 5.0% Common Equity Tier 1 Ratio 12.07% 6.5% Tier 1 Capital Ratio 12.07% 8.0% Total Capital Ratio 13.09% 10.0%

CAPITAL RETURN TO SHAREHOLDERS 27 Year # of Shares 2018 2,189,276 2019 1,938,667 2020 1,391,496 2021 2,758,051 1Q2022 112,674 Year Annual Dividends per Share 2018 $0.16 2019 $0.20 2020 $0.20 2021 $0.20 1Q2022 $0.06 Share Repurchases Dividends On April 27 , 2021 , the Board of Directors authorized a stock repurchase plan (the “ 2021 Plan”) under which the Company is authorized to repurchase up to 2 . 4 million shares, or 10 % of its outstanding common stock . During the three months ended March 31 , 2022 , the Company repurchased 112 , 674 shares of common stock under the 2021 Plan . At March 31 , 2022 , there were 564 , 645 shares available for repurchase under the 2021 Plan . The Company also announced that the Board of Directors declared a quarterly cash dividend of $ 0 . 06 per share . The dividend will be payable on or about May 25 , 2022 to shareholders of record on M ay 11 , 2022 .

CAPITAL MANAGEMENT 28 $9.07 $9.29 $9.56 $9.87 $9.63 $8.44 $8.66 $8.89 $9.21 $8.97 Book Value per Share Tangible Book Value per Share (non - GAAP) Book Value Tangible Book Value (non-GAAP) Book value per share was $9.63 at March 31, 2022 compared to $9.87 at December 31, 2021. Tangible book value per share (non - GAAP) decreased $0.24, or 2.6%, from $9.21 at December 31, 2021 to $8.97 at March 31, 2022. Accumulated other comprehensive income/loss reduced the tangible book value per common share by $ 0.37 as of March 31, 2022, primarily due to the impact of higher interest rates on the fair value of available - for - sale securities.

APPENDIX: NON - GAAP TO GAAP RECONCILIATION 29 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 financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 (In thousands) Loans (no tax adjustment) 17,947$ 18,089$ 18,670$ 18,321$ 19,120$ Tax-equivalent adjustment 120 108 106 104 100 Loans (tax-equivalent basis) 18,067$ 18,197$ 18,776$ 18,425$ 19,220$ Securities (no tax adjustment) 1,950$ 1,763$ 1,500$ 1,277$ 854$ Tax-equivalent adjustment - 1 1 1 - Securities (tax-equivalent basis) 1,950$ 1,764$ 1,501$ 1,278$ 854$ Net interest income (no tax adjustment) 18,698$ 18,582$ 18,765$ 17,804$ 18,026$ Tax equivalent adjustment 120 109 107 105 100 Net interest income (tax-equivalent basis) 18,818$ 18,691$ 18,872$ 17,909$ 18,126$ Net interest income (no tax adjustment) 18,698$ 18,582$ 18,765$ 17,804$ 18,026$ Less: Purchase accounting adjustments 39 (31) 56 (33) (45) Prepayment penalties and fees 21 21 8 117 35 PPP fee income 562 973 1,757 1,627 2,411 Adjusted net interest income (non-GAAP) 18,076$ 17,619$ 16,944$ 16,093$ 15,625$ Average interest-earning assets 2,385,932$ 2,394,397$ 2,337,717$ 2,330,311$ 2,255,474$ Average interest-earnings asset, excluding average PPP loans $ 2,370,852 $ 2,352,858 $ 2,257,346 $ 2,174,716 $ 2,088,910 Net interest margin (no tax adjustment) 3.18% 3.08% 3.18% 3.06% 3.24% Net interest margin, tax-equivalent 3.20% 3.10% 3.20% 3.08% 3.26% Adjusted net interest margin, excluding purchase accounting adjustments, PPP fee income and prepayment penalties (non-GAAP) 3.10% 2.97% 2.98% 2.97% 3.03% For the quarter ended

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 financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 (In thousands) Book Value per Share (GAAP) 9.63$ 9.87$ 9.56$ 9.29$ 9.07$ Non-GAAP adjustments: Goodwill (0.55) (0.55) (0.55) (0.52) (0.51) Core deposit intangible (0.11) (0.11) (0.12) (0.11) (0.12) Tangible Book Value per Share (non-GAAP) 8.97$ 9.21$ 8.89$ 8.66$ 8.44$ Income Before Income Taxes (GAAP) 7,015$ 8,215$ 8,142$ 7,739$ 7,628$ (Credit) provision for loan losses (425) 300 (100) (1,200) 75 Income Before Taxes and Provision (non-GAAP) 6,590$ 8,515$ 8,042$ 6,539$ 7,703$ Efficiency Ratio: Non-interest Expense (GAAP) 14,456$ 13,923$ 14,018$ 13,674$ 13,327$ Non-GAAP adjustments: Loss on prepayment of borrowings - - - (45) - Non-Interest Expense for Efficiency Ratio (non-GAAP) 14,456$ 13,923$ 14,018$ 13,629$ 13,327$ Net Interest Income (GAAP) 18,698$ 18,582$ 18,765$ 17,804$ 18,026$ Non-Interest Income (GAAP) 2,348$ 3,856$ 3,295$ 2,409$ 3,004$ Non-GAAP adjustments: Bank-owned life insurance death benefit - (555) - - - Loss (gain) on securities, net 4 - (2) 12 62 Unrealized losses (gains) on marketable equity securities 276 96 (11) (6) 89 Loss on interest rate swap termination - - - 402 - Gain on non-marketable equity investments - (352) - - (546) Non-Interest Income for Efficiency Ratio (non-GAAP) 2,628$ 3,045$ 3,282$ 2,817$ 2,609$ Total Revenue for Efficiency Ratio (non-GAAP) 21,326$ 21,627$ 22,047$ 20,621$ 20,635$ Efficiency Ratio (GAAP) 68.69% 62.05% 63.54% 67.65% 63.37% Efficiency Ratio (Non-interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) 67.79% 64.38% 63.58% 66.09% 64.58% For the quarter ended

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 , Vice President and Investor Relations Officer 31 141 Elm Street, Westfield, MA