Western New England Bancorp, Inc 10-Q for FY2024 Q1

Western New England Bancorp, Inc. (WNEB)

10-Q 2024-05-07 For: 2024-03-31

Added on April 10, 2026

About this 10-Q

Western New England Bancorp, Inc filed this 10-Q on May 7, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $2.96M; down 44.2% from net income of $5.3M a year earlier
Diluted EPS: $0.14; down 41.7% from $0.24 a year earlier

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Massachusetts		73-1627673
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification Number)

141 Elm Street, Westfield, Massachusetts		01086
(Address of principal executive offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	WNEB	NASDAQ

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

		Page

FORWARD-LOOKING STATEMENTS		i

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements of Western New England Bancorp, Inc. and Subsidiaries (Unaudited)

	Consolidated Balance Sheets – March 31, 2024 and December 31, 2023	1

	Consolidated Statements of Net Income – Three Months Ended March 31, 2024 and 2023	2

	Consolidated Statements of Comprehensive Income (Loss) – Three Months Ended March 31, 2024 and 2023	3

	Consolidated Statements of Changes in Shareholders’ Equity – Three Months Ended March 31, 2024 and 2023	4

	Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and 2023	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48

Item 4.	Controls and Procedures	49

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	49

Item 1A.	Risk Factors	49

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49

Item 3.	Defaults upon Senior Securities	50

Item 4.	Mine Safety Disclosures	50

Item 5.	Other Information	50

Item 6.	Exhibits	50

	March 31,			December 31,
	2024			2023
ASSETS
Cash and due from banks	$	19,244		$	20,784
Federal funds sold		709			2,991
Interest-bearing deposits and other short-term investments		2,660			5,065
Cash and cash equivalents		22,613			28,840

Available-for-sale securities, at fair value		138,362			137,115
Held-to-maturity securities, at amortized cost (Fair value of $181,679 at March 31, 2024 and $187,692 at December 31, 2023)		221,242			223,370
Marketable equity securities, at fair value		222			196
Federal Home Loan Bank stock and other restricted stock, at cost		3,105			3,707
Loans, net of allowance for credit losses of $19,884 at March 31, 2024 and $20,267 at December 31, 2023		2,005,682			2,007,050
Premises and equipment, net		24,968			25,575
Accrued interest receivable		8,622			8,528
Bank-owned life insurance		75,598			75,145
Deferred tax asset, net		14,278			13,636
Goodwill		12,487			12,487
Core deposit intangible		1,719			1,813
Other assets		28,338			27,109
TOTAL ASSETS	$	2,557,236		$	2,564,571

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Non-interest-bearing	$	559,928		$	579,594
Interest-bearing		1,583,819			1,564,150
Total deposits		2,143,747			2,143,744

Short-term borrowings		11,470			16,100
Long-term debt		120,646			120,646
Subordinated debt		19,722			19,712
Other liabilities		25,855			26,960
TOTAL LIABILITIES		2,321,440			2,327,162

SHAREHOLDERS’ EQUITY:
Preferred stock - $0.01 par value, 5,000,000 shares authorized, none outstanding at March 31, 2024 and December 31, 2023		—			—
Common stock - $0.01 par value, 75,000,000 shares authorized, 21,627,690 shares issued and outstanding at March 31, 2024; 21,666,807 shares issued and outstanding at December 31, 2023		216			217
Additional paid-in capital		125,213			125,448
Unearned compensation – ESOP		(2,272	)		(2,394	)
Unearned compensation - Equity Incentive Plan		(2,174	)		(1,111	)
Retained earnings		138,450			136,993
Accumulated other comprehensive loss		(23,637	)		(21,744	)
TOTAL SHAREHOLDERS’ EQUITY		235,796			237,409
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,557,236		$	2,564,571


	Three Months
	Ended March 31,
	2024			2023
Interest and dividend income:
Residential and commercial real estate loans	$	20,953		$	18,252
Commercial and industrial loans		3,205			3,002
Consumer loans		83			75
Debt securities, taxable		2,112			2,076
Debt securities, tax-exempt		1			2
Marketable equity securities		1			71
Other investments		136			106
Short-term investments		113			54
Total interest and dividend income		26,604			23,638

Interest expense:
Deposits		9,293			4,103
Short-term borrowings		283			703
Long-term debt		1,428			74
Subordinated debt		254			254
Total interest expense		11,258			5,134
Net interest and dividend income		15,346			18,504

Reversal of credit losses		(550	)		(388	)
Net interest and dividend income after reversal of credit losses		15,896			18,892

Non-interest income:
Service charges and fees		2,219			2,187
Income from bank-owned life insurance		453			440
Loss on disposal of premises and equipment		(6	)		—
Net unrealized gain on marketable equity securities		8			—
Gain on non-marketable equity investments		—			352
Total non-interest income		2,674			2,979

Non-interest expense:
Salaries and employee benefits		8,244			8,431
Occupancy		1,363			1,348
Furniture and equipment		484			486
Data processing		862			753
Software		699			514
Net ATM network		552			490
Professional fees		569			757
FDIC insurance assessment		410			352
Advertising		349			417
Other expenses		1,250			1,348
Total non-interest expense		14,782			14,896
Income before income taxes		3,788			6,975
Income tax provision		827			1,671
Net income	$	2,961		$	5,304

Earnings per common share:
Basic earnings per share	$	0.14		$	0.24
Weighted average shares outstanding		21,180,968			21,699,042
Diluted earnings per share	$	0.14		$	0.24
Weighted average diluted shares outstanding		21,271,323			21,716,869
Dividends per share	$	0.07		$	0.07


	Three Months Ended March 31,
	2024			2023

Net income	$	2,961		$	5,304

Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale securities:
Unrealized holding (loss) gain		(2,536	)		2,616
Net amount		(2,536	)		2,616
Tax effect		643			(675	)
Net-of-tax amount		(1,893	)		1,941

Other comprehensive (loss) income		(1,893	)		1,941

Comprehensive income	$	1,068		$	7,245


	Common Stock
	Shares			Par Value			Additional Paid-in Capital			Unearned Compensation- ESOP			Unearned Compensation- Equity Incentive Plan			Retained Earnings			Accumulated Other Comprehensive Loss				Total

BALANCE AT DECEMBER 31, 2022		22,216,789		$	222		$	128,899		$	(2,906	)	$	(1,012	)	$	127,982		$	(25,042	)	$	228,143
Cumulative effect accounting adjustment⁽¹⁾		—			—			—			—			—			9			—			9
Comprehensive income		—			—			—			—			—			5,304			1,941			7,245
Common stock held by ESOP committed to be released (74,993 shares)		—			—			52			128			—			—			—			180
Share-based compensation - equity incentive plan		—			—			—			—			529			—			—			529
Forfeited equity incentive plan shares reissued in connection with 2020 LTI performance share grant (19,761 shares)		—			—			180			—			(180	)		—			—			—
Common stock repurchased		(143,896	)		(1	)		(1,350	)		—			—			—			—			(1,351	)
Issuance of common stock in connection with equity incentive plan		136,454			1			1,348			—			(1,349	)		—			—			—
Forfeited equity incentive plan shares reissued in connection with 2023 LTI grant (2,742 shares)		—			—			27			—			(27	)		—			—			—
Cash dividends declared and paid on common stock ($0.07 per share)		—			—			—			—			—			(1,533	)		—			(1,533	)
BALANCE AT MARCH 31, 2023		22,209,347		$	222		$	129,156		$	(2,778	)	$	(2,039	)	$	131,762		$	(23,101	)	$	233,222

BALANCE AT DECEMBER 31, 2023		21,666,807		$	217		$	125,448		$	(2,394	)	$	(1,111	)	$	136,993		$	(21,744	)	$	237,409
Comprehensive income		—			—			—			—			—			2,961			(1,893	)		1,068
Common stock held by ESOP committed to be released (71,240 shares)		—			—			30			122			—			—			—			152
Share-based compensation - equity incentive plan		—			—			—			—			505			—			—			505
Forfeited equity incentive plan shares reissued in connection with 2021 LTI performance share grant (4,219 shares)		—			—			35			—			(35	)		—			—			—
Common stock repurchased		(221,947	)		(3	)		(1,831	)		—			—			—			—			(1,834	)
Issuance of common stock in connection with equity incentive plan		182,830			2			1,531			—			(1,533	)		—			—			—
Cash dividends declared and paid on common stock ($0.07 per share)		—			—			—			—			—			(1,504	)		—			(1,504	)
BALANCE AT MARCH 31, 2024		21,627,690		$	216		$	125,213		$	(2,272	)	$	(2,174	)	$	138,450		$	(23,637	)	$	235,796


	Three Months Ended
	March 31,
	2024			2023
	(In thousands, except per share data)
Net income applicable to common stock	$	2,961		$	5,304

Average number of common shares issued		21,640			22,220
Less: Average unallocated ESOP Shares		(291	)		(367	)
Less: Average unvested performance-based equity incentive plan shares		(168	)		(154	)

Average number of common shares outstanding used to calculate basic earnings per common share		21,181			21,699

Effect of dilutive performance-based equity incentive plan shares		90			18

Average number of common shares outstanding used to calculate diluted earnings per common share		21,271			21,717
Basic earnings per share	$	0.14		$	0.24
Diluted earnings per share	$	0.14		$	0.24

	March 31, 2024			December 31, 2023
	(In thousands)
Net unrealized losses on available-for-sale securities	$	(31,702	)	$	(29,166	)
Tax effect		8,065			7,422
Net-of-tax amount		(23,637	)		(21,744	)

Accumulated other comprehensive loss	$	(23,637	)	$	(21,744	)

	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available-for-sale securities:
Debt securities:
Government-sponsored enterprise obligations	$	14,927	$	—	$	(3,095	)	$	11,832
State and municipal bonds		135		—		(1	)		134
Corporate bonds		5,000		—		(929	)		4,071
Total debt securities		20,062		—		(4,025	)		16,037

Mortgage-backed securities:
Government-sponsored mortgage-backed securities		143,410		—		(26,321	)		117,089
U.S. government guaranteed mortgage-backed securities		6,592		—		(1,356	)		5,236
Total mortgage-backed securities		150,002		—		(27,677	)		122,325

Total available-for-sale		170,064		—		(31,702	)		138,362

Held-to-maturity securities:
Debt securities:
U.S. Treasury securities		9,997		—		(534	)		9,463
U.S. government guaranteed obligations		1,100		3		—			1,103
Total debt securities		11,097		3		(534	)		10,566

Mortgage-backed securities:
Government-sponsored mortgage-backed securities		210,145		36		(39,068	)		171,113
Total mortgage-backed securities		210,145		36		(39,068	)		171,113

Total held-to-maturity		221,242		39		(39,602	)		181,679
Total	$	391,306	$	39	$	(71,304	)	$	320,041

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available-for-sale securities:
Debt securities:
Government-sponsored enterprise obligations	$	14,924	$	—	$	(2,898	)	$	12,026
State and municipal bonds		135		—		—			135
Corporate bonds		8,000		—		(1,038	)		6,962
Total debt securities		23,059		—		(3,936	)		19,123

Mortgage-backed securities:
Government-sponsored mortgage-backed securities		136,533		—		(23,976	)		112,557
U.S. government guaranteed mortgage-backed securities		6,689		—		(1,254	)		5,435
Total mortgage-backed securities		143,222		—		(25,230	)		117,992

Total available-for-sale		166,281		—		(29,166	)		137,115

Held-to-maturity securities:
Debt securities:
U.S. Treasury securities		9,995		—		(545	)		9,450
Total debt securities		9,995		—		(545	)		9,450

Mortgage-backed securities:
Government-sponsored mortgage-backed securities		213,375		107		(35,240	)		178,242
Total mortgage-backed securities		213,375		107		(35,240	)		178,242

Total held-to-maturity		223,370		107		(35,785	)		187,692
Total	$	389,651	$	107	$	(64,951	)	$	324,807


	Three Months Ended March 31
	2024		2023
	(In thousands)
Net gains recognized during the period on marketable equity securities	$	8	$	—
Net losses recognized during the period on equity securities sold during the period		—		—
Unrealized gains recognized during the period on marketable equity securities still held at end of period	$	8	$	—

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Debt securities:
Due in one year or less	$	135	$	134	$	4,994	$	4,864
Due after one year through five years		—		—		5,003		4,599
Due after five years through ten years		19,927		15,903		—		—
Due after ten years		—		—		1,100		1,103
Total debt securities	$	20,062	$	16,037	$	11,097	$	10,566

	March 31, 2024
	Less Than Twelve Months									Over Twelve Months
	Number of Securities		Fair Value		Gross Unrealized Loss		Depreciation from Amortized Cost Basis (%)			Number of Securities		Fair Value		Gross Unrealized Loss		Depreciation from Amortized Cost Basis (%)
	(Dollars in thousands)
Available-for-sale:
Government-sponsored mortgage-backed securities		2	$	9,295	$	13		0.1	%		70	$	107,794	$	26,308		19.6	%
U.S. government guaranteed mortgage-backed securities		—		—		—		—			9		5,236		1,356		20.6
Government-sponsored enterprise obligations		—		—		—		—			3		11,832		3,095		20.7
Corporate bonds		—		—		—		—			2		4,071		929		18.6
State and municipal bonds		1		134		1		0.7			—		—		—		—
Total available-for-sale		3		9,429		14					84		128,933		31,688

Held-to-maturity:
U.S. Treasury securities		—		—		—		—	%		2		9,463		534		5.3	%
Government-sponsored mortgage-backed securities		3		5,711		80		1.4			37		159,059		38,988		19.7
Total held-to-maturity		3		5,711		80					39		168,522		39,522

Total		6	$	15,140	$	94					123	$	297,455	$	71,210

	Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)

Balance at December 31, 2023	$	15,141		$	2,548		$	2,537		$	41		$	—	$	20,267
Provision (reversal) for credit losses		(398	)		(71	)		(95	)		114			—		(450	)
Charge-offs		—			(7	)		(1	)		(59	)		—		(67	)
Recoveries		28			11			67			28			—		134
Balance at March 31, 2024	$	14,771		$	2,481		$	2,508		$	124		$	—	$	19,884

Allowance for credit losses for off-balance sheet exposures
Balance at December 31, 2023	$	375		$	163		$	59		$	—		$	—	$	597
Provision (reversal) for credit losses		(111	)		21			(10	)		—			—		(100	)
Balance at March 31, 2024	$	264		$	184		$	49		$	—		$	—	$	497

	30 – 59 Days Past Due		60 – 89 Days Past Due		90 Days or More Past Due		Total Past Due Loans		Total Current Loans		Total Loans		Nonaccrual Loans
	(In thousands)
March 31, 2024
Commercial real estate	$	522	$	3	$	799	$	1,324	$	1,082,586	$	1,083,910	$	1,035
Residential real estate:
Residential one-to-four family		1,547		514		800		2,861		612,416		615,277		4,492
Home equity		347		—		101		448		111,040		111,488		101
Total:		1,894		514		901		3,309		723,456		726,765		4,593
Commercial and industrial		60		—		9		69		207,238		207,307		201
Consumer		7		—		7		14		4,984		4,998		8
Total loans	$	2,483	$	517	$	1,716	$	4,716	$	2,018,264	$	2,022,980	$	5,837


	As of March 31, 2024						For the Three Months Ended March 31, 2024
	Nonaccrual Loans with Allowance for Credit Loss		Nonaccrual Loans Without Allowance for Credit Loss		Total Nonaccrual Loans		Accrued Interest Receivable Reversed from Income
	(In thousands)

Commercial real estate	$	—	$	1,035	$	1,035	$	24
Residential real estate:
Residential		—		4,492		4,492		55
Home equity		—		101		101		3
Commercial and industrial		—		201		201		39
Consumer		8		—		8		—
Total loans	$	8	$	5,829	$	5,837	$	121


	As of December 31, 2023						For the Three Months Ended March 31, 2023
	Nonaccrual Loans with Allowance for Credit Loss		Nonaccrual Loans Without Allowance for Credit Loss		Total Nonaccrual Loans		Accrued Interest Receivable Reversed from Income
	(In thousands)

Commercial real estate	$	—	$	1,347	$	1,347	$	23
Residential real estate:
Residential		—		4,739		4,739		45
Home equity		—		109		109		3
Commercial and industrial		—		218		218		58
Consumer		—		8		8		—
Total loans	$	—	$	6,421	$	6,421	$	129

	As of March 31, 2024
	Recorded Investment		Related Allowance
	(In thousands)
With no related allowance recorded:
Commercial real estate	$	10,063	$	—
Residential real estate:
Residential one-to-four family		4,665		—
Home equity		101		—
Commercial and industrial		305		—
Consumer		—		—
Loans with no related allowance recorded	$	15,134	$	—

With an allowance recorded:
Commercial real estate	$	—	$	—
Residential real estate:
Residential one-to-four family		—		—
Home equity		—		—
Commercial and industrial		517		179
Consumer		—		—
Loans with an allowance recorded	$	517	$	179
Total individually evaluated loans	$	15,651	$	179


	Term Loan Origination by Year												Revolving Loans
	March 31, 2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(Dollars in thousands)

Commercial Real Estate:
Pass (Rated 1- 4)	$	8,558	$	43,495	$	187,387	$	235,012	$	111,791	$	403,778	$	77,388	$	—	$	1,067,409
Special Mention (Rated 5)		—		—		—		—		174		3,684		693		—		4,551
Substandard (Rated 6)		—		—		—		—		8,492		3,458		—		—		11,950
Total commercial real estate loans	$	8,558	$	43,495	$	187,387	$	235,012	$	120,457	$	410,920	$	78,081	$	—	$	1,083,910

Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Payment Performance:
Performing	$	8,558	$	43,495	$	187,387	$	235,012	$	120,457	$	409,885	$	78,081	$	—	$	1,082,875
Nonperforming		—		—		—		—		—		1,035		—		—		1,035

Residential One-to-Four Family:
Pass	$	11,361	$	57,844	$	91,010	$	93,134	$	123,881	$	224,744	$	7,904	$	—	$	609,878
Substandard		—		—		446		484		872		3,597		—		—		5,399
Total residential one-to-four family	$	11,361	$	57,844	$	91,456	$	93,618	$	124,753	$	228,341	$	7,904	$	—	$	615,277

Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Payment Performance:
Performing	$	11,361	$	57,844	$	91,010	$	93,134	$	123,881	$	225,651	$	7,904	$	—	$	610,785
Nonperforming		—		—		446		484		872		2,690		—		—		4,492

Home Equity:
Pass	$	2,599	$	10,003	$	10,462	$	6,680	$	6,849	$	11,976	$	60,612	$	2,206	$	111,387
Substandard		—		—		—		—		—		—		90		11		101
Total home equity loans	$	2,599	$	10,003	$	10,462	$	6,680	$	6,849	$	11,976	$	60,702	$	2,217	$	111,488

Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7

Payment Performance:
Performing	$	2,599	$	10,003	$	10,462	$	6,680	$	6,849	$	11,976	$	60,612	$	2,206	$	111,387
Nonperforming		—		—		—		—		—		—		90		11		101

	Term Loans Originated by Year												Revolving Loans
	March 31, 2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(Dollars in thousands)
Commercial and Industrial:
Pass (Rated 1- 4)	$	6,463	$	23,412	$	34,411	$	30,525	$	17,998	$	25,793	$	53,851	$	68	$	192,521
Special Mention (Rated 5)		—		6,200		95		35		—		2,052		2,266		—		10,648
Substandard (Rated 6)		—		—		—		—		527		74		3,537		—		4,138
Total commercial and industrial loans	$	6,463	$	29,612	$	34,506	$	30,560	$	18,525	$	27,919	$	59,654	$	68	$	207,307

Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	1

Payment Performance:
Performing	$	6,463	$	29,612	$	34,506	$	30,560	$	18,525	$	27,913	$	59,459	$	68	$	207,106
Nonperforming		—		—		—		—		—		6		195		—		201

Consumer:
Pass	$	299	$	1,895	$	1,205	$	449	$	163	$	210	$	770	$	—	$	4,991
Substandard		—		—		—		—		—		7		—		—		7
Total consumer loans	$	299	$	1,895	$	1,205	$	449	$	163	$	217	$	770	$	—	$	4,998

Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	59	$	59

Payment Performance:
Performing	$	299	$	1,895	$	1,205	$	449	$	163	$	210	$	769	$	—	$	4,990
Nonperforming		—		—		—		—		—		7		1		—		8


	Return on Equity Metrics
Performance Period Ending	Threshold		Target		Stretch

December 31, 2021	5.63	%	6.25	%	7.50	%
December 31, 2022	5.85	%	6.50	%	7.80	%
December 31, 2023	6.08	%	6.75	%	8.10	%


		Earnings Per Share Metrics
Performance Period Ending		Threshold		Target		Stretch

Three-year Cumulative Diluted Earnings Per Share	$	1.58	$	1.97	$	2.36

		Shares			Weighted Average Grant Date Fair Value ($)
Balance at December 31, 2023			220,635			9.29
	Shares granted		187,049			8.38
	Shares vested		(69,376	)		8.34
Balance at March 31, 2024			338,308			8.98

	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets/(Liabilities)
Item in the Balance Sheet in which the Hedged Item is Included	At March 31, 2024		At December 31, 2023		At March 31, 2024			At December 31, 2023
	(In thousands)

Loans	$	199,192	$	199,393	$	(808	)	$	(607	)
Total	$	199,192	$	199,393	$	(808	)	$	(607	)

	Asset Derivatives			Liability Derivatives
March 31, 2024	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Hedging Derivatives
Interest rate swaps - fair value hedges		$	845		$	—
Derivatives not designated as hedging instruments:
Interest rate swap – with customer counterparties			—			5,875
Interest rate swap – with dealer counterparties			5,875			—
Total derivatives	Other Assets	$	6,720	Other Liabilities	$	5,875

	Asset Derivatives			Liability Derivatives
December 31, 2023	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Hedging Derivatives
Interest rate swaps - fair value hedges		$	651		$	—
Derivatives not designated as hedging instruments:
Interest rate swap – with customer counterparties			—			5,239
Interest rate swap – with dealer counterparties			5,239			—
Total derivatives	Other Assets	$	5,890	Other Liabilities	$	5,239


	Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships
	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
	(In thousands)

		Interest Income			Interest Income
Total amounts of income line items presented in the statements of net income in which the effects of fair value hedges are recorded	$	443		$	—

Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	$	(6	)		—
Derivatives designated as hedging instruments		449			—


	March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:	(In thousands)
Available-for-sale securities	$	—	$	138,362	$	—	$	138,362
Marketable equity securities		222		—		—		222
Interest rate swaps		—		6,720		—		6,720
Total assets	$	222	$	145,082	$	—	$	145,304

Liabilities:
Interest rate swaps	$	—	$	5,875	$	—	$	5,875

	At December 31, 2023						Three Months Ended March 31, 2023
	Level 1		Level 2		Level 3		Total Losses
	(In thousands)						(In thousands)
Collateral dependent loans	$	—	$	—	$	1,100	$	2,178


	March 31, 2024
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash and cash equivalents	$	22,613	$	22,613	$	—	$	—	$	22,613
Securities held-to-maturity		221,242		9,463		172,216		—		181,679
Securities available-for-sale		138,362		—		138,362		—		138,362
Marketable equity securities		222		222		—		—		222
Federal Home Loan Bank of Boston and other restricted stock		3,105		—		—		3,105		3,105
Loans - net		2,005,682		—		—		1,837,472		1,837,472
Accrued interest receivable		8,622		—		—		8,622		8,622
Mortgage servicing rights		400		—		707		—		707
Derivative asset		6,720		—		6,720		—		6,720

Liabilities:
Deposits		2,143,747		—		—		2,140,561		2,140,561
Short-term borrowings		11,470		—		11,459		—		11,459
Long-term debt		120,646		—		120,459		—		120,459
Subordinated debt		19,722		—		17,281		—		17,281
Accrued interest payable		4,414		—		—		4,414		4,414
Derivative liabilities		5,875		—		5,875		—		5,875

	March 31,		December 31,		September 30,		June 30,		March 31,
	2024		2023		2023		2023		2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	559,928	$	579,595	$	593,601	$	584,511	$	625,656
Interest bearing accounts		125,377		131,031		152,886		162,823		133,727
Savings accounts		190,732		187,405		192,321		203,376		218,800
Money market accounts		624,474		634,361		654,909		672,483		721,219
Total Core Deposits	$	1,500,511	$	1,532,392	$	1,593,717	$	1,623,193	$	1,699,402

Time Deposits		643,236		611,352		582,586		534,781		457,726
Total Deposits:	$	2,143,747	$	2,143,744	$	2,176,303	$	2,157,974	$	2,157,128

	Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023
	Increase (Decrease) Due to
	Volume			Rate			Net
Interest-earning assets	(In thousands)
Loans ⁽¹⁾	$	388		$	2,514		$	2,902
Investment securities ⁽¹⁾		(120	)		85			(35	)
Other investments - at cost		3			27			30
Short-term investments		32			27			59
Total interest-earning assets		303			2,653			2,956

Interest-bearing liabilities
Interest-bearing checking accounts		(7	)		(22	)		(29	)
Savings accounts		(7	)		1			(6	)
Money market accounts		(384	)		976			592
Time deposits		859			3,774			4,633
Short-term borrowing and long-term debt		900			34			934
Total interest-bearing liabilities		1,361			4,763			6,124
Change in net interest and dividend income ⁽¹⁾	$	(1,058	)	$	(2,110	)	$	(3,168	)