Western New England Bancorp, Inc. · NASDAQ:WNEB
Western New England Bancorp — Q4 2025 Earnings Presentation
35 slides from Western New England Bancorp's earnings presentation, January 2026
Slide 1: Investor Presentation 4th Quarter 2025
INVESTOR PRESENTATION 4TH QUARTER 2025 Local banking is better than ever.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 sh
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • failure or circumvention of our internal controls or procedures; • changes in the securities markets which affect investment management revenues; • increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; • the soundness of other fin
Slide 4: Who We Are
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 Focu
Slide 5: Senior Management Team
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.
Slide 6: 4Q2025 Quarterly Earnings
4Q2025 QUARTERLY EARNINGS ($ in thousands, except EPS) 4Q2025 3Q2025 2Q2025(1) 1Q2025 4Q2024(2) Net interest income $ 18,829 $ 18,092 $ 17,642 $ 15,534 $ 15,273 (Reversal of) provision for credit losses (485) 1,293 (615) 142 (762) Non-interest income 3,173 3,173 3,411 2,759 3,254 Non-interest expens
Slide 7: Net Interest Income and Net Interest Margin
NET INTEREST INCOME AND NET INTEREST MARGIN $25.0 3.00% 2.89% HIGHLIGHTS 2.90% On a sequential quarter basis, net interest income, our primary 2.81% $20.0 2.80% $18.8 2.80% driver of revenues, increased $737,000, or 4.1%, from $18.1 $18.1 $17.6 million for the three months ended September 30, 2025 t
Slide 8: Total Loans
(1) TOTAL LOANS HIGHLIGHTS Total Loans • Total loans increased $113.2 million, or 5.5%, from $2.1 billion, or C&I $2.2 Billion 77.9% of total assets, at December 31, 2024 to $2.2 billion, or 79.7% 11% of total assets, at December 31, 2025; Residential Real Estate 33% • Commercial and industrial loan
Slide 9: Total Loans
TOTAL LOANS PERIOD-END LOANS OUTSTANDING(1) AVERAGE LOANS OUTSTANDING $2,200 $2,175 $2,167 5.10% 5.08% $2,181 $2,175 $2,150 5.06% 5.05% 5.04% $2,150 $2,125 5.00% $2,128 $2,112 $2,125 $2,100 4.95% $2,100 $2,090 4.91% $2,081 $2,077 $2,075 $2,073 4.90% $2,063 $2,075 $2,067 4.88% $2,050 4.85% $2,050 $2,
Slide 10: Commercial and Industrial Loans
COMMERCIAL AND INDUSTRIAL LOANS $240 $235 $235 $230 $225 $222 $220 $219 $216 $215 $212 $210 $205 $200 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Total C&I loans increased $10.1 million, or 4.8%, to $221.8 million at December 31, 2025, from $211.7 million at December 31, 2024. 10 ($ in millions)
Slide 11: Commercial & Industrial Portfolio
COMMERCIAL & INDUSTRIAL PORTFOLIO(1) Construction, Sand and Gravel Mining, 0.7% Specialty Trade Contractors, 0.5% Educational Services, 1.2% Healthcare, 0.5% Other, 2.5% Heavy and Civil Engineering Construction, 0.4% Merchant Wholesalers, 1.5% Hotels, 0.1% Manufacturing, 2.8% 11 (1) % of total loans
Slide 12: Commercial Real Estate Loans
COMMERCIAL REAL ESTATE LOANS $1,099 $1,100 $1,090 $1,076 $1,078 $1,080 $1,073 $1,070 $1,060 $1,050 $1,046 $1,040 $1,030 $1,020 $1,010 $1,000 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 At December 31, 2025, total CRE loans increased $23.3 million, or 2.2%, to $1.1 billion from December 31, 2024. 12 ($ in mil
Slide 13: Commercial Real Estate Loans (CRE)
COMMERCIAL REAL ESTATE LOANS (CRE)(1) % of Total Bank Risk- Non-Owner Owner % of CRE % of Total Based Capital Property Type Occupied Occupied Total Portfolio Loans (RBC)(2) Office $174,196 $20,961 $195,157 17.8% 8.9% 70.5% Apartment 174,330 - 174,330 15.9% 8.0% 62.9% Industrial 124,601 44,382 168,98
Slide 14: Commercial Real Estate – Non-Owner Occupied
COMMERCIAL REAL ESTATE – NON-OWNER OCCUPIED(1) Weighted Average Loan to % of Total Value Property Type MA CT NH RI ME Other Total RBC (2) (LTV) (3) Apartment $107,299 $43,612 $ - $23,419 $ - $ - $174,330 62.9% 52.2% Office 63,973 60,433 38,586 - 11,204 - 174,196 62.9% 62.6% Industrial 74,031 34,887
Slide 15: Commercial Real Estate – Office Buildings
COMMERCIAL REAL ESTATE – OFFICE BUILDINGS(1) • As of December 31, 2025, the office Non-Owner Owner % of Office % of Total portfolio totaled $195.2 million, or 70.5% Occupied Occupied Total Portfolio Bank RBC(2) of total RBC, and represented 17.8% of By Collateral Type total CRE loans. Office/Medical
Slide 16: Residential Real Estate Loans
RESIDENTIAL REAL ESTATE LOANS(1) $880 $857 $860 $840 $828 $820 $805 $800 $784 $780 $776 $760 $740 $720 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 At December 31, 2025, residential real estate loans, including home equity loans, increased $81.2 million, or 10.5%, from $775.7 million at December 31, 2024 to $
Slide 17: Investment Portfolio
INVESTMENT PORTFOLIO The table below displays the investment portfolio as of December 31, 2025: % of Net of Tax Investment Net of Tax Loss as a Portfolio’s Unrealized Loss as a % of % of Impact to Amortized Amortized Cost Loss, Net of Amortized Tier 1 TCE (Dollars in millions) Cost Basis Basis Fair
Slide 18: Total Deposits
(1) TOTAL DEPOSITS Total Deposits $2.4 Billion HIGHLIGHTS Interest-bearing • Average cost of total deposits decreased 4 basis Savings 8% points from 1.77% at September 30, 2025 to 8% 1.73% at December 31, 2025; • Period-end deposits increased $98.3 million, or 4.3%, from December 31, 2024, driven by
Slide 19: Total Deposits
TOTAL DEPOSITS PERIOD-END CORE DEPOSITS PERIOD-END TIME DEPOSITS $1,680 $1,671 $710 $1,657 $1,660 $704 $1,640 $705 $1,640 $1,629 $1,620 $700 $699 $1,600 $695 $693 $1,580 $1,559 $690 $690 $1,560 $690 $1,540 $685 $1,520 $1,500 $680 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 4Q2024 (1) 1Q2025 (1) 2Q2025 3Q2025
Slide 20: Average Total Deposits
AVERAGE TOTAL DEPOSITS AVERAGE DEPOSITS AND RATES $2,500 2.50% $2,300 2.01% 2.00% $2,100 1.82% 2.00% 1.77% 1.73% $1,900 $1,732 $1,732 $1,744 $1,761 $1,684 $1,700 1.50% $1,500 $1,300 1.00% $1,100 $900 0.50% $700 $579 $570 $573 $582 $596 $500 0.00% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Interest-bearing d
Slide 21: Average Core and Time Deposits
AVERAGE CORE AND TIME DEPOSITS AVERAGE CORE DEPOSITS AND RATES AVERAGE TIME DEPOSITS AND RATES $1,700 1.10% $800 4.75% $1,671 4.31% 1.08% 4.11% $1,650 $1,633 1.08% 4.25% $1,614 3.69% 1.06% 3.51% 3.46% 3.75% $1,600 $1,599 $703 1.04% $700 $1,562 1.04% $700 $691 $693 3.25% $1,550 $687 1.01% 1.02% 1.02%
Slide 22: Loan-to-Deposit Ratio
LOAN-TO-DEPOSIT RATIO PERIOD-END LOAN-TO-DEPOSIT RATIO CORE DEPOSITS AND TIME DEPOSITS AS A % OF TOTAL DEPOSITS 93% 92.5% 80% 70.0% 70.4% 70.5% 70.8% 68.9% 92% 70% 91.5% 60% 91% 90.7% 50% 90% 89.8% 40% 89.3% 31.1% 30.0% 29.6% 29.5% 29.2% 30% 89% 20% 88% 10% 87% 0% 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025
Slide 23: Wholesale Funding
WHOLESALE FUNDING WHOLESALE FUNDING The Bank is considered to be well-capitalized as defined by (Includes $20 million in Subordinated Debt)(1) regulators (see slide 29). The Bank’s Tier 1 Leverage Ratio to 5.25% adjusted average assets was 9.32% at December 31, 2025 and $165 9.34% at December 31, 20
Slide 24: Liquidity
LIQUIDITY The Company’s liquidity position remains strong with solid core Amount in Use Total at December deposit relationships, cash, unencumbered securities and access to Available 31, 2025; Net Available diversified borrowing sources. At December 31, 2025, the Company ($ in millions) Internal Sou
Slide 25: Deposit Market Share in Hampden County, MA
DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA AS OF JUNE 30, 2025 Total Deposit Deposits in Rank 2025 Parent Company Name Market ($000) Market Share # of Branches 1 PeoplesBank 2,418,846 17.13% 11 2 TD Bank 2,266,902 1,762,519 16.05% 13.1% 14 20 3 Westfield Bank 1,912,916 13.54% 20 4 Bank of America 1,
Slide 26: Asset Quality Indicators
ASSET QUALITY INDICATORS 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Total delinquent loans $5.0M $4.5M $3.9M $4.5M $3.1M Delinquent loans as a % of total loans 0.24% 0.22% 0.18% 0.21% 0.14% Nonaccrual loans $5.4M $6.0M $5.8M $5.6M $5.2M Nonaccrual loans as a % of total loans 0.26% 0.29% 0.27% 0.27% 0.24% No
Slide 27: Asset Quality
ASSET QUALITY December 31, 2025 December 31, 2024 Allowance Allowance for Credit ACL/ for Credit ACL/ Losses Loans Total Loan Losses Loans Total Loan (ACL)(1) Outstanding(1) Segment (ACL)(1) Outstanding(1) Segment Commercial and industrial $ 2,245 $ 221,790 1.01% $ 2,477 $ 211,656 1.17% Commercial r
Slide 28: Asset Quality
ASSET QUALITY ($ in millions) 4Q2024 1Q2025 2Q2025 3Q2025 4Q2025 Special Mention $11.4 $10.7 $1.5 $13.0 $17.2 % of Total Loans 0.6% 0.5% 0.1% 0.6% 0.8% Substandard $27.0 $25.6 $24.6 $27.0 $22.5 % of Total Loans 1.3% 1.2% 1.2% 1.3% 1.0% Total Criticized Loans $38.4 $36.3 $26.1 $40.0 $39.7 % of Total
Slide 29: Capital Management
CAPITAL MANAGEMENT We are well-capitalized with excess capital. At December 31, 2025, the Bank’s Tier 1 December 31, December 31, Leverage Ratio was 9.32%. The Bank’s TCE Consolidated 2025 2024 ratio(1), a non-GAAP financial measure, was Tier 1 Leverage Ratio (to 9.13% 9.14% 8.71% at December 31, 20
Slide 30: Capital Return to Shareholders
CAPITAL RETURN TO SHAREHOLDERS SHARE REPURCHASES DIVIDENDS PAID ON COMMON STOCK Year # of Shares Year Annual Dividends per Share 2021 2,758,051 2021 $0.20 2022 720,975 2022 $0.24 2023 649,744 2023 $0.28 2024 934,282 2024 $0.28 1Q-2025 206,709 1Q-2025 $0.07 2Q-2025 290,609 2Q-2025 $0.07 3Q-2025 2,535
Slide 31: Capital Management
CAPITAL MANAGEMENT BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE (non-GAAP)(1) $12.16 $11.89 $11.68 $11.44 $11.49 $11.30 $11.22 $11.01 $10.78 $10.63 Book Value Tangible Book Value (non-GAAP) The Company’s book value per share was $12.16 at December 31, 2025, compared to $11.30 at December 31, 2
Slide 32: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION 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
Slide 33: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 (Dollars in thousands) Net interest income (no tax adjustment) $ 18,829 $ 18,092 $ 17,642 $ 15,534 $ 15,273 Tax equivalent adjustment 125 120 121 121 128 Net interest income (tax-equiv
Slide 34: Appendix: Non-GAAP to GAAP Reconciliation
APPENDIX: NON-GAAP TO GAAP RECONCILIATION For the quarter ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 (Dollars in thousands) Total Bank Equity (GAAP) $ 252,553 $ 248,575 $ 244,460 $ 242,981 $ 240,994 Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core depos
Slide 35: Westfield Bank
WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” James C. Hagan, President and Chief Executive Officer 141 Elm Street, Westfield, MA Guida R. Sajdak, Executive Vice President and Chief Financial Officer Meghan Hibner, First Vice President and Investor Relations Officer 35
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