Financial Performance - Net income for Q3 2024 was $1.9 million, or $0.09 per diluted share, a decrease of 57.8% from $4.5 million, or $0.21 per diluted share in Q3 2023[189] - Net income for the three months ended September 30, 2024, was $1.9 million, or $0.09 per diluted share, compared to $4.5 million, or $0.21 per diluted share, for the same period in 2023[245] - Net income for the nine months ended September 30, 2024, was $8.4 million, or $0.40 per diluted share, down from $12.6 million, or $0.58 per diluted share in the same period of 2023[262] Interest Income and Expenses - Net interest income decreased by $1.7 million, or 10.1%, to $14.7 million in Q3 2024, primarily due to a $3.6 million increase in interest expense, or 37.8%[190] - Net interest income decreased by $1.7 million, or 10.1%, for the three months ended September 30, 2024[245] - Net interest income decreased by $7.2 million, or 13.9%, to $44.5 million for the nine months ended September 30, 2024, compared to $51.7 million for the same period in 2023[270] - Interest expense increased by $3.6 million, or 37.8%, primarily due to competitive pricing on deposits and a shift from low-cost core deposits to high-cost time deposits[251] - Interest expense on deposits increased by $3.5 million, or 44.9%, for the three months ended September 30, 2024[251] Asset and Loan Growth - Total assets increased by $75.9 million, or 3.0%, to $2.6 billion as of September 30, 2024, driven by a 152.4% increase in cash and cash equivalents[195] - Total loans increased by $21.7 million, or 1.1%, to $2.0 billion, with residential real estate loans rising by $26.4 million, or 3.7%[201] - Average interest-earning assets increased by $38.2 million, or 1.6%, to $2.4 billion, driven by a $31.3 million increase in average loans[254] Credit Quality - Total delinquency decreased to $4.3 million, or 0.21% of total loans, down from $6.0 million, or 0.30% at the end of 2023[202] - The allowance for credit losses as a percentage of total loans was 0.97% as of September 30, 2024, compared to 1.00% at December 31, 2023[203] - The company recorded a provision for credit losses of $941,000 in Q3 2024, compared to $354,000 in Q3 2023[191] - Provision for credit losses was $941,000 for the three months ended September 30, 2024, compared to $354,000 for the same period in 2023, reflecting an increase in the loan portfolio[257] Capital and Liquidity - Shareholders' equity at September 30, 2024, was $240.7 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023[242] - The Total Risk-Based Capital Ratio was 14.4% at September 30, 2024, compared to 14.7% at December 31, 2023[243] - The Company had $1.1 billion in immediately available liquidity at September 30, 2024[241] - The company exceeded all applicable regulatory capital requirements and was categorized as "well-capitalized" under the regulatory framework[302] Deposits - Total deposits increased by $80.5 million, or 3.8%, from $2.1 billion at December 31, 2023, to $2.2 billion at September 30, 2024[235] - Core deposits decreased by $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits, at September 30, 2024[235] - Uninsured deposits represented 27.7% of total deposits at September 30, 2024, compared to 26.8% at December 31, 2023[236] Efficiency and Expenses - Non-interest income decreased by $471,000, or 13.0%, from $3.6 million in Q3 2023 to $3.1 million in Q3 2024[259] - Non-interest expense increased by $288,000, or 2.0%, to $14.4 million in Q3 2024 from $14.1 million in Q3 2023[260] - The efficiency ratio rose to 80.6% in Q3 2024 compared to 70.6% in Q3 2023, indicating lower revenues[261] - The efficiency ratio increased to 80.3% for the nine months ended September 30, 2024, compared to 72.7% for the same period in 2023[281] Tax and Other Expenses - Income tax expense for Q3 2024 was $618,000, with an effective tax rate of 24.5%, up from $1.0 million and 18.7% in Q3 2023[262] - Income tax expense for the nine months ended September 30, 2024, was $2.2 million, with an effective tax rate of 20.9%[282] Market and Regulatory Compliance - The bank's Tier 1 Leverage Ratio was 9.61% as of September 30, 2024, above the minimum requirement of 4.00%[306] - There have been no material changes in the company's assessment of market risk since the 2023 Annual Report[310] - The company has not identified any changes in internal control over financial reporting that materially affected its controls during the last fiscal quarter[312]

Western New England Bancorp (WNEB) reported $17.87 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 10.7%. EPS of $0.09 for the same period compares to $0.21 a year ago.The reported revenue represents a surprise of +2.75% over the Zacks Consensus Estimate of $17.39 million. With the consensus EPS estimate being $0.10, the EPS surprise was -10.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expec ...

Western New England Bancorp (WNEB) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10%. A quarter ago, it was expected that this bank holding company would post earnings of $0.11 per share when it actually produced earnings of $0.17, delivering a surprise of 54.55%.Over the last four ...

Financial Performance - For the three months ended September 30, 2024, net income was $1.9 million, or $0.09 per diluted share, a decrease from $4.5 million, or $0.21 per diluted share, for the same period in 2023[2]. - For the three months ended September 30, 2024, net income was $1.9 million, or $0.09 per diluted share, down from $4.5 million, or $0.21 per diluted share, for the same period in 2023, representing a decrease of 57.8%[22]. - Net interest income decreased by $1.7 million, or 10.1%, to $14.7 million for the three months ended September 30, 2024, primarily due to an increase in interest expense of $3.6 million, or 37.8%[23]. - Non-interest income decreased by $471,000, or 13.0%, to $3.1 million for the three months ended September 30, 2024, compared to $3.6 million for the same period in 2023[29]. - Non-interest expense increased by $288,000, or 2.0%, to $14.4 million for the three months ended September 30, 2024, from $14.1 million for the same period in 2023[30]. - Return on average assets and return on average equity for the nine months ended September 30, 2024, were 0.44% and 4.74%, respectively, down from 0.66% and 7.19% for the same period in 2023[34]. - Net interest income for the quarter was $14,728 thousand, compared to $14,470 thousand in the previous quarter, reflecting an increase of 1.8%[85]. - Net income decreased to $1,904 thousand for the quarter, down from $3,513 thousand in the prior quarter, a decline of 45.8%[85]. Asset and Deposit Growth - Total deposits increased by $80.5 million, or 3.8%, to $2.2 billion from year-end 2023, while total loans increased by $21.7 million, or 1.1%, to $2.0 billion[5][6]. - Total assets were $2.6 billion, an increase of $75.9 million, or 3.0%, from December 31, 2023[47]. - Total deposits rose to $2,224,206 thousand, up from $2,171,809 thousand, marking a growth of 2.4%[84]. - Total loans increased to $25,134 million, up from $24,340 million in the previous quarter, representing a growth of 3.3%[74]. Credit Quality - The allowance for credit losses was $20.0 million, or 0.97% of total loans, with nonperforming loans totaling $4.9 million, or 0.24% of total loans[8]. - The provision for credit losses was $941,000 for the three months ended September 30, 2024, compared to a reversal of $294,000 in the previous quarter[17]. - The provision for credit losses increased to $941,000 for the three months ended September 30, 2024, compared to $354,000 for the same period in 2023, reflecting a growing loan portfolio and economic conditions[27]. - Total delinquency was $4.3 million, or 0.21% of total loans, at September 30, 2024, down from $6.0 million, or 0.30% at December 31, 2023[55]. - Nonperforming loans totaled $4.9 million, or 0.24% of total loans, at September 30, 2024, compared to $6.4 million, or 0.32% at December 31, 2023[55]. Efficiency and Cost Management - The efficiency ratio for the three months ended September 30, 2024, was 80.6%, compared to 70.6% for the same period in 2023, indicating a decline in operational efficiency[31]. - The efficiency ratio increased to 80.3% for the nine months ended September 30, 2024, compared to 72.7% for the same period in 2023[45]. - The efficiency ratio improved to 80.62%, compared to 82.03% in the same quarter last year, indicating better cost management[82]. - The efficiency ratio (GAAP) increased to 80.62% from 78.20% in the prior quarter, indicating a decline in operational efficiency[85]. Interest Margin and Yield - The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.42% for the previous quarter[9][14]. - The average yield on interest-earning assets increased to 4.54% for the three months ended September 30, 2024, compared to 4.28% for the same period in 2023[25]. - The net interest margin decreased to 2.40% for the three months ended September 30, 2024, compared to 2.70% for the same period in 2023, primarily due to increased interest expenses[24]. - The net interest margin for the nine months ended September 30, 2024, was 2.46%, down from 2.88% for the same period in 2023[36]. - The net interest rate spread for the three months ended September 30, 2024, was 1.60%, compared to 2.07% for the same period in 2023[89]. Shareholder Value - The Company repurchased 714,282 shares of common stock at an average price of $7.61 during the nine months ended September 30, 2024[4][10]. - Book value per share increased to $11.40 at September 30, 2024, up from $10.96 at December 31, 2023, while tangible book value per share increased to $10.73, a rise of 4.2%[11]. - Shareholders' equity was $240.7 million, or 9.1% of total assets, at September 30, 2024, compared to $237.4 million, or 9.3% at December 31, 2023[64]. - The Company's total Risk-Based Capital Ratio was 14.4% at September 30, 2024, down from 14.7% at December 31, 2023[64].

Financial Performance - Net income for Q2 2024 was $3.5 million, or $0.17 per diluted share, up from $2.8 million, or $0.13 per diluted share in Q2 2023, while net income for the first half of 2024 was $6.5 million, down from $8.1 million in the same period of 2023[153]. - Net income for the three months ended June 30, 2024, was $3.5 million, or $0.17 per diluted share, compared to $2.8 million, or $0.13 per diluted share, for the same period in 2023[199]. - Net income for the six months ended June 30, 2024, was $6.5 million, or $0.31 per diluted share, compared to $8.1 million, or $0.37 per diluted share, for the same period in 2023[216]. Interest Income and Expenses - Net interest income decreased by $2.4 million, or 14.1%, to $14.5 million in Q2 2024, primarily due to an increase in interest expense of $4.4 million, or 54.9%[154]. - Net interest income decreased by $2.4 million, or 14.1%, for the three months ended June 30, 2024[199]. - Interest expense increased by $4.4 million, or 54.9%, primarily due to a $4.3 million increase in interest expense on deposits, which rose by 70.3%[204]. - The average cost of total funds increased by 77 basis points to 2.16% for the three months ended June 30, 2024, from 1.39% for the same period in 2023[207]. - The average cost of time deposits increased by 165 basis points to 4.39% for the three months ended June 30, 2024, from 2.74% for the same period in 2023[207]. - The average cost of total funds increased by 92 basis points from 1.15% for the six months ended June 30, 2023, to 2.07% for the same period in 2024[224]. - The average cost of time deposits increased by 199 basis points from 2.27% for the six months ended June 30, 2023, to 4.26% for the same period in 2024[224]. Asset and Loan Management - Total assets increased by $21.5 million, or 0.8%, to $2.6 billion as of June 30, 2024, driven by an increase in cash and cash equivalents of $24.6 million, or 85.4%[159]. - Total loans decreased by $1.1 million, or 0.1%, to $2.0 billion as of June 30, 2024, with commercial real estate loans decreasing by $23.2 million, or 2.1%[165]. - The investment securities portfolio totaled $353.0 million, or 13.6% of total assets, as of June 30, 2024, down from $360.7 million, or 14.1% at December 31, 2023[160]. - Total deposits increased by $28.1 million, or 1.3%, from $2.1 billion at December 31, 2023, to $2.2 billion at June 30, 2024[191]. - Core deposits decreased by $32.3 million, or 2.1%, from $1.5 billion at December 31, 2023, to $1.5 billion at June 30, 2024, representing 69.1% of total deposits[191]. Credit Quality and Losses - Total delinquency was $5.6 million, or 0.27% of total loans, at June 30, 2024, down from $6.0 million, or 0.30% at December 31, 2023[166]. - The allowance for credit losses as a percentage of total loans was 0.96% at June 30, 2024, compared to 1.00% at December 31, 2023[166]. - The Company recorded a reversal of credit losses of $294,000 in Q2 2024, compared to a provision for credit losses of $420,000 in Q2 2023[156]. - The provision for credit losses recorded a reversal of $294,000 for the three months ended June 30, 2024, compared to a provision of $420,000 for the same period in 2023[209]. - The company recorded net charge-offs of $10,000 for the three months ended June 30, 2024, compared to net recoveries of $25,000 for the same period in 2023[210]. - The company recorded net recoveries of $57,000 for the six months ended June 30, 2024, compared to net charge-offs of $1.8 million for the same period in 2023[226]. Capital and Liquidity - Shareholders' equity at June 30, 2024, was $236.5 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023[197]. - The Company reported a total Risk-Based Capital Ratio of 14.7% at June 30, 2024, consistent with the ratio at December 31, 2023[197]. - The company had $1.1 billion in immediate available liquidity at June 30, 2024, compared to $574.4 million in uninsured deposits, representing a coverage ratio of 186%[196]. - The company had $437.4 million of additional borrowing capacity at the Federal Home Loan Bank as of June 30, 2024[195]. - Total capital to risk-weighted assets ratio was 14.70% as of June 30, 2024, exceeding the minimum requirement of 8.00%[253]. Commercial Real Estate Portfolio - The company's commercial real estate loan portfolio increased by 33.3% over the prior 36 months, totaling $1.1 billion[174]. - Non-owner occupied commercial real estate loans accounted for $864.6 million, or 42.7% of total gross loans, representing 318.2% of total bank risk-based capital as of June 30, 2024[180]. - The total commercial real estate loans as of June 30, 2024, were $1.056 billion, which is 52.2% of total gross loans[177]. - The owner-occupied CRE portfolio totaled $191.9 million, accounting for 70.6% of total bank risk-based capital, with a weighted average LTV of 56.5%[183]. - The total office portfolio includes $94.6 million in non-owner occupied loans, which is 40.6% of the office portfolio[186]. - The company has established internal maximum limits on CRE as an asset class and sub-limits by property class to manage exposure during changing economic conditions[176]. - The company maintains heightened risk management procedures and strong underwriting criteria for its commercial real estate portfolio[176]. Non-Interest Income and Expenses - Non-interest income increased by $2.2 million, or 140.8%, to $3.8 million for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023[211]. - Non-interest income increased by $1.9 million, or 42.4%, to $6.5 million for the six months ended June 30, 2024, compared to $4.6 million for the same period in 2023[227]. - Non-interest expense decreased by $237,000, or 1.6%, to $14.3 million for the three months ended June 30, 2024, from $14.6 million for the same period in 2023[213]. - Non-interest expense (GAAP) decreased to $14,314 thousand for the three months ended June 30, 2024, compared to $14,551 thousand for the same period in 2023, reflecting a reduction of 1.6%[236]. Efficiency and Ratios - The efficiency ratio was 78.2% for the three months ended June 30, 2024, compared to 78.9% for the same period in 2023[214]. - The efficiency ratio increased to 80.1% for the six months ended June 30, 2024, compared to 73.8% for the same period in 2023[230]. - The adjusted efficiency ratio (non-GAAP) improved to 82.68% for the three months ended June 30, 2024, compared to 74.31% in the prior year[237]. Market Risk and Commitments - The company has significant commitments to extend credit and provide financial guarantees, subject to strict credit control assessments[256]. - There are no off-balance sheet arrangements that materially affect the company's financial condition[257]. - The company has not identified any material changes in its sensitivity to market risk since the 2023 Annual Report[258].

Core Insights - Western New England Bancorp (WNEB) reported a revenue of $18.3 million for the quarter ended June 2024, which represents a decrease of 0.7% compared to the same period last year, while the EPS increased to $0.17 from $0.13 year-over-year [3] - The reported revenue exceeded the Zacks Consensus Estimate of $18.22 million by 0.45%, and the EPS surprise was notable at +54.55% against the consensus estimate of $0.11 [1] - Over the past month, WNEB shares have returned +35.7%, significantly outperforming the Zacks S&P 500 composite's +2% change, indicating strong market performance [4] Financial Metrics - The net interest margin for WNEB was reported at 2.4%, which is below the three-analyst average estimate of 2.6% [6] - The efficiency ratio was recorded at 78.2%, better than the average estimate of 81% based on three analysts [6] - Total non-interest income was reported at $3.83 million, surpassing the three-analyst average estimate of $2.72 million, while net interest income was $14.47 million, below the average estimate of $15.49 million [6]

Group 1: Earnings Performance - Western New England Bancorp reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.13 per share a year ago, representing an earnings surprise of 54.55% [1] - The company posted revenues of $18.3 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.45%, although this is a slight decrease from year-ago revenues of $18.44 million [2] Group 2: Stock Performance - Shares of Western New England Bancorp have declined approximately 6.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.7% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [11] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $18.36 million, and for the current fiscal year, it is $0.49 on revenues of $73.46 million [5] - The estimate revisions trend for Western New England Bancorp is mixed, and future earnings expectations will depend on management's commentary during the earnings call [9][10] Group 4: Industry Context - The Banks - Foreign industry, to which Western New England Bancorp belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [12]

WESTERN NEW ENGLAND BANCORP, INC. 8-K Exhibit 99.1 For further information contact: James C. Hagan, President and CEO Guida R. Sajdak, Executive Vice President and CFO Meghan Hibner, First Vice President and Investor Relations Officer 413-568-1911 WESTERN NEW ENGLAND BANCORP, INC. REPORTS RESULTS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND DECLARES QUARTERLY CASH DIVIDEND Westfield, Massachusetts, July 23, 2024: Western New England Bancorp, Inc. (the "Company" or "WNEB") (NasdaqGS: WNEB), the holding c ...

Shares of Western New England Bancorp have rallied for the fourth consecutive trading session. Encouraging inflation numbers and a rising unemployment rate are giving confidence to the Federal Reserve that prices will eventually come down toward the 2% target. So, market participants are predicting interest rate cuts as early as during the September FOMC meeting. This is a positive development for banks that have been reeling under the Fed's aggressive monetary tightening. As the rates come down, so will ba ...

Financial Performance - Net income for the three months ended March 31, 2024, was $3.0 million, or $0.14 per diluted share, down from $5.3 million, or $0.24 per diluted share for the same period in 2023[140]. - Net income for the three months ended March 31, 2024, was $3.0 million, or $0.14 per diluted share, down from $5.3 million, or $0.24 per diluted share for the same period in 2023, reflecting a decrease of 43.4%[161]. - Non-interest income decreased by $305,000, or 10.2%, to $2.7 million for the three months ended March 31, 2024, from $3.0 million in the same period of 2023[178]. - Non-interest expense decreased by $114,000, or 0.8%, to $14.8 million for the three months ended March 31, 2024, compared to $14.9 million for the same period in 2023[180]. - Income tax expense for the three months ended March 31, 2024, was $827,000, with an effective tax rate of 21.8%, compared to $1.7 million and 24.0% for the same period in 2023[182]. Interest Income and Expenses - Net interest income decreased by $3.2 million, or 17.1%, to $15.3 million for the three months ended March 31, 2024, compared to $18.5 million for the same period in 2023[141]. - The average yield on interest-earning assets increased by 44 basis points from 4.01% for the three months ended March 31, 2023, to 4.45% for the same period in 2024[172]. - The net interest margin was 2.57% for the three months ended March 31, 2024, down from 3.14% for the same period in 2023, indicating a decline in profitability[171]. - The average cost of funds increased by 106 basis points from 0.91% for the three months ended March 31, 2023, to 1.97% for the same period in 2024[173]. - Interest expense increased by $6.1 million, or 119.3%, while interest and dividend income rose by $3.0 million, or 12.5%, highlighting a significant rise in funding costs[170]. - The average cost of time deposits surged by 241 basis points from 1.71% for the three months ended March 31, 2023, to 4.12% for the same period in 2024[173]. Asset and Loan Management - Total assets as of March 31, 2024, were $2.6 billion, a decrease of $7.3 million, or 0.3%, from December 31, 2023[145]. - Total loans decreased by $1.8 million, or 0.1%, to $2.0 billion as of March 31, 2024, with commercial and industrial loans down by $10.1 million, or 4.7%[151]. - The allowance for credit losses as a percentage of total loans was 0.98% as of March 31, 2024, compared to 1.00% at December 31, 2023[153]. - Nonperforming loans totaled $5.8 million, or 0.29% of total loans, down from $6.4 million, or 0.32% of total loans, at December 31, 2023[152]. - The Company recorded a reversal of credit losses of $550,000 for the three months ended March 31, 2024, compared to a reversal of $388,000 for the same period in 2023[140]. - Net recoveries were $67,000 for the three months ended March 31, 2024, a significant improvement from net charge-offs of $1.9 million in the same period of 2023[176]. Capital and Equity - As of March 31, 2024, shareholders' equity was $235.8 million, representing 9.2% of total assets, a slight decrease from $237.4 million or 9.3% at December 31, 2023[159]. - The Bank's Total Risk-Based Capital Ratio remained strong at 14.7% as of March 31, 2024, consistent with the previous quarter[160]. - Total Capital to Risk Weighted Assets ratio for the Bank was 13.96% as of March 31, 2024, exceeding the minimum requirement of 8.00%[205]. - Tier 1 Capital to Risk Weighted Assets ratio for the Bank was 12.92% as of March 31, 2024, above the minimum requirement of 6.00%[205]. - Common Equity Tier 1 Capital to Risk Weighted Assets ratio for the Bank was 12.92% as of March 31, 2024, surpassing the minimum requirement of 4.50%[205]. - Tier 1 Leverage Ratio for the Bank was 9.77% as of March 31, 2024, exceeding the minimum requirement of 4.00%[205]. - The Company exceeded all applicable regulatory capital requirements as of March 31, 2024, categorized as "well-capitalized" under the regulatory framework[202]. Strategic Initiatives - The Company plans to grow its commercial loan portfolio and increase deposit relationships to enhance profitability and efficiency[140]. - The Company is considering growth through acquisitions to expand its market presence and product offerings[140]. - The Company does not anticipate any material capital expenditures during the calendar year 2024, except for strategic initiatives[201]. - The Company has significant commitments to extend credit and provide financial guarantees, subject to strict credit control assessments[205]. Market Risk and Sensitivity - There have been no material changes in the Company's assessment of sensitivity to market risk since the 2023 Annual Report[207]. - There are no off-balance sheet arrangements that could materially affect the Company's financial condition[206]. Borrowing and Commitments - At March 31, 2024, the company had $517.7 million in available borrowing capacity with the FHLB, down from $40.6 million in outstanding borrowings[190]. - The company had approximately $95.9 million in loan commitments and letters of credit to borrowers as of March 31, 2024[197]. - The Company completed an offering of $20 million in aggregate principal amount of its 4.875% Notes, with $19.7 million outstanding as of March 31, 2024[200].