Branch and ATM Operations - As of December 31, 2023, Westfield Bank had 25 branches and 10 freestanding ATMs, serving Hampden and Hampshire Counties in Massachusetts and Hartford and Tolland Counties in Connecticut[18]. - As of December 31, 2023, Westfield Bank operates 25 branches and 10 freestanding ATMs, serving Hampden and Hampshire Counties in Massachusetts and Hartford and Tolland Counties in Connecticut[18]. Employee Demographics and Development - As of December 31, 2023, the total number of employees was 348, with an average employee tenure of 7.9 years[32]. - Approximately 64% of employees were women and 24% were ethnic minorities, veterans, or persons with disabilities as of December 31, 2023[29]. - In 2023, 27 employees successfully completed the Corporate Leadership Development Program aimed at enhancing leadership capabilities[34]. - The Company is committed to fostering a culture of diversity, equity, and inclusion, with initiatives such as the establishment of the Diversity Committee in 2023[30]. - By December 31, 2023, approximately 64% of the company's employees were women, and 24% were ethnic minorities, veterans, or persons with disabilities, reflecting its commitment to diversity[29]. - In 2023, the company established the Westfield Bank Culture and Diversity Committee to promote inclusivity and connection among employees[30]. Financial Performance and Loan Portfolio - Interest income on loans represented 90.2% of total interest income in 2023, up from 89.9% in 2022[39]. - The Bank's loan portfolio totaled $2.0 billion, accounting for 79.1% of total assets as of December 31, 2023, compared to 78.0% in 2022[39]. - Commercial real estate loans amounted to $1.1 billion, or 53.3% of total loans, as of December 31, 2023, down from 53.8% in 2022[45]. - The total commercial and industrial loan portfolio was $217.4 million, or 10.7% of total loans, as of December 31, 2023, compared to 11.0% in 2022[48]. - Home equity loans totaled $109.8 million, or 5.4% of total loans, as of December 31, 2023, slightly up from 5.3% in 2022[55]. - The residential real estate loan portfolio was $612.3 million, or 30.3% of total loans, as of December 31, 2023, compared to 29.6% in 2022[52]. - PPP loans decreased to $756,000 as of December 31, 2023, down from $2.3 million in 2022[49]. - The largest lending exposure was a $24.9 million commercial lending relationship, with $9.9 million outstanding as of December 31, 2023[44]. - The allowance for credit losses was $20.3 million as of December 31, 2023, compared to $19.9 million in 2022[58]. - Total gross loans increased to $2.024 billion as of December 31, 2023, from $1.989 billion in 2022[58]. - As of December 31, 2023, total loans amounted to $2,024,824,000, with net loans at $2,007,050,000 after accounting for deferred loan origination fees and credit losses[60]. - Criticized loans totaled $39.5 million, or 1.9% of total loans, down from $64.0 million, or 3.2% at the end of 2022[73]. - Classified loans were $33.7 million, or 1.7% of total loans, compared to $42.3 million, or 2.1% at the end of 2022[73]. - Nonaccrual loans stood at $6.4 million, or 0.32% of total loans, an increase from $5.7 million, or 0.29% at the end of 2022[76]. - The allowance for credit losses was $20,267,000, representing 1.00% of total loans outstanding, consistent with the previous year[79]. - Total impaired loans were $29.7 million, or 1.5% of total loans, as of December 31, 2023[74]. - The company reported net charge-offs of $2,039,000 for the year, with total loan charge-offs to daily average loans outstanding at 0.10%[79]. - The company recorded a provision for credit losses of $872,000 for the year ended December 31, 2023, primarily due to changes in the economic environment, with off-balance sheet unfunded commitment exposures decreasing by $46.8 million[95]. - The total allowance for credit losses allocated by loan category as of December 31, 2023, included $1,079,751 for commercial real estate loans, $612,315 for residential one-to-four family loans, and $217,447 for commercial and industrial loans[97]. - The Company has implemented a discounted cash flow method to estimate expected credit losses, utilizing a forward-looking macroeconomic forecast[89]. - The Company believes it is appropriately provisioned for the current economic environment as of December 31, 2023[95]. Securities and Deposits - As of December 31, 2023, the Company held $137.1 million in available-for-sale (AFS) securities and $223.4 million in held-to-maturity (HTM) securities[108]. - The Company reported unrealized losses on the AFS securities portfolio of $29.2 million, or 17.5% of the amortized cost basis, compared to $32.2 million, or 18.0% at December 31, 2022[109]. - The Company reported unrealized losses on the HTM securities portfolio of $35.7 million, or 16.0% of the amortized cost basis, compared to $39.2 million, or 17.0% at December 31, 2022[109]. - At December 31, 2023, uninsured deposits were 27% of total deposits, down from 31% at December 31, 2022[112]. - Core deposits represented 71.5% of total deposits at December 31, 2023, compared to 81.5% at December 31, 2022[113]. - The Company had $1.7 million in brokered deposits on the balance sheet at December 31, 2023, with no brokered deposits reported at December 31, 2022[111]. - Time deposits with remaining terms to maturity of less than one year amounted to $596.3 million at December 31, 2023[113]. - The Company participates in the IntraFi Network, providing depositors with FDIC pass-through insurance, with $28.7 million in CDARS deposits reported at December 31, 2023[115]. - Total deposits decreased to $2,169,459 thousand in 2023 from $2,264,252 thousand in 2022, reflecting a decline of 4.2%[116]. - Core deposits accounted for 75.8% of total deposits in 2023, down from 84.0% in 2022, indicating a shift in deposit composition[116]. - Time deposits increased significantly to $524,827 thousand in 2023, up from $363,258 thousand in 2022, representing a growth of 44.5%[116]. - The weighted average rate for total deposits rose to 1.23% in 2023 from 0.24% in 2022, marking a substantial increase[116]. Borrowings and Capital - Long-term borrowings surged to $120.6 million in 2023, up from $1.2 million in 2022, reflecting a 10,050% increase to replace deposit attrition[127]. - Total borrowings increased by $94.1 million, or 221.6%, from $42.6 million in 2022 to $136.7 million in 2023[127]. - The Company had immediate availability at the FHLB to borrow an additional $535.6 million based on qualified collateral as of December 31, 2023[128]. - The weighted average rate for short-term borrowings increased to 5.47% in 2023 from 4.37% in 2022[128]. - Total core deposits decreased to $449,522 thousand in 2023 from $590,224 thousand in 2022, a decline of 23.8%[118]. - The Company participated in the Bank Term Funding Program (BTFP) during 2023, allowing it to pay off higher rate FHLB advances[126]. Regulatory Compliance and Capital Requirements - Western New England Bancorp is a Massachusetts-chartered stock holding company and is subject to supervision by the Federal Reserve Board[139]. - The Bank's deposits are insured by the FDIC up to applicable limits, ensuring depositor protection[140]. - The minimum capital ratios under the Capital Rules require a Common Equity Tier 1 (CET1) ratio of at least 4.5% to risk-weighted assets[151]. - As of December 31, 2023, both the Company and the Bank are in compliance with the targeted capital ratios under the Capital Rules[156]. - The Capital Rules mandate a capital conservation buffer of 2.5% of CET1, resulting in minimum ratios of 7% CET1 to risk-weighted assets[151]. - The Company and the Bank evaluated the simplified Capital Rules and decided not to opt into the community bank leverage ratio framework[157]. - The Company is subject to extensive regulation under federal and state laws, which could materially affect its results[138]. - The OCC requires prior approval for capital distributions exceeding the Bank's net income for the year-to-date plus retained net income for the previous two years[146]. - The HOLA restricts business activities of savings and loan holding companies to those permitted for financial holding companies[142]. - The Company must act as a source of financial strength to its subsidiary savings associations, as mandated by the Dodd-Frank Act[145]. - As of December 31, 2023, the Bank was classified as "well-capitalized" under the PCA framework, meeting all required capital ratios[159]. - The Bank complied with the limitations on loans to one borrower, which is capped at 15% of unimpaired capital and surplus, with an additional 10% allowed if secured by readily marketable collateral[161]. - The Bank met the Qualified Thrift Lender test, maintaining at least 65% of its portfolio assets in qualified thrift investments over the past twelve months[166]. - The Bank received an "Outstanding" rating on its most recent Community Reinvestment Act examination, indicating strong performance in meeting credit needs[167]. - The Bank is subject to federal laws for consumer protection, including the Dodd-Frank Act, which centralizes responsibility for consumer financial protection[168]. - The Bank is a member of the Federal Home Loan Bank System and was in compliance with the requirement to hold shares of capital stock in the FHLB as of December 31, 2023[177]. - The FDIC's deposit insurance limit is $250,000 per depositor, per insured bank, ensuring protection for depositors[175]. - The Bank has implemented a Bank Secrecy Act and Patriot Act compliance program to combat money laundering and ensure regulatory compliance[182]. - The Bank's required reserves can be satisfied in the form of vault cash, with the current reserve requirement set to zero percent[178]. - The Bank is required to notify customers of security breaches under the Gramm-Leach Bliley Act, ensuring consumer data protection[181]. Competitive Environment - The Company expects increased competition in the financial services industry due to legislative, regulatory, and technological changes[26]. - The Company operates in a highly competitive environment, facing competition from local, regional, and national financial institutions, as well as credit unions[25]. - The Springfield Metropolitan area, where the company operates, is the sixth largest metropolitan area in New England, benefiting from a diverse economy[23]. - The company faces significant competition from local, regional, and national financial institutions, as well as credit unions and non-depository institutions[25]. - Legislative and regulatory initiatives may change the operating environment of the company, potentially increasing or decreasing the cost of doing business[190]. Acquisitions - The Company acquired Chicopee Bancorp, Inc. on October 21, 2016, which was a tax-free reorganization for federal income tax purposes[19]. - The company has loans acquired with evidence of credit deterioration from Chicopee Bancorp, Inc., which are now accounted for as purchased credit deteriorated loans under the new CECL framework[93]. Accounting and Financial Reporting - The Company adopted ASU 2016-13 on January 1, 2023, affecting the allowance for credit losses calculation[79]. - The Company adopted the CECL methodology on January 1, 2023, resulting in a $1.2 million increase to the allowance for credit losses and a $918,000 allowance for off-balance sheet credit exposures[81][82]. - As of December 31, 2023, the allowance for credit losses for loans held for investment was adjusted by a credit loss expense, with accrued interest receivable on loans held for investment at $7.5 million[83]. - The transition to ASC 326 resulted in a net increase to retained earnings of $9,000, including a net deferred tax liability of $4,000[82].

Financial Performance - Net income for Q3 2023 was $4.5 million, or $0.21 per diluted share, down from $6.0 million, or $0.28 per diluted share in Q3 2022, representing a decrease of 25%[158] - The Company reported net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023, compared to $6.0 million, or $0.28 per diluted share, for the same period in 2022[181] - Net income for the nine months ended September 30, 2023, was $12.6 million, or $0.58 per diluted share, down from $16.9 million, or $0.77 per diluted share, for the same period in 2022[203] Interest Income and Expenses - Net interest income decreased by $3.9 million, or 19.2%, to $16.4 million in Q3 2023, primarily due to an increase in interest expense of $8.1 million[158] - Net interest income decreased by $3.9 million, or 19.2%, to $16.4 million for the three months ended September 30, 2023, compared to $20.3 million for the same period in 2022[190] - For the nine months ended September 30, 2023, net interest income decreased by $6.7 million, or 11.4%, to $51.7 million compared to $58.4 million for the same period in 2022[213] - Interest expense increased by $18.7 million, or 470.4%, primarily due to a $14.7 million increase in interest expense on deposits, and a $3.9 million increase on borrowings[213] Asset and Loan Growth - Total assets increased by $31.8 million, or 1.3%, to $2.6 billion as of September 30, 2023, driven by a $23.4 million increase in total loans[164] - Total loans increased by $23.4 million, or 1.2%, to $2.0 billion, with residential real estate loans rising by $18.7 million, or 2.7%[169] - Average interest-earning assets increased by $5.2 million, or 0.2%, to $2.4 billion for the nine months ended September 30, 2023[214] Deposits and Borrowings - Total deposits decreased by $53.1 million, or 2.4%, to $2.2 billion, with core deposits declining by $224.0 million, or 12.3%[171] - Total borrowings increased by $87.6 million, or 140.8%, from $62.2 million at December 31, 2022, to $149.8 million[174] - As of September 30, 2023, total deposits were $2,176,303 thousand, a slight increase from $2,157,974 thousand in June 2023[172] Credit Quality - The allowance for credit losses as a percentage of total loans was 0.99% at September 30, 2023, compared to 1.00% at December 31, 2022[170] - Nonperforming loans totaled $6.3 million, or 0.31% of total loans, an increase from $5.7 million, or 0.29% at December 31, 2022[170] - The Company recorded net charge-offs of $1.9 million for the nine months ended September 30, 2023, compared to $129,000 for the same period in 2022[159] Efficiency and Ratios - The efficiency ratio increased to 70.6% for the three months ended September 30, 2023, compared to 62.7% for the same period in 2022[201] - The efficiency ratio for the nine months ended September 30, 2023, was 72.7%, up from 65.5% for the same period in 2022[220] - The Company's total Risk-Based Capital Ratio was 14.4% at September 30, 2023, compared to 14.2% at December 31, 2022, indicating strong capital levels[180] Strategic Initiatives - The Company plans to grow its commercial loan portfolio and expand retail banking deposit relationships as part of its growth strategy[158] - The Company is considering growth through acquisitions to enhance its product offerings and shareholder value[158] Market Sensitivity and Risk - The Company executed a $200 million fair value hedge on fixed-rate assets to reduce sensitivity to interest rates[178] - There have been no material changes in the Company's assessment of sensitivity to market risk since the last report[244] Other Financial Metrics - The average yield on interest-earning assets increased to 4.28% for the three months ended September 30, 2023, compared to 3.59% for the same period in 2022[192] - The average cost of total funds increased by 139 basis points to 1.64% for the three months ended September 30, 2023, from 0.25% for the same period in 2022[193] - Book value per share (GAAP) increased to $10.53 as of September 30, 2023, from $9.52 in the same period of 2022[226]

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls for the reporting period [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20of%20Western%20New%20England%20Bancorp%2C%20Inc.%20and%20Subsidiaries%20%28Unaudited%29) This section presents the unaudited consolidated financial statements, highlighting the adoption of CECL and a decrease in net income due to interest margin compression [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20%E2%80%93%20June%2030%2C%202023%20and%20December%2031%2C%202022) Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$2,562.3** | **$2,553.2** | | Cash and cash equivalents | $31.7 | $30.3 | | Loans, net | $1,995.9 | $1,971.5 | | Total Investment Securities (AFS & HTM) | $364.4 | $377.2 | | Goodwill | $12.5 | $12.5 | | **Total Liabilities** | **$2,328.3** | **$2,325.0** | | Total deposits | $2,158.0 | $2,229.4 | | Long-term debt | $121.2 | $1.2 | | **Total Shareholders' Equity** | **$234.0** | **$228.1** | - Total assets slightly increased to **$2.56 billion**, driven by a **$24.5 million** increase in net loans, while total deposits decreased by **$71.5 million**[16](index=16&type=chunk) [Consolidated Statements of Net Income](index=6&type=section&id=Consolidated%20Statements%20of%20Net%20Income%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Net Income Performance (in millions, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $16.8 | $19.4 | $35.4 | $38.1 | | Provision for credit losses | $0.4 | $0.3 | $0.03 | ($0.1) | | Non-interest Income | $1.6 | $2.7 | $4.6 | $5.1 | | Non-interest Expense | $14.6 | $14.4 | $29.4 | $28.9 | | **Net Income** | **$2.8** | **$5.5** | **$8.1** | **$10.9** | | **Diluted EPS** | **$0.13** | **$0.25** | **$0.37** | **$0.49** | - Net income for Q2 2023 was **$2.8 million**, a **49.9% decrease** from **$5.5 million** in Q2 2022. The decline was primarily driven by a **$2.6 million** decrease in net interest income, as interest expense on deposits rose sharply from **$990 thousand** to **$6.1 million** year-over-year[18](index=18&type=chunk) - For the six months ended June 30, 2023, net income was **$8.1 million**, down **25.7%** from **$10.9 million** in the prior-year period, reflecting sustained pressure on net interest income[18](index=18&type=chunk) [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Comprehensive Income (Loss) (in millions) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $2.8 | $5.5 | $8.1 | $10.9 | | Other Comprehensive Income (Loss) | ($0.1) | ($6.0) | $1.8 | ($14.4) | | **Comprehensive Income (Loss)** | **$2.6** | **($0.5)** | **$9.9** | **($3.6)** | - For the six months ended June 30, 2023, Other Comprehensive Income was positive **$1.8 million**, a significant improvement from a loss of **$14.4 million** in the same period of 2022. This was mainly due to smaller unrealized losses on available-for-sale securities and gains related to the defined benefit pension plan termination[21](index=21&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) - Total shareholders' equity increased from **$228.1 million** at December 31, 2022, to **$234.0 million** at June 30, 2023. The increase was driven by comprehensive income of **$9.9 million**, partially offset by common stock repurchases (**$2.1 million**) and cash dividends paid (**$3.1 million**)[25](index=25&type=chunk)[26](index=26&type=chunk) - The company repurchased **270,840 shares** of common stock for approximately **$2.1 million** during the first six months of 2023[25](index=25&type=chunk)[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($1.7) | $8.5 | | Net cash used in investing activities | ($6.1) | ($107.3) | | Net cash provided by financing activities | $9.2 | $42.9 | | **Net Change in Cash and Cash Equivalents** | **$1.3** | **($55.9)** | - Financing activities provided **$9.2 million** in cash, primarily from the issuance of **$120.0 million** in long-term debt, which offset a net decrease in deposits of **$71.5 million**[32](index=32&type=chunk) - Investing activities used **$6.1 million** in cash, a significant reduction from the **$107.3 million** used in the prior-year period, mainly due to a large decrease in net loan originations[32](index=32&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - On January 1, 2023, the Company adopted the CECL accounting standard (ASU 2016-13), which replaced the incurred loss methodology with an expected loss methodology for financial assets. This resulted in a net increase to retained earnings of **$9 thousand**, including a **$1.2 million** increase to the allowance for credit losses on loans and a new **$918 thousand** allowance for off-balance sheet exposures[41](index=41&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) [Management's Discussion and Analysis (MD&A)](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operating results, noting decreased net income and margin due to rising interest expenses, stable assets, and increased borrowings [Overview and Strategy](index=48&type=section&id=Overview%20and%20Strategy) - The company's growth-oriented strategy focuses on increasing commercial and residential lending, expanding its retail deposit franchise, and investing in technology to enhance customer experience and efficiency[158](index=158&type=chunk)[160](index=160&type=chunk) - Key strategic goals include growing revenues, increasing book value, paying competitive dividends, and utilizing stock repurchases to enhance shareholder value. The company also considers growth through strategic acquisitions[160](index=160&type=chunk) [Comparison of Financial Condition (June 30, 2023 vs. Dec 31, 2022)](index=49&type=section&id=Comparison%20of%20Financial%20Condition) - Total assets increased by **$9.1 million** (**0.4%**) to **$2.6 billion**, primarily due to a **$24.1 million** (**1.2%**) increase in total gross loans[166](index=166&type=chunk)[173](index=173&type=chunk) - Total deposits decreased by **$71.5 million** (**3.2%**), with core deposits falling by **$194.6 million**, while time deposits grew by **$123.1 million**, indicating a shift to higher-cost funding[176](index=176&type=chunk) - Total borrowings increased significantly by **$85.9 million** (**138.1%**) to **$148.1 million**, mainly through a **$120.0 million** increase in long-term borrowings to replace deposit outflows[179](index=179&type=chunk) - The allowance for credit losses as a percentage of total loans was **0.97%** at June 30, 2023, compared to **1.00%** at December 31, 2022[174](index=174&type=chunk) - Shareholders' equity increased by **$5.9 million** to **$234.0 million**, driven by net income and a decrease in accumulated other comprehensive loss[181](index=181&type=chunk) [Comparison of Operating Results (Q2 2023 vs. Q2 2022)](index=52&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202023%20and%202022) Q2 Operating Results Highlights | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Income | $2.8M | $5.5M | -49.9% | | Diluted EPS | $0.13 | $0.25 | -48.0% | | Net Interest Income | $16.8M | $19.4M | -13.1% | | Net Interest Margin | 2.81% | 3.24% | -43 bps | | Non-interest Income | $1.6M | $2.7M | -41.9% | - The decrease in net interest income was driven by a **535.0%** increase in interest expense, primarily from higher deposit costs, which outpaced the **20.2%** growth in interest and dividend income[192](index=192&type=chunk) - Non-interest income decreased by **$1.1 million**, mainly due to a **$1.1 million** final termination expense for the Defined Benefit Pension Plan[202](index=202&type=chunk) - The provision for credit losses was **$0.4 million**, an increase from **$0.3 million** in the prior-year quarter, reflecting changes in the economic environment under the new CECL model[199](index=199&type=chunk) [Comparison of Operating Results (Six Months 2023 vs. Six Months 2022)](index=58&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Six-Month Operating Results Highlights | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Net Income | $8.1M | $10.9M | -25.7% | | Diluted EPS | $0.37 | $0.49 | -24.5% | | Net Interest Income | $35.4M | $38.1M | -7.2% | | Net Interest Margin | 2.97% | 3.21% | -24 bps | - The decrease in net interest income was due to a **424.1%** increase in interest expense, which overshadowed the **19.4%** increase in interest and dividend income[214](index=214&type=chunk) - A provision for credit losses of **$32 thousand** was recorded, compared to a reversal of **$125 thousand** in the prior-year period. Net charge-offs were **$1.8 million**, primarily related to a single acquired commercial loan relationship, with no impact to earnings due to CECL implementation adjustments[218](index=218&type=chunk)[219](index=219&type=chunk) - Non-interest expense increased by **$0.6 million** (**1.9%**), driven by higher professional fees, FDIC insurance, and data processing costs[222](index=222&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources include deposits, loan and security repayments, and FHLB/FRB borrowings. The company actively manages liquidity to fund loan originations and deposit withdrawals[230](index=230&type=chunk) - As of June 30, 2023, the company had significant available borrowing capacity, including **$380.1 million** from the FHLB and **$27.4 million** from the FRB's Bank Term Funding Program (BTFP)[231](index=231&type=chunk) - Material cash commitments include **$9.5 million** for its core processing vendor and **$10.6 million** in undiscounted lease liabilities[239](index=239&type=chunk) Regulatory Capital Ratios (Bank Level) - June 30, 2023 | Ratio | Actual | Minimum To Be Well-Capitalized | | :--- | :--- | :--- | | Total Risk-Based Capital | 13.49% | 10.00% | | Tier 1 Risk-Based Capital | 12.49% | 8.00% | | Common Equity Tier 1 Capital | 12.49% | 6.50% | | Tier 1 Leverage Ratio | 9.69% | 5.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with simulations showing net interest income sensitivity to rate changes, potentially mitigated by derivatives Net Interest Income Sensitivity Analysis (at June 30, 2023) | Interest Rate Change | Estimated Change in Net Interest Income (1-12 Months) | | :--- | :--- | | +200 basis points | -1.6% | | -200 basis points | +0.8% | - The company's earnings are currently asset-sensitive in a falling rate environment and liability-sensitive in a rising rate environment, as indicated by the simulation results[253](index=253&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023[256](index=256&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[257](index=257&type=chunk) [PART II – OTHER INFORMATION](index=71&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, and details of the company's common stock repurchase program [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary legal actions but does not anticipate any material adverse effects on its financial condition - The company states that it is not involved in any material legal proceedings that would have a significant adverse impact[258](index=258&type=chunk) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported since the previous filings - No material changes in risk factors were reported for the quarter[259](index=259&type=chunk) [Share Repurchases](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 126,944 shares of common stock in Q2 2023, with 806,600 shares remaining under the authorized plan Common Stock Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | April 2023 | — | — | | May 2023 | 82,795 | $6.26 | | June 2023 | 44,149 | $6.09 | | **Total** | **126,944** | **$6.20** | - The Board of Directors authorized a stock repurchase plan (the "2022 Plan") on July 26, 2022, for up to **1.1 million** shares[261](index=261&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-16767 Western New England Bancorp, Inc. (Exact name of registrant as specified in its charter) Massachusetts 73-16 ...

Loan Portfolio and Asset Quality - The company's loan portfolio totaled $2.0 billion, representing 78.0% of total assets as of December 31, 2022, compared to $1.9 billion or 73.5% of total assets as of December 31, 2021[36]. - As of December 31, 2022, the total loan portfolio amounted to $1.99 billion, an increase from $1.86 billion in 2021[57]. - Commercial real estate loans reached $1.1 billion, representing 53.8% of total loans, up from $980 million or 52.6% in 2021[41]. - The commercial and industrial loan portfolio totaled $219.8 million, accounting for 11.0% of total loans, a decrease from 12.2% in 2021[45]. - Home equity loans stood at $105.6 million, or 5.3% of total loans, compared to $99.8 million, or 5.4% in 2021[54]. - At December 31, 2022, the residential real estate loan portfolio totaled $589.5 million, maintaining 29.6% of total loans[51]. - Total loans outstanding as of December 31, 2022, amounted to $1,991.4 million, an increase from $1,864.7 million in 2021[73]. - Criticized loans totaled $64.0 million, or 3.2% of total loans, down from $82.6 million, or 4.4% of total loans, at December 31, 2021[66]. - Adversely classified loans were $42.3 million, or 2.1% of total loans, compared to $31.1 million, or 1.7% in 2021[67]. - Nonaccrual loans stood at $5.7 million, or 0.29% of total loans, slightly up from $5.0 million, or 0.27% in 2021[70]. - The allowance for loan losses was $19.9 million, representing 1.00% of total loans outstanding, compared to 1.06% in 2021[73]. - Total impaired loans were $18.4 million, or 0.9% of total loans, down from $20.5 million, or 1.1% in 2021[68]. - The company reported net charge-offs of $556,000 for the period, with total loan charge-offs to daily average loans outstanding at 0.03%[73]. - The company plans to adopt the Current Expected Credit Loss (CECL) methodology effective January 1, 2023, using a Discounted Cash Flow (DCF) model for estimating potential loan losses[74]. - The company maintains a high level of asset quality, with ongoing monitoring of the loan portfolio and independent credit analyses for loans above a specific threshold[62]. - Management believes the allowance for loan losses is adequate to absorb probable losses as of December 31, 2022[83]. Employee and Diversity Statistics - The company employed 337 total employees as of December 31, 2022, with 289 employed full-time and 48 part-time[32]. - Approximately 66% of the company's employees were women, and 18% were ethnic minorities, veterans, or persons with disabilities as of December 31, 2022[30]. - The company has a comprehensive employee benefit program, including group medical, dental, and vision insurance, a 401(k) Safe Harbor Plan, and an employee stock ownership plan[34]. - The company has successfully attracted and retained qualified staff, employing a total of 337 individuals as of December 31, 2022[32]. Market Position and Competition - As of June 30, 2022, the company held approximately 13.7% of the deposits in Hampden County, making it the second largest market share out of 16 banks and thrifts in the area[29]. - The company expects increased competition in the financial services industry due to legislative, regulatory, and technological changes[28]. - The largest commercial lending relationship was $32.2 million, secured by business assets and real estate, performing according to original terms[46]. - The largest concentration of commercial loans was to hotels and accommodation, comprising approximately 6.9% of the commercial loan portfolio[46]. Regulatory Environment and Compliance - The company is subject to extensive regulation under federal and state laws, impacting its operational and financial strategies[119]. - The Capital Rules established a new capital framework for U.S. banking organizations, which the company is subject to as a savings and loan holding company[132]. - The minimum capital ratios required under the Capital Rules include a CET1 to risk-weighted assets ratio of at least 7%, Tier 1 capital to risk-weighted assets ratio of at least 8.5%, and Total capital to risk-weighted assets ratio of at least 10.5%[136]. - As of December 31, 2022, the Company and the Bank were in compliance with the targeted capital ratios under the Capital Rules[140]. - The Bank was categorized as "well-capitalized" under the Prompt Corrective Action framework, meeting the total risk-based capital ratio of at least 10% and CET1 risk-based capital ratio of at least 6.5%[143]. - The Company and the Bank decided not to opt into the community bank leverage ratio framework despite being eligible, maintaining a leverage ratio of greater than 9%[141]. - The Bank met the Qualified Thrift Lender test in each of the prior 12 months, ensuring compliance with federal regulations[150]. - The Bank received an "Outstanding" rating on its most recent Community Reinvestment Act examination, indicating strong performance in meeting credit needs[151]. - The FDIC's deposit insurance limit is $250,000 per depositor, per insured bank, ensuring protection for customer deposits[159]. - The Company and the Bank are subject to a risk-based assessment system for deposit insurance premiums, which considers capital levels and supervisory ratings[159]. - The Capital Rules mandate a capital conservation buffer of 2.5% of CET1, which is designed to absorb losses during economic stress[136]. - The implementation of the Capital Rules did not have a material impact on the Company's or the Bank's consolidated capital levels[139]. - The Federal Reserve Board has reduced the reserve requirement to zero percent, impacting the Bank's required reserves[163]. - The Bank is compliant with the Federal Home Loan Bank System's capital stock requirements as of December 31, 2022[162]. Financial Performance and Deposits - Total deposits increased to $2,264,252 thousand in 2022, up from $2,177,770 thousand in 2021, reflecting a growth of approximately 4.0%[102]. - Core deposits represented 81.5% of total deposits as of December 31, 2022, down from 82.2% in 2021[100]. - Demand deposits increased to $647,971 thousand in 2022, representing 28.6% of total deposits, compared to $608,936 thousand and 28.0% in 2021[102]. - The total amount of time deposit accounts was $363,258 thousand in 2022, down from $477,067 thousand in 2021[102]. - The average rate for interest-bearing checking accounts was 0.38% in 2022, slightly up from 0.36% in 2021[102]. - The total core deposit accounts decreased to $590,224 thousand in 2022 from $686,212 thousand in 2021[104]. - The weighted average rate for time deposits was 0.41% in 2022, down from 0.53% in 2021[102]. - Time deposits of $250,000 or more totaled $131,737 thousand with a weighted average rate of 2.54% as of December 31, 2022, compared to $65,860 thousand and 0.47% in 2021[108]. Lending Programs and Initiatives - The Company offered PPP loans totaling $2.3 million, or 0.1% of total loans, at December 31, 2022[47]. - PPP loans had an interest rate of 1.0% and a two-year loan term, extended to five years for loans granted after June 5, 2020[47]. - The SBA guarantees 100% of the PPP loans made to eligible borrowers, with forgiveness available if employee and compensation levels are maintained[47]. - Eligible businesses could apply for PPP loans up to the lesser of 2.5 times their average monthly payroll costs or $10.0 million[47]. - Principal and interest payments on PPP loans were deferred from six months to ten months from the date of disbursement[47]. - 60% of the loan proceeds must be used for payroll expenses, with the remaining 40% for other qualifying expenses to qualify for forgiveness[47].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-16767 Western New England Bancorp, Inc. (Exact name of registrant as specified in its charter) Massachusetts 7 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-16767 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification Number) 141 Elm S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-16767 Western New England Bancorp, Inc. (Exact name of registrant as specified in its charter) Massachusetts 73-16 ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Western New England Bancorp, Inc. is a Massachusetts-chartered bank holding company with $2.5 billion in assets, focusing on commercial real estate lending and operating 25 branches under extensive regulation - Total Assets: **$2.5 billion**[18](index=18&type=chunk) - Total Net Loans: **$1.8 billion**[18](index=18&type=chunk) - Total Deposits: **$2.3 billion**[18](index=18&type=chunk) - Total Shareholders' Equity: **$0.2237 billion**[18](index=18&type=chunk) - Westfield Bank is a full-service community financial institution with **25 branches** and numerous ATMs serving Massachusetts and Connecticut[19](index=19&type=chunk) - The company's primary lending focus is on commercial relationships, including commercial real estate, construction, and commercial and industrial loans[34](index=34&type=chunk) - As of June 30, 2021, the company held approximately **14.0% of deposits in Hampden County**, ranking second among 16 banks and thrifts[28](index=28&type=chunk) [Lending Activities](index=7&type=section&id=Lending%20Activities) The company's $1.9 billion loan portfolio is dominated by commercial real estate (52.6%), with active management to mitigate concentration and interest rate risks Loan Portfolio Composition (December 31, 2021 vs 2020) | Loan Category | 2021 Amount (Millions) | % of Total (2021) | 2020 Amount (Millions) | % of Total (2020) | | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | $980.0 | 52.6% | $833.9 | 43.3% | | Residential One-to-Four Family | $552.3 | 29.6% | $604.7 | 31.4% | | Home Equity | $99.8 | 5.4% | $103.9 | 5.4% | | Commercial and Industrial (incl. PPP) | $226.7 | 12.2% | $379.1 | 19.7% | | Consumer | $4.3 | 0.2% | $5.2 | 0.2% | | **Total Gross Loans** | **$1,863.0** | **100.0%** | **$1,926.8** | **100.0%** | - In 2021, the company sold **$59.7 million** of fixed-rate, low-coupon residential real estate loans to the secondary market to reduce interest rate risk, with no loans sold in 2020[51](index=51&type=chunk) - Paycheck Protection Program (PPP) loans decreased significantly from **$167.3 million** at year-end 2020 to **$25.3 million** at year-end 2021 due to loan forgiveness[43](index=43&type=chunk)[45](index=45&type=chunk) [Asset Quality](index=13&type=section&id=Asset%20Quality) Asset quality improved in 2021, with nonperforming assets and criticized loans decreasing, and a credit for loan losses recorded due to reduced pandemic-related provisions Nonperforming Assets Trend | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Nonperforming Loans | $5.0 million | $7.8 million | | Foreclosed Real Estate, net | $0 | $0 | | **Total Nonperforming Assets** | **$5.0 million** | **$7.8 million** | | Nonperforming Loans to Total Loans | 0.27% | 0.41% | | Nonperforming Assets to Total Assets | 0.20% | 0.33% | - Criticized loans decreased to **$82.6 million (4.4% of total loans)** at year-end 2021 from **$147.1 million (7.6% of total loans)** at year-end 2020[65](index=65&type=chunk) - The allowance for loan losses was **1.06% of total loans** at December 31, 2021, down slightly from **1.10%** at year-end 2020, and **1.08%** excluding government-guaranteed PPP loans in 2021 compared to **1.20%** in 2020[82](index=82&type=chunk) - The company recorded a credit for loan losses of **$925,000** in 2021, compared to a provision of **$7.8 million** in 2020, which was significantly increased due to COVID-19 economic uncertainties[88](index=88&type=chunk) [Investment Activities](index=20&type=section&id=Investment%20Activities) The investment portfolio grew to $414.1 million in 2021, primarily in mortgage-backed and debt securities, with a new held-to-maturity segment for liquidity and returns Securities Portfolio Composition (Amortized Cost) | Security Type | Dec 31, 2021 (Millions) | Dec 31, 2020 (Millions) | | :--- | :--- | :--- | | **Available-for-sale** | | | | Debt Securities | $18.3 | $18.3 | | Mortgage-backed Securities | $180.7 | $182.3 | | **Held-to-maturity** | | | | Debt Securities | $10.0 | $0 | | Mortgage-backed Securities | $212.3 | $0 | | **Total** | **$421.3** | **$200.6** | - The investment portfolio is an integral part of the company's asset liability management, providing liquidity and maximizing returns while ensuring safety and diversification[95](index=95&type=chunk) [Deposits and Other Funding](index=24&type=section&id=Deposits%20and%20Other%20Funding) Total deposits increased to $2.3 billion in 2021, driven by core deposits, while FHLB borrowings significantly decreased, diversifying funding sources Deposit Composition | Deposit Type | Dec 31, 2021 (Millions) | % of Total (2021) | Dec 31, 2020 (Millions) | % of Total (2020) | | :--- | :--- | :--- | :--- | :--- | | Demand Deposits (Noninterest-bearing) | $641.3 | 28.4% | $541.8 | 26.5% | | Interest-bearing Checking | $145.7 | 6.5% | $94.9 | 4.7% | | Regular Savings | $217.6 | 9.6% | $175.6 | 8.6% | | Money Market | $850.3 | 37.7% | $640.8 | 31.4% | | Time Deposits | $402.0 | 17.8% | $590.3 | 28.9% | | **Total Deposits** | **$2,256.9** | **100.0%** | **$2,043.4** | **100.0%** | - Core deposits represented **82.1% of total deposits** at year-end 2021, an increase from **71.0%** at year-end 2020, indicating a shift to lower-cost funding sources[108](index=108&type=chunk) - The company has access to significant borrowing capacity, including **$480.5 million** from the FHLB and **$65.0 million** in lines of credit with correspondent banks as of December 31, 2021[121](index=121&type=chunk)[124](index=124&type=chunk) [Supervision and Regulation](index=28&type=section&id=Supervision%20and%20Regulation) The company and its bank are extensively regulated by federal and state authorities, complying with Basel III capital standards and maintaining a "well-capitalized" status - As a savings and loan holding company, WNEB is regulated by the Federal Reserve Board, while Westfield Bank, a federal savings association, is primarily regulated by the OCC[131](index=131&type=chunk)[132](index=132&type=chunk) - The company and the Bank are subject to the Basel III Capital Rules, requiring minimum ratios for Common Equity Tier 1, Tier 1, and Total Capital, plus a capital conservation buffer, with both entities in compliance at year-end 2021[141](index=141&type=chunk)[145](index=145&type=chunk)[149](index=149&type=chunk) - Under Prompt Corrective Action (PCA) regulations, the Bank was categorized as "well-capitalized" as of December 31, 2021[153](index=153&type=chunk) - The Bank met the Qualified Thrift Lender (QTL) test, requiring at least **65% of its portfolio assets** in qualified thrift investments[158](index=158&type=chunk)[159](index=159&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key risks include COVID-19 impacts, credit risk in the loan portfolio, interest rate volatility, intense competition, regulatory changes like LIBOR transition, and cybersecurity threats - The COVID-19 pandemic continues to pose a risk, potentially leading to higher credit losses, reduced demand for products, and other negative impacts on financial performance[188](index=188&type=chunk)[189](index=189&type=chunk) - The loan portfolio, with its concentration in commercial real estate and commercial/industrial loans, carries a higher risk of loss compared to residential real estate loans[191](index=191&type=chunk)[192](index=192&type=chunk) - Interest rate volatility could adversely affect net interest income, as the repricing of assets and liabilities may not occur in tandem[202](index=202&type=chunk) - The planned phase-out of LIBOR after 2021 and transition to an alternative reference rate like SOFR could adversely impact the value of financial instruments and require changes to risk models and hedging strategies[211](index=211&type=chunk)[212](index=212&type=chunk) - The company faces significant cybersecurity risks, including cyber-attacks and data breaches, which could disrupt operations, compromise confidential information, and result in financial loss[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 2. Properties](index=49&type=section&id=Item%202.%20Properties) The company operates 25 banking offices and numerous ATMs across Massachusetts and Connecticut, with owned premises and equipment valued at $26.2 million - The company operates a network of **25 banking offices** and numerous ATMs, with a combination of owned and leased properties[244](index=244&type=chunk) - The net book value of owned premises and equipment was **$26.2 million** as of December 31, 2021[244](index=244&type=chunk) [Item 3. Legal Proceedings](index=54&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material pending legal proceedings beyond routine business operations, with no expected material adverse effects - There are no material pending legal proceedings against the company outside of the ordinary course of business[250](index=250&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ (WNEB), with 22.6 million shares outstanding, and it actively repurchased shares in Q4 2021 - The company's common stock is listed on the NASDAQ Global Select Market under the ticker symbol "WNEB"[252](index=252&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid per Share ($) | Shares Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | October 2021 | 155,240 | 8.89 | 155,240 | | November 2021 | — | — | — | | December 2021 | 50,720 | 8.76 | 36,838 | | **Total** | **205,960** | **8.86** | **192,078** | - On April 27, 2021, the Board authorized a new stock repurchase plan for up to **2,400,000 shares**, or **10%** of its outstanding common stock[262](index=262&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income more than doubled to $23.7 million in 2021, driven by increased net interest income, a credit for loan losses, and asset growth funded by deposits Key Performance Indicators (2021 vs. 2020) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Income | $23.7 million | $11.2 million | | Diluted EPS | $1.02 | $0.45 | | Net Interest Income | $73.2 million | $64.4 million | | (Credit) Provision for Loan Losses | ($0.9 million) | $7.8 million | | Net Interest Margin | 3.14% | 2.93% | - The significant increase in net income was primarily due to lower interest expense, a credit for loan losses, and higher non-interest income[267](index=267&type=chunk) - Total assets increased by **$172.5 million (7.3%)** to **$2.5 billion**, while total deposits increased by **$213.5 million (10.5%)** to **$2.3 billion**[297](index=297&type=chunk)[304](index=304&type=chunk) - The company processed **1,982 PPP loan forgiveness applications** totaling **$276.9 million** as of December 31, 2021, leading to a decrease in the PPP loan balance to **$25.3 million**[274](index=274&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk using an asset/liability model, with sensitivity analysis showing potential impacts on net interest income from rate changes Net Interest Income Sensitivity Analysis (as of Dec 31, 2021) | Change in Interest Rates | Estimated Change in NII (1-12 Months) | Estimated Change in NII (13-24 Months) | | :--- | :--- | :--- | | +200 basis points | -3.9% | -4.5% | | -100 basis points | -2.8% | -8.6% | - The company's main market risk is interest rate risk, which affects net interest income and the market value of assets and liabilities[344](index=344&type=chunk) [Item 9A. Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[363](index=363&type=chunk) - Based on an assessment using the COSO framework, management concluded that internal control over financial reporting was effective as of December 31, 2021[364](index=364&type=chunk) - The independent auditor provided an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2021[369](index=369&type=chunk) Part III [Items 10-14](index=76&type=section&id=Items%2010-14) Information for Items 10-14, covering governance, compensation, and related matters, is incorporated by reference from the 2022 Proxy Statement - Information regarding directors, executive officers, corporate governance, executive compensation, and other related matters is incorporated by reference from the company's Proxy Statement[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=76&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits for the 10-K, with consolidated financial statements in Item 8 and schedules omitted as information is provided elsewhere - The consolidated financial statements are referenced in Item 8, and all required financial statement schedules have been omitted because the necessary information is provided elsewhere or is not applicable[380](index=380&type=chunk)[381](index=381&type=chunk) Financial Statements and Supplementary Data [Consolidated Financial Statements](index=84&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets grew to $2.54 billion in 2021, with net income significantly increasing to $23.7 million Consolidated Balance Sheet Highlights | Account | Dec 31, 2021 (Millions) | Dec 31, 2020 (Millions) | | :--- | :--- | :--- | | Total Assets | $2,538.4 | $2,365.9 | | Loans, Net | $1,844.9 | $1,906.2 | | Total Deposits | $2,256.9 | $2,043.4 | | Total Liabilities | $2,314.7 | $2,139.2 | | Total Shareholders' Equity | $223.7 | $226.6 | Consolidated Income Statement Highlights | Account | 2021 (Millions) | 2020 (Millions) | 2019 (Millions) | | :--- | :--- | :--- | :--- | | Net Interest Income | $73.2 | $64.4 | $58.0 | | (Credit) Provision for Loan Losses | ($0.9) | $7.8 | $2.7 | | Non-interest Income | $12.6 | $9.3 | $9.7 | | Non-interest Expense | $54.9 | $51.8 | $47.8 | | **Net Income** | **$23.7** | **$11.2** | **$13.3** | [Notes to Consolidated Financial Statements](index=92&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, loan and investment portfolios, deposits, borrowings, regulatory capital, and employee benefit plans, including COVID-19 impacts - The allowance for loan losses methodology includes a qualitative factor for the economic impact of COVID-19, which was added in March 2020[446](index=446&type=chunk) - In April 2021, the company issued **$20 million** in **4.875% fixed-to-floating rate subordinated notes**, which qualify as Tier 2 capital[541](index=541&type=chunk)[542](index=542&type=chunk) - The company's and the Bank's regulatory capital ratios exceeded the levels required to be considered "well-capitalized" under federal banking regulations as of December 31, 2021[593](index=593&type=chunk) - During 2021, the company repurchased **2,758,051 shares** of its common stock at an average price of **$8.33 per share**[597](index=597&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-16767 Western New England Bancorp, Inc. (Exact name of registrant as specified in its charter) Massachusetts 7 ...