Western New England Bancorp(US:WNEB)2024-04-23 20:31Financial Performance - For the three months ended March 31, 2024, net income was $3.0 million, or $0.14 per diluted share, a decrease from $5.3 million, or $0.24 per diluted share, for the same period in 2023[1] - Net income for Q1 2024 increased to $2,961 million, up 18% from $2,511 million in Q4 2023 but down 44% from $5,304 million in Q1 2023[66] - Basic earnings per share increased to $0.14 from $0.12 in the previous quarter[60] - Basic earnings per share for Q1 2024 were $0.14, up from $0.12 in Q4 2023 but down from $0.24 in Q1 2023[66] Loans and Credit Quality - Total loans were $2.0 billion, a decrease of $1.8 million, or 0.1%, from December 31, 2023, primarily due to a $10.1 million, or 4.7%, decrease in commercial and industrial loans[4] - The allowance for credit losses was $19.9 million, or 0.98% of total loans, with nonperforming loans totaling $5.8 million, or 0.29% of total loans[7] - Total delinquency rate improved to 0.23% of total loans at March 31, 2024, down from 0.30% at December 31, 2023[45] - Nonperforming loans decreased to $5.8 million, or 0.29% of total loans, compared to $6.4 million, or 0.32% at the end of 2023[45] - The allowance for credit losses as a percentage of total loans was 0.98% at March 31, 2024, down from 1.00% at December 31, 2023[46] Interest Income and Margin - The net interest margin was 2.57% for the three months ended March 31, 2024, down from 2.64% for the three months ended December 31, 2023[8] - Net interest income decreased by $3.2 million, or 17.1%, to $15.3 million, primarily due to interest expense increasing by $6.1 million, or 119.3%[25] - The average yield on interest-earning assets increased to 4.45% for the three months ended March 31, 2024, compared to 4.38% for the previous quarter[15] - The net interest margin on a fully tax-equivalent basis for Q1 2024 was 2.59%, down from 2.66% in Q4 2023[66] Deposits and Funding - Total deposits remained stable at $2.1 billion, with core deposits decreasing by $31.9 million, or 2.1%, from $1.5 billion at December 31, 2023[5] - Time deposits increased by $31.8 million, or 5.2%, from $611.4 million at December 31, 2023, to $643.2 million at March 31, 2024[48] - The Company continues to focus on maintaining and expanding its core deposit base to meet funding requirements and liquidity needs[49] Expenses and Efficiency - The efficiency ratio increased to 82.0% for the three months ended March 31, 2024, compared to 78.3% for the three months ended December 31, 2023, driven by a 4.6% decrease in total revenues[21] - Non-interest expense decreased by $114,000, or 0.8%, to $14.8 million for the three months ended March 31, 2024[34] - The efficiency ratio for the quarter was 82.03%, an increase from 78.27% in the previous quarter, indicating a decline in operational efficiency[80] Capital and Assets - At March 31, 2024, total assets were $2.6 billion, a decrease of $7.3 million, or 0.3%, from December 31, 2023[37] - Shareholders' equity was $235.8 million, or 9.2% of total assets, compared to $237.4 million, or 9.3% at December 31, 2023[51] - The total Risk-Based Capital Ratio was 14.7% at both March 31, 2024, and December 31, 2023, indicating strong capital levels[52] - Total bank equity as of March 31, 2024, was $241,480,000, slightly down from $242,780,000 in the previous quarter, a decrease of 0.5%[77]