Western New England Bancorp(WNEB) - 2024 Q3 - Quarterly Results

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].