Western New England Bancorp(WNEB) - 2025 Q3 - Quarterly Results

Financial Performance - For the three months ended September 30, 2025, net income was $3.2 million, or $0.16 per diluted share, compared to $1.9 million, or $0.09 per diluted share for the same period in 2024, representing a 68.4% year-over-year increase[1]. - Net income increased by $1.3 million, or 66.3%, from $1.9 million for the three months ended September 30, 2024, to $3.2 million for the same period in 2025[23]. - Net income for the three months ended September 30, 2025, was $3,167,000, compared to $2,303,000 in the previous quarter, representing a significant increase of 37.5%[70]. - Basic earnings per share for the three months ended September 30, 2025, was $0.16, consistent with the previous quarter, while diluted earnings per share also remained at $0.16[70]. - For the nine months ended September 30, 2025, net interest income increased by $6.7 million, or 15.1%, to $51.3 million compared to $44.5 million for the same period in 2024[36]. Loan and Deposit Growth - Total loans increased by $60.8 million, or 2.9%, to $2.1 billion as of September 30, 2025, driven primarily by a $52.3 million, or 6.7%, increase in residential real estate loans[4]. - Total deposits increased by $87.2 million, or 3.9%, to $2.3 billion as of September 30, 2025[5]. - Core deposits rose by $97.4 million, or 6.3%, from year-end 2024, totaling $1.7 billion, which is 70.5% of total deposits[5]. - Total core deposits increased to $1,656.5 million at September 30, 2025, up from $1,559.1 million at December 31, 2024, representing a growth of 6.3%[59]. - Average loans for the quarter ended September 30, 2025, were $2,112,394 thousand, up from $2,038,593 thousand in the same quarter of 2024, marking a year-over-year increase of 3.6%[85]. Interest Income and Margin - Net interest income increased by $3.4 million, or 22.8%, to $18.1 million for the three months ended September 30, 2025, compared to $14.7 million for the same period in 2024[24]. - The net interest margin improved to 2.81% for the three months ended September 30, 2025, up from 2.80% in the previous quarter[7]. - Total interest and dividend income for the three months ended September 30, 2025, was $30,033,000, an increase from $28,437,000 in the previous quarter, representing a growth of 5.6%[70]. - Net interest and dividend income after provision for credit losses was $16,799,000 for the three months ended September 30, 2025, compared to $15,392,000 in the previous quarter, reflecting an increase of 9.2%[70]. - The average loan yield (tax-equivalent basis) for Q3 2025 was 5.04%, up from 4.93% in Q3 2024, indicating improved asset yield[85]. Credit Losses and Allowance - The allowance for credit losses was $20.5 million, or 0.96% of total loans, as of September 30, 2025, compared to $19.5 million, or 0.94% at December 31, 2024[6]. - Provision for credit losses increased by $1.9 million to $1.3 million for the three months ended September 30, 2025, primarily due to higher balances in commercial real estate loans[17]. - Provision for credit losses increased to $820,000 for the nine months ended September 30, 2025, compared to $97,000 for the same period in 2024, primarily due to a 21.4% increase in unfunded commitments[40]. - Total delinquency decreased to $4.5 million, or 0.21% of total loans, at September 30, 2025, down from $5.0 million, or 0.24% of total loans, at December 31, 2024[54]. Non-Interest Income and Expenses - Non-interest income decreased by $238,000, or 7.0%, to $3.2 million for the three months ended September 30, 2025, compared to $3.4 million for the previous quarter[19]. - Non-interest income decreased to $3,173 million from $3,411 million in the previous quarter[75]. - Non-interest expense increased by $1.4 million, or 9.5%, to $15.8 million for the three months ended September 30, 2025, compared to $14.4 million for the same period in 2024[32]. - Non-interest expense rose by $3.1 million, or 7.2%, to $46.6 million for the nine months ended September 30, 2025, driven by a 9.1% increase in salaries and employee benefits[43]. Efficiency and Ratios - The efficiency ratio improved to 74.2% for the three months ended September 30, 2025, compared to 80.6% for the same period in 2024[33]. - The efficiency ratio improved to 76.9% for the nine months ended September 30, 2025, down from 80.3% for the same period in 2024, reflecting higher revenues[44]. - The efficiency ratio (GAAP) was reported at 74.20% for the quarter ended September 30, 2025, slightly improved from 80.62% in the same quarter of 2024[86]. - The Company's total capital to risk-weighted assets ratio was 14.30% at September 30, 2025, slightly down from 14.38% at December 31, 2024[63]. - The Tier 1 capital to risk-weighted assets ratio was 12.26% at September 30, 2025, compared to 12.37% at December 31, 2024[63].