Western New England Bancorp(US:WNEB)2026-01-27 21:20Financial Performance - For the three months ended December 31, 2025, the Company reported net income of $5.2 million, or $0.26 per diluted share, a 58.5% increase from $3.3 million, or $0.16 per diluted share, for the same period in 2024[1] - Net income for the three months ended December 31, 2025, increased by $1.9 million, or 58.4%, to $5.2 million, or $0.26 per diluted share, compared to $3.3 million, or $0.16 per diluted share, for the same period in 2024[22] - For the twelve months ended December 31, 2025, net income was $15.3 million, or $0.75 per diluted share, compared to $11.7 million, or $0.56 per diluted share, for the same period in 2024[34] - Net income for the quarter was $5,209 thousand, a significant increase from $3,167 thousand in the previous quarter, representing a 64.4% growth[75] Loan and Deposit Growth - Total loans increased by $113.2 million, or 5.5%, to $2.2 billion, while core deposits rose by $111.9 million, or 7.2%, to $1.7 billion[4] - Total loans increased by $113.2 million, or 5.5%, to $2.2 billion, with residential real estate loans increasing by $81.2 million, or 10.5%[51] - Total deposits increased by $98.3 million, or 4.3%, to $2.4 billion from December 31, 2024[5] - Average demand deposits increased by $20.9 million, or 3.7%, to $582.2 million for the twelve months ended December 31, 2025, compared to $561.3 million for the same period in 2024[39] Interest Income and Margin - The net interest margin expanded to 2.91% for the three months ended December 31, 2025, marking the sixth consecutive quarter of growth in both net interest income and net interest margin[3] - Net interest income rose by $3.6 million, or 23.3%, to $18.8 million for the three months ended December 31, 2025, driven by a $2.0 million increase in interest and dividend income and a $1.6 million decrease in interest expense[23] - The net interest margin increased by 48 basis points from 2.41% for the three months ended December 31, 2024, to 2.89% for the three months ended December 31, 2025[24] - Total interest and dividend income for the three months ended December 31, 2025, was $30,537 million, an increase from $28,586 million in the same period last year, representing a growth of 6.8%[70] Expenses and Efficiency - Non-interest expense increased by $92,000, or 0.6%, to $15.9 million for the three months ended December 31, 2025[19] - Non-interest expense increased by $944,000, or 6.3%, to $15.9 million for the three months ended December 31, 2025, primarily due to a $920,000 increase in salaries and employee benefits[30] - The efficiency ratio improved to 72.1% for the three months ended December 31, 2025, compared to 80.6% for the same period in 2024, reflecting increased net interest income[31] - The efficiency ratio improved to 75.6% for the twelve months ended December 31, 2025, down from 80.4% in 2024, driven by higher net interest income[44] Credit Quality - The allowance for credit losses was $20.3 million, or 0.93% of total loans, with a coverage ratio of 393.2% for nonaccrual loans[6] - The Company recorded a reversal of credit losses of $485,000 during the three months ended December 31, 2025, compared to a provision for credit losses of $1.3 million in the previous quarter[16] - Total delinquency decreased to $3.1 million, or 0.14% of total loans, at December 31, 2025, down from $5.0 million, or 0.24% in 2024[54] - Allowance for credit losses as a percentage of total loans was 0.93%, slightly down from 0.96% in the previous quarter[75] Shareholder Returns and Equity - The Company repurchased 599,853 shares of common stock at an average price of $9.73 during the twelve months ended December 31, 2025[3] - As of December 31, 2025, shareholders' equity was $247.6 million, representing 9.1% of total assets, an increase from $235.9 million or 8.9% at December 31, 2024[62] - The company paid cash dividends of $5.7 million and repurchased shares at a cost of $6.2 million during the reporting period[62] - Total shares outstanding as of December 31, 2025, were 20,372,786, reflecting the company's equity structure[62] Regulatory and Market Presence - The company operates 25 banking offices throughout western Massachusetts and northern Connecticut, indicating a stable market presence[65] - The company maintains strong regulatory capital ratios, exceeding minimum requirements to be considered well-capitalized[62] - The total capital ratio to risk-weighted assets was 14.19% as of December 31, 2025, slightly down from 14.38% in 2024[63] - Tier 1 capital ratio to risk-weighted assets was 12.21% for both 2025 and 2024, indicating stability in capital strength[63] Forward-Looking Statements - Forward-looking statements highlight potential risks including economic conditions, regulatory changes, and competitive pressures that could impact future performance[66] - The company intends to continue paying quarterly dividends, although future payments depend on various regulatory factors[64]