Western New England Bancorp, Inc. Reports Results for Three Months Ended March 31, 2025 and Declares Quarterly Cash Dividend
The Company Also Announces a New Share Repurchase Plan
WESTFIELD, Mass., April 22, 2025 (GLOBE NEWSWIRE) -- Western New England Bancorp, Inc. (the "Company" or "WNEB") (NasdaqGS: WNEB), the holding company for Westfield Bank (the "Bank"), announced today the unaudited results of operations for the three months ended March 31, 2025. The Company reported net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. On a linked quarter basis, net income was $2.3 million, or $0.11 per diluted share, compared to net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company's common stock. The dividend will be payable on or about May 21, 2025 to shareholders of record on May 7, 2025.
In addition, the Company announced that its Board of Directors authorized a new stock repurchase plan (the "2025 Plan"), pursuant to which the Company may repurchase up to 1.0 million shares of the Company's common stock, or approximately 4.8% of the Company's outstanding common stock as of today. The 2025 Plan will commence upon the completion of the Company's existing share repurchase plan (the "2024 Plan"). The 2024 Plan was approved by the Board of Directors on May 21, 2024, and as of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.
James C. Hagan, President and Chief Executive Officer, commented, "I am pleased to report the results for the first quarter of 2025. Our strong, diversified core deposit base and our disciplined approach to managing our funding costs have resulted in an increase in net interest income for the third consecutive quarter. The net interest margin increased eight basis points to 2.49% compared to the preceding quarter. We will continue to proactively manage our funding costs and benefit from our liability sensitive balance sheet to support net interest margin growth. In the first quarter, core deposits increased $70.2 million, or 4.5%, and represented 70.0% of total deposits while the loan-to-deposit ratio decreased to 89.3%. During the same period, average funding costs decreased four basis points.
"We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. Our asset quality remains strong, with nonaccrual loans at 0.29% of total loans as of March 31, 2025.
"The Company is considered to be well-capitalized, as defined by regulators and internal Company targets, and we remain disciplined in our capital management strategies. We continue to believe that buying back shares represents a valuable use of the Company's capital. Today, we announced the 2025 Plan, which will commence upon the completion of the 2024 Plan. Our stock repurchase programs are an integral element of our capital management strategies. As such, we believe that repurchasing common stock enhances shareholder value. We are pleased to be able to continue to return value to shareholders through share repurchases."
Hagan concluded, "Our commitment to strong capital and liquidity levels gives us a solid foundation to take advantage of opportunities in the markets we serve and to enhance shareholder value in the long term."
Key Highlights:
Loans and Deposits
Total gross loans increased $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.
At March 31, 2025, total deposits of $2.3 billion increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The loan-to-deposit ratio decreased from 91.5% at December 31, 2024 to 89.3% at March 31, 2025.
Liquidity
The Company's liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At March 31, 2025, the Company had $1.1 billion in immediately available liquidity, compared to $665.6 million in uninsured deposits, or 28.6% of total deposits, representing a coverage ratio of 171.5%.
Uninsured deposits of the Bank's customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep account or a reciprocal time deposit through the Certificate of Deposit Account Registry System. IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank's deposit customers if such customer desired to have such pass-through insurance.
Allowance for Credit Losses and Credit Quality
At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% of total loans, compared to $19.5 million, or 0.94% of total loans, at December 31, 2024. The allowance for loan losses, as a percentage of nonaccrual loans, was 327.1% and 362.9% at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. Total delinquent loans decreased from $5.0 million, or 0.24% of total loans, at December 31, 2024 to $4.5 million, or 0.22% of total loans, at March 31, 2025. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.
Net Interest Margin
The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.
Stock Repurchase Program
On May 21, 2024, the Board of Directors authorized the 2024 Plan under which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.6%, of the Company's then-outstanding shares of common stock. During the three months ended March 31, 2025, the Company repurchased 206,709 shares of common stock under the 2024 Plan, with an average price per share of $9.12. As of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.
On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of common stock, or approximately 4.8% of the Company's outstanding shares as of the date the 2025 Plan was announced. Repurchases under the 2025 Plan will commence upon the completion of the 2024 Plan.
The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under both the 2024 Plan and the 2025 Plan have been and will continue to be, as applicable, purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company's management ("Management") determines additional repurchases are not warranted. The timing and amount of additional share repurchases under both the 2024 Plan and the 2025 Plan will depend on a number of factors, including the Company's stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.
Book Value and Tangible Book Value
At March 31, 2025, the Company's book value per share was $11.44, compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.15, or 1.4%, from $10.63 at December 31, 2024 to $10.78 at March 31, 2025. See pages 16-17 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.
Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended December 31, 2024.
For the three months ended March 31, 2025, the Company reported a decrease in net income of $985,000, or 30.0%, from $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, to $2.3 million, or $0.11 per diluted share. Net interest income increased $261,000, or 1.7%, the provision for credit losses increased $904,000, non-interest income decreased $495,000, or 15.2%, and non-interest expense increased $258,000, or 1.7%. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.49% and 5.48%, respectively, for the three months ended December 31, 2024.
Net Interest Income and Net Interest Margin
On a sequential quarter basis, net interest income, our primary driver of revenues, increased $261,000, or 1.7%, to $15.5 million for the three months ended March 31, 2025, from $15.3 million for the three months ended December 31, 2024. The increase in net interest income was primarily due to a decrease in interest expense of $410,000, or 3.1%, partially offset by a decrease in interest income of $149,000, or 0.5%.
The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.56% for the three months ended March 31, 2025, compared to 4.52% for the three months ended December 31, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.86% for the three months ended December 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $12.7 million, or 0.5% to $2.5 billion, primarily due to an increase in average loans of $10.7 million, or 0.5%, and an increase in average securities of $3.9 million, or 1.1%.
The average cost of total funds, including non-interest bearing accounts and borrowings, decreased four basis points from 2.20% for the three months ended December 31, 2024 to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 10 basis points to 1.08% for the three months ended March 31, 2025, from 0.98% for the three months ended December 31, 2024. The average cost of time deposits decreased 20 basis points from 4.31% for the three months ended December 31, 2024, to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, was 5.04% for the three months ended December 31, 2024 and for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, decreased $9.6 million, or 1.6%, from $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $762,000 during the three months ended December 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also determined by a number of factors: the continued strong credit performance of the Company's loan portfolio, changes in the loan portfolio mix and Management's consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the interest rate environment, changing tariff policies and concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.
During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $128,000 for the three months ended December 31, 2024.
Non-Interest Income
On a sequential quarter basis, non-interest income decreased $495,000, or 15.2%, to $2.8 million for the three months ended March 31, 2025, from $3.3 million for the three months ended December 31, 2024. During the three months ended March 31, 2025, service charges and fees on deposits decreased $17,000, or 0.7%, to $2.3 million from the three months ended December 31, 2024. Income from bank-owned life insurance ("BOLI") decreased $13,000, or 2.7%, from the three months ended December 31, 2024 to $473,000 for the three months ended March 31, 2025. During the three months ended March 31, 2025, the Company reported a gain of $7,000 from mortgage banking activities, compared to a loss of $11,000 during the three months ended December 31, 2024. During the three months ended March 31, 2025, the Company reported unrealized losses on marketable equity securities of $5,000, compared to unrealized losses of $9,000, during the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have comparable income during the three months ended March 31, 2025. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended March 31, 2025.
Non-Interest Expense
For the three months ended March 31, 2025, non-interest expense increased $258,000, or 1.7%, to $15.2 million from $14.9 million for the three months ended December 31, 2024. Occupancy expense increased $156,000, or 12.4%, primarily due to snow removal costs of $143,000. Advertising expense increased $119,000, or 38.4%, professional fees increased $75,000, or 15.9%, FDIC insurance expense increased $42,000, or 10.8%, and software related expenses increased $17,000, or 2.6%. These increases were partially offset by a decrease in furniture and equipment expense of $18,000, or 3.6%, a decrease in data processing expense of $18,000, or 2.0%, a decrease in debit card processing and ATM network costs of $16,000, or 2.7%, a decrease in salaries and related benefits of $16,000, or 0.2%, and a decrease in other non-interest expense of $83,000, or 5.8%.
For the three months ended March 31, 2025 and the three months ended December 31, 2024, the efficiency ratio was 83.0% and 80.6%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 81.9% for the three months ended December 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses and lower non-interest income during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. The Company's detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. See pages 16-17 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.
Income Tax Provision
Income tax expense for the three months ended March 31, 2025 was $664,000, with an effective tax rate of 22.4%, compared to $1.1 million, with an effective tax rate of 24.6%, for the three months ended December 31, 2024.
Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024.
The Company reported net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. Net interest income increased $188,000, or 1.2%, provision for credit losses increased $692,000, non-interest income increased $85,000, or 3.2%, and non-interest expense increased $402,000, or 2.7%, during the same period. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.47% and 5.04%, respectively, for the three months ended March 31, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $188,000, or 1.2%, to $15.5 million, for the three months ended March 31, 2025, from $15.3 million for the three months ended March 31, 2024. The increase in net interest income was due to an increase in interest and dividend income of $1.8 million, or 6.9%, partially offset by an increase in interest expense of $1.6 million, or 14.6%. The increase in interest expense was primarily due to an increase in average interest-bearing deposits of $156.1 million, or 9.9%, and an increase in the average cost of interest-bearing deposit accounts of 29 basis points from the three months ended March 31, 2024 to the three months ended March 31, 2025. As a result, the net interest margin decreased from 2.57% for the three months ended March 31, 2024, to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.51% for the three months ended March 31, 2025, compared to 2.59% for the three months ended March 31, 2024.
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 11 basis points from 4.45% for the three months ended March 31, 2024 to 4.56% for the three months ended March 31, 2025. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.82% for the three months ended March 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $126.6 million, or 5.3%, to $2.5 billion, primarily due to an increase in average loans of $51.8 million, or 2.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $66.7 million, an increase in average securities of $5.9 million, or 1.6%, and an increase in average other investments of $2.3 million, or 18.6%.
The average cost of total funds, including non-interest bearing accounts and borrowings, increased 19 basis points from 1.97% for the three months ended March 31, 2024, to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 32 basis points from 0.76% for the three months ended March 31, 2024 to 1.08% for the three months ended March 31, 2025. The average cost of time deposits decreased one basis point from 4.12% for the three months ended March 31, 2024 to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, increased 13 basis points from 4.91% for the three months ended March 31, 2024 to 5.04% for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, increased $11.9 million, or 2.1%, from $557.7 million, or 26.1% of total average deposits, for the three months ended March 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $550,000 during the three months ended March 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also determined by a number of factors: the continued strong credit performance of the Company's loan portfolio, changes in the loan portfolio mix and Management's consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the interest rate environment, the continued discussion on tariffs and the concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.
During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $67,000 for the three months ended March 31, 2024.
Non-Interest Income
Non-interest income increased $85,000, or 3.2%, from $2.7 million, for the three months ended March 31, 2024 to $2.8 million for the three months ended March 31, 2025, primarily due to a $65,000, or 2.9%, increase in service charges and fees and an increase in income from BOLI of $20,000, or 4.4%.
Non-Interest Expense
Non-interest expense increased $402,000, or 2.7%, from $14.8 million for the three months ended March 31, 2024 to $15.2 million for the three months ended March 31, 2025. Salaries and benefits increased $169,000, or 2.0%, advertising expense increased $80,000, or 22.9%, occupancy expense increased $49,000, or 3.6%, debit card processing and ATM network costs increased $25,000, or 4.5%, FDIC insurance expense increased $21,000, or 5.1%, data processing expense increased $20,000, or 2.3%, furniture and equipment expense increased $3,000, or 0.6%, and other non-interest expense increased $98,000, or 7.8%. These increases were partially offset by a decrease in software related expenses of $40,000, or 5.7%, and a decrease in professional fees of $23,000, or 4.0%.
For the three months ended March 31, 2025 and the three months ended March 31, 2024, the efficiency ratio was 83.0% and 82.0%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 82.0% for the three months ended March 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. See pages 16-17 for the efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.
Income Tax Provision
For the three months ended March 31, 2025, income tax expense was $664,000, with an effective tax rate of 22.4%, compared to $827,000, with an effective tax rate of 21.8%, for the three months ended March 31, 2024.
Balance Sheet
At March 31, 2025, total assets were $2.7 billion, an increase of $56.2 million, or 2.1%, from December 31, 2024. The increase in total assets was primarily due to an increase in total gross loans of $9.3 million, or 0.4%, an increase in cash and cash equivalents of $44.1 million, or 66.4%, and an increase in investment securities of $3.6 million, or 1.0%.
Investments
At March 31, 2025, the investment securities portfolio totaled $369.8 million, or 13.6% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At March 31, 2025, the Company's available-for-sale securities portfolio, recorded at fair market value, increased $7.1 million, or 4.4%, from $160.7 million at December 31, 2024 to $167.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $3.4 million, or 1.7%, from $205.0 million at December 31, 2024 to $201.6 million at March 31, 2025.
At March 31, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $27.8 million, or 14.2% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities at December 31, 2024. At March 31, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $35.8 million, or 17.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2024.
The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $8.7 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.
Management regularly reviews the portfolio for securities in an unrealized loss position. At March 31, 2025 and December 31, 2024, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company's investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank ("FHLB") as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support's the Bank's objective to provide liquidity.
Total Loans
Total gross loans increased $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.
The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:
March 31, 2025 December 31, 2024
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(Dollars in thousands)
Commercial real estate loans:
Non-owner occupied $ 881,105 $ 880,828
Owner-occupied 191,582 194,904
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Total commercial real estate
loans 1,072,687 1,075,732
Residential real estate loans:
Residential 659,984 653,802
Home equity 123,804 121,857
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Total residential real
estate loans 783,788 775,659
Commercial and industrial loans 216,368 211,656
Consumer loans 3,865 4,391
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Total gross loans 2,076,708 2,067,438
Unamortized premiums and net
deferred loans fees and costs 2,853 2,751
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Total loans $ 2,079,561 $ 2,070,189
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Credit Quality
Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers' financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.
Total delinquency was $4.5 million, or 0.22% of total loans, at March 31, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At March 31, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. Total nonaccrual assets totaled $6.0 million, or 0.22% of total assets, at March 31, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.
At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% of total loans and 327.1% of nonaccrual loans, compared to $19.5 million, or 0.94% of total loans and 362.9% of nonaccrual loans, at December 31, 2024. Total criticized loans, defined as special mention and substandard loans, decreased $2.1 million, or 5.5%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $36.3 million, or 1.7% of total loans, at March 31, 2025.
Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At March 31, 2025, the commercial real estate portfolio totaled $1.1 billion, and represented 51.7% of total loans. Of the $1.1 billion, $881.1 million, or 82.1%, was categorized as non-owner occupied commercial real estate and represented 325.8% of the Bank's total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.
Deposits
At March 31, 2025, total deposits were $2.3 billion and increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Non-interest-bearing deposits increased $24.4 million, or 4.3%, to $590.0 million, and represent 25.3% of total deposits, money market accounts increased $45.7 million, or 6.9%, to $707.2 million, savings accounts increased $9.8 million, or 5.4%, to $191.4 million and interest-bearing checking accounts decreased $9.6 million, or 6.4%, to $140.8 million.
Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The Company has experienced growth and movement in both money market accounts and non-interest-bearing deposits as a result of seasonal customer behaviors, relationship pricing, and the current interest rate environment, as opposed to time deposit specials or interest rate adjustments. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At March 31, 2025, the Bank's uninsured deposits totaled $665.6 million, or 28.6% of total deposits, compared to $643.6 million, or 28.4% of total deposits, at December 31, 2024.
The table below is a summary of our deposit balances for the periods noted:
March 31, December 31,
2025 2024 March 31, 2024
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(Dollars in thousands)
Core Deposits:
Demand accounts $ 589,996 $ 565,620 $ 559,928
Interest-bearing
accounts 140,769 150,348 125,377
Savings accounts 191,398 181,618 190,732
Money market
accounts 707,153 661,478 624,474
--------- --------- ---------
Total Core
Deposits $ 1,629,316 $ 1,559,064 $ 1,500,511
--------- --------- ---------
Time Deposits: 699,277 703,583 643,236
Total Deposits: $ 2,328,593 $ 2,262,647 $ 2,143,747
========= ========= =========
FHLB and Subordinated Debt
At March 31, 2025, total borrowings decreased $860,000, or 0.7%, from $123.1 million at December 31, 2024 to $122.3 million. At March 31, 2025, short-term borrowings decreased $870,000, or 16.1%, to $4.5 million, compared to $5.4 million at December 31, 2024. Long-term borrowings were $98.0 million at March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.
As of March 31, 2025, the Company had $447.5 million of additional borrowing capacity at the FHLB, $378.5 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.
Capital
At March 31, 2025, shareholders' equity was $237.7 million, or 8.8% of total assets, compared to $235.9 million, or 8.9% of total assets, at December 31, 2024. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $2.6 million, cash dividends paid of $1.4 million, repurchase of shares at a cost of $2.0 million, partially offset by net income of $2.3 million. At March 31, 2025, total shares outstanding were 20,774,319. The Company's regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.
March 31, 2025 December 31, 2024
-------------------- -----------------------
Company Bank Company Bank
--------- --------- ----------- ----------
Total Capital (to Risk
Weighted Assets) 14.28% 13.56% 14.38% 13.65%
Tier 1 Capital (to Risk
Weighted Assets) 12.27% 12.55% 12.37% 12.64%
Common Equity Tier 1
Capital (to Risk
Weighted Assets) 12.27% 12.55% 12.37% 12.64%
Tier 1 Leverage Ratio (to
Adjusted Average
Assets) 9.06% 9.26% 9.14% 9.34%
Dividends
Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company's ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company's ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.
About Western New England Bancorp, Inc.
Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company's financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:
-- unpredictable changes in general economic or political conditions,
financial markets, fiscal, monetary and regulatory policies, including
actual or potential stress in the banking industry;
-- the duration and scope of potential pandemics, including the emergence of
new variants and the response thereto;
-- unstable political and economic conditions, including changes in tariff
policies, which could materially impact credit quality trends and the
ability to generate loans and gather deposits;
-- inflation and governmental responses to inflation, including recent
sustained increases and potential future increases in interest rates that
reduce margins;
-- the effect on our operations of governmental legislation and regulation,
including changes in accounting regulation or standards, the nature and
timing of the adoption and effectiveness of new requirements under the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel
guidelines, capital requirements and other applicable laws and
regulations;
-- significant changes in accounting, tax or regulatory practices or
requirements;
-- new legal obligations or liabilities or unfavorable resolutions of
litigation;
-- disruptive technologies in payment systems and other services
traditionally provided by banks;
-- the highly competitive industry and market area in which we operate;
-- operational risks or risk management failures by us or critical third
parties, including without limitation with respect to data processing,
information systems, cybersecurity, technological changes, vendor issues,
business interruption, and fraud risks;
-- failure or circumvention of our internal controls or procedures;
-- changes in the securities markets which affect investment management
revenues;
-- increases in Federal Deposit Insurance Corporation deposit insurance
premiums and assessments;
-- the soundness of other financial services institutions which may
adversely affect our credit risk;
-- certain of our intangible assets may become impaired in the future;
-- new lines of business or new products and services, which may subject us
to additional risks;
-- changes in key management personnel which may adversely impact our
operations;
-- severe weather, natural disasters, acts of war or terrorism and other
external events which could significantly impact our business; and
-- other risk factors detailed from time to time in our SEC filings.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Net Income and Other Data
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
-----------------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2025 2024 2024 2024 2024
INTEREST AND
DIVIDEND INCOME:
Loans $ 24,984 $ 25,183 $ 25,134 $ 24,340 $ 24,241
Securities 2,422 2,273 2,121 2,141 2,114
Other
investments 191 214 189 148 136
Short-term
investments 840 916 396 173 113
---------- ---------- ---------- ---------- ----------
Total interest
and dividend
income 28,437 28,586 27,840 26,802 26,604
---------- ---------- ---------- ---------- ----------
INTEREST EXPENSE:
Deposits 11,376 11,443 11,165 10,335 9,293
Short-term
borrowings 54 60 71 186 283
Long-term debt 1,219 1,557 1,622 1,557 1,428
Subordinated
debt 254 253 254 254 254
----------
Total interest
expense 12,903 13,313 13,112 12,332 11,258
---------- ---------- ---------- ---------- ----------
Net interest
and dividend
income 15,534 15,273 14,728 14,470 15,346
PROVISION FOR
(REVERSAL OF)
CREDIT LOSSES 142 (762) 941 (294) (550)
---------- ---------- ---------- ---------- ----------
Net interest
and dividend
income after
provision for
(reversal of)
credit losses 15,392 16,035 13,787 14,764 15,896
---------- ---------- ---------- ---------- ----------
NON-INTEREST
INCOME:
Service charges
and fees on
deposits 2,284 2,301 2,341 2,341 2,219
Income from
bank-owned
life
insurance 473 486 470 502 453
Unrealized
(loss) gain on
marketable
equity
securities (5) (9) 10 4 8
Gain (loss) on
sale of
mortgages 7 (11) 246 - -
Gain on
non-marketable
equity
investments - 300 - 987 -
Loss on
disposal of
premises and
equipment - - - - (6)
Other income - 187 74 - -
Total
non-interest
income 2,759 3,254 3,141 3,834 2,674
---------- ---------- ---------- ---------- ----------
NON-INTEREST
EXPENSE:
Salaries and
employees'
benefits 8,413 8,429 8,112 7,901 8,244
Occupancy 1,412 1,256 1,217 1,218 1,363
Furniture and
equipment 487 505 483 483 484
Data processing 882 900 869 846 862
Software 659 642 612 566 699
Debit/ATM card
processing
expense 577 593 649 643 552
Professional
fees 546 471 540 581 569
FDIC insurance 431 389 338 323 410
Advertising 429 310 271 339 349
Other 1,348 1,431 1,315 1,414 1,250
---------- ---------- ---------- ---------- ----------
Total
non-interest
expense 15,184 14,926 14,406 14,314 14,782
---------- ---------- ---------- ---------- ----------
INCOME BEFORE
INCOME TAXES 2,967 4,363 2,522 4,284 3,788
INCOME TAX
PROVISION 664 1,075 618 771 827
---------- ---------- ---------- ---------- ----------
NET INCOME $ 2,303 $ 3,288 $ 1,904 $ 3,513 $ 2,961
========== ========== ========== ========== ==========
Basic earnings
per share $ 0.11 $ 0.16 $ 0.09 $ 0.17 $ 0.14
Weighted average
shares
outstanding 20,385,481 20,561,749 20,804,162 21,056,173 21,180,968
Diluted earnings
per share $ 0.11 $ 0.16 $ 0.09 $ 0.17 $ 0.14
Weighted average
diluted shares
outstanding 20,514,098 20,701,276 20,933,833 21,163,762 21,271,323
Other Data:
Return on average
assets (1) 0.35% 0.49% 0.29% 0.55% 0.47%
Return on average
equity (1) 3.94% 5.48% 3.19% 6.03% 5.04%
Efficiency ratio 83.00% 80.56% 80.62% 78.20% 82.03%
Adjusted
efficiency ratio
(2) 82.98% 81.85% 80.67% 82.68% 82.04%
Net interest
margin 2.49% 2.41% 2.40% 2.42% 2.57%
Net interest
margin, on a
fully
tax-equivalent
basis 2.51% 2.43% 2.42% 2.44% 2.59%
-------------------
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents
the ratio of operating expenses divided by the sum
of net interest and dividend income and non-interest
income, excluding realized and unrealized gains and
losses on securities, gain on non-marketable equity
investments, and loss on disposal of premises and
equipment.
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
December September
March 31, 31, 30, June 30, March 31,
2025 2024 2024 2024 2024
Cash and cash
equivalents $ 110,579 $ 66,450 $ 72,802 $ 53,458 $ 22,613
Securities
available-for-sale,
at fair value 167,800 160,704 155,889 135,089 138,362
Securities held to
maturity, at
amortized cost 201,557 205,036 213,266 217,632 221,242
Marketable equity
securities, at fair
value 414 397 252 233 222
Federal Home Loan
Bank of Boston and
other restricted
stock - at cost 5,818 5,818 7,143 7,143 3,105
Loans 2,079,561 2,070,189 2,049,002 2,026,226 2,025,566
Allowance for credit
losses (19,669) (19,529) (19,955) (19,444) (19,884)
--------- --------- --------- --------- ---------
Net loans 2,059,892 2,050,660 2,029,047 2,006,782 2,005,682
Bank-owned life
insurance 77,529 77,056 76,570 76,100 75,598
Goodwill 12,487 12,487 12,487 12,487 12,487
Core deposit
intangible 1,344 1,438 1,531 1,625 1,719
Other assets 71,864 73,044 71,492 75,521 76,206
--------- --------- --------- --------- ---------
TOTAL ASSETS $2,709,284 $2,653,090 $2,640,479 $2,586,070 $2,557,236
========= ========= ========= ========= =========
Total deposits $2,328,593 $2,262,647 $2,224,206 $2,171,809 $2,143,747
Short-term
borrowings 4,520 5,390 4,390 6,570 11,470
Long-term debt 98,000 98,000 128,277 128,277 120,646
Subordinated debt 19,761 19,751 19,741 19,731 19,722
Securities pending
settlement 2,093 8,622 2,513 102 -
Other liabilities 18,641 22,770 20,697 23,104 25,855
--------- --------- --------- --------- ---------
TOTAL LIABILITIES 2,471,608 2,417,180 2,399,824 2,349,593 2,321,440
--------- --------- --------- --------- ---------
TOTAL SHAREHOLDERS'
EQUITY 237,676 235,910 240,655 236,477 235,796
--------- --------- --------- --------- ---------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY $2,709,284 $2,653,090 $2,640,479 $2,586,070 $2,557,236
========= ========= ========= ========= =========
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Other Data
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2025 2024 2024 2024 2024
Shares outstanding
at end of period 20,774,319 20,875,713 21,113,408 21,357,849 21,627,690
Operating results:
Net interest
income $ 15,534 $ 15,273 $ 14,728 $ 14,470 $ 15,346
Provision for
(reversal of)
credit losses 142 (762) 941 (294) (550)
Non-interest
income 2,759 3,254 3,141 3,834 2,674
Non-interest
expense 15,184 14,926 14,406 14,314 14,782
Income before
income
provision for
income taxes 2,967 4,363 2,522 4,284 3,788
Income tax
provision 664 1,075 618 771 827
Net income 2,303 3,288 1,904 3,513 2,961
Performance
Ratios:
Net interest
margin 2.49% 2.41% 2.40% 2.42% 2.57%
Net interest
margin, on a
fully
tax-equivalent
basis 2.51% 2.43% 2.42% 2.44% 2.59%
Interest rate
spread 1.74% 1.63% 1.60% 1.66% 1.85%
Interest rate
spread, on a
fully
tax-equivalent
basis 1.76% 1.65% 1.62% 1.67% 1.86%
Return on
average
assets 0.35% 0.49% 0.29% 0.55% 0.47%
Return on
average
equity 3.94% 5.48% 3.19% 6.03% 5.04%
Efficiency
ratio (GAAP) 83.00% 80.56% 80.62% 78.20% 82.03%
Adjusted
efficiency
ratio
(non-GAAP)(1) 82.98% 81.85% 80.67% 82.68% 82.04%
Per Common Share
Data:
Basic earnings
per share $ 0.11 $ 0.16 $ 0.09 $ 0.17 $ 0.14
Earnings per
diluted share 0.11 0.16 0.09 0.17 0.14
Cash dividend
declared 0.07 0.07 0.07 0.07 0.07
Book value per
share 11.44 11.30 11.40 11.07 10.90
Tangible book
value per
share
(non-GAAP)(2) 10.78 10.63 10.73 10.41 10.25
Asset Quality:
30-89 day
delinquent
loans $ 2,459 $ 3,694 $ 3,059 $ 3,270 $ 3,000
90 days or more
delinquent
loans 2,027 1,301 1,253 2,280 1,716
Total
delinquent
loans 4,486 4,995 4,312 5,550 4,716
Total
delinquent
loans as a
percentage of
total loans 0.22% 0.24% 0.21% 0.27% 0.23%
Nonaccrual
loans $ 6,014 $ 5,381 $ 4,873 $ 5,845 $ 5,837
Nonaccrual
loans as a
percentage of
total loans 0.29% 0.26% 0.24% 0.29% 0.29%
Nonaccrual
assets as a
percentage of
total assets 0.22% 0.20% 0.18% 0.23% 0.23%
Allowance for
credit losses
as a
percentage of
nonaccrual
loans 327.05% 362.93% 409.50% 332.66% 340.65%
Allowance for
credit losses
as a
percentage of
total loans 0.95% 0.94% 0.97% 0.96% 0.98%
Net loan
charge-offs
(recoveries) $ 29 $ (128) $ 98 $ 10 $ (67)
Net loan
charge-offs
(recoveries)
as a
percentage of
average loans 0.00% (0.01)% 0.00% 0.00% 0.00%
------------------ (1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and loss on disposal of premises and equipment. (2) Tangible book value per share (non-GAAP) represents the value of the Company's tangible assets divided by its current outstanding shares.
The following table sets forth the information relating to our average balances and net interest income for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
Three Months Ended
--------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 March 31, 2024
---------------------------------- --------------------------------- ---------------------------------
Average Average Average
Average Yield/ Average Yield/ Average Yield/
Balance Interest Cost(8) Balance Interest Cost(8) Balance Interest Cost(8)
---------- --------- ----------- ---------- -------- ----------- ---------- -------- -----------
(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2) $2,073,486 $25,105 4.91% $2,062,822 $25,311 4.88% $2,021,713 $24,351 4.84%
Securities(2) 365,371 2,422 2.69 361,476 2,273 2.50 359,493 2,114 2.37
Other investments 14,819 191 5.23 15,924 214 5.35 12,494 136 4.38
Short-term
investments(3) 76,039 840 4.48 76,795 916 4.75 9,386 113 4.84
--------- ------ --------- ------ --------- ------
Total
interest-earning
assets 2,529,715 28,558 4.58 2,517,017 28,714 4.54 2,403,086 26,714 4.47
------ ------ ------
Total
non-interest-earning
assets 156,733 155,538 154,410
--------- --------- ---------
Total assets $2,686,448 $2,672,555 $2,557,496
========= ========= =========
LIABILITIES AND EQUITY:
Interest-bearing
liabilities
Interest-bearing
checking accounts $ 140,960 250 0.72 $ 149,231 264 0.70 $ 135,559 234 0.69
Savings accounts 183,869 40 0.09 179,122 38 0.08 186,125 39 0.08
Money market accounts 704,215 3,968 2.29 654,965 3,553 2.16 626,267 2,587 1.66
Time deposit accounts 702,748 7,118 4.11 700,324 7,588 4.31 627,699 6,433 4.12
--------- ------ --------- ------ --------- ------
Total
interest-bearing
deposits 1,731,792 11,376 2.66 1,683,642 11,443 2.70 1,575,650 9,293 2.37
Short-term borrowings
and long-term debt 122,786 1,527 5.04 147,748 1,870 5.04 160,802 1,965 4.91
------ ------ ------
Interest-bearing
liabilities 1,854,578 12,903 2.82 1,831,390 13,313 2.89 1,736,452 11,258 2.61
--------- ------ --------- ------ --------- ------
Non-interest-bearing
deposits 569,638 579,168 557,711
Other
non-interest-bearing
liabilities 25,464 23,380 27,078
--------- --------- ---------
Total
non-interest-bearing
liabilities 595,102 602,548 584,789
--------- --------- ---------
Total liabilities 2,449,680 2,433,938 2,321,241
Total equity 236,768 238,617 236,255
--------- --------- ---------
Total liabilities and
equity $2,686,448 $2,672,555 $2,557,496
========= ========= =========
Less: Tax-equivalent
adjustment(2) (121) (128) (110)
------ ------ ------
Net interest and
dividend income $15,534 $15,273 $15,346
====== ====== ======
Net interest rate
spread(4) 1.74% 1.63% 1.85%
Net interest rate
spread, on a
tax-equivalent
basis(5) 1.76% 1.65% 1.86%
Net interest margin(6) 2.49% 2.41% 2.57%
Net interest margin, on
a tax-equivalent
basis(7) 2.51% 2.43% 2.59%
Ratio of average
interest-earning assets
to average
interest-bearing
liabilities 136.40% 137.44% 138.39%
------------------------
(1) Loans, including nonaccrual loans, are net of
deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a
tax-equivalent basis using a tax rate of 21%. The
tax-equivalent adjustment is deducted from tax-equivalent
net interest and dividend income to agree to the amount
reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference
between the weighted average yield on interest-earning
assets and the weighted average cost of interest-bearing
liabilities.
(5) Net interest rate spread, on a tax-equivalent
basis, represents the difference between the tax-equivalent
weighted average yield on interest-earning assets
and the tax-equivalent weighted average cost of interest-bearing
liabilities.
(6) Net interest margin represents net interest and
dividend income as a percentage of average interest-earning
assets.
(7) Net interest margin, on a tax-equivalent basis,
represents tax-equivalent net interest and dividend
income as a percentage of average interest-earning
assets.
(8) Annualized.
Reconciliation of Non-GAAP to GAAP Financial Measures
-----------------------------------------------------
The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.
For the quarter ended
------------------------------------------------------------------------------
3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024
-------------- -------------- -------------- -------------- --------------
(Dollars in thousands)
Loan interest (no
tax adjustment) $ 24,984 $ 25,183 $ 25,134 $ 24,340 $ 24,241
Tax-equivalent
adjustment 121 128 119 114 110
Loan interest
(tax-equivalent
basis) $ 25,105 $ 25,311 $ 25,253 $ 24,454 $ 24,351
========= ========= ========= ========= =========
Net interest income
(no tax
adjustment) $ 15,534 $ 15,273 $ 14,728 $ 14,470 $ 15,346
Tax equivalent
adjustment 121 128 119 114 110
Net interest
income
(tax-equivalent
basis) $ 15,655 $ 15,401 $ 14,847 $ 14,584 $ 15,456
========= ========= ========= ========= =========
Average
interest-earning
assets $2,529,715 $2,517,017 $2,441,236 $2,400,633 $2,403,086
Net interest margin
(no tax
adjustment) 2.49% 2.41% 2.40% 2.42% 2.57%
Net interest margin,
tax-equivalent 2.51% 2.43% 2.42% 2.44% 2.59%
Book Value per Share
(GAAP) $ 11.44 $ 11.30 $ 11.40 $ 11.07 $ 10.90
--------------------
Non-GAAP
adjustments:
Goodwill (0.60) (0.60) (0.59) (0.58) (0.58)
Core deposit
intangible (0.06) (0.07) (0.08) (0.08) (0.07)
Tangible Book Value
per Share
(non-GAAP) $ 10.78 $ 10.63 $ 10.73 $ 10.41 $ 10.25
========= ========= ========= ========= =========
For the quarter ended
------------------------------------------------------------------
3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024
----------- -------------- ----------- ----------- -----------
(Dollars in thousands)
Efficiency Ratio:
------------------
Non-interest
Expense (GAAP) $15,184 $ 14,926 $14,406 $14,314 $14,782
Net Interest
Income (GAAP) $15,534 $ 15,273 $14,728 $14,470 $15,346
Non-interest
Income (GAAP) $ 2,759 $ 3,254 $ 3,141 $ 3,834 $ 2,674
Non-GAAP
adjustments:
Unrealized
losses (gains)
on marketable
equity
securities 5 9 (10) (4) (8)
Gain on
non-marketable
equity
investments - (300) - (987) -
Loss on
disposal of
premises and
equipment - - - - 6
Non-interest
Income for
Adjusted
Efficiency Ratio
(non-GAAP) $ 2,764 $ 2,963 $ 3,131 $ 2,843 $ 2,672
Total Revenue for
Adjusted
Efficiency Ratio
(non-GAAP) $18,298 $ 18,236 $17,859 $17,313 $18,018
====== ====== ====== ====== ======
Efficiency Ratio
(GAAP) 83.00% 80.56% 80.62% 78.20% 82.03%
Adjusted
Efficiency Ratio
(Non-interest
Expense
(GAAP)/Total
Revenue for
Adjusted
Efficiency Ratio
(non-GAAP)) 82.98% 81.85% 80.67% 82.68% 82.04%
For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911
(END) Dow Jones Newswires
April 22, 2025 16:05 ET (20:05 GMT)
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