U.S. Markets open in 3 hrs 21 mins

Western New England Bancorp, Inc. (WNEB)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Add to watchlist
8.12+0.01 (+0.12%)
At close: 4:00PM EDT
Full screen
Trade prices are not sourced from all markets
Gain actionable insight from technical analysis on financial instruments, to help optimize your trading strategies
Chart Events
Neutralpattern detected
Previous Close8.11
Open8.28
Bid0.00 x 800
Ask0.00 x 900
Day's Range8.11 - 8.26
52 Week Range4.92 - 9.24
Volume85,267
Avg. Volume144,473
Market Cap199.622M
Beta (5Y Monthly)0.36
PE Ratio (TTM)13.49
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.20 (2.45%)
Ex-Dividend DateMay 11, 2021
1y Target EstN/A
  • Western New England Bancorp, Inc. Announces Completion of 2020 Repurchase Plan
    GlobeNewswire

    Western New England Bancorp, Inc. Announces Completion of 2020 Repurchase Plan

    WESTFIELD, Mass., May 25, 2021 (GLOBE NEWSWIRE) -- Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced the completion of its current stock repurchase plan (the “2020 Plan”) on May 20, 2021, previously announced on October 27, 2020. In connection with the 2020 Plan, the Company repurchased a total of 1.3 million shares, or approximately 5% of its outstanding common stock. On April 27, 2021, the Board of Directors authorized a stock repurchase plan (the “2021 Plan”), pursuant to which the Company may repurchase up to 2.4 million shares, or approximately 10%, of the Company’s outstanding shares, upon the completion of the 2020 Plan. “We are pleased to announce the completion of the 2020 Plan. The Board of Directors and management continue to believe that repurchases of the Company’s shares are an attractive opportunity and demonstrate our commitment to enhancing shareholder value,” said James C. Hagan, President and Chief Executive Officer. 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 statements that are forward-looking and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in Western New England Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its Quarterly Reports on Form 10-Q for the quarter ended March 31, 2021. Western New England Bancorp does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For further information contact:James C. Hagan, President and CEOGuida R. Sajdak, Executive Vice President and CFOMeghan Hibner, Vice President and Investor Relations Officer413-568-1911

  • Western New England Bancorp, Inc. Reports Results for Three Months Ended March 31, 2021 and Declares Quarterly Cash Dividend
    GlobeNewswire

    Western New England Bancorp, Inc. Reports Results for Three Months Ended March 31, 2021 and Declares Quarterly Cash Dividend

    The Company Also Announces a New Share Repurchase Plan and Completion of a $20 Million Private Placement of Subordinated DebtWESTFIELD, Mass., April 27, 2021 (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, 2021. The Company reported net income of $5.8 million, or $0.24 per diluted share, for the three months ended March 31, 2021, as compared to net income of $2.1 million, or $0.08 per diluted share, for the three months ended March 31, 2020. On a linked quarter basis, net income was $5.8 million, or $0.24 per diluted share, as compared to net income of $5.0 million, or $0.20 per diluted share, for the three months ended December 31, 2020. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.05 per share, payable on or about May 26, 2021 to shareholders of record on May 12, 2021. In addition, the Board of Directors authorized a stock repurchase plan (the “2021 Plan”), pursuant to which the Company may repurchase up to 2.4 million shares, or approximately 10%, of the Company’s outstanding shares, upon the completion of the stock repurchase plan adopted in 2020 (the “2020 Plan”). The 2020 Plan was announced on October 27, 2020, and as of March 31, 2021, there were 326,936 shares available for purchase under the 2020 Plan. In addition, on April 20, 2021, the Company announced the completion of an offering of $20 million in aggregate principal amount of its 4.875% fixed-to-floating rate subordinated notes (the “Notes”) to certain qualified institutional buyers in a private placement transaction. The Company intends to use the net proceeds from this private placement for funding organic growth and the repurchase of the Company’s common stock. James C. Hagan, President and Chief Executive Officer, stated, “We are pleased to report that we generated strong earnings for the second consecutive quarter despite the business disruptions caused by the COVID-19 pandemic over the last twelve months. The positive results were primarily driven by the continued expansion of the net interest margin over the last few quarters, as well as income from the Paycheck Protection Program (“PPP”). The improved mix in our deposits and reductions in deposit costs led to our third consecutive quarter of core net interest margin expansion. Total deposits increased $116 million, or 6%, quarter-over-quarter and non-interest bearing deposits expanded to a record 28% of total deposits as of March 31, 2021. New customer relationships, government stimulus-related deposits, as well as PPP loan proceeds have all been valuable contributors to our deposit growth over the last few quarters. Year-over-year, total deposits increased $448 million, or 26%. Many factors were key in our growth, including the increase in our traditional market share due to the three new branches opened in 2020 as well as income from government stimulus programs. These results were achieved while also maintaining our historic solid asset quality during the pandemic. Our borrowers’ financial health continues to show improvements as indicated by our solid asset quality metrics and the decrease in loan deferrals from 14.7% on June 30, 2020 to 3.8% on March 31, 2021. Total delinquency and non-performing loans, excluding PPP loans, remain at acceptable levels of 0.53% and 0.39%, respectively. In order to preserve capital during the uncertainty driven by the pandemic, we paused our share repurchase activity during the second quarter of 2020. During the first quarter of 2021, we repurchased 708,434 shares at an average price per share of $8.12. We continue to believe that the stock repurchase plan is a solid investment for our shareholders and provides us with the opportunity to leverage our capital to improve earnings per share. We are also pleased to announce the recent successful completion of our $20.0 million subordinated debt offering in April. While the Company continues to be well capitalized, we believe the additional capital gives us the flexibility to take advantage of share repurchase and organic growth opportunities without diluting ownership of our shareholder base. After experiencing disruption and uncertainty in 2020 related to the ongoing global pandemic, we remain encouraged that we are well positioned for a more positive banking environment and continuing growth in 2021.” COVID-19 Response and Actions: As a Preferred Lender with the Small Business Administration (“SBA”), the Company was in a position to react immediately to the PPP component of the March 27, 2020 stimulus bill known as the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) launched by the U.S Department of the Treasury (“Treasury”) and the SBA. As of March 31, 2021, the Company received funding approval from the SBA for 2,046 applications totaling $294.7 million. The table below breaks out the PPP loans approved and funded and the balance as of March 31, 2021: March 31, 2021 Original Loan Amount Original # of Loans Balance Outstanding # of Loans Remaining($ in millions) Round 1 $223.1 1,386 $98.5 340Round 2 71.6 660 71.6 660Total $ 294.7 2,046 $ 170.1 1,000 As of March 31, 2021, the Company processed 1,046 loan forgiveness applications totaling $124.6 million. Total PPP loans increased $2.8 million, or 1.7%, from $167.3 million at December 31, 2020 to $170.1 million at March 31, 2021. In addition to participating in the PPP, the Company granted deferred loan payments for impacted commercial, residential and consumer customers who experienced financial hardship due to COVID-19. Further deferrals will be re-evaluated on a customer-by-customer basis upon the expiration of the existing deferral period. As of June 30, 2020, the deferred loan payment modifications totaled $261.0 million (525 loans), for which principal and interest payments were deferred, and represented 14.7% of the total loan portfolio, excluding PPP loans. As of March 31, 2021, deferred loan payment modifications granted under the CARES Act declined 74% to $66.9 million (29 loans), or 3.8% of total loans, excluding PPP loans. The table below breaks out the remaining modifications granted under the CARES Act at March 31, 2021: March 31, 2021 CARES Act ModificationsLoan Segment(1)(2) Total Loan Segment Balance at March 31, 2021 % of Total Loans Modification Balance # of Loans Modified % of Loan Segment Balance($ in millions) Commercial real estate $861.4 49.1% $57.0 16 6.6%Commercial and industrial 205.1 11.7% 7.9 7 3.9%Residential real estate 684.2 39.0% 2.0 6 0.3%Consumer 4.8 0.2% - - - Total $ 1,755.5 100.0% $ 66.9 29 3.8% _______________________________ (1) Excludes PPP loans and deferred fees (2) Residential includes home equity loans and lines of credit The Company continues to monitor COVID-19’s impact on its business and its customers, however, the extent to which COVID-19 will impact its results and operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. On March 18, 2021, Governor Baker announced that beginning on March 22, 2021, the Commonwealth of Massachusetts would transition to Phase IV of the State’s reopening plan, which also included the replacement of the Massachusetts Travel Order with a Travel Advisory. Phase IV will open a range of previously closed business sectors under tight capacity restrictions that are expected to be adjusted over time if favorable trends in the public health data continue. Gathering limits for event venues and in public settings will increase to 100 people indoors and 150 people outdoors. Outdoor gatherings at private residences and in private backyards will remain at a maximum of 25 people, with indoor house gatherings remaining at 10 people. In addition, large capacity sports and entertainment venues (indoor and outdoor stadiums, arenas, and ballparks) will be permitted to operate at a strict 12% capacity limit after submitting a plan to the Department of Public Health. Key Highlights: Loans and Deposits At March 31, 2021, total loans were $1.9 billion, a decrease of $2.5 million, or 0.1%, from December 31, 2020. Excluding PPP loans, total loans decreased $5.3 million, or 0.3%, from December 31, 2020. Total deposits increased $116.0 million, or 5.7%, from $2.0 billion at December 31, 2020 to $2.2 billion at March 31, 2021. Core deposits, which include non-interest bearing demand accounts, increased $183.5 million, or 12.7%, from $1.4 billion, or 71.0% of total deposits, at December 31, 2020, to $1.6 billion, or 75.7% of total deposits at March 31, 2021. The loan to deposit ratio decreased from 94.6% at December 31, 2020 to 89.4% at March 31, 2021. Allowance for Loan Losses and Credit Quality At March 31, 2021, excluding PPP loans of $170.1 million, the allowance for loan losses as a percentage of total loans and as a percentage of non-performing loans was 1.21% and 313.0%, respectively. At March 31, 2021, non-performing loans totaled $6.8 million, or 0.39% of total loans excluding PPP loans, compared to $7.8 million, or 0.45% of total loans excluding PPP loans, at December 31, 2020, and $9.7 million, or 0.54% of total loans, at March 31, 2020. Total delinquency decreased $4.2 million, or 31.4%, from 0.77% of total loans, excluding PPP loans, at December 31, 2020 to 0.53% of total loans, excluding PPP loans, at March 31, 2021, and 0.69% of total loans at March 31, 2020. Net Interest Margin The net interest margin was 3.24% for the three months ended March 31, 2021 compared to 3.30% for the three months ended December 31, 2020. The net interest margin, on a tax-equivalent basis, was 3.26% for the three months ended March 31, 2021, compared to 3.32% for the three months ended December 31, 2020. Repurchases On October 27, 2020, the Board of Directors authorized the 2020 Plan under which the Company was authorized to purchase up to 1.3 million shares, or 5% of its outstanding common stock. During the three months ended March 31, 2021, the Company repurchased 708,434 shares of common stock under the 2020 Plan at an average price per share of $8.12. At March 31, 2021, there were 326,936 shares available for purchase under the 2020 Plan. The shares purchased under the 2020 Plan will be 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 management determines additional repurchases are not warranted. The timing and amount of share repurchases under the 2020 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. Net Income for the Three Months Ended March 31, 2021 Compared to the Three Months Ended December 31, 2020. The Company reported net income of $5.8 million, or $0.24 per diluted share, for the three months ended March 31, 2021, compared to net income of $5.0 million, or $0.20 per diluted share, for the three months ended December 31, 2020. Return on average assets and return on average equity were 0.98% and 10.35%, respectively, for the three months ended March 31, 2021, as compared to 0.83% and 8.62%, respectively, for the three months ended December 31, 2020. Net Interest Income and Net Interest Margin On a sequential quarter basis, net interest income decreased $769,000, or 4.1%, to $18.0 million for the three months ended March 31, 2021, from $18.8 million for the three months ended December 31, 2020. The decrease in net interest income was primarily due to a decrease of $1.7 million, or 7.7%, in interest and dividend income, partially offset by a decrease in interest expense of $906,000, or 31.1%. The decrease in interest expense was primarily due to a decrease of $523,000, or 23.2%, in interest expense on deposits and a decrease of $383,000, or 58.4%, in interest expense on Federal Home Loan Bank (“FHLB”) borrowings. During the three months ended March 31, 2021 and the three months ended December 31, 2020, interest and dividend income included PPP interest income and origination fees of $2.4 million and $2.3 million, respectively. During the three months ended December 31, 2020, the Company recorded $929,000 in positive purchase accounting adjustments and $193,000 in interest income and late charges from the full payoff of a $3.5 million credit-marked substandard classified loan, compared to negative purchase accounting adjustments of $45,000 during the three months ended March 31, 2021. In addition, during the three months ended December 31, 2020, interest and dividend income included prepayment penalties from commercial loan payoffs of $135,000, compared to $35,000 during the three months ended March 31, 2021. Excluding PPP income, prepayment penalties, purchase accounting adjustments and interest income from the commercial loan payoff, net interest income increased $360,000, or 2.4%, from the three months ended December 31, 2020 to the three months ended March 31, 2021. The net interest margin was 3.24% for the three months ended March 31, 2021 compared to 3.30% for the three months ended December 31, 2020. The net interest margin, on a tax-equivalent basis, was 3.26% for the three months ended March 31, 2021 compared to 3.32% for the three months ended December 31, 2020. Excluding PPP interest and origination fee income of $2.4 million, the net interest margin was 3.03% for the three months ended March 31, 2021, compared to 3.19% for the three months ended December 31, 2020. During the three months ended December 31, 2020, prepayment penalties totaled $135,000, which contributed to an increase in the net interest margin of 2 basis points, compared to $35,000, or 1 basis point, during the three months ended March 31, 2021. In addition, interest income for the three months ended December 31, 2020 included $929,000 in favorable purchase accounting adjustments and past due interest and late charges totaling $193,000 due to the full payoff of a $3.5 million credit-marked substandard classified loan, which contributed to an increase in the net interest margin of 22 basis points. During the three months ended March 31, 2021, the Company recorded $45,000 in negative purchase account adjustments which decreased the net interest margin by 1 basis point. Excluding the adjustments discussed above, the net interest margin increased from 2.95% during the three months ended December 31, 2020 to 3.03% during the three months ended March 31, 2021. The average yield on interest-earning assets was 3.62% for the three months ended March 31, 2021, compared to 3.83% for the three months ended December 31, 2020. The average loan yield was 4.05% for the three months ended March 31, 2021, compared to 4.24% for the three months ended December 31, 2020. Excluding the adjustments discussed above, the average yield on interest-earning assets decreased 9 basis points from 3.53% for the three months ended December 31, 2020 to 3.44% for the three months ended March 31, 2021, while the average loan yield decreased 6 basis points from 3.94% for the three months ended December 31, 2020 to 3.88% for the three months ended March 31, 2021. The decreases in average yields were primarily due to repricing of variable rate loans and lower average yields on new loan originations, including loans originated under the PPP. Total average loans were 85.3% of total average interest-earning assets for the three months ended March 31, 2021, compared to 86.3% for the three months ended December 31, 2020. During the three months ended March 31, 2021, average interest-earning assets decreased $8.1 million, or 0.4%, to $2.3 billion, primarily due to a decrease in average loans of $29.5 million, or 1.5%. Excluding average PPP loans of $166.6 million during the three months ended March 31, 2021 and $204.8 million during the three months ended December 31, 2020, average loans increased $8.7 million, or 0.5%, from the three months ended December 31, 2020 to the three months ended March 31, 2021. The average cost of funds, including non-interest bearing accounts and FHLB advances, decreased 16 basis points from 0.54% for the three months ended December 31, 2020 to 0.38% for the three months ended March 31, 2021. The average cost of core deposits, including non-interest bearing demand deposits, decreased two basis points to 0.21% for the three months ended March 31, 2021, from 0.23% for the three months ended December 31, 2020. The average cost of time deposits decreased 25 basis points from 0.92% for the three months ended December 31, 2020 to 0.67% for the three months ended March 31, 2021. The average cost of borrowings decreased 14 basis points from 2.24% for the three months ended December 31, 2020 to 2.10% for the three months ended March 31, 2021. Average borrowings decreased $64.1 million, or 54.9%, from $116.7 million for the three months ended December 31, 2020 to $52.7 million for the three months ended March 31, 2021. Average demand deposits, an interest-free source of funds, increased $26.8 million, or 5.0%, from $534.8 million, or 26.4% of total average deposits, for the three months ended December 31, 2020, to $561.6 million, or 27.0% of total average deposits, for the three months ended March 31, 2021. Provision for Loan Losses For the three months ended March 31, 2021, the provision for loan losses decreased $425,000, or 85.0%, to $75,000, from $500,000 for the three months ended December 31, 2020. The provision for loan losses during the three months ended March 31, 2021 represents management’s best estimate of the impact of the COVID-19 pandemic on the ability of the Company’s borrowers to repay their loans. Management continues to carefully assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic related factors, economic trends and their potential effect on asset quality. The Company recorded net charge-offs of $5,000 for the three months ended March 31, 2021, as compared to net charge-offs of $35,000 for the three months ended December 31, 2020. At March 31, 2021, non-performing loans totaled $6.8 million, or 0.35% of total loans, and total delinquency as a percentage of total loans was 0.48%. Excluding PPP loans of $170.1 million for the three months ended March 31, 2021, non-performing loans to total loans was 0.39%, and total delinquency as a percentage of total loans was 0.53%. Excluding PPP loans of $167.3 million for the three months ended December 31, 2020, non-performing loans to total loans was 0.45% and total delinquency as a percentage of total loans was 0.77%. As of March 31, 2021, the Company’s delinquencies and nonperforming assets had not been materially impacted by the COVID-19 pandemic. Non-Interest Income On a sequential quarter basis, non-interest income increased $542,000, or 22.0%, to $3.0 million for the three months ended March 31, 2021, from $2.5 million for the three months ended December 31, 2020. The increase in non-interest income was due to a gain on non-marketable equity investments of $546,000 and income of $227,000 from mortgage banking activities due to the sale of fixed rate residential loans during the three months ended March 31, 2021. Service charges and fees on deposits decreased $87,000, or 4.4%, primarily due to decreases in overdraft and nonsufficient fund fees as a result of the significant increase in customer deposit balances. Unrealized losses on marketable equity securities increased to $89,000 during the three months ended March 31, 2021, from $24,000 during the three months ended December 31, 2020, and losses on the sale of securities was $62,000 during the three months ended March 31, 2021. Non-Interest Expense For the three months ended March 31, 2021, non-interest expense decreased $1.0 million, or 7.1%, to $13.3 million, from $14.3 million, for the three months ended December 31, 2020. During the three months ended December 31, 2020, the Company prepaid $50.0 million of FHLB borrowings. The transaction was accounted for as an early debt extinguishment resulting in a loss of $987,000. Excluding the loss, non-interest expense decreased $24,000, or 0.2%, from the three months ended December 31, 2020 to the three months ended March 31, 2021. Salaries and employee benefits expenses decreased $124,000, or 1.6%, to $7.7 million, other non-interest expense decreased $216,000, or 9.9%, and FDIC insurance expense decreased $2,000 or 0.7%. Occupancy expenses increased $128,000, or 11.0%, primarily due to an increase of $120,000 in seasonal snow removal costs. Furniture and equipment expenses increased $128,000, or 35.4%, data processing expenses increased $10,000, or 1.4%. During the three months ended December 31, 2020, the Company recorded $166,000 in legal fee reimbursements from the substandard commercial loan payoff discussed above. For the three months ended March 31, 2021, the efficiency ratio was 65.3%, compared to 67.4% for the three months ended December 31, 2020. Income Tax Provision Income tax expense for the three months ended March 31, 2021 was $1.8 million, or an effective tax rate of 24.1%, compared to $1.4 million, or an effective tax rate of 21.9%, for three months ended December 31, 2020. The increase in the effective tax rate is a result of higher pre-tax income. Net Income for the Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020. The Company reported net income of $5.8 million, or $0.24 per diluted share, for the three months ended March 31, 2021, compared to net income of $2.1 million, or $0.08 per diluted share, for the three months ended March 31, 2020. Return on average assets and return on average equity were 0.98% and 10.35%, respectively, for the three months ended March 31, 2021, as compared to 0.38% and 3.62%, respectively, for the three months ended March 31, 2020. The increase in net income of $3.7 million, or 178.4%, was primarily due to an increase in net interest income of $3.5 million, or 23.9%, a decrease of $2.0 million, or 96.4%, in the provision for loan losses, and an increase of $479,000, or 19.0%, in non-interest income, partially offset by an increase of $1.0 million, or 8.2%, in non-interest expense. Net Interest Income and Net Interest Margin Net interest income increased $3.5 million, or 23.9%, to $18.0 million, for the three months ended March 31, 2021, from $14.6 million for the three months ended March 31, 2020. The increase in net interest income was due to a decrease in interest expense of $3.8 million, or 65.6%, partially offset by a decrease in interest and dividend income of $357,000, or 1.8%. The decrease in interest expense was due to a decrease of $2.5 million, or 59.1%, in interest expense on deposits and a decrease of $1.3 million, or 82.9%, in interest expense on FHLB advances. Net interest income for the three months ended March 31, 2021 includes interest income and origination fees from PPP loans of $2.4 million. During the three months ended March 31, 2021 and the three months ended March 31, 2020, the Company recognized prepayment penalties of $35,000 and $6,000, respectively. In addition, interest income for the three months ended March 31, 2021 included $45,000 in negative purchase accounting adjustments, compared to $82,000 in positive purchase accounting adjustments during the three months ended March 31, 2020. Excluding the adjustments above, net interest income increased $1.2 million, or 8.0%, from $14.5 million during the three months ended March 31, 2020, to $15.6 million during the three months ended March 31, 2021. The net interest margin was 3.24% for the three months ended March 31, 2021, compared to 2.87%, for the three months ended March 31, 2020. The net interest margin, on a tax-equivalent basis, was 3.26% for the three months ended March 31, 2021, compared to 2.89% for the three months ended March 31, 2020. Excluding the adjustments discussed above, the net interest margin increased 18 basis points from 2.85% for the three months ended March 31, 2020 to 3.03% for the three months ended March 31, 2021. The increase in the net interest margin was primarily due to the continuing trend of lower deposit costs as interest rates continued to fall to historically low levels. The Company’s net interest margin was negatively impacted by higher average balances of cash and due from banks, interest-bearing deposits from banks and federal funds sold, which are lower yielding interest-earning assets. Average cash balances increased from 0.86% of total interest-earnings assets for the three months ended March 31, 2020 to 4.21% of total interest-earning assets during the three months ended March 31, 2021. The average loan yield decreased 21 basis points from 4.26% for the three months ended March 31, 2020 to 4.05% for the three months ended March 31, 2021. Excluding PPP loans, purchase accounting adjustments and prepayment penalties, the average loan yield decreased 38 basis points from 4.26% for the three months ended March 31, 2020 to 3.88% for the three months ended March 31, 2021. The fully tax-equivalent average yield on interest-earning assets decreased 42 basis points from 4.04% for the three months ended March 31, 2020 to 3.62% for the three months ended March 31, 2021. The decrease in average yields was primarily due to pay-offs of higher yielding loans, repricing of variable rate loans, and lower average yields on new loan originations, including loans originated under the PPP as well as the increase in average cash and due from bank balances which are lower yielding interest-earning assets. During the three months ended March 31, 2021, average interest-earning assets increased $212.7 million, or 10.4%, to $2.3 billion compared to the three months ended March 31, 2020. The increase was primarily due to an increase in average loans of $141.0 million, or 7.9%. Excluding average PPP loans of $166.6 million, average loans decreased $25.6 million, or 1.4%, from the three months ended March 31, 2020 to the three months ended March 31, 2021. Total average loans were 85.3% of total average interest-earning assets for the three months ended March 31, 2021, compared to 87.3% for the three months ended March 31, 2020. During the three months ended March 31, 2021, the average cost of funds, including non-interest bearing demand accounts and FHLB advances, decreased 84 basis points, from 1.22% for the three months ended March 31, 2020 to 0.38% for the three months ended March 31, 2021. The average cost of core deposits, including non-interest bearing demand deposits, decreased 12 basis points from 0.33% for the three months ended March 31, 2020 to 0.21% for the three months ended March 31, 2021. The average cost of time deposits decreased 141 basis points from 2.08% for the three months ended March 31, 2020 to 0.67% for the three months ended March 31, 2021, while the average cost of borrowings decreased 68 basis points during the same period. For the three months ended March 31, 2021, average demand deposits of $561.6 million, an interest-free source of funds, represented 27.0% of average total deposits, and increased $173.0 million, or 44.5%, from the three months ended March 31, 2020. Provision for Loan Losses The provision for loan losses decreased $2.0 million, or 96.4%, from $2.1 million for the three months ended March 31, 2020 to $75,000 for the three months ended March 31, 2021. The Company recorded net charge-offs of $5,000 for the three months ended March 31, 2021, as compared to net charges-offs of $365,000 for the three months ended March 31, 2020. The provision for loan losses during the three months ended March 31, 2021, as well as the allowance for loan losses as of March 31, 2021, represents management’s best estimate of the impact of the COVID-19 pandemic on the ability of the Company’s borrowers to repay their loans. Management continues to carefully assess the exposure of the Company’s loan portfolio to the COVID-19 pandemic related factors, economic trends and their potential effect on asset quality. As of March 31, 2021, the Company’s delinquencies and nonperforming assets had not been materially impacted by the COVID-19 pandemic. Non-Interest Income Non-interest income increased $479,000, or 19.0%, to $3.0 million for the three months ended March 31, 2021, from $2.5 million for the three months ended March 31, 2020. The increase in non-interest income was due to a gain on non-marketable equity investments of $546,000, while service charges and fees on deposits increased $109,000, or 6.1%, and income from mortgage banking activities was $227,000 due to the sale of fixed rate residential loans during the three months ended March 31, 2021. Income from bank-owned life insurance of $441,000 remained unchanged from the three months ended March 31, 2020 to the three months ended March 31, 2021. During the three months ended March 31, 2021, unrealized losses on marketable equity securities were $89,000, compared to unrealized gains of $102,000 during the three months ended March 31, 2020. During the three months ended March 31, 2021, the Company reported realized losses on the sale of securities of $62,000, compared to realized gains of $23,000 during the three months ended March 31, 2020. Non-Interest Expense For the three months ended March 31, 2021, non-interest expense increased $1.0 million, or 8.2%, to $13.3 million from $12.3 million, for the three months ended March 31, 2020. Salaries and employee benefits expense increased $510,000, or 7.1%, to $7.7 million, primarily due to new hires and the Company’s expansion into Connecticut and increases due to annual merit increases and benefit costs. FDIC expense increased $147,000, or 97.4%, from $151,000 during the three months ended March 31, 2020 to $298,000 during the three months ended March 31, 2021. During the three months ended March 31, 2020, the FDIC applied small bank credits against the quarterly assessments. The Company fully utilized its small bank assessment credits during the three months ended March 31, 2020. Occupancy expense increased $122,000, or 10.5%, primarily due to the opening of three new branches in 2020 and an increase of $65,000, or 81.3%, in snow removal. Furniture and equipment increased $99,000, or 25.3%, advertising expenses increased $86,000, or 34.1%, and data processing related expenses increased $6,000, or 0.8%. Other non-interest expense increased $98,000, or 5.2%. These expenses were partially offset by a decrease in professional fees of $55,000, or 9.2%. The efficiency ratio was 65.3% for the three months ended March 31, 2021, compared to 72.6% for the three months ended March 31, 2020. Income Tax Provision Income tax expense for the three months ended March 31, 2021 was $1.8 million, or an effective tax rate of 24.1%, compared to $584,000, or an effective tax rate of 21.9%, for three months ended March 31, 2020. The increase in the effective tax rate is a result of higher pre-tax income. Balance Sheet At March 31, 2021, total assets were $2.5 billion, an increase of $97.6 million, or 4.1%, from December 31, 2020. During the three months ended March 31, 2021, cash and cash equivalents increased $44.7 million, or 51.1%, investment securities increased $57.5 million, or 26.9%, and total loans decreased $2.5 million, or 0.1%. Loans Total loans decreased $2.5 million, or 0.1%, from December 31, 2020, primarily due to a decrease in residential real estate loans of $24.5 million, or 3.5%, as well as a decrease in commercial and industrial loans of $3.9 million, or 1.0%. Excluding PPP loans of $170.1 million, commercial and industrial loans decreased $6.7 million, or 3.2%, from December 31, 2020. These decreases were partially offset by an increase in commercial real estate loans of $27.5 million, or 3.3%. In accordance with the Company’s asset/liability management strategy and in an effort to reduce interest rate risk, the Company sold $7.6 million of fixed rate, low coupon residential real estate loans originated in 2020 and 2021 to the secondary market. There were no loan sales during the three months ended December 31, 2020 or the three months ended March 31, 2020. As of March 31, 2021, the Company serviced $43.4 million in loans sold to the secondary market, compared to $38.1 million at December 31, 2020. Servicing rights will continue to be retained on all loans written and sold to the secondary market. The following table is a summary of our outstanding loan balances for the periods indicated: March 31, 2021 December 31, 2020 (Dollars in thousands) Commercial real estate loans$861,418 $833,949 Residential real estate loans: Residential 581,308 604,719 Home equity 102,842 103,905 Total residential real estate loans 684,150 708,624 Commercial and industrial loans PPP loans 170,079 167,258 Commercial and industrial loans 205,086 211,823 Total commercial and industrial loans 375,165 379,081 Consumer loans 4,785 5,192 Total gross loans 1,925,518 1,926,846 Unamortized PPP loan fees (3,954) (3,050)Unamortized premiums and net deferred loans fees and costs 3,304 3,587 Total loans$1,924,868 $1,927,383 Credit Quality Management continues to remain attentive to any signs of deterioration in borrowers’ financial conditions and is proactive in taking the appropriate steps to mitigate risk. At March 31, 2021, nonperforming loans totaled $6.8 million, or 0.39% of total loans, excluding PPP loans, compared to $7.8 million, or 0.45% of total loans, excluding PPP loans, at December 31, 2020. At March 31, 2021, there were no loans 90 or more days past due and still accruing interest. Nonperforming assets to total assets, excluding PPP loans, was 0.30% at March 31, 2021, compared to 0.36% at December 31, 2020. The allowance for loan losses as a percentage of total loans, excluding PPP loans, which do not require an allowance for loan losses, was 1.21% at March 31, 2021, compared to 1.20% at December 31, 2020. At March 31, 2021, the allowance for loan losses as a percentage of nonperforming loans was 313.0%, compared to 269.8% at December 31, 2020. As previously mentioned, the increase in the allowance coverage ratio is due to the increased risks in the portfolio as a result of the ongoing COVID-19 pandemic. The following table provides some insight into the composition of the Bank's loan portfolio and remaining loan modifications, excluding PPP loans, as of March 31, 2021: Commercial Real Estate Loans % of Total Loans (1) % of Bank Risk-Based Capital % of Balance Modified (2)Apartment 10.0% 72.2% - Office 8.5% 61.0% - Industrial 7.0% 50.2% 3.7%Retail/Shopping 6.3% 45.6% - Hotel 3.1% 22.3% 95.9%Residential non-owner 2.8% 20.5% - Auto sales 2.3% 16.8% - Mixed-use 2.1% 14.9% - Adult care/Assisted living 2.1% 15.4% - College/school 1.6% 11.4% - Other 1.5% 10.5% 1.1%Auto service 0.6% 4.2% - Gas station/convenience store 0.6% 4.5% - Restaurant 0.6% 4.1% 3.3%Total commercial real estate loans 49.1% 6.6% Commercial and Industrial Loans % of Total Loans (1) % of Bank Risk-Based Capital % of Balance Modified (2)Manufacturing 2.6% 19.1% 0.3%Wholesale trade 1.8% 12.8% - Specialty trade 0.7% 4.7% - Heavy and civil engineering construction 1.1% 7.7% 1.7%Educational services 0.6% 4.3% - Transportation and warehouse 0.7% 4.8% 57.2%Healthcare and social assistance 0.3% 2.4% - Auto sales 0.4% 2.8% - Hotel 0.2% 1.2% 25.1%All other C&I (3) 3.3% 24.3% 0.1%Total commercial and industrial loans 11.7% 3.9% Residential and Consumer Loans % of Total Loans (1) % of Bank Risk-Based Capital % of Balance Modified (2)Residential real estate 39.0% 281.1% 0.3%Consumer 0.2% 2.0% - Total residential and consumer loans 39.2% 0.3% Total Loan Portfolio % of Total Loans (1) % of Bank Risk-Based Capital % of Balance Modified (2)Commercial real estate 49.1% 353.9% 6.6%Commercial and industrial 11.7% 84.3% 3.9%Residential real estate 39.0% 281.1% 0.3%Consumer 0.2% 2.0% - Total 100.0% 3.8% ____________________________ (1) Excludes PPP loans of $170.1 million as of March 31, 2021. (2) Modified balances as of March 31, 2021 (Commercial real estate loans $57.0 million; Commercial and industrial loans $7.9 million; and Residential loans $2.0 million). (3) Other consists of multiple industries. Although the Bank's loan portfolio contains impacted sectors and the commercial real estate and residential real estate sectors represent more than 100% of the Bank's total risk-based capital, the concentration limits remain acceptable. The Company monitors lending exposure by industry classification to determine potential risk associated with industry concentrations, if any, that could lead to additional credit loss exposure. As stated above, as a result of the COVID-19 pandemic, the Company identified sectors that have been materially impacted including, but not limited to: hospitality, transportation, retail, and restaurants and food service. These sectors potentially carry a higher level of credit risk, as many of these borrowers have incurred a significant negative impact to their businesses resulting from the governmental stay-at-home orders as well as travel limitations. Deposits At March 31, 2021, total deposits were $2.2 billion, an increase of $116.0 million, or 5.7%, from December 31, 2020, primarily due to an increase in core deposits of $183.5 million, or 12.7%. Core deposits, which the Company defines as all deposits except time deposits, increased from $1.4 billion, or 71.0% of total deposits, at December 31, 2020, to $1.6 billion, or 75.7% of total deposits, at March 31, 2021. Non-interest-bearing deposits increased $61.0 million, or 11.3%, to $602.8 million, interest-bearing checking accounts increased $1.7 million, or 1.8%, to $96.6 million, savings accounts increased $28.3 million, or 16.6%, to $198.6 million, and money market accounts increased $92.5 million, or 14.4%, to $733.3 million. The increase in core deposits can be attributed to the government stimulus for individuals, lower consumer spending over the last several months, PPP loan proceeds deposited into borrower checking accounts, as well as the three new branches opened in 2020. Time deposits decreased $67.5 million, or 11.4%, from $590.3 million at December 31, 2020 to $522.8 million at March 31, 2021. Brokered deposits, which are included within time deposits, were $40.3 million at March 31, 2021 and $55.3 million at December 31, 2020. FHLB and Federal Reserve Advances At March 31, 2021, FHLB advances decreased $15.2 million, or 26.2%, from $57.9 million at December 31, 2020, to $42.7 million. Capital At March 31, 2021, shareholders’ equity was $222.9 million, or 9.1% of total assets, compared to $226.6 million, or 9.6% of total assets, at December 31, 2020. The decrease in shareholders’ equity reflects $5.8 million for the repurchase of the Company’s common stock, the payment of regular cash dividends of $1.2 million and an increase in accumulated other comprehensive loss of $3.1 million, partially offset by net income of $5.8 million. Total shares outstanding as of March 31, 2021 were 24,583,958. Capital Management The Company’s book value per share was $9.07 at March 31, 2021, compared to $8.97 at December 31, 2020, while tangible book value per share increased $0.08, or 0.96%, from $8.36 at December 31, 2020 to $8.44 at March 31, 2021. As of March 31, 2021, the Company’s and the Bank’s regulatory capital ratios continued to exceed the levels required to be considered “well-capitalized” under federal banking regulations. 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, business, measures being taken in response to the COVID-19 pandemic and the impact of the COVID-19 impact on the Company’s 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: the duration and scope of the COVID-19 pandemic and the local, national and global impact of COVID-19;actions governments, businesses and individuals take in response to the COVID-19 pandemic;the pace of recovery when the COVID-19 pandemic subsides;changes in the interest rate environment 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 Act Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), Basel guidelines, capital requirements and other applicable laws and regulations;the highly competitive industry and market area in which we operate;general economic conditions, either nationally or regionally, resulting in, among other things, a deterioration in credit quality;changes in business conditions and inflation;changes in credit market conditions;the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions;changes in the securities markets which affect investment management revenues;increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;changes in technology used in the banking business;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;our controls and procedures may fail or be circumvented;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; andother 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, 2021 2020 2020 2020 2020 INTEREST AND DIVIDEND INCOME: Loans$19,120 $20,727 $19,364 $18,999 $18,747 Securities 854 825 953 1,165 1,399 Other investments 35 130 118 157 182 Short-term investments 24 26 12 9 62 Total interest and dividend income 20,033 21,708 20,447 20,330 20,390 INTEREST EXPENSE: Deposits 1,734 2,257 3,190 3,817 4,236 Long-term debt 273 656 789 874 1,014 Short-term borrowings - - 478 547 587 Total interest expense 2,007 2,913 4,457 5,238 5,837 Net interest and dividend income 18,026 18,795 15,990 15,092 14,553 PROVISION FOR LOAN LOSSES 75 500 2,725 2,450 2,100 Net interest and dividend income after provision for loan losses 17,951 18,295 13,265 12,642 12,453 NON-INTEREST INCOME: Service charges and fees 1,883 1,970 1,764 1,559 1,774 Income from bank-owned life insurance 441 444 444 480 441 Gain (loss) on sales of securities, net (62) - 1,929 13 23 Unrealized (losses) gains on marketable equity securities (89) (24) (4) 35 102 Gain on sale of mortgages 227 - - - - Gain on non-marketable equity investments 546 - - - - Loss on interest rate swap termination - - (2,353) - - Other income 58 72 397 - 185 Total non-interest income 3,004 2,462 2,177 2,087 2,525 NON-INTEREST EXPENSE: Salaries and employee benefits 7,682 7,806 7,204 7,167 7,172 Occupancy 1,289 1,161 1,120 1,072 1,167 Furniture and equipment 490 362 421 363 391 Data processing 721 711 768 707 715 Professional fees 544 521 615 637 599 FDIC insurance 298 300 293 288 151 Advertising 338 309 326 219 252 Loss on prepayment of borrowings - 987 - - - Other 1,965 2,181 2,106 1,792 1,867 Total non-interest expense 13,327 14,338 12,853 12,245 12,314 INCOME BEFORE INCOME TAXES 7,628 6,419 2,589 2,484 2,664 INCOME TAX PROVISION 1,837 1,406 488 463 584 NET INCOME$5,791 $5,013 $2,101 $2,021 $2,080 Basic earnings per share$0.24 $0.20 $0.08 $0.08 $0.08 Weighted average shares outstanding 24,486,146 24,754,681 24,945,670 24,927,619 25,565,138 Diluted earnings per share$0.24 $0.20 $0.08 $0.08 $0.08 Weighted average diluted shares outstanding 24,543,554 24,763,022 24,945,670 24,927,619 25,617,920 Other Data: Return on average assets (1) 0.98% 0.83% 0.35% 0.35% 0.38%Return on average equity (1) 10.35% 8.62% 3.61% 3.54% 3.62%Efficiency ratio (2) 65.30% 67.37% 69.11% 71.48% 72.64%Net interest margin, on a fully tax-equivalent basis 3.26% 3.32% 2.83% 2.76% 2.89%(1) Annualized. (2) The efficiency ratio 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 sale of mortgages, gain on non-marketable equity investments, loss on interest rate swap termination and loss on prepayment of borrowings. WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited) March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020 (1)Cash and cash equivalents$132,124 $87,444 $172,112 $62,832 $26,675 Securities available-for-sale, at fair value 195,454 201,880 191,569 224,509 215,118 Securities held to maturity, at cost 63,960 - - - - Marketable equity securities, at fair value 11,906 11,968 6,965 6,941 6,875 Federal Home Loan Bank of Boston and other restricted stock - at cost 4,492 5,160 9,252 10,870 11,994 Loans 1,924,868 1,927,383 1,974,387 1,999,533 1,804,175 Allowance for loan losses (21,227) (21,157) (20,692) (18,253) (15,837)Net loans 1,903,641 1,906,226 1,953,695 1,981,280 1,788,338 Bank-owned life insurance 73,301 72,860 72,416 71,972 71,492 Goodwill 12,487 12,487 12,487 12,487 12,487 Core deposit intangible 2,844 2,937 3,031 3,125 3,219 Other assets 63,320 64,924 65,261 60,890 54,130 TOTAL ASSETS$2,463,529 $2,365,886 $2,486,788 $2,434,906 $2,190,328 Total deposits$2,154,133 $2,038,130 $2,011,291 $1,947,901 $1,705,984 Short-term borrowings - - - 35,000 45,000 Long-term debt 42,676 57,850 151,258 188,164 177,358 Securities pending settlement 152 160 57,226 - - Other liabilities 43,712 43,106 36,792 34,321 34,177 TOTAL LIABILITIES 2,240,673 2,139,246 2,256,567 2,205,386 1,962,519 TOTAL SHAREHOLDERS' EQUITY 222,856 226,640 230,221 229,520 227,809 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,463,529 $2,365,886 $2,486,788 $2,434,906 $2,190,328 (1) There were no PPP loans outstanding at March 31, 2020. WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited) March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020 Other Data: Shares outstanding at end of period 24,583,958 25,276,193 25,595,557 25,644,334 25,644,334 Book value per share$9.07 $8.97 $8.99 $8.95 $8.88 Tangible book value per share 8.44 8.36 8.39 8.34 8.27 30-89 day delinquent loans 7,216 11,403 3,754 6,929 7,735 Total delinquent loans 9,274 13,522 6,678 12,041 12,448 Total delinquent loans as a percentage of total loans 0.48% 0.70% 0.34% 0.60% 0.69%Total delinquent loans as a percentage of total loans, excluding PPP loans 0.53% 0.77% 0.38% 0.68% - Nonperforming loans$6,782 $7,841 $9,208 $10,400 $9,664 Nonperforming loans as a percentage of total loans 0.35% 0.41% 0.47% 0.52% 0.54%Nonperforming loans as a percentage of total loans, excluding PPP loans 0.39% 0.45% 0.53% 0.59% - Nonperforming assets as a percentage of total assets 0.28% 0.33% 0.37% 0.43% 0.44%Nonperforming assets as a percentage of total assets, excluding PPP loans 0.30% 0.36% 0.41% 0.47% - Allowance for loan losses as a percentage of nonperforming loans 312.99% 269.83% 224.72% 175.51% 163.88%Allowance for loan losses as a percentage of total loans 1.10% 1.10% 1.05% 0.91% 0.88%Allowance for loan losses as a percentage of total loans, excluding PPP loans 1.21% 1.20% 1.18% 1.03% - The following table sets forth the information relating to our average balances and net interest income for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020 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, 2021 December 31, 2020 March 31, 2020 Average Average Yield/ Average Average Yield/ Average Average Yield/ Balance Interest(6) Cost Balance Interest(6) Cost Balance Interest(6) Cost (Dollars in thousands)ASSETS: Interest-earning assets Loans(1)(2)$1,923,477 $19,220 4.05% $1,952,947 $20,831 4.24% $1,782,500 $18,876 4.26%Securities(2) 227,330 854 1.52 195,752 827 1.68 225,933 1,404 2.50 Other investments 9,663 35 1.47 12,335 130 4.19 16,762 182 4.37 Short-term investments(3) 95,004 24 0.10 102,542 26 0.10 17,557 62 1.42 Total interest-earning assets 2,255,474 20,133 3.62 2,263,576 21,814 3.83 2,042,752 20,524 4.04 Total non-interest-earning assets 144,588 142,051 137,665 Total assets$2,400,062 $2,405,627 $2,180,417 LIABILITIES AND EQUITY: Interest-bearing liabilities Interest-bearing checking accounts$90,503 105 0.47 $97,985 118 0.48 $70,209 75 0.43 Savings accounts 187,217 37 0.08 169,778 34 0.08 131,868 34 0.10 Money market accounts 675,662 653 0.39 601,267 664 0.44 446,234 753 0.68 Time deposit accounts 567,102 939 0.67 620,428 1,441 0.92 651,424 3,374 2.08 Total interest-bearing deposits 1,520,484 1,734 0.46 1,489,458 2,257 0.60 1,299,735 4,236 1.31 Short-term borrowings and long-term debt 52,670 273 2.10 116,721 656 2.24 231,989 1,601 2.78 Interest-bearing liabilities 1,573,154 2,007 0.52 1,606,179 2,913 0.72 1,531,724 5,837 1.53 Non-interest-bearing deposits 561,581 534,771 388,590 Other non-interest-bearing liabilities 38,360 33,353 29,466 Total non-interest-bearing liabilities 599,941 568,124 418,056 Total liabilities 2,173,095 2,174,303 1,949,780 Total equity 226,967 231,324 230,637 Total liabilities and equity$2,400,062 $2,405,627 $2,180,417 Less: Tax-equivalent adjustment(2) (100) (106) (134) Net interest and dividend income $18,026 $18,795 $14,553 Net interest rate spread(4) 3.08% 3.09% 2.48%Net interest rate spread, on a tax-equivalent basis(5) 3.10% 3.11% 2.51%Net interest margin(6) 3.24% 3.30% 2.87%Net interest margin, on a tax-equivalent basis(7) 3.26% 3.32% 2.89%Ratio of average interest-earning assets to average interest-bearing liabilities 143.37% 140.93% 133.36% __________________________________________________ (1) Loans, including non-accrual 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) Acquired loans, time deposits and borrowings are recorded at fair value at the time of acquisition. The fair value marks on the loans, time deposits and borrowings acquired accrete and amortize into net interest income over time. For the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, the loan accretion income and interest expense reduction on time deposits and borrowings (decreased) increased net interest income $(45,000), $929,000 and $82,000, respectively. Excluding these items, net interest margin for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020 was 3.27%, 3.16% and 2.87%, respectively. For further information contact: James C. Hagan, President and CEO Guida R. Sajdak, Executive Vice President and CFO Meghan Hibner, Vice President and Investor Relations Officer 413-568-1911

  • Western New England Bancorp, Inc. Announces Closing of $20 Million of Fixed-to-Floating Rate Subordinated Notes
    GlobeNewswire

    Western New England Bancorp, Inc. Announces Closing of $20 Million of Fixed-to-Floating Rate Subordinated Notes

    WESTFIELD, Mass., April 20, 2021 (GLOBE NEWSWIRE) -- Western New England Bancorp. Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced that it has completed a private placement of $20 million in aggregate principal amount of its 4.875% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified investors. Unless earlier redeemed, the Notes mature on May 1, 2031. The Notes will initially bear interest from the initial issue date to, but excluding, May 1, 2026, or the earlier redemption, at a fixed rate of 4.875% per annum, payable quarterly in arrears on May 1, August 1, November 1 and February 1 of each year, beginning August 1, 2021, and thereafter to, but excluding, the maturity date or earlier redemption. Beginning on May 1, 2026, the interest rate shall reset quarterly to an interest rate per annum equal to the benchmark rate, which is the 90-day average secured overnight financing rate, plus 412 basis points, determined on the determination date of the applicable interest period, payable quarterly in arrears on May 1, August 1, November 1 and February 1 of each year. The Company may also redeem the Notes, in whole or in part, on or after May 1, 2026, and at any time upon the occurrence of certain events, subject in each case to the approval of the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital adequacy regulations. The Company intends to use the net proceeds of the offering for general corporate purposes, including organic growth and repurchase of the Company’s common shares. The Notes sold in the offering have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and will not constitute an offer or solicitation in any jurisdiction in which such offering would be unlawful. 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 StatementsThis press release contains statements that are forward-looking and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020. 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. For further information contact:James C. Hagan, President and CEOGuida R. Sajdak, Executive Vice President and CFOMeghan Hibner, Vice President and Investor Relations Officer413-568-1911