Western New England Bancorp, Inc. Reports Results for Three and Six Months Ended June 30, 2026 and Declares Quarterly Cash Dividend
Rhea-AI Summary
Western New England Bancorp (NasdaqGS: WNEB) reported Q2 2026 net income of $3.6 million, or $0.18 per diluted share, down from $4.6 million, or $0.23, a year earlier and from $4.8 million, or $0.24, in Q1 2026. For the first six months of 2026, net income rose to $8.4 million, or $0.42 per diluted share, from $6.9 million, or $0.34, in the prior‑year period. The Board declared a quarterly cash dividend of $0.07 per share, payable on or about August 26, 2026, to shareholders of record on August 12, 2026.
Net interest margin increased to 3.00% in Q2, with core deposits at 69.4% and non‑interest‑bearing deposits at 25.0% of total deposits. Loans grew 0.5% and deposits 1.7% since year‑end. Credit quality metrics remained low in absolute terms, though nonaccrual and delinquent loans increased, and Q2 provision for credit losses rose to $1.6 million, largely due to a $1.8 million partial charge‑off on a commercial real estate participation loan.
According to the company, book value per share reached $12.39 and tangible book value per share $11.72 at June 30, 2026. During the first half of 2026, WNEB repurchased 381,000 shares at an average price of $13.64 and completed the sale of two Chicopee, Massachusetts buildings on July 10, 2026 for $2.4 million, with an estimated $717,000 gain expected to be recognized in Q3 2026.
Positive
- Six‑month 2026 net income $8.4 million vs. $6.9 million in 2025
- Net interest margin improved to 3.00% in Q2 2026 from 2.95% in Q1
- Total loans up $9.9 million (0.5%) and deposits up $40.5 million (1.7%) since year‑end 2025
- Book value per share $12.39; tangible book $11.72, both higher than December 31, 2025
- Share repurchases 381,000 shares in H1 2026 at $13.64 average price
- Building sale closed July 10, 2026, $2.4 million cash and ~$717,000 estimated gain for Q3
Negative
- Q2 2026 net income $3.6 million vs. $4.6 million in Q2 2025 and $4.8 million in Q1 2026
- Provision for credit losses rose to $1.6 million from $75,000 in Q1 2026
- Charge‑offs $1.8 million in Q2 2026 tied to a commercial real estate participation loan
- Nonaccrual loans increased to $7.8 million (0.35% of loans) from $5.2 million (0.24%) at year‑end 2025
- Allowance coverage of nonaccruals declined to 260.2% from 393.2% at December 31, 2025
- Efficiency ratio remained elevated around 72% in Q2 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
WESTFIELD, Mass., July 28, 2026 (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 and six months ended June 30, 2026. For the three months ended June 30, 2026, the Company reported net income of
The Company also announced that its Board of Directors declared a quarterly cash dividend of
James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the second quarter of 2026. Our diversified loans and deposits, along with our disciplined approach to managing funding costs, resulted in an increase in the net interest margin to
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 risk-adjusted return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. At June 30, 2026, our asset quality remained strong, with total delinquency at
Hagan concluded, “We remain disciplined in our capital management strategies. During the six months ended June 30, 2026, we repurchased 381,000 shares of common stock and have 491,465 shares of common stock available for repurchase under the 2025 Repurchase Plan. We remain committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.”
Key Highlights:
Loans and Deposits
At June 30, 2026, total loans increased
Allowance for Credit Losses and Credit Quality
At June 30, 2026, the allowance for credit losses was
Net Interest Margin
The net interest margin increased five basis points from
Stock Repurchase Program
On April 22, 2025, the Board of Directors authorized the 2025 Repurchase Plan (“2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately
The repurchase of shares under the 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to 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 the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under 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
The Company’s book value per share was
Building Sale
Subsequent to the end of the reporting period, on July 10, 2026, the Company successfully completed the sale of its two buildings located at 219 and 229 Exchange Street, Chicopee, Massachusetts to the City of Chicopee. The transaction resulted in a total gross cash consideration of
Net Income for the Three Months Ended June 30, 2026 Compared to the Three Months Ended March 31, 2026
For the three months ended June 30, 2026, the Company reported net income of
Net Interest Income and Net Interest Margin
Net interest income, our primary driver of revenues, increased
During the three months ended June 30, 2026, the net interest margin was
For the three months ended June 30, 2026, the average cost of core deposits, which the Company defines as all deposits except time deposits, was
Provision for (Reversal of) Credit Losses
The provision for credit losses was
During the three months ended June 30, 2026, due to the Bankruptcy Filing, the Company downgraded the participation loan to substandard, placed the loan on nonaccrual status and recognized a partial charge-off of
During the three months ended June 30, 2026, the Company recorded net charge-offs of
Non-Interest Income
For the three months ended June 30, 2026, non-interest income of
Income from BOLI increased
Non-Interest Expense
For the three months ended June 30, 2026, non-interest expense increased
For the three months ended June 30, 2026, and the three months ended March 31, 2026, the efficiency ratio was
Income Tax Provision
Income tax expense for the three months ended June 30, 2026 was
Net Income for the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
The Company reported a decrease in net income of
Net Interest Income and Net Interest Margin
Net interest income increased
The net interest margin increased 20 basis points from
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased eight basis points from
The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 12 basis points from
Provision for (Reversal of) Credit Losses
The Company recorded a provision for credit losses of
The Company recorded net charge-offs of
Non-Interest Income
Non-interest income decreased
Non-Interest Expense
For the three months ended June 30, 2026, non-interest expense increased
For the three months ended June 30, 2026, the efficiency ratio was
Income Tax Provision
Income tax expense for the three months ended June 30, 2026, was
Net Income for the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
For the six months ended June 30, 2026, the Company reported net income of
Net Interest Income and Net Interest Margin
During the six months ended June 30, 2026, net interest income increased
The net interest margin increased 33 basis points from
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was
The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 20 basis points from
Provision for (Reversal of) Credit Losses
The Company recorded a provision for credit losses of
The Company recorded net charge-offs of
Non-Interest Income
For the six months ended June 30, 2026, non-interest income increased
During the six months ended June 30, 2025, the Company reported a gain of
Non-Interest Expense
For the six months ended June 30, 2026, non-interest expense increased
For the six months ended June 30, 2026, the efficiency ratio was
Income Tax Provision
Income tax expense for the six months ended June 30, 2026, was
Balance Sheet
At June 30, 2026, total assets were
Investments
At June 30, 2026, the investment securities portfolio totaled
At June 30, 2026, the Company reported net unrealized losses on the available-for-sale securities portfolio of
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
Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2026, and December 31, 2025, 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”) and Federal Reserve Bank (“FRB”) 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 supports the Bank's objective to provide liquidity.
Total Loans
Total loans increased
The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:
| June 30, 2026 | December 31, 2025 | ||||
| (Dollars in thousands) | |||||
| Commercial real estate loans: | |||||
| Non-owner occupied | $ | 882,978 | $ | 910,239 | |
| Owner occupied | 182,372 | 188,824 | |||
| Total commercial real estate loans | 1,065,350 | 1,099,063 | |||
| Residential real estate loans: | |||||
| Residential one-to-four family | 745,548 | 719,070 | |||
| Home equity | 143,069 | 137,801 | |||
| Total residential real estate loans | 888,617 | 856,871 | |||
| Commercial and industrial loans | 234,269 | 221,790 | |||
| Consumer loans | 2,338 | 2,929 | |||
| Total loans | 2,190,574 | 2,180,653 | |||
| Unamortized premiums and net deferred loan fees and costs | 3,258 | 2,939 | |||
| Total loans, including unamortized premiums and net deferred loan fees and costs | $ | 2,193,832 | $ | 2,183,592 | |
Credit Quality
Total delinquency was
At June 30, 2026, the allowance for credit losses was
At June 30, 2026, total criticized loans, defined as special mention and substandard loans, totaled
Of the
The increase in special mention loans from December 31, 2025, to June 30, 2026, resulted from the downgrade of two commercial relationships totaling
Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At June 30, 2026, the commercial real estate portfolio totaled
Deposits
At June 30, 2026, total deposits were
At June 30, 2026, time deposits increased
At June 30, 2026, the Bank’s uninsured deposits totaled
The table below is a summary of our deposit balances for the periods noted:
| At June 30, 2026 | At December 31, 2025 | ||||||||||
| Balance | % of Total Deposits | Balance | % of Total Deposits | ||||||||
| (Dollars in thousands) | |||||||||||
| Demand and interest-bearing checking: | |||||||||||
| Demand deposit accounts | $ | 600,599 | 25.0 | % | $ | 594,516 | 25.2 | % | |||
| Interest-bearing checking accounts | 153,531 | 6.4 | % | 174,227 | 7.4 | % | |||||
| Savings: | |||||||||||
| Regular savings accounts | 193,160 | 8.0 | % | 186,597 | 7.9 | % | |||||
| Money market accounts | 718,361 | 29.9 | % | 715,620 | 30.3 | % | |||||
| Total core deposits | 1,665,651 | 69.4 | % | 1,670,960 | 70.8 | % | |||||
| Time deposits | 735,749 | 30.6 | % | 689,948 | 29.2 | % | |||||
| Total deposits | $ | 2,401,400 | 100.0 | % | $ | 2,360,908 | 100.0 | % | |||
FHLB and Subordinated Debt
At June 30, 2026, total borrowings decreased
At June 30, 2026, and December 31, 2025, borrowings also consisted of
As of June 30, 2026, the Company had
Capital
At June 30, 2026, shareholders’ equity was
| June 30, 2026 | December 31, 2025 | ||||||||||
| Company | Bank | Company | Bank | ||||||||
| Total Capital (to Risk Weighted Assets) | 13.96 | % | 13.47 | % | 14.19 | % | 13.48 | % | |||
| Tier 1 Capital (to Risk Weighted Assets) | 12.20 | % | 12.47 | % | 12.21 | % | 12.46 | % | |||
| Common Equity Tier 1 Capital (to Risk Weighted Assets) | 12.20 | % | 12.47 | % | 12.21 | % | 12.46 | % | |||
| Tier 1 Leverage Ratio (to Adjusted Average Assets) | 9.18 | % | 9.37 | % | 9.13 | % | 9.32 | % | |||
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 possibility that future credit losses, loan defaults and charge-off rates are higher than expected due to changes in economic assumptions or adverse economic developments;
- general business and economic conditions on a national basis and in the local markets in which we operate, including those impacting credit quality;
- 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 potential future increases in interest rates that reduce net interest 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;
- changes in regulation, regulatory policy, legislation, accounting standards and practices, and fiscal monetary policy, particularly in light of the shift in presidential administrations and the potential for related shifts in agency policy and leadership;
- operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity incidents, technological integration, including AI, vendor issues, business interruption, and fraud risks;
- significant changes in accounting, tax or regulatory practices or requirements;
- new legal obligations or liabilities or unfavorable resolutions or litigation;
- disruptive technologies in payment systems and other services traditionally provided by financial institutions;
- the risk that we may not be successful in the implementation of our business strategy;
- severe weather, natural disasters, pandemics, acts of war, or terrorism and other external events which could significantly impact our business;
- declines in real estate values in the Company’s market area, which may adversely affect our loan production;
- decreases in the value of securities and other assets, or changes in the securities markets which affect investment management revenue;
- decreases in deposit levels necessitating increased borrowing to fund loans, investments and other needs;
- competitive pressures from other financial institutions;
- the soundness of other financial services institutions which may adversely affect our credit risk;
- failure or circumvention of our internal controls or procedures;
- the risk that goodwill and intangibles recorded in our financial statements will become impaired;
- increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
- introduction of 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; and
- other risks and uncertainties detailed in Part 1A “Risk Factors” of the Company’s 2025 Annual Report on Form 10-K.
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 | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||
| Loans | $ | 27,960 | $ | 27,440 | $ | 27,491 | $ | 26,690 | $ | 26,214 | $ | 55,400 | $ | 51,198 | |||||||
| Securities | 2,457 | 2,505 | 2,588 | 2,617 | 2,588 | 4,962 | 5,010 | ||||||||||||||
| Other investments | 156 | 147 | 164 | 166 | 169 | 303 | 360 | ||||||||||||||
| Short-term investments | 208 | 189 | 294 | 560 | 641 | 397 | 1,481 | ||||||||||||||
| Total interest and dividend income | 30,781 | 30,281 | 30,537 | 30,033 | 29,612 | 61,062 | 58,049 | ||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||
| Deposits | 10,358 | 9,978 | 10,296 | 10,403 | 10,437 | 20,336 | 21,813 | ||||||||||||||
| Short-term borrowings | 236 | 322 | 85 | 39 | 47 | 558 | 101 | ||||||||||||||
| Long-term debt | 515 | 902 | 1,073 | 1,245 | 1,232 | 1,417 | 2,451 | ||||||||||||||
| Subordinated debt | 351 | 254 | 254 | 254 | 254 | 605 | 508 | ||||||||||||||
| Total interest expense | 11,460 | 11,456 | 11,708 | 11,941 | 11,970 | 22,916 | 24,873 | ||||||||||||||
| Net interest and dividend income | 19,321 | 18,825 | 18,829 | 18,092 | 17,642 | 38,146 | 33,176 | ||||||||||||||
| PROVISION FOR (REVERSAL OF) CREDIT LOSSES | 1,557 | 75 | (485 | ) | 1,293 | (615 | ) | 1,632 | (473 | ) | |||||||||||
| Net interest and dividend income after provision for (reversal of) credit losses | 17,764 | 18,750 | 19,314 | 16,799 | 18,257 | 36,514 | 33,649 | ||||||||||||||
| NON-INTEREST INCOME: | |||||||||||||||||||||
| Service charges and fees on deposits | 2,422 | 2,131 | 2,234 | 2,199 | 2,235 | 4,553 | 4,258 | ||||||||||||||
| Wealth management income | 389 | 390 | 319 | 353 | 293 | 779 | 554 | ||||||||||||||
| Income from bank-owned life insurance | 535 | 476 | 492 | 482 | 516 | 1,011 | 989 | ||||||||||||||
| Gain on bank-owned life insurance death benefits | 1 | 449 | - | - | - | 450 | - | ||||||||||||||
| Unrealized gain (loss) on marketable equity securities | 47 | (13 | ) | (7 | ) | 22 | 25 | 34 | 20 | ||||||||||||
| Gain on mortgage banking activity | - | - | - | - | 4 | - | 11 | ||||||||||||||
| Gain on non-marketable equity investments | - | - | - | - | 243 | - | 243 | ||||||||||||||
| Other income | - | - | 135 | 117 | 95 | - | 95 | ||||||||||||||
| Total non-interest income | 3,394 | 3,433 | 3,173 | 3,173 | 3,411 | 6,827 | 6,170 | ||||||||||||||
| NON-INTEREST EXPENSE: | |||||||||||||||||||||
| Salaries and employee benefits | 9,476 | 9,229 | 9,373 | 9,209 | 8,831 | 18,705 | 17,244 | ||||||||||||||
| Occupancy | 1,319 | 1,562 | 1,312 | 1,237 | 1,265 | 2,881 | 2,677 | ||||||||||||||
| Furniture and equipment | 404 | 433 | 437 | 453 | 491 | 837 | 978 | ||||||||||||||
| Data processing | 961 | 821 | 899 | 916 | 933 | 1,782 | 1,815 | ||||||||||||||
| Software | 712 | 689 | 687 | 652 | 645 | 1,401 | 1,304 | ||||||||||||||
| Debit/ATM card processing expense | 644 | 663 | 599 | 633 | 674 | 1,307 | 1,251 | ||||||||||||||
| Professional fees | 622 | 509 | 388 | 460 | 623 | 1,131 | 1,169 | ||||||||||||||
| FDIC insurance | 377 | 392 | 398 | 376 | 399 | 769 | 830 | ||||||||||||||
| Advertising | 457 | 442 | 349 | 433 | 443 | 899 | 872 | ||||||||||||||
| Other | 1,383 | 1,268 | 1,428 | 1,409 | 1,352 | 2,651 | 2,700 | ||||||||||||||
| Total non-interest expense | 16,355 | 16,008 | 15,870 | 15,778 | 15,656 | 32,363 | 30,840 | ||||||||||||||
| INCOME BEFORE INCOME TAXES | 4,803 | 6,175 | 6,617 | 4,194 | 6,012 | 10,978 | 8,979 | ||||||||||||||
| INCOME TAX PROVISION | 1,205 | 1,398 | 1,408 | 1,027 | 1,422 | 2,603 | 2,086 | ||||||||||||||
| NET INCOME | $ | 3,598 | $ | 4,777 | $ | 5,209 | $ | 3,167 | $ | 4,590 | $ | 8,375 | $ | 6,893 | |||||||
| Basic earnings per share | $ | 0.18 | $ | 0.24 | $ | 0.26 | $ | 0.16 | $ | 0.23 | $ | 0.42 | $ | 0.34 | |||||||
| Weighted average shares outstanding | 19,781,515 | 19,996,682 | 20,060,358 | 20,110,492 | 20,210,650 | 19,888,504 | 20,297,582 | ||||||||||||||
| Diluted earnings per share | $ | 0.18 | $ | 0.24 | $ | 0.26 | $ | 0.16 | $ | 0.23 | $ | 0.42 | $ | 0.34 | |||||||
| Weighted average diluted shares outstanding | 19,894,399 | 20,065,067 | 20,206,539 | 20,240,975 | 20,312,881 | 19,979,139 | 20,413,006 | ||||||||||||||
| Other Data: | |||||||||||||||||||||
| Return on average assets (1) | 0.53 | % | 0.71 | % | 0.75 | % | 0.46 | % | 0.69 | % | 0.62 | % | 0.52 | % | |||||||
| Return on average equity (1) | 5.84 | % | 7.77 | % | 8.40 | % | 5.20 | % | 7.76 | % | 6.80 | % | 5.87 | % | |||||||
| Efficiency ratio | 72.00 | % | 71.92 | % | 72.13 | % | 74.20 | % | 74.36 | % | 71.96 | % | 78.38 | % | |||||||
| Adjusted efficiency ratio (2) | 72.15 | % | 73.36 | % | 72.11 | % | 74.27 | % | 75.32 | % | 72.74 | % | 78.91 | % | |||||||
| Net interest margin | 3.00 | % | 2.95 | % | 2.89 | % | 2.81 | % | 2.80 | % | 2.97 | % | 2.64 | % | |||||||
| Net interest margin, on a fully tax-equivalent basis | 3.02 | % | 2.97 | % | 2.91 | % | 2.83 | % | 2.82 | % | 2.99 | % | 2.66 | % | |||||||
| (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 gain on bank-owned life insurance death benefits. | |||||||||||||||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited) | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Cash and cash equivalents | $ | 37,666 | $ | 56,137 | $ | 40,381 | $ | 82,942 | $ | 93,308 | |||||||||
| Securities available-for-sale, at fair value | 170,598 | 173,215 | 175,800 | 179,234 | 178,785 | ||||||||||||||
| Securities held to maturity, at amortized cost | 181,723 | 185,392 | 188,800 | 193,446 | 197,671 | ||||||||||||||
| Marketable equity securities, at fair value | 662 | 610 | 632 | 471 | 444 | ||||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 3,790 | 5,736 | 5,359 | 5,818 | 5,818 | ||||||||||||||
| Loans | 2,193,832 | 2,200,956 | 2,183,592 | 2,131,308 | 2,092,631 | ||||||||||||||
| Allowance for credit losses | (20,185 | ) | (20,451 | ) | (20,297 | ) | (20,542 | ) | (19,733 | ) | |||||||||
| Net loans | 2,173,647 | 2,180,505 | 2,163,295 | 2,110,766 | 2,072,898 | ||||||||||||||
| Bank-owned life insurance | 78,214 | 77,679 | 79,019 | 78,527 | 78,045 | ||||||||||||||
| Goodwill | 12,487 | 12,487 | 12,487 | 12,487 | 12,487 | ||||||||||||||
| Core deposit intangible | 875 | 969 | 1,063 | 1,156 | 1,250 | ||||||||||||||
| Other assets | 72,639 | 71,807 | 69,644 | 70,683 | 70,443 | ||||||||||||||
| TOTAL ASSETS | $ | 2,732,301 | $ | 2,764,537 | $ | 2,736,480 | $ | 2,735,530 | $ | 2,711,149 | |||||||||
| Total deposits | $ | 2,401,400 | $ | 2,381,792 | $ | 2,360,908 | $ | 2,349,875 | $ | 2,330,113 | |||||||||
| Short-term borrowings | 17,740 | 23,810 | 13,270 | 2,980 | 4,040 | ||||||||||||||
| Long-term debt | 25,000 | 73,000 | 73,000 | 98,000 | 98,000 | ||||||||||||||
| Subordinated debt | 19,810 | 19,800 | 19,790 | 19,781 | 19,771 | ||||||||||||||
| Securities pending settlement | - | - | 242 | - | - | ||||||||||||||
| Other liabilities | 20,072 | 18,039 | 21,633 | 21,254 | 19,797 | ||||||||||||||
| TOTAL LIABILITIES | 2,484,022 | 2,516,441 | 2,488,843 | 2,491,890 | 2,471,721 | ||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 248,279 | 248,096 | 247,637 | 243,640 | 239,428 | ||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,732,301 | $ | 2,764,537 | $ | 2,736,480 | $ | 2,735,530 | $ | 2,711,149 | |||||||||
| WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Shares outstanding at end of period | 20,045,872 | 20,240,872 | 20,372,786 | 20,491,966 | 20,494,501 | ||||||||||||||
| Operating results: | |||||||||||||||||||
| Net interest income | $ | 19,321 | $ | 18,825 | $ | 18,829 | $ | 18,092 | $ | 17,642 | |||||||||
| Provision for (reversal of) credit losses | 1,557 | 75 | (485 | ) | 1,293 | (615 | ) | ||||||||||||
| Non-interest income | 3,394 | 3,433 | 3,173 | 3,173 | 3,411 | ||||||||||||||
| Non-interest expense | 16,355 | 16,008 | 15,870 | 15,778 | 15,656 | ||||||||||||||
| Income before income provision for income taxes | 4,803 | 6,175 | 6,617 | 4,194 | 6,012 | ||||||||||||||
| Income tax provision | 1,205 | 1,398 | 1,408 | 1,027 | 1,422 | ||||||||||||||
| Net income | 3,598 | 4,777 | 5,209 | 3,167 | 4,590 | ||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Net interest margin | 3.00 | % | 2.95 | % | 2.89 | % | 2.81 | % | 2.80 | % | |||||||||
| Net interest margin, on a fully tax-equivalent basis | 3.02 | % | 2.97 | % | 2.91 | % | 2.83 | % | 2.82 | % | |||||||||
| Interest rate spread | 2.33 | % | 2.28 | % | 2.21 | % | 2.13 | % | 2.10 | % | |||||||||
| Interest rate spread, on a fully tax-equivalent basis | 2.34 | % | 2.30 | % | 2.23 | % | 2.14 | % | 2.12 | % | |||||||||
| Return on average assets | 0.53 | % | 0.71 | % | 0.75 | % | 0.46 | % | 0.69 | % | |||||||||
| Return on average equity | 5.84 | % | 7.77 | % | 8.40 | % | 5.20 | % | 7.76 | % | |||||||||
| Efficiency ratio (GAAP) | 72.00 | % | 71.92 | % | 72.13 | % | 74.20 | % | 74.36 | % | |||||||||
| Adjusted efficiency ratio (non-GAAP)(1) | 72.15 | % | 73.36 | % | 72.11 | % | 74.27 | % | 75.32 | % | |||||||||
| Per Common Share Data: | |||||||||||||||||||
| Basic earnings per share | $ | 0.18 | $ | 0.24 | $ | 0.26 | $ | 0.16 | $ | 0.23 | |||||||||
| Earnings per diluted share | 0.18 | 0.24 | 0.26 | 0.16 | 0.23 | ||||||||||||||
| Cash dividend declared | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||||||||||
| Book value per share | 12.39 | 12.26 | 12.16 | 11.89 | 11.68 | ||||||||||||||
| Tangible book value per share (non-GAAP)(2) | 11.72 | 11.59 | 11.49 | 11.22 | 11.01 | ||||||||||||||
| Asset Quality: | |||||||||||||||||||
| 30-89 day delinquent loans | $ | 3,693 | $ | 2,317 | $ | 2,098 | $ | 3,123 | $ | 2,525 | |||||||||
| 90 days or more delinquent loans | 965 | 840 | 1,047 | 1,425 | 1,328 | ||||||||||||||
| Total delinquent loans | 4,658 | 3,157 | 3,145 | 4,548 | 3,853 | ||||||||||||||
| Total delinquent loans as a percentage of total loans | 0.21 | % | 0.14 | % | 0.14 | % | 0.21 | % | 0.18 | % | |||||||||
| Nonaccrual loans | $ | 7,759 | $ | 4,681 | $ | 5,162 | $ | 5,649 | $ | 5,752 | |||||||||
| Nonaccrual loans as a percentage of total loans | 0.35 | % | 0.21 | % | 0.24 | % | 0.27 | % | 0.27 | % | |||||||||
| Nonaccrual assets as a percentage of total assets | 0.28 | % | 0.17 | % | 0.19 | % | 0.21 | % | 0.21 | % | |||||||||
| Allowance for credit losses as a percentage of nonaccrual loans | 260.15 | % | 436.89 | % | 393.20 | % | 363.64 | % | 343.06 | % | |||||||||
| Allowance for credit losses as a percentage of total loans | 0.92 | % | 0.93 | % | 0.93 | % | 0.96 | % | 0.94 | % | |||||||||
| Net loan charge-offs (recoveries) | $ | 1,789 | $ | 55 | $ | 41 | $ | 43 | $ | (585 | ) | ||||||||
| Net loan charge-offs (recoveries) as a percentage of average loans | 0.08 | % | 0.00 | % | 0.00 | % | 0.00 | % | (0.03 | )% | |||||||||
__________________________
(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 gain on bank-owned life insurance death benefits.
(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 June 30, 2026, March 31, 2026 and June 30, 2025 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | Average | Average Yield/ | |||||||||||||||||||||||||
| Balance | Interest | Cost(8) | Balance | Interest | Cost(8) | Balance | Interest | Cost(8) | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||
| Loans(1)(2) | $ | 2,189,867 | $ | 28,084 | 5.14 | % | $ | 2,186,529 | $ | 27,559 | 5.11 | % | $ | 2,081,319 | $ | 26,335 | 5.08 | % | ||||||||||||
| Securities(2) | 355,904 | 2,457 | 2.77 | 363,983 | 2,505 | 2.79 | 375,074 | 2,588 | 2.77 | |||||||||||||||||||||
| Other investments | 14,171 | 156 | 4.42 | 15,585 | 147 | 3.83 | 15,062 | 169 | 4.50 | |||||||||||||||||||||
| Short-term investments(3) | 26,034 | 208 | 3.20 | 24,831 | 189 | 3.09 | 58,622 | 641 | 4.39 | |||||||||||||||||||||
| Total interest-earning assets | 2,585,976 | 30,905 | 4.79 | 2,590,928 | 30,400 | 4.76 | 2,530,077 | 29,733 | 4.71 | |||||||||||||||||||||
| Total non-interest-earning assets | 152,735 | 153,783 | 156,247 | |||||||||||||||||||||||||||
| Total assets | $ | 2,738,711 | $ | 2,744,711 | $ | 2,686,324 | ||||||||||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||
| Interest-bearing checking accounts | $ | 147,413 | 360 | 0.98 | $ | 148,869 | 300 | 0.82 | $ | 165,329 | 424 | 1.03 | ||||||||||||||||||
| Savings accounts | 193,850 | 58 | 0.12 | 190,080 | 43 | 0.09 | 188,498 | 55 | 0.12 | |||||||||||||||||||||
| Money market accounts | 728,462 | 3,847 | 2.12 | 728,590 | 3,822 | 2.13 | 687,621 | 3,600 | 2.10 | |||||||||||||||||||||
| Time deposit accounts | 722,603 | 6,093 | 3.38 | 691,612 | 5,813 | 3.41 | 690,555 | 6,358 | 3.69 | |||||||||||||||||||||
| Total interest-bearing deposits | 1,792,328 | 10,358 | 2.32 | 1,759,151 | 9,978 | 2.30 | 1,732,003 | 10,437 | 2.42 | |||||||||||||||||||||
| Borrowings | 85,845 | 1,102 | 5.15 | 126,193 | 1,478 | 4.75 | 122,070 | 1,533 | 5.04 | |||||||||||||||||||||
| Interest-bearing liabilities | 1,878,173 | 11,460 | 2.45 | 1,885,344 | 11,456 | 2.46 | 1,854,073 | 11,970 | 2.59 | |||||||||||||||||||||
| Non-interest-bearing deposits | 593,110 | 588,503 | 572,833 | |||||||||||||||||||||||||||
| Other non-interest-bearing liabilities | 20,392 | 21,413 | 22,207 | |||||||||||||||||||||||||||
| Total non-interest-bearing liabilities | 613,502 | 609,916 | 595,040 | |||||||||||||||||||||||||||
| Total liabilities | 2,491,675 | 2,495,260 | 2,449,113 | |||||||||||||||||||||||||||
| Total equity | 247,036 | 249,451 | 237,211 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 2,738,711 | $ | 2,744,711 | $ | 2,686,324 | ||||||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (124 | ) | (119 | ) | (121 | ) | ||||||||||||||||||||||||
| Net interest and dividend income | $ | 19,321 | $ | 18,825 | $ | 17,642 | ||||||||||||||||||||||||
| Net interest rate spread(4) | 2.33 | % | 2.28 | % | 2.10 | % | ||||||||||||||||||||||||
| Net interest rate spread, on a tax-equivalent basis(5) | 2.34 | % | 2.30 | % | 2.12 | % | ||||||||||||||||||||||||
| Net interest margin(6) | 3.00 | % | 2.95 | % | 2.80 | % | ||||||||||||||||||||||||
| Net interest margin, on a tax-equivalent basis(7) | 3.02 | % | 2.97 | % | 2.82 | % | ||||||||||||||||||||||||
| Ratio of average interest-earning | ||||||||||||||||||||||||||||||
| assets to average interest-bearing liabilities | 137.69 | % | 137.42 | % | 136.46 | % | ||||||||||||||||||||||||
The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2026 and 2025 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Six Months Ended June 30, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Average | Average Yield/ | Average | Average Yield/ | ||||||||||||||||
| Balance | Interest | Cost(8) | Balance | Interest | Cost(8) | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| ASSETS: | |||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||
| Loans(1)(2) | $ | 2,188,207 | $ | 55,643 | 5.13 | % | $ | 2,077,424 | $ | 51,440 | 4.99 | % | |||||||
| Securities(2) | 359,921 | 4,962 | 2.78 | 370,249 | 5,010 | 2.73 | |||||||||||||
| Other investments | 14,874 | 303 | 4.11 | 14,941 | 360 | 4.86 | |||||||||||||
| Short-term investments(3) | 25,436 | 397 | 3.15 | 67,282 | 1,481 | 4.44 | |||||||||||||
| Total interest-earning assets | 2,588,438 | 61,305 | 4.78 | 2,529,896 | 58,291 | 4.65 | |||||||||||||
| Total non-interest-earning assets | 153,256 | 156,489 | |||||||||||||||||
| Total assets | $ | 2,741,694 | $ | 2,686,385 | |||||||||||||||
| LIABILITIES AND EQUITY: | |||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||
| Interest-bearing checking accounts | $ | 148,137 | 660 | 0.90 | % | $ | 153,212 | 674 | 0.89 | % | |||||||||
| Savings accounts | 191,975 | 101 | 0.11 | 186,196 | 95 | 0.10 | |||||||||||||
| Money market accounts | 728,525 | 7,669 | 2.12 | 695,872 | 7,569 | 2.19 | |||||||||||||
| Time deposit accounts | 707,193 | 11,906 | 3.40 | 696,618 | 13,475 | 3.90 | |||||||||||||
| Total interest-bearing deposits | 1,775,830 | 20,336 | 2.31 | 1,731,898 | 21,813 | 2.54 | |||||||||||||
| Short-term borrowings and long-term debt | 105,907 | 2,580 | 4.91 | 122,426 | 3,060 | 5.04 | |||||||||||||
| Total interest-bearing liabilities | 1,881,737 | 22,916 | 2.46 | 1,854,324 | 24,873 | 2.70 | |||||||||||||
| Non-interest-bearing deposits | 590,820 | 571,245 | |||||||||||||||||
| Other non-interest-bearing liabilities | 20,900 | 23,826 | |||||||||||||||||
| Total non-interest-bearing liabilities | 611,720 | 595,071 | |||||||||||||||||
| Total liabilities | 2,493,457 | 2,449,395 | |||||||||||||||||
| Total equity | 248,237 | 236,990 | |||||||||||||||||
| Total liabilities and equity | $ | 2,741,694 | $ | 2,686,385 | |||||||||||||||
| Less: Tax-equivalent adjustment (2) | (243 | ) | (242 | ) | |||||||||||||||
| Net interest and dividend income | $ | 38,146 | $ | 33,176 | |||||||||||||||
| Net interest rate spread (4) | 2.30 | % | 1.92 | % | |||||||||||||||
| Net interest rate spread, on a tax-equivalent basis (5) | 2.32 | % | 1.95 | % | |||||||||||||||
| Net interest margin (6) | 2.97 | % | 2.64 | % | |||||||||||||||
| Net interest margin, on a tax-equivalent basis (7) | 2.99 | % | 2.66 | % | |||||||||||||||
| Ratio of average interest-earning | |||||||||||||||||||
| assets to average interest-bearing liabilities | 137.56 | % | 136.43 | % | |||||||||||||||
(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
(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 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 | |||||||||||||||||||
| 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Loan interest (no tax adjustment) | $ | 27,960 | $ | 27,440 | $ | 27,491 | $ | 26,690 | $ | 26,214 | |||||||||
| Tax-equivalent adjustment | 124 | 119 | 125 | 120 | 121 | ||||||||||||||
| Loan interest (tax-equivalent basis) | $ | 28,084 | $ | 27,559 | $ | 27,616 | $ | 26,810 | $ | 26,335 | |||||||||
| Loan interest (tax-equivalent basis) | $ | 28,084 | $ | 27,559 | $ | 27,616 | $ | 26,810 | $ | 26,335 | |||||||||
| Less: | |||||||||||||||||||
| Prepayment penalties | 82 | 16 | - | 34 | 425 | ||||||||||||||
| Adjusted loan income, excluding prepayment penalties (tax-equivalent basis) (non-GAAP) | $ | 28,002 | $ | 27,543 | $ | 27,616 | $ | 26,776 | $ | 25,910 | |||||||||
| Average loans | $ | 2,189,867 | $ | 2,186,529 | $ | 2,166,804 | $ | 2,112,394 | $ | 2,081,319 | |||||||||
| Average loan yield (no tax adjustment) | 5.12 | % | 5.09 | % | 5.03 | % | 5.01 | % | 5.05 | % | |||||||||
| Average loan yield (no tax adjustment), excluding prepayment penalties (non-GAAP) | 5.11 | % | 5.09 | % | 5.03 | % | 5.01 | % | 4.97 | % | |||||||||
| Average loan yield (tax-equivalent) | 5.14 | % | 5.11 | % | 5.06 | % | 5.04 | % | 5.08 | % | |||||||||
| Average loan yield (tax-equivalent basis), excluding prepayment penalties (non-GAAP) | 5.13 | % | 5.11 | % | 5.06 | % | 5.03 | % | 4.99 | % | |||||||||
| Net interest income (no tax adjustment) | $ | 19,321 | $ | 18,825 | $ | 18,829 | $ | 18,092 | $ | 17,642 | |||||||||
| Tax equivalent adjustment | 124 | 119 | 125 | 120 | 121 | ||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 19,445 | $ | 18,944 | $ | 18,954 | $ | 18,212 | $ | 17,763 | |||||||||
| Net interest income (no tax adjustment) | $ | 19,321 | $ | 18,825 | $ | 18,829 | $ | 18,092 | $ | 17,642 | |||||||||
| Less: | |||||||||||||||||||
| Prepayment penalties | 82 | 16 | - | 34 | 425 | ||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 19,239 | $ | 18,809 | $ | 18,829 | $ | 18,058 | $ | 17,217 | |||||||||
| Average interest-earning assets | $ | 2,585,976 | $ | 2,590,928 | $ | 2,584,310 | $ | 2,553,849 | $ | 2,530,077 | |||||||||
| Net interest margin (no tax adjustment) | 3.00 | % | 2.95 | % | 2.89 | % | 2.81 | % | 2.80 | % | |||||||||
| Net interest margin (tax-equivalent basis) | 3.02 | % | 2.97 | % | 2.91 | % | 2.83 | % | 2.82 | % | |||||||||
| Adjusted net interest margin, excluding prepayment penalties (no tax adjustment) (non-GAAP) | 2.98 | % | 2.94 | % | 2.89 | % | 2.81 | % | 2.73 | % | |||||||||
| At or for the quarter ended | |||||||||||||||||||
| 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Book Value per Share (GAAP) | $ | 12.39 | $ | 12.26 | $ | 12.16 | $ | 11.89 | $ | 11.68 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Goodwill | (0.62 | ) | (0.62 | ) | (0.61 | ) | (0.61 | ) | (0.61 | ) | |||||||||
| Core deposit intangible | (0.05 | ) | (0.05 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | |||||||||
| Tangible Book Value per Share (non-GAAP) | $ | 11.72 | $ | 11.59 | $ | 11.49 | $ | 11.22 | $ | 11.01 | |||||||||
| Efficiency Ratio: | |||||||||||||||||||
| Non-interest Expense (GAAP) | $ | 16,355 | $ | 16,008 | $ | 15,870 | $ | 15,778 | $ | 15,656 | |||||||||
| Net Interest Income (GAAP) | $ | 19,321 | $ | 18,825 | $ | 18,829 | $ | 18,092 | $ | 17,642 | |||||||||
| Non-interest Income (GAAP) | $ | 3,394 | $ | 3,433 | $ | 3,173 | $ | 3,173 | $ | 3,411 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Unrealized (gain) loss on marketable equity securities | (47 | ) | 13 | 7 | (22 | ) | (25 | ) | |||||||||||
| Gain on non-marketable equity investments | - | - | - | - | (243 | ) | |||||||||||||
| Gain on bank-owned life insurance death benefits | (1 | ) | (449 | ) | - | - | - | ||||||||||||
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $ | 3,346 | $ | 2,997 | $ | 3,180 | $ | 3,151 | $ | 3,143 | |||||||||
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $ | 22,667 | $ | 21,822 | $ | 22,009 | $ | 21,243 | $ | 20,785 | |||||||||
| Efficiency Ratio (GAAP) | 72.00 | % | 71.92 | % | 72.13 | % | 74.20 | % | 74.36 | % | |||||||||
| Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) | 72.15 | % | 73.36 | % | 72.11 | % | 74.27 | % | 75.32 | % | |||||||||
| For the six months ended | ||||||||
| 6/30/2026 | 6/30/2025 | |||||||
| (Dollars in thousands) | ||||||||
| Loan income (no tax adjustment) | $ | 55,400 | $ | 51,198 | ||||
| Tax-equivalent adjustment | 243 | 242 | ||||||
| Loan income (tax-equivalent basis) | $ | 55,643 | $ | 51,440 | ||||
| Net interest income (no tax adjustment) | $ | 38,146 | $ | 33,176 | ||||
| Tax equivalent adjustment | 243 | 242 | ||||||
| Net interest income (tax-equivalent basis) | $ | 38,389 | $ | 33,418 | ||||
| Net interest income (no tax adjustment) | $ | 38,146 | $ | 33,176 | ||||
| Less: | ||||||||
| Prepayment penalties | 98 | 425 | ||||||
| Adjusted net interest income (non-GAAP) | $ | 38,048 | $ | 32,751 | ||||
| Average interest-earning assets | $ | 2,588,438 | $ | 2,529,896 | ||||
| Net interest margin (no tax adjustment) | 2.97 | % | 2.64 | % | ||||
| Net interest margin, tax-equivalent | 2.99 | % | 2.66 | % | ||||
| Net interest margin, excluding prepayment penalties (no tax adjustment) (non-GAAP) | 2.96 | % | 2.61 | % | ||||
| Adjusted Efficiency Ratio: | ||||||||
| Non-interest Expense (GAAP) | $ | 32,363 | $ | 30,840 | ||||
| Net Interest Income (GAAP) | $ | 38,146 | $ | 33,176 | ||||
| Non-interest Income (GAAP) | $ | 6,827 | $ | 6,170 | ||||
| Non-GAAP adjustments: | ||||||||
| Unrealized gains on marketable equity securities | (34 | ) | (20 | ) | ||||
| Gain on bank-owned life insurance death benefits | (450 | ) | - | |||||
| Gain on non-marketable equity investments | - | (243 | ) | |||||
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $ | 6,343 | $ | 5,907 | ||||
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $ | 44,489 | $ | 39,083 | ||||
| Efficiency Ratio (GAAP) | 71.96 | % | 78.38 | % | ||||
| Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) | 72.74 | % | 78.91 | % | ||||
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
