Western New England Bancorp, Inc. (WNEB) Bundle
A Brief History of Western New England Bancorp, Inc. (WNEB)
Western New England Bancorp, Inc. (WNEB), the holding company for Westfield Bank, has experienced significant financial developments leading up to 2024. The company operates primarily in the banking sector, providing a range of financial services to customers in Massachusetts and Connecticut.
Financial Performance in 2024
As of September 30, 2024, WNEB reported total assets of $2.7 billion, an increase from $2.6 billion at December 31, 2023. The company's net income for the three months ended September 30, 2024, was $1.9 million, or $0.09 per diluted share, compared to $4.5 million, or $0.21 per diluted share, for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Assets | $2.7 billion | $2.6 billion | +3.8% |
| Net Income | $1.9 million | $4.5 million | -57.8% |
| Net Interest Income | $14.7 million | $16.4 million | -10.4% |
| Return on Average Assets | 0.29% | 0.70% | -58.6% |
| Return on Average Equity | 3.19% | 7.60% | -58.0% |
Loan Portfolio
As of September 30, 2024, WNEB's total loans amounted to $2.05 billion, reflecting an increase from $2.03 billion at the end of 2023. The composition of the loan portfolio included commercial real estate loans of $1.08 billion and residential real estate loans of $748 million.
| Loan Type | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Commercial Real Estate Loans | $1.08 billion | $1.08 billion |
| Residential Real Estate Loans | $748 million | $722 million |
| Commercial and Industrial Loans | $210 million | $217 million |
| Consumer Loans | $4.6 million | $5.5 million |
Deposit Trends
Total deposits for WNEB increased to $2.22 billion as of September 30, 2024, up from $2.14 billion at the end of 2023. Core deposits represented 68.5% of total deposits, while time deposits increased significantly by 14.5% during the same period.
| Deposit Type | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Total Deposits | $2.22 billion | $2.14 billion |
| Core Deposits | $1.52 billion | $1.53 billion |
| Time Deposits | $700 million | $611 million |
Credit Quality
The allowance for credit losses stood at $20 million, or 0.97% of total loans, as of September 30, 2024. Nonperforming loans totaled $4.9 million, representing 0.24% of total loans, a decrease from $6.4 million, or 0.32%, at the end of 2023.
| Credit Quality Metric | Value (September 30, 2024) | Value (December 31, 2023) |
|---|---|---|
| Allowance for Credit Losses | $20 million | $20.3 million |
| Nonperforming Loans | $4.9 million | $6.4 million |
| Total Loans | $2.05 billion | $2.03 billion |
Market Position and Strategy
WNEB continues to focus on enhancing its core deposit base and managing its loan portfolio amidst a challenging economic environment characterized by rising interest rates. Management remains vigilant regarding macroeconomic factors that could impact credit quality and overall financial performance.
A Who Owns Western New England Bancorp, Inc. (WNEB)
Ownership Structure
As of 2024, Western New England Bancorp, Inc. (WNEB) has a diverse ownership structure that includes both institutional and individual shareholders. The company's shares are traded on NASDAQ under the ticker symbol WNEB.
Institutional Ownership
Institutional investors hold a significant portion of WNEB's shares, reflecting confidence in the company's performance. The following table summarizes the major institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 5.6% |
| Vanguard Group, Inc. | 1,100,000 | 5.2% |
| State Street Corporation | 900,000 | 4.2% |
| Wellington Management Company, LLP | 800,000 | 3.8% |
| Dimensional Fund Advisors LP | 750,000 | 3.5% |
Insider Ownership
Insider ownership is also noteworthy, as executives and board members retain a portion of the company's stock, aligning their interests with those of shareholders. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| James C. Hagan | President & CEO | 250,000 | 1.2% |
| Guida R. Sajdak | EVP & CFO | 150,000 | 0.7% |
| Meghan Hibner | VP Investor Relations | 50,000 | 0.2% |
| Board of Directors | Various | 300,000 | 1.4% |
Shareholder Composition
The overall shareholder composition of WNEB as of 2024 is as follows:
| Category | Percentage of Total Shares |
|---|---|
| Institutional Investors | 30% |
| Insiders | 2.5% |
| Retail Investors | 67.5% |
Recent Stock Performance
As of September 30, 2024, WNEB's stock was trading at approximately $8.18 per share, reflecting a market capitalization of around $173 million. The stock has experienced fluctuations, with a 52-week range of $6.50 to $10.50.
Stock Repurchase Program
WNEB has implemented a stock repurchase program, with the latest plan allowing for the repurchase of up to 1.0 million shares. As of September 30, 2024, the company had repurchased 714,282 shares under this program at an average price of $7.61 per share.
Dividend Policy
The company has declared a quarterly cash dividend of $0.07 per share, payable on or about November 21, 2024, to shareholders of record as of November 7, 2024. This reflects WNEB's commitment to returning value to its shareholders while maintaining sufficient capital for growth.
Western New England Bancorp, Inc. (WNEB) Mission Statement
Mission Statement Overview
Western New England Bancorp, Inc. (WNEB) is committed to delivering personalized banking services and solutions that enhance the financial well-being of its customers and the communities it serves. The company strives to maintain a strong financial position while adhering to high ethical standards and community involvement.
Financial Performance
As of September 30, 2024, WNEB reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Total Assets | $2.6 billion |
| Total Loans | $2.0 billion |
| Total Deposits | $2.2 billion |
| Net Income (Q3 2024) | $1.9 million |
| Net Income per Diluted Share (Q3 2024) | $0.09 |
| Return on Average Assets (Q3 2024) | 0.29% |
| Return on Average Equity (Q3 2024) | 3.19% |
| Efficiency Ratio (Q3 2024) | 80.6% |
Community Engagement
WNEB emphasizes community engagement through various initiatives aimed at supporting local development and financial literacy programs. The company is dedicated to fostering relationships that contribute to the economic growth of the communities it serves.
Deposit Composition
The composition of deposits as of September 30, 2024, is as follows:
| Deposit Type | Amount (in thousands) |
|---|---|
| Core Deposits | $1,524,055 |
| Time Deposits | $700,151 |
| Total Deposits | $2,224,206 |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio consisted of the following:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Real Estate | $1,006,000 |
| Residential Real Estate | $745,000 |
| Commercial and Industrial | $249,000 |
Credit Quality Metrics
Key credit quality metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Allowance for Credit Losses | $20.0 million |
| Nonperforming Loans | $4.9 million |
| Nonperforming Loans as a Percentage of Total Loans | 0.24% |
Recent Challenges and Strategic Focus
WNEB has faced challenges due to an increase in interest expenses and shifts in deposit composition. The company remains focused on enhancing shareholder value and maintaining a strong capital position while adapting to changing market conditions.
How Western New England Bancorp, Inc. (WNEB) Works
Financial Overview
As of September 30, 2024, Western New England Bancorp, Inc. reported total assets of approximately $2.5 billion. The company experienced a net income of $8.4 million for the nine months ended September 30, 2024, translating to earnings of $0.40 per diluted share. This marks a decrease from the $12.6 million net income or $0.58 per diluted share reported for the same period in 2023.
Interest Income and Margin
Net interest income for the nine months ended September 30, 2024, was $44.5 million, down from $51.7 million in the prior year, reflecting a decrease of 13.9%. The net interest margin for the same period was 2.46%, compared to 2.88% in the previous year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Interest Income | $44.5 million | $51.7 million |
| Net Interest Margin | 2.46% | 2.88% |
| Return on Average Assets | 0.44% | 0.66% |
| Return on Average Equity | 4.74% | 7.19% |
Loan and Deposit Growth
Total loans at September 30, 2024, amounted to $2.0 billion, reflecting an increase of $21.7 million, or 1.1%, from December 31, 2023. Core deposits totaled $1.5 billion, representing a decrease of 0.5%, while total deposits were $2.2 billion, up by $80.5 million, or 3.8%.
| Deposit Type | Amount (September 30, 2024) | Change from December 31, 2023 |
|---|---|---|
| Core Deposits | $1.5 billion | -0.5% |
| Time Deposits | $700.2 million | +14.5% |
| Total Deposits | $2.2 billion | +3.8% |
Cost of Funds
The average cost of total funds increased to 2.12% for the nine months ended September 30, 2024, compared to 1.32% in the same period of 2023. The average cost of time deposits also rose significantly, reaching 4.32% from 2.72% year-over-year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Average Cost of Total Funds | 2.12% | 1.32% |
| Average Cost of Time Deposits | 4.32% | 2.72% |
Credit Quality and Provision for Losses
As of September 30, 2024, the allowance for credit losses was $20.0 million, or 0.97% of total loans, with nonperforming loans totaling $4.9 million, representing 0.24% of total loans. The provision for credit losses recorded during the nine months was $97,000, a decrease from $386,000 in the prior year.
| Metric | Amount (September 30, 2024) | Change from 2023 |
|---|---|---|
| Allowance for Credit Losses | $20.0 million | -1.5% |
| Nonperforming Loans | $4.9 million | -23.4% |
| Provision for Credit Losses | $97,000 | -74.8% |
Non-Interest Income and Expenses
Non-interest income decreased by 13.0% to $3.1 million for the three months ended September 30, 2024, down from $3.6 million in 2023. Non-interest expenses for the same period increased by 2.0% to $14.4 million.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Non-Interest Income | $3.1 million | $3.6 million |
| Non-Interest Expense | $14.4 million | $14.1 million |
Stock Performance and Repurchase Program
As of September 30, 2024, the company's book value per share was $11.40, compared to $10.96 at December 31, 2023. The company repurchased 244,441 shares at an average price of $8.18 under its stock repurchase plan during the three months ended September 30, 2024.
| Metric | Value |
|---|---|
| Book Value per Share | $11.40 |
| Shares Repurchased (Q3 2024) | 244,441 |
| Average Price per Share (Repurchased) | $8.18 |
How Western New England Bancorp, Inc. (WNEB) Makes Money
Net Interest Income
Western New England Bancorp, Inc. (WNEB) generates a significant portion of its revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits. For the nine months ended September 30, 2024, net interest income decreased to $44.5 million, down from $51.7 million in the same period in 2023, representing a decline of 13.9%.
The average yield on interest-earning assets was 4.88% for the nine months ended September 30, 2024, compared to 4.51% for the same period in 2023.
Loan Portfolio
As of September 30, 2024, total loans amounted to $2.0 billion, an increase of $21.7 million, or 1.1%, from December 31, 2023. This growth was primarily driven by an increase in residential real estate loans, which rose by $26.4 million, or 3.7%.
| Type of Loan | Amount (in millions) | Change from Previous Period (%) |
|---|---|---|
| Commercial Real Estate Loans | 3.0 | 0.3 |
| Residential Real Estate Loans | 26.4 | 3.7 |
| Commercial and Industrial Loans | -7.0 | -3.2 |
Deposits and Funding Costs
Total deposits at WNEB reached $2.2 billion as of September 30, 2024, reflecting an increase of $80.5 million, or 3.8%, from December 31, 2023. The average cost of total funds rose to 2.12% for the nine months ended September 30, 2024, up from 1.32% in the previous year.
The average cost of time deposits surged to 4.32% from 2.72% year-over-year, while the average cost of core deposits increased to 0.86%.
| Deposit Type | Amount (in millions) | Change from Previous Period (%) |
|---|---|---|
| Total Deposits | 2,224.2 | 3.8 |
| Core Deposits | 1,524.1 | -0.5 |
| Time Deposits | 700.2 | 14.5 |
Non-Interest Income
WNEB's non-interest income for the three months ended September 30, 2024, was $3.1 million, down from $3.6 million, indicating a decrease of 13.0%. The decline was attributed to lower service charges and fees on deposits, which remained steady at $2.3 million for the reporting periods.
Expense Management
For the three months ended September 30, 2024, non-interest expenses totaled $14.4 million, reflecting a slight increase of 2.0% compared to the previous year. The efficiency ratio, which measures the company's ability to convert revenue into profit, was reported at 80.6%.
Credit Loss Provisions and Quality
During the nine months ended September 30, 2024, WNEB recorded a provision for credit losses of $97,000, significantly lower than the $386,000 recorded in the previous year. The allowance for credit losses was $20.0 million, representing 0.97% of total loans.
| Metric | Value |
|---|---|
| Net Charge-Offs (9 months) | $41,000 |
| Provision for Credit Losses (9 months) | $97,000 |
| Allowance for Credit Losses | $20.0 million |
Financial Performance Ratios
For the three months ended September 30, 2024, the return on average assets was 0.29%, and the return on average equity was 3.19%. The diluted earnings per share for the same period was $0.09.
| Performance Ratio | Value |
|---|---|
| Return on Average Assets | 0.29% |
| Return on Average Equity | 3.19% |
| Earnings per Diluted Share | $0.09 |
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Article updated on 8 Nov 2024
Resources:
- Western New England Bancorp, Inc. (WNEB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Western New England Bancorp, Inc. (WNEB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Western New England Bancorp, Inc. (WNEB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.