Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2024

WESTERN NEW ENGLAND BANCORP, INC.

(Exact name of registrant as specified in its charter)

Massachusetts		001-16767		73-1627673
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

141 Elm Street

Westfield, Massachusetts

01085

(Address of principal executive offices)

(zip code)

Registrant's telephone number, including area code: (413) 568-1911

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value per share	WNEB	NASDAQ

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.

Results of Operations and Financial Condition.

On July 23, 2024, Western New England Bancorp, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and six months ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and is hereby incorporated by reference into this Item 2.02.

Item 7.01.

Regulation FD Disclosure.

On July 23, 2024, the Company made available an investor presentation to be used during investor meetings. The slide show for the investor presentation is attached to this report as Exhibit 99.2.

The information contained in this Item 7.01 and Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will such information or exhibits be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such filing. The furnishing of the information included in Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.

Item 9.01.

Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(d) Exhibits.

The exhibits required by this item are set forth on the Exhibit Index attached hereto.

Exhibit Number		Description
99.1		Press Release of Western New England Bancorp, Inc. dated July 23, 2024.
99.2		Investor Presentation dated July 23, 2024 for Western New England Bancorp, Inc.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WESTERN NEW ENGLAND BANCORP, INC.


	By:	/s/ Guida R. Sajdak
		Guida R. Sajdak
		Chief Financial Officer

Dated: July 23, 2024

WESTERN NEW ENGLAND BANCORP, INC. 8-K

Exhibit 99.1

	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

WESTERN NEW ENGLAND BANCORP, INC. REPORTS RESULTS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND DECLARES QUARTERLY CASH DIVIDEND

Westfield, Massachusetts, July 23, 2024: 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, 2024. For the three months ended June 30, 2024, the Company reported net income of $3.5 million, or $0.17 per diluted share, compared to net income of $2.8 million, or $0.13 per diluted share, for the three months ended June 30, 2023. On a linked quarter basis, net income was $3.5 million, or $0.17 per diluted share, as compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. For the six months ended June 30, 2024, net income was $6.5 million, or $0.31 per diluted share, compared to net income of $8.1 million, or $0.37 per diluted share, for the six months ended June 30, 2023.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 21, 2024 to shareholders of record on August 7, 2024.

James C. Hagan, President and Chief Executive Officer, commented, “It has been widely publicized that the economy and the banking industry is in the midst of the longest inverted yield curve in U.S. history, which continues to create net interest margin compression and funding challenges for banks across the country, including Western New England Bancorp. We believe our Company continues to be well positioned with strong capital and access to liquidity to sustain us through this unprecedented interest rate cycle. Our quarterly financial performance has been largely impacted by higher funding costs in response to the sustained increase in interest rates over the last 18-24 months. As we continue to manage the balance sheet in this uncertain environment, we are also focused on expense management initiatives to mitigate top line pressures and improve efficiencies over the long-term. The Company also continues to focus on our loan and deposit growth initiatives and retention of our customers. Total deposits increased $28.1 million, or 1.3%, from year-end and our asset quality remains strong, with nonperforming loans to total loans of 0.29% at June 30, 2024.”

Hagan concluded, “The Company is considered to be well-capitalized as defined by the regulators and we remain disciplined in our capital management strategies. During the six months ended June 30, 2024, we repurchased approximately 470,000 shares of the Company’s common stock at an average price per share of $7.32. We continue to believe that buying back shares represents a prudent use of the Company’s capital and we are pleased to be able to continue to return value to shareholders through share repurchases. On May 22, 2024, as previously announced, the Board of Directors authorized a new repurchase plan under which the Company may purchase up to 1.0 million shares, or approximately 4.6%, of the Company’s outstanding shares. We remain focused and well positioned to serve our community today and in the future and to enhance shareholder value.”

Key Highlights:

Loans and Deposits

At June 30, 2024, total loans were $2.0 billion and decreased $1.1 million, or 0.1%, from December 31, 2023. The decrease in total loans was due to a decrease in commercial real estate loans of $23.2 million, or 2.1%, a decrease in commercial and industrial loans of $1.1 million, or 0.5%, partially offset by an increase in residential real estate loans, including home equity loans, of $23.8 million, or 3.3%.

At June 30, 2024, total deposits were $2.2 billion and increased $28.1 million, or 1.3%, from December 31, 2023. Core deposits, which the Company defines as all deposits except time deposits, decreased $32.3 million, or 2.1%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 69.1% of total deposits at June 30, 2024. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 93.3% at June 30, 2024.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At June 30, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $574.4 million in uninsured deposits, or 26.4% of total deposits, representing a coverage ratio of 186%. Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (“ICS”) account or a reciprocal time deposit through the Certificate of Deposit Account Registry System (“CDARS”). IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Loan Losses and Credit Quality

At June 30, 2024, the allowance for credit losses was $19.4 million, or 0.96% of total loans and 332.7% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans at December 31, 2023. At June 30, 2024, nonperforming loans totaled $5.8 million, or 0.29% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $449,000, or 7.4%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $5.6 million, or 0.27% of total loans, at June 30, 2024. At June 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin was 2.42% for the three months ended June 30, 2024 compared to 2.57% for the three months ended March 31, 2024. The net interest margin, on a tax-equivalent basis, was 2.44% for the three months ended June 30, 2024, compared to 2.59% for the three months ended March 31, 2024.

Stock Repurchase Program

On June 10, 2024, the Company announced the completion of its previously authorized stock repurchase plan (the “2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1.1 million shares, or approximately 5% of its outstanding common stock, as of the date the 2022 Plan was adopted. On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s outstanding shares of common stock. During the three months ended June 30, 2024, the Company repurchased 206,600 shares of common stock under the 2022 Plan, with an average price per share of $6.64 and 63,241 shares of common stock under the 2024 Plan, with an average price per share of $6.57. During the six months ended June 30, 2024, the Company repurchased 469,841 shares of common stock with an average price per share of $7.32. As of June 30, 2024, there were 936,759 shares of common stock available for repurchase under the 2024 Plan.

The table below breaks out the shares repurchased under the 2022 Plan and 2024 Plan for the period noted:

	Shares Repurchased		Price per Share		Shares Available Under Plan(s)
Three months ended March 31, 2024:
2022 Plan		200,000	$	8.26		206,600

Three months ended June 30, 2024:
2022 Plan		206,600	$	6.64		—
2024 Plan		63,241		6.57		936,759
Total		269,841	$	6.62		936,759
Total for the six months ended June 30, 2024:		469,841	$	7.32		936,759

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 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 2024 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 $11.07 at June 30, 2024 compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.11, or 1.1%, from $10.30 at December 31, 2023 to $10.41 at June 30, 2024. See pages 18-20 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended June 30, 2024 Compared to the Three Months Ended March 31, 2024

The Company reported net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. Net interest income decreased $876,000, or 5.7%, the reversal of credit losses decreased $256,000, or 46.5%, non-interest income increased $1.2 million, or 43.4%, and non-interest expense decreased $468,000, or 3.2%. Return on average assets and return on average equity were 0.55% and 6.03%, respectively, for the three months ended June 30, 2024, compared to 0.47% and 5.04%, respectively, for the three months ended March 31, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, decreased $876,000, or 5.7%, to $14.5 million for the three months ended June 30, 2024, from $15.3 million for the three months ended March 31, 2024. The decrease in net interest income was primarily due to an increase in interest expense of $1.1 million, or 9.5%, partially offset by an increase in interest income of $198,000, or 0.7%. The increase in interest expense was a result of competitive pricing on deposits due to the continued high interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.42%, for the three months ended June 30, 2024, compared to 2.57% for the three months ended March 31, 2024. The net interest margin, on a tax-equivalent basis, was 2.44% for the three months ended June 30, 2024, compared to 2.59% for the three months ended March 31, 2024. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset by an increase in the average yield on interest-earning assets.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.49% for the three months ended June 30, 2024, compared to 4.45% for the three months ended March 31, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.85% for the three months ended June 30, 2024, compared to 4.82% for the three months ended March 31, 2024. During the three months ended June 30, 2024, average interest-earning assets decreased $2.5 million, or 0.1% to $2.4 billion, primarily due to an decrease in average loans of $4.6 million, or 0.2% and a decrease in average securities of $4.6 million, or 1.3%, partially offset by an increase in short-term investments, consisting of cash and cash equivalents, of $4.9 million, or 52.7%, and an increase in average other investments of $1.8 million, or 14.7%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 19 basis points from 1.97% for the three months ended March 31, 2024 to 2.16% for the three months ended June 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 11 basis points to 0.87% for the three months ended June 30, 2024, from 0.76% for the three months ended March 31, 2024. The average cost of time deposits increased 27 basis points from 4.12% for the three months ended March 31, 2024 to 4.39% for the three months ended June 30, 2024. The average cost of borrowings, including subordinated debt, increased nine basis points from 4.91% for the three months ended March 31, 2024 to 5.00% for the three months ended June 30, 2024. Average demand deposits, an interest-free source of funds, decreased $8.9 million, or 1.6%, from $557.7 million, or 26.1% of total average deposits, for the three months ended March 31, 2024, to $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended June, 30, 2024, the Company recorded a reversal of credit losses of $294,000, compared to a reversal for credit losses of $550,000 during the three months ended March 31, 2024. The provision for credit losses includes a $430,000 reversal of credit losses on loans and a $136,000 provision for unfunded commitments, primarily due to the impact of increased unfunded loan commitments. Total unfunded loan commitments increased $11.9 million, or 7.9%, to $161.8 million at June 30, 2024 from $149.9 million at March 31, 2024. The increase was primarily due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended June 30, 2024, the Company recorded net charge-offs of $10,000, compared to net recoveries of $67,000, for the three months ended March 31, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income increased $1.2 million, or 43.4%, to $3.8 million for the three months ended June 30, 2024, from $2.7 million for the three months ended March 31, 2024. Service charges and fees on deposits increased $122,000, or 5.5%, from the three months ended March 31, 2024 to $2.3 million for the three months ended June 30, 2024. Income from bank-owned life insurance (“BOLI”) increased $49,000, or 10.8%, from the three months ended March 31, 2024 to $502,000, for the three months ended June 30, 2024. During the three months ended June 30, 2024, the Company reported a gain on non-marketable equity investments of $987,000 and did not have comparable gains or losses from non-marketable equity investments during the three months ended March 31, 2024. During the three months ended June 30, 2024, the Company reported an unrealized gain on marketable equity securities of $4,000, compared to an unrealized gain of $8,000 during the three months ended March 31, 2024.

Non-Interest Expense

For the three months ended June 30, 2024, non-interest expense decreased $468,000, or 3.2%, to $14.3 million from $14.8 million for the three months ended March 31, 2024. Salaries and employee benefits decreased $343,000, or 4.2%, to $7.9 million. Occupancy expense decreased $145,000, or 10.6%, due to a decrease in snow removal costs of $110,000, software related expenses decreased $133,000, or 19.0%, data processing expense decreased $16,000, or 1.9%, FDIC insurance expense decreased $87,000, or 21.2%, advertising expense decreased $10,000, or 2.9%, and furniture and equipment expense decreased $1,000, or 0.2%. Debit card and ATM processing fees increased $91,000, or 16.5%, professional fees increased $12,000, or 2.1%, and other non-interest expense increased $164,000, or 13.1%, during the same period.

For the three months ended June 30, 2024, the efficiency ratio was 78.2%, compared to 82.0% for the three months ended March 31, 2024. The decrease in the efficiency ratio was driven by the gain on non-marketable equity investments of $987,000 recognized during the three months ended June 30, 2024. For the three months ended June 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 82.7% compared to 82.0% for the three months ended March 31, 2024. The increase in the non-GAAP efficiency ratio was driven by lower revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2024, compared to the three months ended March 31, 2024. See pages 18-20 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2024 was $771,000, or an effective tax rate of 18.0%, compared to $827,000, or an effective tax rate of 21.8%, for the three months ended March 31, 2024.

Net Income for the Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023.

The Company reported net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024, compared to net income of $2.8 million, or $0.13 per diluted share, for the three months ended June 30, 2023. Net interest income decreased $2.4 million, or 14.1%, non-interest income increased $2.2 million, non-interest expense decreased $237,000, or 1.6%, and provision for credit losses decreased $714,000, during the same period. Return on average assets and return on average equity were 0.55% and 6.03%, respectively, for the three months ended June 30, 2024, compared to 0.43% and 4.72%, respectively, for the three months ended June 30, 2023.

Net Interest Income and Net Interest Margin

Net interest income decreased $2.4 million, or 14.1%, to $14.5 million, for the three months ended June 30, 2024, from $16.8 million for the three months ended June 30, 2023. The decrease in net interest income was due to an increase in interest expense of $4.4 million, or 54.9%, partially offset by an increase in interest and dividend income of $2.0 million, or 8.0%. Interest expense on deposits increased $4.3 million, or 70.3%, and interest expense on borrowings increased $103,000, or 5.4%. The increase in interest expense was a result of competitive pricing on deposits due to the continued higher interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.42% for the three months ended June 30, 2024, compared to 2.81% for the three months ended June 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.44% for the three months ended June 30, 2024, compared to 2.83% for the three months ended June 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.49% for the three months ended June 30, 2024, compared to 4.14% for the three months ended June 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.85% for the three months ended June 30, 2024, compared to 4.49% for the three months ended June 30, 2023. During the three months ended June 30, 2024, average interest-earning assets decreased $4.4 million, or 0.2% to $2.4 billion, primarily due to a decrease in average securities of $19.7 million, or 5.3%, partially offset by an increase in average loans of $10.2 million, or 0.5%, an increase in short-term investments, consisting of cash and cash equivalents, of $4.0 million, or 38.8%, and an increase in average other investments of $1.0 million, or 7.5%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 77 basis points from 1.39% for the three months ended June 30, 2023 to 2.16% for the three months ended June 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 0.87% for the three months ended June 30, 2024, from 0.64% for the three months ended June 30, 2023. The average cost of time deposits increased 165 basis points from 2.74% for the three months ended June 30, 2023 to 4.39% for the three months ended June 30, 2024. The average cost of borrowings, including subordinated debt, increased 12 basis points from 4.88% for the three months ended June 30, 2023 to 5.00% for the three months ended June 30, 2024. Average demand deposits, an interest-free source of funds, decreased $42.7 million, or 7.2%, from $591.4 million, or 27.6% of total average deposits, for the three months ended June 30, 2023, to $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended June, 30, 2024, the Company recorded a reversal of credit losses of $294,000, compared to a provision for credit losses of $420,000, during the three months ended June 30, 2023. The decrease was primarily due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net charge-offs of $10,000 for the three months ended June 30, 2024, as compared to net recoveries of $25,000 for the three months ended June 30, 2023.

Non-Interest Income

Non-interest income increased $2.2 million, or 140.8%, to $3.8 million for the three months ended June 30, 2024, from $1.6 million for the three months ended June 30, 2023. During the three months ended June 30, 2024, service charges and fees on deposits increased $100,000, or 4.5%, income from BOLI increased $8,000, or 1.6%, from $494,000 for the three months ended June 30, 2023 to $502,000 for the three months ended June 30, 2024. During the three months ended June 30, 2024, the Company reported an unrealized gain on marketable equity securities of $4,000. The Company did not have comparable gains or losses during the same period in 2023. During the three months ended June 30, 2024, the Company reported a gain of $987,000 on non-marketable equity investments and did not have comparable gains or losses during the same period in 2023. During the three months ended June 30, 2023, the Company recorded a non-recurring final termination expense of $1.1 million related to the defined benefit pension plan (the “DB Plan”) termination.

Non-Interest Expense

For the three months ended June 30, 2024, non-interest expense decreased $237,000, or 1.6%, to $14.3 million from $14.6 million, for the three months ended June 30, 2023. The decrease in non-interest expense was due to a decrease in professional fees of $222,000, or 27.6%, a decrease in salaries and benefits of $188,000, or 2.3%, a decrease in other non-interest expense of $75,000, or 5.1%, and a decrease in furniture and equipment expense of $9,000, or 1.8%. These decreases were partially offset by an increase in debit card and ATM processing fees of $115,000, or 21.8%, an increase in data processing expense of $54,000, or 6.8%, an increase in software expense of $40,000, or 7.6%, an increase in FDIC insurance expense of $33,000, or 11.4%, and an increase in occupancy expense of $15,000, or 1.2%.

For the three months ended June 30, 2024, the efficiency ratio was 78.2%, compared to 78.9% for the three months ended June 30, 2023. For the three months ended June 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 82.7% compared to 74.3% for the three months ended June 30, 2023. The adjusted efficiency ratio increase was driven by lower revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. See pages 18-20 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2024 was $771,000, or an effective tax rate of 18.0%, compared to $704,000, or an effective tax rate of 20.3%, for the three months ended June 30, 2023.

Net Income for the Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023

For the six months ended June 30, 2024, the Company reported net income of $6.5 million, or $0.31 per diluted share, compared to $8.1 million, or $0.37 per diluted share, for the six months ended June 30, 2023. Return on average assets and return on average equity were 0.51% and 5.53% for the six months ended June 30, 2024, respectively, compared to 0.64% and 6.98% for the six months ended June 30, 2023, respectively.

Net Interest Income and Net Interest Margin

During the six months ended June 30, 2024, net interest income decreased $5.5 million, or 15.7%, to $29.8 million, compared to $35.4 million for the six months ended June 30, 2023. The decrease in net interest income was due to an increase in interest expense of $10.5 million, or 80.1%, partially offset by an increase in interest and dividend income of $5.0 million, or 10.2%. The $10.5 million, or 80.1%, increase in interest expense was primarily due to an increase in interest expense on deposits of $9.5 million, or 93.0%.

The net interest margin for the six months ended June 30, 2024 was 2.50%, compared to 2.97% during the six months ended June 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.52% for the six months ended June 30, 2024, compared to 2.99% for the six months ended June 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.47% for the six months ended June 30, 2024, compared to 4.07% for the six months ended June 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.84% for the six months ended June 30, 2024, compared to 4.41% for the six months ended June 30, 2023. During the six months ended June 30, 2024, average interest-earning assets increased $2.5 million, or 0.1%, to $2.4 billion, from the same period in 2023. The increase was primarily due to an increase in average loans of $19.4 million, or 1.0%, and an increase in average short-term investments, consisting of cash and cash equivalents, of $3.7 million, or 45.8%, partially offset by a decrease in average securities of $21.3 million, or 5.6%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 92 basis points from 1.15% for the six months ended June 30, 2023 to 2.07% for the six months ended June 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 24 basis points to 0.82% for the six months ended June 30, 2024, from 0.58% for the six months ended June 30, 2023. The average cost of time deposits increased 199 basis points from 2.27% for the six months ended June 30, 2023 to 4.26% for the six months ended June 30, 2024. The average cost of borrowings, including subordinated debt, increased 10 basis points from 4.86% for the six months ended June 30, 2023 to 4.96% for the six months ended June 30, 2024. Average demand deposits, an interest-free source of funds, decreased $61.9 million, or 10.1%, from $615.2 million, or 28.3% of total average deposits, for the six months ended June 30, 2023, to $553.2 million, or 25.9% of total average deposits, for the six months ended June 30, 2024.

Provision for (Reversal of) Credit Losses

During the six months ended June 30, 2024, the Company recorded a reversal of credit losses of $844,000, compared to a provision for credit losses of $32,000 during the six months ended June 30, 2023. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $57,000 for the six months ended June 30, 2024, as compared to net charge-offs of $1.8 million for the six months ended June 30, 2023.

Non-Interest Income

For the six months ended June 30, 2024, non-interest income increased $1.9 million, or 42.4%, from $4.6 million during the six months ended June 30, 2023 to $6.5 million. During the same period, service charges and fees on deposits increased $132,000, or 3.0%, and income from BOLI increased $21,000, or 2.2%. During the six months ended June 30, 2024, the Company reported a gain of $987,000 on non-marketable equity investments, compared to a gain of $352,000, during the six months ended June 30, 2023. During the six months ended June 30, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000 and did not have a comparable gain or loss during the six months ended June 30, 2023. In addition, during the six months ended June 30, 2024, the Company reported unrealized gains on marketable equity securities of $12,000, and did not have comparable gains or losses during the six months ended June 30, 2023. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the six months ended June 30, 2023, the Company recorded a $1.1 million final termination expense related to the DB Plan termination. The Company did not have comparable income or expense during the six months ended June 30, 2024.

Non-Interest Expense

For the six months ended June 30, 2024, non-interest expense decreased $351,000, or 1.2%, to $29.1 million, compared to $29.4 million for the six months ended June 30, 2023. The decrease in non-interest expense was primarily due to a decrease in professional fees of $410,000, or 26.3%, a decrease in salaries and employee benefits of $375,000, or 2.3%, a decrease in other non-interest expense of $173,000, or 6.1%, a decrease in advertising expense of $68,000, or 9.0%, and a decrease in furniture and equipment expense of $11,000, or 1.1%. These decreases were partially offset by an increase in software related expense of $225,000, or 21.7%, an increase in debit card and ATM processing fees of $177,000, or 17.4%, an increase in data processing expense of $163,000, or 10.6%, an increase in FDIC insurance expense of $91,000, or 14.2%, and an increase in occupancy expense of $30,000, or 1.2%. During the six months ended June 30, 2023, other non-interest expense included $154,000 in expense related to the DB Plan termination.

For the six months ended June 30, 2024, the efficiency ratio was 80.1%, compared to 73.8% for the six months ended June 30, 2023. For the six months ended June 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 82.4%, compared to 72.3% for the six months ended June 30, 2023. The increase in the efficiency ratio and the adjusted efficiency ratio was driven by lower revenues, defined as the sum of net interest income and non-interest income, during the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The adjusted efficiency ratio is a non-GAAP measure. See pages 18-20 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the six months ended June 30, 2024 was $1.6 million, representing an effective tax rate of 19.8%, compared to $2.4 million, representing an effective tax rate of 22.7%, for six months ended June 30, 2023, due to lower projected pre-tax income for the twelve months ended December 31, 2024.

Balance Sheet

At June 30, 2024, total assets were $2.6 billion, an increase of $21.5 million, or 0.8%, from December 31, 2023. The increase in total assets was primarily due to an increase in cash and cash equivalents of $24.6 million, or 85.4%, partially offset by a decrease in investment securities of $7.7 million, or 2.1%, and a decrease in total loans of $1.1 million, or 0.1%.

Investments

At June 30, 2024, the investment securities portfolio totaled $353.0 million, or 13.6% of total assets, compared to $360.7 million, or 14.1%, of total assets, at December 31, 2023. At June 30, 2024, the Company’s available-for-sale (“AFS”) securities portfolio, recorded at fair market value, decreased $2.0 million, or 1.5%, from $137.1 million at December 31, 2023 to $135.1 million. The held-to-maturity (“HTM”) securities portfolio, recorded at amortized cost, decreased $5.8 million, or 2.6%, from $223.4 million at December 31, 2023 to $217.6 million at June 30, 2024.

At June 30, 2024, the Company reported unrealized losses on the AFS securities portfolio of $31.7 million, or 19.0% of the amortized cost basis of the AFS securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the AFS securities at December 31, 2023. At June 30, 2024, the Company reported unrealized losses on the HTM securities portfolio of $40.2 million, or 18.5%, of the amortized cost basis of the HTM securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the HTM securities portfolio at December 31, 2023.

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 $4.3 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2024 and December 31, 2023, 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 Company expects to strategically redeploy available cash flows from the securities portfolio to fund loan growth and deposit outflows.

Total Loans

At June 30, 2024, total loans decreased $1.1 million, or 0.1%, from December 31, 2023, to $2.0 billion. Commercial real estate loans decreased $23.2 million, or 2.1%, commercial and industrial loans decreased $1.1 million, or 0.5%, while residential real estate loans, including home equity loans, increased $23.8 million, or 3.3%.

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

	June 30, 2024		December 31, 2023
	(Dollars in thousands)

Commercial real estate loans:
Non-owner occupied	$	864,603	$	881,643
Owner-occupied		191,936		198,108
Total commercial real estate loans		1,056,539		1,079,751

Residential real estate loans:
Residential		631,997		612,315
Home equity		113,970		109,839
Total residential real estate loans		745,967		722,154

Commercial and industrial loans		216,300		217,447

Consumer loans		4,715		5,472
Total gross loans		2,023,521		2,024,824
Unamortized premiums and net deferred loans fees and costs		2,705		2,493
Total loans	$	2,026,226	$	2,027,317

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $5.6 million, or 0.27% of total loans, at June 30, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At June 30, 2024, nonperforming loans totaled $5.8 million, or 0.29% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total nonperforming assets totaled $5.8 million, or 0.23% of total assets, at June 30, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At June 30, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. At June 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

At June 30, 2024, the allowance for credit losses as a percentage of total loans was 0.96%, compared to 1.00% at December 31, 2023. At June 30, 2024, the allowance for credit losses as a percentage of nonperforming loans was 332.7%, compared to 315.6% at December 31, 2023.

Total classified loans, defined as special mention and substandard loans, decreased $2.8 million, or 7.1%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $36.7 million, or 1.8%, of total loans at June 30, 2024. We continue to maintain diversity among property types and within our geographic footprint. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

Total deposits increased $28.1 million, or 1.3%, from $2.1 billion at December 31, 2023 to $2.2 billion at June 30, 2024. Core deposits, which the Company defines as all deposits except time deposits, decreased $32.3 million, or 2.1%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 69.1% of total deposits, at June 30, 2024. Non-interest-bearing deposits decreased $26.3 million, or 4.5%, to $553.3 million, money market accounts decreased $22.9 million, or 3.6%, to $611.5 million, savings accounts decreased $1.2 million, or 0.7%, to $186.2 million and interest-bearing checking accounts increased $18.1 million, or 13.8%, to $149.1 million. Time deposits increased $60.3 million, or 9.9%, from $611.4 million at December 31, 2023 to $671.7 million at June 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at June 30, 2024 and December 31, 2023.

The table below is a summary of our deposit balances for the periods noted:

	June 30, 2024		March 31, 2024		December 31, 2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	553,329	$	559,928	$	579,595
Interest-bearing accounts		149,100		125,377		131,031
Savings accounts		186,171		190,732		187,405
Money market accounts		611,501		624,474		634,361
Total Core Deposits	$	1,500,101	$	1,500,511	$	1,532,392
Time Deposits:		671,708		643,236		611,352
Total Deposits:	$	2,171,809	$	2,143,747	$	2,143,744

During the six months ended June 30, 2024, the Company continued to experience an unfavorable shift in deposit mix from low cost core deposits to high cost time deposits as customers continue to migrate to higher deposit rates. The Company continues to focus on the maintenance, development, and expansion of its core deposit base to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At June 30, 2024, the Bank’s uninsured deposits represented 26.4% of total deposits, compared to 26.8% at December 31, 2023.

FHLB and Subordinated Debt

At June 30, 2024, total borrowings decreased $1.9 million, or 1.2%, from $156.5 million at December 31, 2023 to $154.6 million. Short-term borrowings decreased $9.5 million, or 59.2%, to $6.6 million, compared to $16.1 million at December 31, 2023. Long-term borrowings increased $7.7 million, or 6.3%, from $120.6 million at December 31, 2023 to $128.3 million at June 30, 2024.

The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There were no outstanding balance under the BTFP at June 30, 2024.

At June 30, 2024 and December 31, 2023, borrowings also consisted of $19.7 million in fixed-to-floating rate subordinated notes. As of June 30, 2024, the Company had $437.4 million of additional borrowing capacity at the Federal Home Loan Bank, $403.8 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At June 30, 2024, shareholders’ equity was $236.5 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The decrease was primarily attributable to an increase in accumulated other comprehensive loss of $1.9 million, cash dividends paid of $3.0 million, repurchase of shares at a cost of $3.6 million, partially offset by net income of $6.5 million. At June 30, 2024, total shares outstanding were 21,357,849.

The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. Total Risk-Based Capital Ratio was 14.7% at June 30, 2024 and December 31, 2023. The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9.78% at June 30, 2024 and 9.62% at December 31, 2023.

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 conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;

•

the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;

•

unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;

•

inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;

•

the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;

•

significant changes in accounting, tax or regulatory practices or requirements;

•

new legal obligations or liabilities or unfavorable resolutions of litigation;

•

disruptive technologies in payment systems and other services traditionally provided by banks;

•

the highly competitive industry and market area in which we operate;

•

changes in business conditions and inflation;

•

operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;

•

failure or circumvention of our internal controls or procedures;

•

changes in the securities markets which affect investment management revenues;

•

increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;

•

the soundness of other financial services institutions which may adversely affect our credit risk;

•

certain of our intangible assets may become impaired in the future;

•

new lines of business or new products and services, which may subject us to additional risks;

•

changes in key management personnel which may adversely impact our operations;

•

severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and

•

other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Net Income and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2024			2024			2023			2023			2023			2024			2023
INTEREST AND DIVIDEND INCOME:
Loans	$	24,340		$	24,241		$	23,939		$	23,451		$	22,450		$	48,581		$	43,779
Securities		2,141			2,114			2,094			2,033			2,094			4,255			4,243
Other investments		148			136			140			166			146			284			252
Short-term investments		173			113			597			251			119			286			173
Total interest and dividend income		26,802			26,604			26,770			25,901			24,809			53,406			48,447

INTEREST EXPENSE:
Deposits		10,335			9,293			8,773			7,704			6,069			19,628			10,172
Short-term borrowings		186			283			123			117			646			469			1,349
Long-term debt		1,557			1,428			1,444			1,444			995			2,985			1,069
Subordinated debt		254			254			254			253			253			508			507
Total interest expense		12,332			11,258			10,594			9,518			7,963			23,590			13,097

Net interest and dividend income		14,470			15,346			16,176			16,383			16,846			29,816			35,350

(REVERSAL OF) PROVISION FOR CREDIT LOSSES		(294	)		(550	)		486			354			420			(844	)		32

Net interest and dividend income after (reversal of) provision for credit losses		14,764			15,896			15,690			16,029			16,426			30,660			35,318

NON-INTEREST INCOME:
Service charges and fees on deposits		2,341			2,219			2,283			2,145			2,241			4,560			4,428
Income from bank-owned life insurance		502			453			432			454			494			955			934
Unrealized gain (loss) on marketable equity securities		4			8			(1	)		—			—			12			—
Gain on non-marketable equity investments		987			—			—			238			—			987			352
Loss on disposal of premises and equipment		—			(6	)		—			(3	)		—			(6	)		—
Loss on defined benefit plan termination		—			—			—			—			(1,143	)		—			(1,143	)
Gain on bank-owned life insurance death benefit		—			—			—			778			—			—			—
Total non-interest income		3,834			2,674			2,714			3,612			1,592			6,508			4,571

NON-INTEREST EXPENSE:
Salaries and employees benefits		7,901			8,244			7,739			7,955			8,089			16,145			16,520
Occupancy		1,218			1,363			1,198			1,159			1,203			2,581			2,551
Furniture and equipment		483			484			494			482			492			967			978
Data processing		846			862			788			824			792			1,708			1,545
Software		566			699			598			529			526			1,265			1,040
Debit/ATM card processing expense		643			552			559			562			528			1,195			1,018
Professional fees		581			569			674			643			803			1,150			1,560
FDIC insurance		323			410			338			341			290			733			642
Advertising		339			349			377			362			339			688			756
Other		1,414			1,250			2,020			1,261			1,489			2,664			2,837
Total non-interest expense		14,314			14,782			14,785			14,118			14,551			29,096			29,447

INCOME BEFORE INCOME TAXES		4,284			3,788			3,619			5,523			3,467			8,072			10,442

INCOME TAX PROVISION		771			827			1,108			1,033			704			1,598			2,375
NET INCOME	$	3,513		$	2,961		$	2,511		$	4,490		$	2,763		$	6,474		$	8,067

Basic earnings per share	$	0.17		$	0.14		$	0.12		$	0.21		$	0.13		$	0.31		$	0.37
Weighted average shares outstanding		21,056,173			21,180,968			21,253,452			21,560,940			21,634,683			21,118,571			21,666,713
Diluted earnings per share	$	0.17		$	0.14		$	0.12		$	0.21		$	0.13		$	0.31		$	0.37
Weighted average diluted shares outstanding		21,163,762			21,271,323			21,400,664			21,680,113			21,648,235			21,217,543			21,682,402

Other Data:
Return on average assets (1)		0.55	%		0.47	%		0.39	%		0.70	%		0.43	%		0.51	%		0.64	%
Return on average equity (1)		6.03	%		5.04	%		4.31	%		7.60	%		4.72	%		5.53	%		6.98	%
Efficiency ratio		78.20	%		82.03	%		78.27	%		70.61	%		78.92	%		80.10	%		73.76	%
Adjusted efficiency ratio (2)		82.68	%		82.04	%		78.26	%		74.38	%		74.31	%		82.35	%		72.33	%
Net interest margin		2.42	%		2.57	%		2.64	%		2.70	%		2.81	%		2.50	%		2.97	%
Net interest margin, on a fully tax-equivalent basis		2.44	%		2.59	%		2.66	%		2.72	%		2.83	%		2.52	%		2.99	%

(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, loss on disposal of premises and equipment, and loss on defined benefit plan termination.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Cash and cash equivalents	$	53,458		$	22,613		$	28,840		$	62,267		$	31,689
Securities available-for-sale, at fair value		135,089			138,362			137,115			130,709			141,481
Securities held to maturity, at amortized cost		217,632			221,242			223,370			225,020			222,900
Marketable equity securities, at fair value		233			222			196			—			—
Federal Home Loan Bank of Boston and other restricted stock - at cost		7,143			3,105			3,707			3,063			3,226

Loans		2,026,226			2,025,566			2,027,317			2,014,820			2,015,593
Allowance for credit losses		(19,444	)		(19,884	)		(20,267	)		(19,978	)		(19,647	)
Net loans		2,006,782			2,005,682			2,007,050			1,994,842			1,995,946

Bank-owned life insurance		76,100			75,598			75,145			74,713			75,554
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,625			1,719			1,813			1,906			2,000
Other assets		75,521			76,206			74,848			79,998			77,001
TOTAL ASSETS	$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005		$	2,562,284

Total deposits	$	2,171,809		$	2,143,747		$	2,143,744		$	2,176,303		$	2,157,974
Short-term borrowings		6,570			11,470			16,100			8,890			7,190
Long-term debt		128,277			120,646			120,646			121,178			121,178
Subordinated debt		19,731			19,722			19,712			19,702			19,692
Securities pending settlement		102			—			140			2,253			—
Other liabilities		23,104			25,855			26,820			25,765			22,252
TOTAL LIABILITIES		2,349,593			2,321,440			2,327,162			2,354,091			2,328,286

TOTAL SHAREHOLDERS' EQUITY		236,477			235,796			237,409			230,914			233,998
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005		$	2,562,284

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,
	2024			2024			2023			2023			2023
Shares outstanding at end of period		21,357,849			21,627,690			21,666,807			21,927,242			22,082,403

Operating results:
Net interest income	$	14,470		$	15,346		$	16,176		$	16,383		$	16,846
(Reversal of) provision for credit losses		(294	)		(550	)		486			354			420
Non-interest income		3,834			2,674			2,714			3,612			1,592
Non-interest expense		14,314			14,782			14,785			14,118			14,551
Income before income provision for income taxes		4,284			3,788			3,619			5,523			3,467
Income tax provision		771			827			1,108			1,033			704
Net income		3,513			2,961			2,511			4,490			2,763

Performance Ratios:
Net interest margin		2.42	%		2.57	%		2.64	%		2.70	%		2.81	%
Net interest margin, on a fully tax-equivalent basis		2.44	%		2.59	%		2.66	%		2.72	%		2.83	%
Interest rate spread		1.66	%		1.85	%		1.96	%		2.07	%		2.27	%
Interest rate spread, on a fully tax-equivalent basis		1.67	%		1.86	%		1.98	%		2.09	%		2.29	%
Return on average assets		0.55	%		0.47	%		0.39	%		0.70	%		0.43	%
Return on average equity		6.03	%		5.04	%		4.31	%		7.60	%		4.72	%
Efficiency ratio (GAAP)		78.20	%		82.03	%		78.27	%		70.61	%		78.92	%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾		82.68	%		82.04	%		78.26	%		74.38	%		74.31	%

Per Common Share Data:
Basic earnings per share	$	0.17		$	0.14		$	0.12		$	0.21		$	0.13
Earnings per diluted share		0.17			0.14			0.12			0.21			0.13
Cash dividend declared		0.07			0.07			0.07			0.07			0.07
Book value per share		11.07			10.90			10.96			10.53			10.60
Tangible book value per share (non-GAAP) ⁽²⁾		10.41			10.25			10.30			9.87			9.94

Asset Quality:
30-89 day delinquent loans	$	3,270		$	3,000		$	4,605		$	4,097		$	4,092
90 days or more delinquent loans		2,280			1,716			1,394			1,527			1,324
Total delinquent loans		5,550			4,716			5,999			5,624			5,416
Total delinquent loans as a percentage of total loans		0.27	%		0.23	%		0.30	%		0.28	%		0.27	%
Nonperforming loans	$	5,845		$	5,837		$	6,421		$	6,290		$	5,755
Nonperforming loans as a percentage of total loans		0.29	%		0.29	%		0.32	%		0.31	%		0.29	%
Nonperforming assets as a percentage of total assets		0.23	%		0.23	%		0.25	%		0.24	%		0.22	%
Allowance for credit losses as a percentage of nonperforming loans		332.66	%		340.65	%		315.64	%		317.62	%		341.39	%
Allowance for credit losses as a percentage of total loans		0.96	%		0.98	%		1.00	%		0.99	%		0.97	%
Net loan charge-offs (recoveries)	$	10		$	(67	)	$	136		$	78		$	(25	)
Net loan charge-offs (recoveries) as a percentage of average loans		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%

(1)

(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, 2024, March 31, 2024 and June 30, 2023 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, 2024								March 31, 2024								June 30, 2023
	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)	$	2,017,127	$	24,454			4.88	%	$	2,021,713	$	24,351			4.84	%	$	2,006,909	$	22,572			4.51	%
Securities(2)		354,850		2,141			2.43			359,493		2,114			2.37			374,513		2,094			2.24
Other investments		14,328		148			4.15			12,494		136			4.38			13,329		146			4.39
Short-term investments(3)		14,328		173			4.86			9,386		113			4.84			10,326		119			4.62
Total interest-earning assets		2,400,633		26,916			4.51			2,403,086		26,714			4.47			2,405,077		24,931			4.16
Total non-interest-earning assets		156,701								154,410								154,490
Total assets	$	2,557,334							$	2,557,496							$	2,559,567

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	131,449		253			0.77		$	135,559		234			0.69		$	143,547		248			0.69
Savings accounts		185,690		51			0.11			186,125		39			0.08			208,983		56			0.11
Money market accounts		622,062		2,930			1.89			626,267		2,587			1.66			701,116		2,330			1.33
Time deposit accounts		650,054		7,101			4.39			627,699		6,433			4.12			502,062		3,435			2.74
Total interest-bearing deposits		1,589,255		10,335			2.62			1,575,650		9,293			2.37			1,555,708		6,069			1.56
Borrowings		160,484		1,997			5.00			160,802		1,965			4.91			155,826		1,894			4.88
Interest-bearing liabilities		1,749,739		12,332			2.83			1,736,452		11,258			2.61			1,711,534		7,963			1.87
Non-interest-bearing deposits		548,781								557,711								591,437
Other non-interest-bearing liabilities		24,453								27,078								21,832
Total non-interest-bearing liabilities		573,234								584,789								613,269
Total liabilities		2,322,973								2,321,241								2,324,803
Total equity		234,361								236,255								234,764
Total liabilities and equity	$	2,557,334							$	2,557,496							$	2,559,567
Less: Tax-equivalent adjustment(2)				(114	)							(110	)							(122	)
Net interest and dividend income			$	14,470							$	15,346							$	16,846
Net interest rate spread(4)							1.66	%							1.85	%							2.27	%
Net interest rate spread, on a tax-equivalent basis(5)							1.67	%							1.86	%							2.29	%
Net interest margin(6)							2.42	%							2.57	%							2.81	%
Net interest margin, on a tax-equivalent basis(7)							2.44	%							2.59	%							2.83	%
Ratio of average interest-earning assets to average interest-bearing liabilities							137.20	%							138.39	%							140.52	%

The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2024 and 2023 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,
	2024								2023
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾			Average Balance		Interest			Average Yield/ Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,019,420	$	48,805			4.86	%	$	2,000,055	$	44,018			4.44	%
Securities(2)		357,171		4,255			2.40			378,421		4,243			2.26
Other investments		13,411		284			4.26			12,717		252			4.00
Short-term investments(3)		11,857		286			4.85			8,130		173			4.29
Total interest-earning assets		2,401,859		53,630			4.49			2,399,323		48,686			4.09
Total non-interest-earning assets		155,555								153,520
Total assets	$	2,557,414							$	2,552,843

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	133,504		488			0.74	%	$	141,662		511			0.73	%
Savings accounts		185,907		90			0.10			213,863		101			0.10
Money market accounts		624,164		5,517			1.78			739,182		4,325			1.18
Time deposit accounts		638,970		13,533			4.26			465,184		5,235			2.27
Total interest-bearing deposits		1,582,545		19,628			2.49			1,559,891		10,172			1.32
Short-term borrowings and long-term debt		160,643		3,962			4.96			121,285		2,925			4.86
Total interest-bearing liabilities		1,743,188		23,590			2.72			1,681,176		13,097			1.57
Non-interest-bearing deposits		553,246								615,168
Other non-interest-bearing liabilities		25,672								23,572
Total non-interest-bearing liabilities		578,918								638,740

Total liabilities		2,322,106								2,319,916
Total equity		235,308								232,927
Total liabilities and equity	$	2,557,414							$	2,552,843
Less: Tax-equivalent adjustment (2)				(224	)							(239	)
Net interest and dividend income			$	29,816							$	35,350
Net interest rate spread (4)							1.75	%							2.50	%
Net interest rate spread, on a tax-equivalent basis (5)							1.77	%							2.52	%
Net interest margin (6)							2.50	%							2.97	%
Net interest margin, on a tax-equivalent basis (7)							2.52	%							2.99	%
Ratio of average interest-earning
assets to average interest-bearing liabilities							137.79	%							142.72	%

(1)

Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.

(2)

Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.

(3)

Short-term investments include federal funds sold.

(4)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5)

Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the 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
	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	24,340		$	24,241		$	23,939		$	23,451		$	22,450
Tax-equivalent adjustment		114			110			113			117			122
Loan interest (tax-equivalent basis)	$	24,454		$	24,351		$	24,052		$	23,568		$	22,572

Net interest income (no tax adjustment)	$	14,470		$	15,346		$	16,176		$	16,383		$	16,846
Tax equivalent adjustment		114			110			113			117			122
Net interest income (tax-equivalent basis)	$	14,584		$	15,456		$	16,289		$	16,500		$	16,968

Average interest-earning assets	$	2,400,633		$	2,403,086		$	2,427,112		$	2,402,987		$	2,405,077
Net interest margin (no tax adjustment)		2.42	%		2.57	%		2.64	%		2.70	%		2.81	%
Net interest margin, tax-equivalent		2.44	%		2.59	%		2.66	%		2.72	%		2.83	%

Book Value per Share (GAAP)	$	11.07		$	10.90		$	10.96		$	10.53		$	10.60
Non-GAAP adjustments:
Goodwill		(0.58	)		(0.58	)		(0.58	)		(0.57	)		(0.57	)
Core deposit intangible		(0.08	)		(0.07	)		(0.08	)		(0.09	)		(0.09	)
Tangible Book Value per Share (non-GAAP)	$	10.41		$	10.25		$	10.30		$	9.87		$	9.94

	For the quarter ended
	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	14,314		$	14,782		$	14,785		$	14,118		$	14,551
Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)	$	14,314		$	14,782		$	14,785		$	14,118		$	14,551

Net Interest Income (GAAP)	$	14,470		$	15,346		$	16,176		$	16,383		$	16,846

Non-interest Income (GAAP)	$	3,834		$	2,674		$	2,714		$	3,612		$	1,592
Non-GAAP adjustments:
Unrealized (gains) losses on marketable equity securities		(4	)		(8	)		1			—			—
Gain on non-marketable equity investments		(987	)		—			—			(238	)		—
Loss on disposal of premises and equipment		—			6			—			3			—
Gain on bank-owned life insurance death benefit		—			—			—			(778	)		—
Loss on defined benefit plan termination		—			—			—			—			1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	2,843		$	2,672		$	2,715		$	2,599		$	2,735
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	17,313		$	18,018		$	18,891		$	18,982		$	19,581

Efficiency Ratio (GAAP)		78.20	%		82.03	%		78.27	%		70.61	%		78.92	%

Adjusted Efficiency Ratio (Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		82.68	%		82.04	%		78.26	%		74.38	%		74.31	%

	For the six months ended
	6/30/2024			6/30/2023
	(Dollars in thousands)

Loan income (no tax adjustment)	$	48,581		$	43,779
Tax-equivalent adjustment		224			239
Loan income (tax-equivalent basis)	$	48,805		$	44,018

Net interest income (no tax adjustment)	$	29,816		$	35,350
Tax equivalent adjustment		224			239
Net interest income (tax-equivalent basis)	$	30,040		$	35,589

Average interest-earning assets	$	2,401,859		$	2,399,323
Net interest margin (no tax adjustment)		2.50	%		2.97	%
Net interest margin, tax-equivalent		2.52	%		2.99	%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$	29,096		$	29,447
Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)	$	29,096		$	29,447

Net Interest Income (GAAP)	$	29,816		$	35,350

Non-interest Income (GAAP)	$	6,508		$	4,571
Non-GAAP adjustments:
Unrealized gains on marketable equity securities		(12	)		—
Loss on disposal of premises and equipment, net		6			—
Gain on non-marketable equity investments		(987	)		(352	)
Loss on defined benefit plan curtailment		—			1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	5,515		$	5,362
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	35,331		$	40,712

Efficiency Ratio (GAAP)		80.10	%		73.76	%

Adjusted Efficiency Ratio (Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		82.35	%		72.33	%

WESTERN NEW ENGLAND BANCORP, INC. 8-K

Exhibit 99.2

Local banking is better than ever. INVESTOR PRESENTATION 2ND QUARTER 2024

FORWARD - LOOKING STATEMENTS 2 We may, from time to time, make written or oral “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements contained in our filings with the Securities and Exchange Commission (the “SEC”), our reports to shareholders and in other communications by us . This Investor Presentation contains “forward - looking statements” 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 conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry ; • the duration and scope of potential pandemics, including the emergence of new variants and the response thereto ; • unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits ; • inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins ; • the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd - Frank Wall Street Reform and Consumer Protection Act of 2010 , Basel guidelines, capital requirements and other applicable laws and regulations ; • significant changes in accounting, tax or regulatory practices or requirements ; • new legal obligations or liabilities or unfavorable resolutions of litigation ; • disruptive technologies in payment systems and other services traditionally provided by banks ; • the highly competitive industry and market area in which we operate ;

FORWARD - LOOKING STATEMENTS 3 • changes in business conditions and inflation ; • operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks ; • f ailure or circumvention of our internal controls or procedures ; • c hanges in the securities markets which affect investment management revenues ; • i ncreases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments ; • the soundness of other financial services institutions which may adversely affect our credit risk; • certain of our intangible assets may become impaired in the future; • new lines of business or new products and services, which may subject us to additional risks; • changes in key management personnel which may adversely impact our operations; • severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and • other risk factors detailed from time to time in our SEC filings. Although we believe that the expectations reflected in such forward - looking statements are reasonable, actual results may differ materially from the results discussed in these forward - looking statements. You are cautioned not to place undue reliance on the se forward - looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised for ward - 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.

WHO WE ARE Every day, we focus on showing Westfield Bank customers “ what better banking is all about . ” For us, the idea of better banking starts with putting customers first, while adhering to our core values . Our Core Values : • Integrity • Enhance Shareholder Value • Customer Focus • Community Focus Our Core Mission : Our purpose is to help customers succeed in our community, while creating and increasing shareholder value . The Company’s purpose drives the outcome we envision for Western New England Bancorp . 4 70 Center Street, Chicopee, MA.

SENIOR MANAGEMENT TEAM James C . Hagan, President & Chief Executive Officer Guida R . Sajdak, Executive Vice President, Chief Financial Officer & Treasurer Allen J . Miles III, Executive Vice President & Chief Lending Officer Kevin C . O’Connor, Executive Vice President & Chief Banking Officer Daniel A . Marini , Senior Vice President, Retail Banking & Marketing Leo R . Sagan, Jr . , Senior Vice President & Chief Risk Officer Filipe Goncalves, Senior Vice President & Chief Credit Officer Darlene Libiszewski , Senior Vice President & Chief Information Officer John E . Bonini , Senior Vice President & General Counsel Christine Phillips , Senior Vice President, Human Resources Director 5

2 Q2024 QUARTERLY EARNINGS 6 2Q2023 (3) 3Q2023 (2) 4Q2023 1Q2024 2Q2024 (1) ($ in thousands , except EPS) $ 16,846 $ 16,383 $ 16,176 $ 15,346 $ 14,470 Net interest income 420 354 486 (550) (294) (R eversal of) provision for credit losses 1,592 3,612 2,714 2,674 3,834 Non - interest income 14,551 14,118 14,785 14,782 14,314 Non - interest expense 3,467 5,523 3,619 3,788 4,284 Income before taxes 704 1,033 1,108 827 771 Income tax expense $ 2,763 $ 4,490 $ 2,511 $ 2,961 $ 3,513 Net income $ 0.13 $ 0.21 $ 0.12 $ 0.14 $ 0.17 Diluted earnings per share (EPS) 0.43% 0.70% 0.39% 0.47% 0.55% Return on average assets (ROA) 4.72% 7.60% 4.31% 5.04% 6.03% Return on average equity (ROE) 2.81% 2.70% 2.64% 2.57% 2.42% Net interest margin 2.83% 2.72% 2.66% 2.59% 2.44% Net interest margin, on a tax - equivalent basis (1) Non - interest income includes a $987,000 gain on non - marketable equity investments. (2) Non - interest income includes a non - taxable $778,000 gain on bank - owned life insurance death benefits. (3) Non - interest income includes a one - time, non - recurring final termination expense of $1.1 million, due to the termination of the defined benefit pension plan .

NET INTEREST INCOME AND NET INTEREST MARGIN 7 $16.8 $16.4 $16.2 $15.3 $14.5 2.81% 2.70% 2.64% 2.57% 2.42% 2.20% 2.40% 2.60% 2.80% 3.00% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Net interest income ($) Net interest margin (%) On a sequential quarter basis, net interest income, our primary source of revenues, decreased $ 876 , 000 , or 5 . 7 % , to $ 14 . 5 million for the three months ended June 30 , 2024 , from $ 15 . 3 million for the three months ended March 31 , 2024 . The decrease in net interest income was primarily due to an increase in interest expense of $ 1 . 1 million, or 9 . 5 % , partially offset by an increase in interest income of $ 198 , 000 , or 0 . 7 % . The increase in interest expense was a result of competitive pricing on deposits due to the continued high interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits . The net interest margin was 2 . 42 % for the three months ended June 30 , 2024 compared to 2 . 57 % for the three months ended March 31 , 2024 . The decrease in net interest income and the net interest margin was primarily due to an increase in the average cost of interest - bearing liabilities, which was partially offset by an increase in the average yield on interest - earning assets . ($ in millions)

TOTAL LOANS 8 $2,007 $2,007 $2,017 $2,022 $2,017 4.49% 4.66% 4.73% 4.84% 4.88% 4.20% 4.30% 4.40% 4.50% 4.60% 4.70% 4.80% 4.90% 5.00% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $1,900 $1,920 $1,940 $1,960 $1,980 $2,000 $2,020 $2,040 Average Loans Outstanding Average Loans Outstanding Average Loan Yield, Tax-Equivalent Basis $2,016 $2,015 $2,027 $2,026 $2,026 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $2,008 $2,010 $2,012 $2,014 $2,016 $2,018 $2,020 $2,022 $2,024 $2,026 $2,028 Period - end Loans Outstanding At June 30 , 2024 , total loans decreased $ 1 . 1 million, or 0 . 1 % , to $ 2 . 0 billion from December 31 , 2023 . C ommercial real estate loans decreased $ 23 . 2 million, or 2 . 1 % , commercial and industrial loans decreased $ 1 . 1 million, or 0 . 5 % , while residential real estate loans, including home equity loans, increased $ 23 . 8 million , or 3 . 3 % . ($ in millions)

COMMERCIAL AND INDUSTRIAL LOANS 9 $227 $213 $217 $207 $216 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $195 $200 $205 $210 $215 $220 $225 $230 Total commercial and industrial (“C&I”) loans decreased $ 1 . 1 million, or 0 . 5 % , to $ 216 . 3 million at June 30 , 2024 , from $ 217 . 4 million at December 31 , 2023 . At June 30 , 2024 , total delinquent C&I loans totaled $ 172 , 000 , or 0 . 08 % , of total C&I loans . ($ in millions)

COMMERCIAL & INDUSTRIAL PORTFOLIO (1) 10 (1) % of total loans as of June 30, 2024 1.6% , Manufacturing 1.6% , Merchant Wholesalers 0.1% , Hotels 1.1% , Construction, Sand and Gravel Mining 4.3% , All other C&I 0.6% , Healthcare 1.4% , Educational Services

COMMERCIAL REAL ESTATE LOANS 11 $1,075 $1,080 $1,080 $1,084 $1,057 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $1,040 $1,045 $1,050 $1,055 $1,060 $1,065 $1,070 $1,075 $1,080 $1,085 $1,090 Total commercial real estate (“CRE”) loans decreased $ 23 . 2 million, or 2 . 1 % , to $ 1 . 1 billion from December 31 , 2023 to June 30 , 2024 . At June 30 , 2024 , total CRE delinquency was $ 1 . 1 million, or 0 . 10 % of total CRE loans . ($ in millions)

COMMERCIAL REAL ESTATE LOANS 12 ($ in thousands) (1) Due to loan classifications, the percentage of Total Bank Risk - Based Capital (“RBC”) may differ from the Call Report. At June 30, 2024, the commercial real estate portfolio totaled $1.1 billion, and represented 52.2% of total gross loans. Of the $1.1 billion, $864.6 million, or 81.8%, were categorized as non - owner occupied CRE and $ 192.0 million, or 18.2%, were categorized as owner - occupied CRE. % of Total Bank RBC % of Total Loans % of CRE Portfolio Total Owner Occupied Non - Owner Occupied Property Type 85.9% 11.5% 22.1% $ 233,309 $ 36,711 $ 196,598 Office Portfolio 68.7% 9.2% 17.7% 186,755 59,896 126,859 Industrial and Warehouse 65.4% 8.8% 16.8% 177,792 - 177,792 Apartment 41.5% 5.6% 10.7% 112,783 8,748 104,035 Retail 21.5% 2.9% 5.6% 58,692 34,705 23,987 Other 19.0% 2.5% 4.9% 51,520 - 51,520 Shopping Center 16.2% 2.2% 4.2% 43,897 - 43,897 Hotel 13.5% 1.8% 3.5% 36,777 34,282 2,495 Auto Sales 12.4% 1.7% 3.2% 33,563 1,016 32,547 Residential one - to - four family 11.8% 1.6% 3.0% 32,027 - 32,027 Adult Care/Assisted Living 8.9% 1.2% 2.3% 24,310 - 24,310 Student Housing 8.6% 1.2% 2.2% 23,440 4,897 18,543 Mixed Use 8.6% 1.1% 2.2% 23,264 11,307 11,957 College 6.8% 0.9% 1.7% 18,410 374 18,036 Self Storage 388.8% 52.2% 100.0% 1,056,539 191,936 $ 864,603 Total commercial real estate loans 388.8% 70.6% 318.2% % of Total Bank Risk - Based Capital 18.2% 81.8% % of Total CRE Loans

COMMERCIAL REAL ESTATE – NON - OWNER OCCUPIED 13 At June 30, 2024, the non - owner occupied CRE portfolio totaled $864.6 million, or 318.2% of Total Bank RBC. Of the $864.6 millio n, $445.8 million, or 51.6% of non - owner occupied CRE, was concentrated in Massachusetts and $261.3 million, or 30.2% of non - owner occupied CRE, was concentrated in Connecticut. At June 30, 2024, the office portfolio represented the largest concentration of non - owner occupied CRE at 72.3% of Total Bank RBC with a weighted average loan - to - value (“LTV”) of 64.9%. Apartments represented 65.4 % of Total Bank RBC with a weighted average LTV of 55.8%. ($ in thousands) (1) Due to loan classifications, the percentage of Total Bank RBC may differ from the Call Report. (2) Weighted average LTV is based on the original appraisal and the current loan exposure. Weighted Average LTV % of Total Bank RBC Total Other RI NH CT MA Property Type 64.9% 72.3% $ 196,598 $ 13,277 $ - $ 40,841 $ 64,659 $ 77,821 Office Portfolio 55.8% 65.4% 177,792 - 42,093 4,998 35,262 95,439 Apartment 59.8% 46.7% 126,859 4,559 13,076 - 37,039 72,185 Industrial and Warehouse 60.0% 38.3% 104,035 10,988 6,292 2,608 50,044 34,103 Retail 51.4% 19.0% 51,520 - - 11,819 11,594 28,107 Shopping Center 52.5% 16.2% 43,897 - - - 22,732 21,165 Hotel 57.8% 12.0% 32,547 130 - - 1,262 31,155 Residential one - to - four family 55.0% 11.8% 32,027 - - - 16,635 15,392 Adult Care/Assisted Living 68.9% 9.0% 24,310 5,097 - - 15,452 3,761 Student Housing 50.5% 8.8% 23,987 - - - 5,985 18,002 Other 54.8% 6.8% 18,543 - 935 - 626 16,982 Mixed Use 62.3% 6.6% 18,036 - - 790 - 17,246 Self Storage 45.4% 4.4% 11,957 - - - - 11,957 College 47.4% 0.9% 2,495 - - - - 2,495 Auto Sales 58.7% 318.2% $ 864,603 $ 34,051 $ 62,396 $ 61,056 $ 261,290 $ 445,810 Total Non - Owner CRE

COMMERCIAL REAL ESTATE – OFFICE BUILDINGS 14 ($ in thousands) % of Total Bank RBC % of Office Portfolio Total Owner Occupied Non - Owner Occupied By Collateral Type 34.8% 40.6% $ 94,614 $ 13,805 $ 80,809 Office 45.1% 52.6% 122,689 20,795 101,894 Office - Medical 1.5% 1.7% 3,929 - 3,929 Office - Retail 2.1% 2.4% 5,610 2,111 3,499 Office – Mixed 2.4 % 2.7% 6,467 - 6,467 Office – Warehouse 85.9% 100.0% $ 233,309 $ 36,711 $ 196,598 Total Office Portfolio % of Total Bank RBC % of Office Portfolio Total Owner Occupied Non - Owner Occupied By State 40.6% 47.3% $ 110,242 $ 32,421 $ 77,821 Massachusetts 25.4% 29.6% 68,949 4,290 64,659 Connecticut 15.0% 17.5% 40,841 - 40,841 New Hampshire 4.9% 5.6% 13,277 - 13,277 Other 85.9% 100.0% $ 233,309 $ 36,711 $ 196,598 Total Office Portfolio % of Total Bank RBC % of Office Portfolio Total Owner Occupied Non - Owner Occupied By Risk Rating 85.2% 99.2% $ 231,521 $ 35,196 $ 196,325 Pass 0.5% 0.5% 1,165 1,085 80 Special Mention 0.2% 0.3% 623 430 193 Substandard 85.9% 100.0% $ 233,309 $ 36,711 $ 196,598 Total Office Portfolio • As of June 30 , 2024 , the total office CRE portfolio totaled $ 233 . 3 million, or 22 . 1 % of total CRE loans and 85 . 9 % of Total Bank RBC . • Non - owner occupied office totaled $ 196 . 6 million, or 84 . 3 % of the total office portfolio and owner - occupied office totaled $ 36 . 7 million, or 15 . 7 % of the total office portfolio . • Office exposure is concentrated in medical - office, totaling $ 122 . 7 million, or 52 . 6 % , of the office portfolio . • Of the $ 233 . 3 million in total office, 47 . 3 % is concentrated in Massachusetts and 29 . 6 % is concentrated in Connecticut . The Company does not have any exposure in greater Boston or New York . • Of the $ 233 . 3 million in total office, 99 . 2 % of the office portfolio is in the pass - rated category . • There is approximately $ 37 . 4 million, or 16 . 0 % of the total office portfolio, maturing by the end of 2026 .

RESIDENTIAL REAL ESTATE LOANS AND CONSUMER LOANS 15 $711 $720 $728 $732 $751 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $690 $700 $710 $720 $730 $740 $750 $760 Residential real estate loans , including home equity loans, and consumer loans increased $ 23 . 1 million , or 3 . 2 % , to $ 750 . 7 million, from December 31 , 2023 to June 30 , 2024 . At June 30 , 2024 , the Company serviced $ 70 . 0 million in loans sold to the secondary market, with servicing retained, which are not included on the Company’s balance sheet under residential real estate loans . At June 30 , 2024 , total delinquent residential real estate loans and consumer loans totaled $ 4 . 3 million, or 0 . 57 % of total residential real estate loans and consumer loans . ($ in millions)

INVESTMENT PORTFOLIO 16 The held - to - maturity (“HTM”) and available - for - sale (“AFS”) securities portfolio represented 13 . 6 % of total assets at June 30 , 2024 and 14 . 1 % of total assets, at December 31 , 2023 . Unrealized losses from the HTM securities portfolio totaled $ 40 . 2 million . The HTM unrealized losses were approximately 18 . 5 % of the total HTM amortized cost basis . If the HTM losses were included in capital, the losses would represent 15 . 9 % of Tier 1 capital and negatively impact tangible common equity ( 2 ) (“TCE”), a non - GAAP financial measure, by 1 . 1 % . Unrealized losses from the AFS securities portfolio totaled $ 31 . 7 million . The AFS unrealized losses were approximately 19 . 0 % of the total AFS amortized cost basis . As a percentage of Tier 1 capital, the AFS unrealized losses represented 12 . 6 % of Tier 1 capital and negatively impacted TCE, a non - GAAP financial measure, by 0 . 9 % . (1) Tier 1 Capital represents Bank Tier 1 Capital as of June 30, 2024. (2) Impact to TCE is net of tax. TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial measures . The table below displays the investment portfolio as of June 30 , 2024 Impact to TCE (2) Loss % of Tier 1 Capital (1) Loss as a % of Amortized Cost Basis Unrealized Loss Fair Value % of Investment Portfolio’s Amortized Cost Basis Amortized Cost Basis At June 30, 2024 (Dollars in millions) - 1.1% - 15.9% - 18.5% ($ 40.2) $ 177.4 57% $217.6 HTM - 0.9% - 12.6% - 19.0% ($31.7) $ 135.1 43% $ 166.8 AFS - 2.0% - 28.5% - 18.7% ($ 71.9) $ 312.5 100% $ 384.4 Total Investments

TOTAL DEPOSITS 17 $1,623 $1,594 $1,532 $1,501 $1,500 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $1,420 $1,440 $1,460 $1,480 $1,500 $1,520 $1,540 $1,560 $1,580 $1,600 $1,620 $1,640 PERIOD - END CORE DEPOSITS Total deposits increased $ 28 . 1 million, or 1 . 3 % , from $ 2 . 1 billion at December 31 , 2023 to $ 2 . 2 billion at June 30 , 2024 . Core deposits, which the Company defines as all deposits except time deposits, decreased $ 32 . 3 million, or 2 . 1 % , from $ 1 . 5 billion, or 71 . 5 % of total deposits, at December 31 , 2023 , to $ 1 . 5 billion, or 69 . 1 % of total deposits, at June 30 , 2024 . Time deposits increased $ 60 . 3 million, or 9 . 9 % , from $ 611 . 4 million at December 31 , 2023 to $ 671 . 7 million at June 30 , 2024 . At June 30 , 2024 and December 31 , 2023 , uninsured deposits represented 26 . 4 % and 26 . 8 % , of total deposits, respectively . $535 $583 $611 $643 $672 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $- $100 $200 $300 $400 $500 $600 $700 $800 PERIOD - END TIME DEPOSITS (1) ($ in millions) (1) Includes $1.7 million in brokered deposits beginning with the quarter ended June 30, 2023.

AVERAGE TOTAL DEPOSITS 18 $1,556 $1,559 $1,588 $1,576 $1,589 $591 $592 $589 $558 $549 1.13% 1.42% 1.60% 1.75% 1.94% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 Average Deposits and Rates Interest-bearing deposits Non-interest-bearing deposits Average deposit cost Average deposits, consisting of interest - bearing and non - interest bearing deposits, were $ 2 . 1 billion as of June 30 , 2024 , an increase of $ 4 . 7 million, or 0 . 2 % , from December 31 , 2023 . The average cost of deposits increased 19 basis points, from 1 . 75 % for the quarter ended March 31 , 2024 to 1 . 94 % for the quarter ended June 30 , 2024 . ($ in millions)

AVERAGE CORE AND TIME DEPOSITS 19 $1,645 $1,588 $1,573 $1,506 $1,488 0.64% 0.70% 0.76% 0.76% 0.87% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 Average Core Deposits and Rates Average core deposits, including non - interest bearing deposits, decreased $ 17 . 7 million, or 1 . 2 % , from the linked quarter . Average time deposits were $ 650 . 1 million, an increase of $ 22 . 4 million, or 3 . 6 % , from the linked quarter . During the quarter - ended June 30 , 2024 , the average cost of core deposits, including non - interest bearing demand deposits, increased 11 basis points from from the linked quarter, while the cost of time deposits increased 27 basis points during the same period . ($ in millions) $502 $563 $604 $628 $650 2.74% 3.46% 3.78% 4.12% 4.39% 0.25% 0.75% 1.25% 1.75% 2.25% 2.75% 3.25% 3.75% 4.25% 4.75% $300 $350 $400 $450 $500 $550 $600 $650 $700 Average Time Deposits and Rates

LOAN - TO - DEPOSIT RATIO 20 93.4% 92.6% 94.6% 94.5% 93.3% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 92% 92% 93% 93% 94% 94% 95% 95% Period - end Loan - to - Deposit Ratio 75.0% 73.2% 71.5% 70.0% 69.1% 25.0% 26.8% 28.5% 30.0% 30.9% 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 0% 10% 20% 30% 40% 50% 60% 70% 80% Core Deposits and Time Deposits as a % of Total Deposits Core deposits/Total deposits Time deposits/Total deposits

WHOLESALE FUNDING 21 $148 $150 $156 $152 $155 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 $50 $70 $90 $110 $130 $150 $170 Wholesale Funding (Includes $20 million in Subordinated Debt) The Bank is considered to be well - capitalized as defined by regulators ( see slide 27 ) . The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9 . 78 % at June 30 , 2024 and 9 . 62 % at December 31 , 2023 . In addition, The Bank’s TCE Ratio ( 1 ) , a non - GAAP financial measure, exceeds the Federal Home Loan Bank of Boston (“FHLB”) requirements to continue to utilize the FHLB as a funding source . At June 30 , 2024 , total borrowings decreased $ 1 . 9 million, or 1 . 2 % , from $ 156 . 5 million at December 31 , 2023 to $ 154 . 6 million . Short - term borrowings decreased $ 9 . 5 million, or 59 . 2 % , to $ 6 . 6 million , at June 30 , 2024 , compared to $ 16 . 1 million at December 31 , 2023 , while long - term borrowings increased $ 7 . 7 million, or 6 . 3 % , during the same period . The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one - year overnight index swap rate . The BTFP was available to federally insured depository institutions in the U . S . , with advances having a term of up to one year with no prepayment penalties . The BTFP ceased extending new advances in March 2024 . At December 31 , 2023 , the Company’s outstanding balance under the BTFP was $ 90 . 0 million . There were no outstanding balances under the BTFP at June 30 , 2024 . At June 30 , 2024 , borrowings also consisted of $ 19 . 7 million in fixed - to - floating rate subordinated notes . (1) TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial measures .

22 The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities and access to diversified borrowing sources . At June 30 , 2024 , the Company had available borrowing capacity with the FHLB of $ 437 . 4 million, including its overnight Ideal Way Line of Credit . In addition, at June 30 , 2024 , the Company had available borrowing capacity of $ 403 . 8 million from the Federal Reserve Discount Window, with no outstanding borrowings . At June 30 , 2024 , the Company also had available borrowing capacity of $ 25 . 0 million from two unsecured credit lines with correspondent banks, with no outstanding borrowings . At June 30 , 2024 , the Company had $ 1 . 1 billion in immediately available liquidity, compared to $ 574 . 4 million in uninsured deposits, or 26 . 4 % of total deposits, representing a coverage ratio of 185 . 9 % . Lastly, the Company has access to the brokered deposit market with approval from the Board of Directors to purchase brokered deposits in an amount not to exceed 10 % of total assets . At June 30 , 2024 , the Company had $ 1 . 7 million in brokered deposits included within time deposits on the balance sheet . LIQUIDITY Net Available Amount in Use at June 30, 2024 Total Available ($ in millions) Internal Sources: $53.5 - $53.5 Cash and cash equivalents $130.2 - $130.2 Unpledged securities $18.0 - $18.0 Excess pledged securities External Sources: $437.4 $153.6 $591.0 FHLB $403.8 - $403.8 FRB Discount Window Other Unsecured: $25.0 - $25.0 Correspondent banks $1,067.9 $153.6 $1,221.5 Total Liquidity $574.4 Uninsured deposits 185.9% Liquidity/Total

________ Source: SNL Financial as of June 30, 2023. Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Three Wes tfi eld branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside of Springfield MSA. DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA AS OF JUNE 30, 2023 23 Total Deposit Rank 2023 Parent Company Name Deposits in Market ($000) Market Share # of Branches 1 PeoplesBank 2,271,591 16.96% 13 1,762,519 13.1% 20 3 Westfield Bank 1,878,809 14.03% 20 2 TD Bank 2,029,147 15.15 % 16 4 M&T Bank 1,143,383 8.54% 14 5 Berkshire Bank 1,142,092 8.53% 11 6 KeyBank 932,631 6.96% 7 7 Citizens Bank 557,490 4.16% 12 8 Monson Savings Bank 526,226 3.93% 4 9 Country Bank 514,307 3.84% 4 10 New Valley Bank & Trust 256,410 1.91% 3

ASSET QUALITY INDICATORS 24 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 $5.6M $4.7M $6.0M $5.6M $5.4M Total delinquent loans 0.27% 0.23% 0.30% 0.28% 0.27% Delinquent loans as a % of total loans $5.8M $5.8M $6.4M $6.3M $5.8M Nonperforming loans (NPL) 0.29% 0.29% 0.32% 0.31% 0.29% NPL as a % of total loans 0.23% 0.23% 0.25% 0.24% 0.22% NPL as a % of total assets 0.96% 0.98% 1.00% 0.99% 0.97% Allowance for credit losses % of total loans 333% 341% 316% 318% 341% Allowance for credit losses % of NPL $10K ($67K) $136K $78K ($25K) Net charge - offs (recoveries) 0.00% 0.00% 0.01% 0.00% 0.00% Net charge - offs (recoveries) as a % average loans 1Q2024 4Q2023 3Q2023 2Q2023 During the three months ended June 30 , 2024 , the Company recorded net charge - offs of $ 10 , 000 compared to net recoveries of $ 67 , 000 for the three months ended March 31 , 2024 . Nonperforming loans to total loans were 0 . 29 % at June 30 , 2024 compared to 0 . 32 % at December 31 , 2023 .

ASSET QUALITY 25 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 . The allowance for credit losses as a percentage of total loans was 0 . 96 % at June 30 , 2024 , compared to 1 . 00 % at December 31 , 2023 . At June 30 , 2024 , the allowance for credit losses as a percentage of nonperforming loans was 332 . 7 % , compared to 315 . 6 % at December 31 , 2023 . December 31, 2023 June 30, 2024 ACL / Total Loan Segment Loans Outstanding (1) ACL (1) ACL / Total Loan Segment Loans Outstanding (1) ACL (1) 1.17% $ 217,447 $ 2,537 1.18% $ 216,300 $ 2,552 Commercial and industrial 1.40% 1,079,751 15,141 1.36% 1,056,539 14,331 Commercial real estate 0.35% 722,154 2,548 0.33% 745,967 2,444 Residential (2) 0.75% 5,472 41 2.48% 4,715 117 Consumer - - - - - - Unallocated 1.00% $ 2,024,824 $ 20,267 0.96% $ 2,023,521 $ 19,444 Total Loans (1) ( $ in thousands) (2) Includes home equity loans and home equity lines of credit .

ASSET QUALITY 26 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 ($ in millions) $14.6 $15.2 $5.8 $12.0 $11.8 Special Mention 0.7% 0.8% 0.3% 0.6% 0.6% % of Total Loans $22.1 $21.6 $33.7 $33.6 $37.7 Substandard 1.1% 1.1% 1.7% 1.7% 1.9% % of Total Loans $36.7 $36.8 $39.5 $45.6 $49.5 Total Watch List Loans 1.8% 1.8% 1.9% 2.3% 2.5% % of Total Loans At June 30 , 2024 , total Watch List loans totaled $ 36 . 7 million, or 1 . 8 % of total loans, representing a decrease of $ 2 . 8 million , or 7 . 1 % , from December 31 , 2023 .

CAPITAL MANAGEMENT 27 We are well - capitalized with excess capital. Ratio at December 31, 2023 Ratio at June 30, 2024 Consolidated 9.40% 9.56% Leverage Ratio 12.59% 12.66% Common Equity Tier 1 Ratio 12.59% 12.66% Tier 1 Capital Ratio 14.67% 14.70% Total Capital Ratio As of June 30 , 2024 , the Bank’s Tier 1 Leverage Ratio was 9 . 78 % . The Bank’s TCE ratio ( 1 ) , a non - GAAP financial measure, was 8 . 86 % at June 30 , 2024 , and after factoring in $ 23 . 6 million in net AOCI unrealized losses, the TCE ratio was 7 . 94 % . If the HTM net unrealized losses of $ 28 . 9 million were factored in, the TCE ratio would decrease to 7 . 74 % . Well Capitalized Ratio at December 31, 2023 Ratio at June 30, 2024 Westfield Bank 5.0% 9.62% 9.78% Leverage Ratio 6.5% 12.88% 12.96% Common Equity Tier 1 Ratio 8.0% 12.88% 12.96% Tier 1 Capital Ratio 10.0% 13.94% 13.98% Total Capital Ratio (1) TCE is a non - GAAP measure. See slides 30 - 32 for the related TCE calculation and a reconciliation of GAAP to non - GAAP financial measures . x From a regulatory standpoint, we are well - capitalized with excess capital . x We take a prudent approach to capital management .

CAPITAL RETURN TO SHAREHOLDERS 28 # of Shares Year 2,189,276 2018 1,938,667 2019 1,391,496 2020 2,758,051 2021 720,975 2022 649,744 2023 200,000 1Q - 2024 269,841 2Q - 2024 Annual Dividends per Share Year $0.16 2018 $0.20 2019 $0.20 2020 $0.20 2021 $0.24 2022 $0.28 2023 $0.07 1Q - 2024 $0.07 2Q - 2024 Share Repurchases Dividends On June 10 , 2024 , the Company announced the completion of its previously authorized stock repurchase plan (the “ 2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1 . 1 million shares, or approximately 5 % of its outstanding common stock, as of the date the 2022 Plan was adopted . On May 22 , 2024 , the Board of Directors authorized a new stock repurchase plan (the “ 2024 Plan”) under which the Company may repurchase up to 1 . 0 million shares, or approximately 4 . 6 % , of the Company’s outstanding shares of common stock . During the three months ended June 30 , 2024 , the Company repurchased 206 , 600 shares of common stock under the 2022 Plan, with an average price per share of $ 6 . 64 and 63 , 241 shares of common stock under the 2024 Plan, with an average price per share of $ 6 . 57 . During the six months ended June 30 , 2024 , the Company repurchased 469 , 841 shares of common stock with an average price per share of $ 7 . 32 . As of June 30 , 2024 , there were 936 , 759 shares of common stock available for repurchase under the 2024 Plan .

CAPITAL MANAGEMENT 29 $10.60 $10.53 $10.96 $10.90 $11.07 $9.94 $9.87 $10.30 $10.25 $10.41 Book Value per Share Tangible Book Value per Share (non - GAAP) (1) Book Value Tangible Book Value (non-GAAP) Book value per share increased $0.11, or 1.1%, from $10.96 at December 31, 2023 to $11.07 at June 30, 2024. Tangible book value per share, a non - GAAP measure, increased $0.11, or 1.1%, from $10.30 at December 31, 2023 to $10.41 at June 30, 2024. ( 1) Tangible book value is a non - GAAP measure. See slides 30 - 32 for the related tangible book value calculation and a reconcilia tion of GAAP to non - GAAP financial measures.

APPENDIX: NON - GAAP TO GAAP RECONCILIATION 30 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 i ts financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Loan interest (no tax adjustment) 24,340$ 24,241$ 23,939$ 23,451$ 22,450$ Tax-equivalent adjustment 114 110 113 117 122 Loan interest (tax-equivalent basis) 24,454$ 24,351$ 24,052$ 23,568$ 22,572$ Net interest income (no tax adjustment) 14,470$ 15,346$ 16,176$ 16,383$ 16,846$ Tax equivalent adjustment 114 110 113 117 122 Net interest income (tax-equivalent basis) 14,584$ 15,456$ 16,289$ 16,500$ 16,968$ Average interest-earning assets 2,400,633$ 2,403,086$ 2,427,112$ 2,402,987$ 2,405,077$ Net interest margin (no tax adjustment) 2.42% 2.57% 2.64% 2.70% 2.81% Net interest margin, tax-equivalent 2.44% 2.59% 2.66% 2.72% 2.83% Book Value per Share (GAAP) 11.07$ 10.90$ 10.96$ 10.53$ 10.60$ Non-GAAP adjustments: Goodwill (0.58) (0.58) (0.58) (0.57) (0.57) Core deposit intangible (0.08) (0.07) (0.08) (0.09) (0.09) Tangible Book Value per Share (non-GAAP) 10.41$ 10.25$ 10.30$ 9.87$ 9.94$ Total Bank Equity (GAAP) 241,867$ 241,480$ 242,780$ 234,612$ 240,041$ Non-GAAP adjustments: Goodwill (12,487) (12,487) (12,487) (12,487) (12,487) Core deposit intangible net of associated deferred (1,168) (1,236) (1,303) (1,370) (1,438) Tangible Capital (non-GAAP) 228,212$ 227,757$ 228,990$ 220,755$ 226,116$ For the quarter ended (Dollars in thousands)

APPENDIX: NON - GAAP TO GAAP RECONCILIATION 31 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 i ts financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Tangible Capital (non-GAAP) 228,212$ 227,757$ 228,990$ 220,755$ 226,116$ Unrealized losses on HTM securities net of tax (28,869) (28,441) (25,649) (34,622) (27,286) Adjusted Tangible Capital For Impact of Unrealized Losses on HTM Securities Net of Tax (non-GAAP) 199,343$ 199,316$ 203,341$ 186,133$ 198,830$ Tangible Capital (non-GAAP) 228,212$ 227,757$ 228,990$ 220,755$ 226,116$ Unrealized losses on AFS securities net of tax (23,637) (23,637) (21,744) (28,686) (23,224) Adjusted Tangible Capital For Impact of Unrealized Losses on AFS Securities Net of Tax (non-GAAP) 204,575$ 204,120$ 207,246$ 192,069$ 202,892$ Common Equity Tier (CET) 1 Capital 251,849$ 251,394$ 250,734$ 249,441$ 249,340$ Unrealized losses on HTM securities net of tax (28,869) (28,441) (25,649) (34,622) (27,286) Unrealized losses on defined benefit plan net of tax - - - - - Adjusted CET 1 Capital For Impact of Net AFS Securities Losses (non-GAAP) 222,980$ 222,953$ 225,085$ 214,819$ 222,054$ Total Assets for Leverage Ratio (non-GAAP) 2,575,093$ 2,572,525$ 2,607,260$ 2,574,402$ 2,572,583$ Tier 1 Leverage Ratio 9.78% 9.77% 9.62% 9.69% 9.69% Tangible Common Equity (non-GAAP) =Tangible Capital (non-GAAP)/Total Assets for Leverage Ratio (non- GAAP) 8.86% 8.85% 8.78% 8.58% 8.79% Adjusted Common Equity Tier 1 for AFS Impact (non- GAAP) = Adjusted CET 1 Capital For Impact of Net AFS Securities Losses (non-GAAP)/Total Assets for Leverage Ratio (non-GAAP) 8.66% 8.67% 8.63% 8.34% 8.63% Adjusted Tangible Common Equity for AFS Impact (non- GAAP) = Adjusted Tangible Capital For Impact of Unrealized Losses on AFS Securities Net of Tax (non- GAAP)/Total Assets for Leverage Ratio) (non-GAAP) 7.94% 7.93% 7.95% 7.46% 7.89% Adjusted Tangible Common Equity for HTM Impact (non-GAAP) = Adjusted Tangible Capital For Impact of Unrealized Losses on HTM Securities Net of Tax (non- GAAP)/Total Assets for Leverage Ratio) (non-GAAP) 7.74% 7.75% 7.80% 7.23% 7.73% For the quarter ended (Dollars in thousands)

APPENDIX: NON - GAAP TO GAAP RECONCILIATION 32 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 i ts financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Efficiency Ratio: Non-interest Expense (GAAP) 14,314$ 14,782$ 14,785$ 14,118$ 14,551$ Non-Interest Expense for Adjusted Efficiency Ratio (non-GAAP) $ 14,314 $ 14,782 $ 14,785 $ 14,118 $ 14,551 Net Interest Income (GAAP) 14,470$ 15,346$ 16,176$ 16,383$ 16,846$ Non-Interest Income (GAAP) 3,834$ 2,674$ 2,714$ 3,612$ 1,592$ Non-GAAP adjustments: Loss on securities, net - - - - - Unrealized (gains) losses on marketable equity securities (4) (8) 1 - - Loss on interest rate swap termination - - - - - Gain on non-marketable equity investments (987) - - (238) - Loss on disposal of premises and equipment - 6 - 3 - Loss on defined benefit plan termination - - - - 1,143 Gain on bank-owned life insurance death benefit - - - (778) - Non-Interest Income for Adjusted Efficiency Ratio (non- GAAP) $ 2,843 $ 2,672 $ 2,715 $ 2,599 $ 2,735 Total Revenue for Adjusted Efficiency Ratio (non-GAAP) $ 17,313 $ 18,018 $ 18,891 $ 18,982 $ 19,581 Efficiency Ratio (GAAP) 78.20% 82.03% 78.27% 70.61% 78.92% Adjusted Efficiency Ratio (Non-interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) 82.68% 82.04% 78.26% 74.38% 74.31% For the quarter ended (Dollars in thousands)

WESTFIELD BANK “WHAT BETTER BANKING’S ALL ABOUT” James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , First Vice President and Investor Relations Officer 33 141 Elm Street, Westfield, MA

Cover	Jul. 23, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 23, 2024
Entity File Number	001-16767
Entity Registrant Name	WESTERN NEW ENGLAND BANCORP, INC.
Entity Central Index Key	0001157647
Entity Tax Identification Number	73-1627673
Entity Incorporation, State or Country Code	MA
Entity Address, Address Line One	141 Elm Street
Entity Address, City or Town	Westfield
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01085
City Area Code	(413)
Local Phone Number	568-1911
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	WNEB
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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