WESTFIELD, Mass., April 28, 2026 (GLOBE NEWSWIRE) -- Western New England Bancorp, Inc. (the "Company" or "WNEB") (NasdaqGS: WNEB), the holding company for Westfield Bank (the "Bank"), announced today the unaudited results of operations for the three months ended March 31, 2026. The Company reported net income of $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026, compared to net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025. On a linked quarter basis, net income was $4.8 million, or $0.24 per diluted share, compared to net income of $5.2 million, or $0.26 per diluted share, for the three months ended December 31, 2025.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company's common stock. The dividend will be payable on or about May 27, 2026 to shareholders of record on May 13, 2026.
James C. Hagan, President and Chief Executive Officer, commented, "I am pleased to report the results for the first quarter of 2026. Our loan growth, strong and diversified core deposit base, along with our disciplined approach to managing funding costs resulted in an increase in the net interest margin to 2.95%. In the first quarter, core deposits and non-interest bearing deposits represented 70.2% and 25.1% of total deposits, respectively, while the average cost of deposits decreased to 1.72%.
We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. At March 31, 2026, our asset quality remained strong, with total delinquency at 0.14% of total loans, and total nonaccrual loans at 0.21% of total loans."
Hagan concluded, "We remain disciplined in our capital management strategies. During the three months ended March 31, 2026, we repurchased 186,000 shares of common stock and have 686,465 shares of common stock available for repurchase under the 2025 Repurchase Plan.
We are pleased with our first quarter results and are committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends."
Key Highlights:
Loans and Deposits
At March 31, 2026, total loans increased $17.2 million, or 0.8%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 79.5% of total assets. The increase was primarily driven by an increase in residential real estate loans, including home equity loans, of $9.6 million, or 1.1%, an increase in commercial and industrial loans of $6.0 million, or 2.7%, and an increase in commercial real estate loans of $2.1 million, or 0.2%. At March 31, 2026, total deposits of $2.4 billion, increased $20.9 million, or 0.9%, from December 31, 2025, primarily due to a $19.9 million, or 2.9%, increase in time deposits.
Allowance for Credit Losses and Credit Quality
At March 31, 2026, the allowance for credit losses was $20.5 million, or 0.93% of total loans, compared to $20.3 million, or 0.93% of total loans, at December 31, 2025. The allowance for credit losses, as a percentage of nonaccrual loans, was 436.9% and 393.2% at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026, nonaccrual loans totaled $4.7 million, or 0.21% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. Total delinquent loans increased from $3.1 million, or 0.14% of total loans, at December 31, 2025 to $3.2 million, or 0.14% of total loans, at March 31, 2026. At March 31, 2026 and December 31, 2025, the Company did not have any other real estate owned.
Net Interest Margin
The net interest margin increased six basis points from 2.89% for the three months ended December 31, 2025 to 2.95% for the three months ended March 31, 2026. The net interest margin, on a tax-equivalent basis, increased six basis points from 2.91% for the three months ended December 31, 2025 to 2.97% for the three months ended March 31, 2026.
Stock Repurchase Program
On April 22, 2025, the Board of Directors authorized the 2025 Repurchase Plan (the "2025 Plan"), pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company's then-outstanding shares of common stock beginning in June of 2025.
During the three months ended March 31, 2026, the Company repurchased 186,000 shares of its common stock at an average price per share of $13.48. As of March 31, 2026, there were 686,465 shares of common stock available for repurchase under the 2025 Plan.
The repurchase of shares under the 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company's management ("Management") determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 Plan will depend on a number of factors, including the Company's stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.
Book Value and Tangible Book Value
The Company's book value per share was $12.26 at March 31, 2026, compared to $12.16 at December 31, 2025, while tangible book value per share, a non-GAAP financial measure, increased $0.10, or 0.9%, from $11.49 at December 31, 2025 to $11.59 at March 31, 2026. See pages 16-17 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.
Net Income for the Three Months Ended March 31, 2026 Compared to the Three Months Ended December 31, 2025
For the three months ended March 31, 2026, the Company reported net income of $4.8 million, or $0.24 per diluted share, compared to $5.2 million, or $0.26 per diluted share, for the three months ended December 31, 2025. Net interest income totaled $18.8 million for the three months ended March 31, 2026 and the three months ended December 31, 2025. The provision for credit losses increased $560,000, non-interest income increased $260,000, or 8.2%, and non-interest expense increased $138,000 or 0.9%. Return on average assets and return on average equity were 0.71% and 7.77%, respectively, for the three months ended March 31, 2026, compared to 0.75% and 8.40%, respectively, for the three months ended December 31, 2025.
Net Interest Income and Net Interest Margin
Net interest income, our primary driver of revenues, totaled $18.8 million for the three months ended March 31, 2026 and the three months ended December 31, 2025. During the three months ended March 31, 2026, interest and dividend income decreased $256,000, or 0.8%, which was offset by a decrease in interest expense of $252,000, or 2.2%.
The net interest margin was 2.95% for the three months ended March 31, 2026, compared to 2.89% for the three months ended December 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.97% for the three months ended March 31, 2026, compared to 2.91% for the three months ended December 31, 2025. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased five basis points from 4.69% for the three months ended December 31, 2025 to 4.74% for the three months ended March 31, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased six basis points from 5.03% for the three months ended December 31, 2025, to 5.09% for the three months ended March 31, 2026. During the same period, average loans increased $19.7 million, or 0.9%, average securities decreased $6.2 million, or 1.7%, and average short-term investments decreased $7.7 million, or 23.7%.
For the three months ended March 31, 2026 and the three months ended December 31, 2025, the average cost of total funds, including non-interest bearing accounts and borrowings, was 1.88%. For the three months ended March 31, 2026 and the three months ended December 31, 2025, the average cost of core deposits, which the Company defines as all deposits except time deposits, was 1.02%. The average cost of time deposits decreased five basis points from 3.46% for the three months ended December 31, 2025, to 3.41% for the three months ended March 31, 2026.
The average cost of borrowings, including subordinated debt, decreased 21 basis points from 4.96% for the three months ended December 31, 2025 to 4.75% for the three months ended March 31, 2026. Average demand deposits, an interest-free source of funds, decreased $8.0 million, or 1.3%, from $596.5 million, or 25.3%, of total average deposits, for the three months ended December 31, 2025, to $588.5 million, or 25.1% of total average deposits, for the three months ended March 31, 2026.
Provision for (Reversal of) Credit Losses
During the three months ended March 31, 2026, the Company recorded a provision for credit losses of $75,000, compared to a reversal of credit losses of $485,000 during the three months ended December 31, 2025. The provision for credit losses was determined by a number of factors, including, Management's consideration of existing economic conditions and the economic outlook, the continued strong credit performance of the Company's loan portfolio, and changes in the loan portfolio mix. Management continues to monitor macroeconomic variables related to the current interest rate environment, tariffs, global unrest resulting from conflicts, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment and supportable forecast.
During the three months ended March 31, 2026, the Company recorded net charge-offs of $55,000, compared to net charge-offs of $41,000 for the three months ended December 31, 2025.
Non-Interest Income
Non-interest income increased $260,000, or 8.2%, from $3.2 million for the three months ended December 31, 2025 to $3.4 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, non-interest income included the recognition of $449,000 in bank-owned life insurance ("BOLI") death benefits. Service charges and fees on deposits decreased $103,000, or 4.6%, from $2.2 million for the three months ended December 31, 2025 to $2.1 million for the three months ended March 31, 2026. For the three months ended March 31, 2026, wealth management income totaled $390,000, compared to $319,000 for the three months ended December 31, 2025. During the same period, assets under management increased from $234.0 million at December 31, 2025 to $235.6 million at March 31, 2026, reflecting net investment appreciation and assets acquired.
Income from BOLI decreased $16,000, or 3.3%, from the three months ended December 31, 2025 to $476,000 for the three months ended March 31, 2026. During the three months ended December 31, 2025, the Company reported $135,000 in income from loan-level swap fees on commercial loans and did not report comparable income during the three months ended March 31, 2026. During the three months ended March 31, 2026 and the three months ended December 31, 2025, the Company reported unrealized losses on marketable equity securities of $13,000 and $7,000, respectively.
Non-Interest Expense
For the three months ended March 31, 2026, non-interest expense increased $138,000, or 0.9%, to $16.0 million from the three months ended December 31, 2025. Occupancy expense increased $250,000, or 19.1%, primarily due to snow removal costs of $255,000 during the three months ended March 31, 2026, compared to $53,000 during the three months ended December 31, 2025. Professional fees increased $121,000, or 31.2%, advertising expense increased $93,000, or 26.6%, debit card processing and ATM network costs increased $64,000, or 10.7%, and software related expenses increased $2,000, or 0.3%. These increases were partially offset by a decrease in other non-interest expense of $160,000, or 11.2%, a decrease in salaries and employee benefits of $144,000, or 1.5%, a decrease in data processing of $78,000, or 8.7%, a decrease in FDIC insurance expense of $6,000, or 1.5%, and a decrease in furniture and equipment expense of $4,000, or 0.9%. For the three months ended March 31, 2026 and the three months ended December 31, 2025, the efficiency ratio was 71.9% and 72.1%, respectively. For the three months ended March 31, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 73.4% compared to 72.1% for the three months ended December 31, 2025. See pages 16-17 for the related efficiency ratio and adjusted efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures.
Income Tax Provision
Income tax expense for the three months ended March 31, 2026 was $1.4 million, with an effective tax rate of 22.6%, compared to $1.4 million, with an effective tax rate of 21.3%, for the three months ended December 31, 2025.
Net Income for the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
The Company reported an increase in net income of $2.5 million, or 107.4%, from $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, to $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026. Net interest income increased $3.3 million, or 21.2%, provision for credit losses decreased $67,000, or 47.2%, non-interest income increased $674,000, or 24.4%, and non-interest expense increased $824,000, or 5.4%, during the same period. Return on average assets and return on average equity were 0.71% and 7.77%, respectively, for the three months ended March 31, 2026, compared to 0.35% and 3.94%, respectively, for the three months ended March 31, 2025.
Net Interest Income and Net Interest Margin
Net interest income increased $3.3 million, or 21.2%, to $18.8 million, for the three months ended March 31, 2026, from $15.5 million for the three months ended March 31, 2025. The increase in net interest income of $3.3 million was due to an increase in interest and dividend income of $1.8 million, or 6.5%, and a decrease in interest expense of $1.4 million, or 11.2%. The decrease in interest expense was primarily due to a decrease in the average cost of interest-bearing liabilities of 36 basis points, from 2.82% for the three months ended March 31, 2025 to 2.46% for the three months ended March 31, 2026. As a result, the net interest margin increased from 2.49% for the three months ended March 31, 2025, to 2.95% for the three months ended March 31, 2026. The net interest margin, on a tax-equivalent basis, increased 46 basis points from 2.51% for the three months ended March 31, 2025 to 2.97% for the three months ended March 31, 2026.
The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 18 basis points from 4.56% for the three months ended March 31, 2025 to 4.74% for the three months ended March 31, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased 19 basis points, from 4.90% for the three months ended March 31, 2025, to 5.09% for the three months ended March 31, 2026. During the three months ended March 31, 2026, average interest-earning assets increased $61.2 million, or 2.4%, to $2.6 billion, primarily due to an increase in average loans of $113.0 million, or 5.5%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $51.2 million, or 67.3%.
The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 28 basis points from 2.16% for the three months ended March 31, 2025, to 1.88% for the three months ended March 31, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased six basis points from 1.08% for the three months ended March 31, 2025 to 1.02% for the three months ended March 31, 2026. The average cost of time deposits decreased 70 basis points from 4.11% for the three months ended March 31, 2025 to 3.41% for the three months ended March 31, 2026. The average cost of borrowings, including subordinated debt, decreased 29 basis points from 5.04% for the three months ended March 31, 2025 to 4.75% for the three months ended March 31, 2026. Average demand deposits, an interest-free source of funds, increased $18.9 million, or 3.3%, from $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025, to $588.5 million, or 25.1% of total average deposits, for the three months ended March 31, 2026.
Provision for Credit Losses
During the three months ended March 31, 2026, the Company recorded a decrease in the provision for credit losses of $67,000, or 47.2%, from $142,000 for the three months ended March 31, 2025 to $75,000. The decrease was primarily due to a decrease in unfunded commitments. The provision for credit losses was determined by a number of factors, including, the continued strong credit performance of the Company's loan portfolio, changes in the loan portfolio mix and Management's consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the current interest rate environment, tariffs, global unrest resulting from conflicts, and the concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment and supportable forecast.
During the three months ended March 31, 2026, the Company recorded net charge-offs of $55,000, compared to net charge-offs of $29,000 for the three months ended March 31, 2025.
Non-Interest Income
Non-interest income increased $674,000, or 24.4%, from $2.8 million, for the three months ended March 31, 2025 to $3.4 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, non-interest income included the recognition of $449,000 in BOLI death benefits. During the same period, service charges and fees on deposits increased $108,000, or 5.3%, and wealth management income increased $129,000, or 49.4%, from $261,000 for the three months ended March 31, 2025 to $390,000 for the three months ended March 31, 2026. Income from BOLI increased $3,000, or 0.6%, from $473,000 for the three months ended March 31, 2025 to $476,000 for the three months ended March 31, 2026.
During the three months ended March 31, 2026 and the three months ended March 31, 2025, the Company reported unrealized losses on marketable equity securities of $13,000 and $5,000, respectively. During the three months ended March 31, 2025, the Company reported a gain of $7,000 from mortgage banking activities and did not have a comparable gain or loss during the three months ended March 31, 2026.
Non-Interest Expense
Non-interest expense increased $824,000, or 5.4%, from $15.2 million for the three months ended March 31, 2025 to $16.0 million for the three months ended March 31, 2026. The increase in non-interest expense was primarily due to an increase of $816,000, or 9.7%, in salaries and benefits due to increases in health insurance benefits and annual merit increases. Occupancy expense increased $150,000, or 10.6%, due to $255,000 in snow removal costs during the three months ended March 31, 2026 compared to $143,000 for the three months ended March 31, 2025. Debit card processing and ATM network costs increased $86,000, or 14.9%, software related expenses increased $30,000, or 4.6%, and advertising expense increased $13,000, or 3.0%. These expenses were partially offset by a decrease in other non-interest expense of $80,000, or 5.9%, a decrease in data processing expense of $61,000, or 6.9%, a decrease in furniture and equipment expense of $54,000, or 11.1%, a decrease in FDIC insurance expense of $39,000, or 9.0%, and a decrease in professional fees of $37,000, or 6.8%.
For the three months ended March 31, 2026 and the three months ended March 31, 2025, the efficiency ratio was 71.9% and 83.0%, respectively. For the three months ended March 31, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 73.4% compared to 83.0% for the three months ended March 31, 2025. The decreases in both the efficiency ratio and the adjusted efficiency ratio were driven by a $4.0 million, or 21.7%, increase in total revenues from the three months ended March 31, 2025 to the three months ended March 31, 2026, while expenses increased $824,000, or 5.4%, during the same period. See pages 16-17 for the efficiency ratio and adjusted efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures.
Income Tax Provision
For the three months ended March 31, 2026, income tax expense was $1.4 million, with an effective tax rate of 22.6%, compared to $664,000, with an effective tax rate of 22.4%, for the three months ended March 31, 2025.
Balance Sheet
At March 31, 2026, total assets of $2.8 billion increased $28.0 million, or 1.0%, from December 31, 2025. The increase in total assets was primarily due to an increase in total loans of $17.2 million, or 0.8%, and an increase in cash and cash equivalents of $15.8 million, or 39.0%.
Investments
At March 31, 2026, the investment securities portfolio totaled $359.2 million, or 13.0% of total assets, compared to $365.2 million, or 13.3% of total assets, at December 31, 2025. At March 31, 2026, the Company's available-for-sale securities portfolio, recorded at fair market value, decreased $2.6 million, or 1.5%, from $175.8 million at December 31, 2025 to $173.2 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $3.4 million, or 1.8%, from $188.8 million at December 31, 2025 to $185.4 million at March 31, 2026.
At March 31, 2026, the Company reported unrealized losses on the available-for-sale securities portfolio of $23.0 million, or 11.7% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $22.4 million, or 11.3% of the amortized cost basis of the available-for-sale securities at December 31, 2025. At March 31, 2026, the Company reported unrealized losses on the held-to-maturity securities portfolio of $30.6 million, or 16.5% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $30.3 million, or 16.1% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2025.
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 $11.0 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.
Management regularly reviews the portfolio for securities in an unrealized loss position. At March 31, 2026 and December 31, 2025, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company's investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's objective to provide liquidity.
Total Loans
Total loans increased $17.2 million, or 0.8%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 79.5% of total assets, at March 31, 2026. The increase in total loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $9.6 million, or 1.1%, an increase in commercial and industrial loans of $6.0 million, or 2.7%, and an increase in commercial real estate loans of $2.1 million, or 0.2%.
The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:
March 31, 2026 December 31, 2025
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(Dollars in thousands)
Commercial real estate loans:
Non-owner occupied $ 918,219 $ 910,239
Owner occupied 182,909 188,824
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Total commercial real estate
loans 1,101,128 1,099,063
Residential real estate loans:
Residential one-to-four family 727,882 719,070
Home equity 138,565 137,801
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Total residential real estate
loans 866,447 856,871
Commercial and industrial loans 227,765 221,790
Consumer loans 2,550 2,929
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Total loans 2,197,890 2,180,653
Unamortized premiums and net
deferred loan fees and costs 3,066 2,939
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Total loans, including
unamortized premiums and net
deferred loan fees and costs $ 2,200,956 $ 2,183,592
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Credit Quality
Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers' financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.
Total delinquency was $3.2 million, or 0.14% of total loans, at March 31, 2026, compared to $3.1 million, or 0.14% of total loans at December 31, 2025. At March 31, 2026, nonaccrual loans totaled $4.7 million, or 0.21% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. At March 31, 2026 and December 31, 2025, there were no loans 90 or more days past-due and still accruing interest. Total nonperforming assets, defined as nonaccrual loans and other real estate owned, totaled $4.7 million, or 0.17% of total assets, at March 31, 2026, compared to $5.2 million, or 0.19% of total assets, at December 31, 2025. At March 31, 2026 and December 31, 2025, the Company did not have any other real estate owned.
At March 31, 2026, the allowance for credit losses was $20.5 million, or 0.93% of total loans and 436.9% of nonaccrual loans, compared to $20.3 million, or 0.93% of total loans and 393.2% of nonaccrual loans, at December 31, 2025.
At March 31, 2026, total criticized loans, defined as special mention and substandard loans, totaled $58.7 million, or 2.7% of total loans, compared to $39.7 million, or 1.8% of total loans, at December 31, 2025. Loans designated special mention, which are not considered classified, increased $20.5 million, from $17.2 million, or 0.8% of total loans, at December 31, 2025 to $37.6 million, or 1.7% of total loans, at March 31, 2026. During the same period, substandard loans decreased $1.4 million, or 6.1%, to $21.1 million, or 1.0% of total loans.
Of the $37.6 million in loans designated special mention at March 31, 2026, $14.7 million, or 39.1%, are commercial and industrial loans, and $22.9 million, or 60.9%, are commercial real estate loans. Of the $21.1 million in loans categorized substandard at March 31, 2026, $7.3 million, or 34.4%, are commercial and industrial loans, $9.5 million, or 44.8%, are commercial real estate loans, and $4.4 million, or 20.8%, are residential real estate loans. Of the total $58.7 million in criticized loans at March 31, 2026, 96.1% are current and paying as agreed.
The increase in special mention loans from December 31, 2025 to March 31, 2026 resulted from the downgrade of two commercial relationships totaling $21.5 million, from "pass" risk ratings to special mention. The two relationships are paying as agreed and are being monitored closely by Management.
Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At March 31, 2026, the commercial real estate portfolio totaled $1.1 billion and represented 50.1% of total loans. Of the $1.1 billion, $918.2 million, or 83.4%, was categorized as non-owner occupied commercial real estate and represented 329.8% of the Bank's total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.
Deposits
At March 31, 2026, total deposits were $2.4 billion and increased $20.9 million, or 0.9%, from December 31, 2025. Core deposits, which the Company defines as all deposits except time deposits, increased $1.0 million, or 0.1%, from $1.7 billion, or 70.8% of total deposits, at December 31, 2025, to $1.7 billion, or 70.2% of total deposits, at March 31, 2026. Non-interest-bearing deposits increased $3.2 million, or 0.5%, to $597.7 million, and represented 25.1% of total deposits, money market accounts increased $18.1 million, or 2.5%, to $733.7 million, and savings accounts increased $10.5 million, or 5.6%, to $197.1 million. These increases were partially offset by a decrease in interest-bearing checking accounts of $30.8 million, or 17.7%, to $143.5 million.
Time deposits increased $19.9 million, or 2.9%, from $689.9 million at December 31, 2025 to $709.8 million at March 31, 2026. The Company did not have brokered time deposits at March 31, 2026 and December 31, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At March 31, 2026, the Bank's uninsured deposits totaled $706.2 million, or 29.6% of total deposits, compared to $697.6 million, or 29.5% of total deposits, at December 31, 2025. At March 31, 2026, there was one deposit relationship, which is our largest deposit relationship, with a household concentration comprising 5.7% of total deposits, compared to 5.0% of total deposits at December 31, 2025. The next largest deposit relationship is to a local municipality with a concentration of 1.5% of total deposits at March 31, 2026 and 1.9% at December 31, 2025.
The table below is a summary of our deposit balances for the periods noted:
At March 31, 2026 At December 31, 2025
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% of Total % of Total
Balance Deposits Balance Deposits
---------- ---------- ------------
(Dollars in thousands)
Demand and
interest-bearing
checking:
Demand deposit
accounts $ 597,738 25.1% $ 594,516 25.2%
Interest-bearing
checking
accounts 143,459 6.0% 174,227 7.4%
Savings:
Regular savings
accounts 197,100 8.3% 186,597 7.9%
Money market
accounts 733,696 30.8% 715,620 30.3%
--------- ----- ---- --------- ----- ----
Total core deposits 1,671,993 70.2% 1,670,960 70.8%
Time deposits 709,799 29.8% 689,948 29.2%
--------- ----- ---- --------- ----- ----
Total deposits $2,381,792 100.0% $2,360,908 100.0%
========= ===== ==== ========= ===== ====
FHLB and Subordinated Debt
At March 31, 2026, total borrowings increased $10.5 million, or 9.9%, from $106.1 million at December 31, 2025 to $116.6 million. At March 31, 2026, short-term borrowings increased $10.5 million, or 79.4%, to $23.8 million, compared to $13.3 million at December 31, 2025. At March 31, 2026 and December 31, 2025, long-term borrowings totaled $73.0 million. At March 31, 2026 and December 31, 2025, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.
As of March 31, 2026, the Company had $485.1 million of additional borrowing capacity at the FHLB, $337.3 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.
Capital
At March 31, 2026, shareholders' equity was $248.1 million, or 9.0% of total assets, compared to $247.6 million, or 9.1% of total assets, at December 31, 2025. The change was primarily attributable to net income of $4.8 million, partially offset by an increase in accumulated other comprehensive loss of $458,000, cash dividends paid of $1.4 million and the repurchase of 186,000 shares at a cost of $2.5 million. At March 31, 2026, total shares outstanding were 20,240,872. The Company's regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.
March 31, 2026 December 31, 2025
-------------------- -----------------------
Company Bank Company Bank
--------- --------- ----------- ----------
Total Capital (to Risk
Weighted Assets) 14.14% 13.46% 14.19% 13.48%
Tier 1 Capital (to Risk
Weighted Assets) 12.17% 12.44% 12.21% 12.46%
Common Equity Tier 1
Capital (to Risk
Weighted Assets) 12.17% 12.44% 12.21% 12.46%
Tier 1 Leverage Ratio (to
Adjusted Average
Assets) 9.16% 9.36% 9.13% 9.32%
Dividends
Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company's ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company's ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.
About Western New England Bancorp, Inc.
Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and the Capital Region in Connecticut. To learn more, visit our website at www.westfieldbank.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company's financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:
-- unpredictable changes in general economic or political conditions,
financial markets, fiscal, monetary and regulatory policies, including
actual or potential stress in the banking industry;
-- the possibility that future credit losses, loan defaults and charge-off
rates are higher than expected due to changes in economic assumptions or
adverse economic developments;
-- general business and economic conditions on a national basis and in the
local markets in which we operate, including those impacting credit
quality;
-- unstable political and economic conditions, including changes in tariff
policies, which could materially impact credit quality trends and the
ability to generate loans and gather deposits;
-- inflation and governmental responses to inflation, including potential
future increases in interest rates that reduce net interest margins;
-- the effect on our operations of governmental legislation and regulation,
including changes in accounting regulation or standards, the nature and
timing of the adoption and effectiveness of new requirements under the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel
guidelines, capital requirements and other applicable laws and
regulations;
-- changes in regulation, regulatory policy, legislation, accounting
standards and practices, and fiscal monetary policy, particularly in
light of the shift in presidential administrations and the potential for
related shifts in agency policy and leadership;
-- operational risks or risk management failures by us or critical third
parties, including without limitation with respect to data processing,
information systems, cybersecurity incidents, technological integration,
including AI, vendor issues, business interruption, and fraud risks;
-- significant changes in accounting, tax or regulatory practices or
requirements;
-- new legal obligations or liabilities or unfavorable resolutions or
litigation;
-- disruptive technologies in payment systems and other services
traditionally provided by financial institutions;
-- severe weather, natural disasters, acts of war or terrorism and other
external events which could significantly impact our business;
-- declines in real estate values in the Company's market area, which may
adversely affect our loan production;
-- decreases in the value of securities and other assets, or changes in the
securities markets which affect investment management revenue;
-- decreases in deposit levels necessitating increased borrowing to fund
loans, investments and other needs;
-- competitive pressures from other financial institutions;
-- the soundness of other financial services institutions which may
adversely affect our credit risk;
-- failure or circumvention of our internal controls or procedures;
-- the risk that goodwill and intangibles recorded in our financial
statements will become impaired;
-- the risk that we may not be successful in the implementation of our
business strategy;
-- increases in Federal Deposit Insurance Corporation deposit insurance
premiums and assessments;
-- introduction of new lines of business or new products and services, which
may subject us to additional risks;
-- changes in key management personnel which may adversely impact our
operations; and
-- other risks and uncertainties detailed in Part 1A "Risk Factors" of the
Company's 2025 Annual Report on Form 10-K.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Net Income and Other Data
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
-----------------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
--------------- --------------- --------------- --------------- ---------------
INTEREST AND
DIVIDEND INCOME:
Loans $ 27,440 $ 27,491 $ 26,690 $ 26,214 $ 24,984
Securities 2,505 2,588 2,617 2,588 2,422
Other
investments 147 164 166 169 191
Short-term
investments 189 294 560 641 840
---------- ---------- ---------- ---------- ----------
Total interest
and dividend
income 30,281 30,537 30,033 29,612 28,437
---------- ---------- ---------- ---------- ----------
INTEREST EXPENSE:
Deposits 9,978 10,296 10,403 10,437 11,376
Short-term
borrowings 322 85 39 47 54
Long-term debt 902 1,073 1,245 1,232 1,219
Subordinated
debt 254 254 254 254 254
---------- ---------- ---------- ---------- ----------
Total interest
expense 11,456 11,708 11,941 11,970 12,903
---------- ---------- ---------- ---------- ----------
Net interest
and dividend
income 18,825 18,829 18,092 17,642 15,534
PROVISION FOR
(REVERSAL OF)
CREDIT LOSSES 75 (485) 1,293 (615) 142
---------- ---------- ---------- ---------- ----------
Net interest
and dividend
income after
provision for
(reversal of)
credit losses 18,750 19,314 16,799 18,257 15,392
---------- ---------- ---------- ---------- ----------
NON-INTEREST
INCOME:
Service charges
and fees on
deposits 2,131 2,234 2,199 2,235 2,023
Wealth
management
income 390 319 353 293 261
Income from
bank-owned
life
insurance 476 492 482 516 473
Gain on
bank-owned
life insurance
death
benefits 449 - - - -
Unrealized
(loss) gain on
marketable
equity
securities (13) (7) 22 25 (5)
Gain on
mortgage
banking
activity - - - 4 7
Gain on
non-marketable
equity
investments - - - 243 -
Other income - 135 117 95 -
---------- ---------- ---------- ----------
Total
non-interest
income 3,433 3,173 3,173 3,411 2,759
---------- ---------- ---------- ---------- ----------
NON-INTEREST
EXPENSE:
Salaries and
employees'
benefits 9,229 9,373 9,209 8,831 8,413
Occupancy 1,562 1,312 1,237 1,265 1,412
Furniture and
equipment 433 437 453 491 487
Data processing 821 899 916 933 882
Software 689 687 652 645 659
Debit/ATM card
processing
expense 663 599 633 674 577
Professional
fees 509 388 460 623 546
FDIC insurance 392 398 376 399 431
Advertising 442 349 433 443 429
Other 1,268 1,428 1,409 1,352 1,348
---------- ---------- ---------- ---------- ----------
Total
non-interest
expense 16,008 15,870 15,778 15,656 15,184
---------- ---------- ---------- ---------- ----------
INCOME BEFORE
INCOME TAXES 6,175 6,617 4,194 6,012 2,967
INCOME TAX
PROVISION 1,398 1,408 1,027 1,422 664
---------- ---------- ---------- ---------- ----------
NET INCOME $ 4,777 $ 5,209 $ 3,167 $ 4,590 $ 2,303
========== ========== ========== ========== ==========
Basic earnings
per share $ 0.24 $ 0.26 $ 0.16 $ 0.23 $ 0.11
Weighted average
shares
outstanding 19,996,682 20,060,358 20,110,492 20,210,650 20,385,481
Diluted earnings
per share $ 0.24 $ 0.26 $ 0.16 $ 0.23 $ 0.11
Weighted average
diluted shares
outstanding 20,065,067 20,206,539 20,240,975 20,312,881 20,514,098
Other Data:
Return on average
assets (1) 0.71% 0.75% 0.46% 0.69% 0.35%
Return on average
equity (1) 7.77% 8.40% 5.20% 7.76% 3.94%
Efficiency ratio 71.92% 72.13% 74.20% 74.36% 83.00%
Adjusted
efficiency ratio
(2) 73.36% 72.11% 74.27% 75.32% 82.98%
Net interest
margin (1) 2.95% 2.89% 2.81% 2.80% 2.49%
Net interest
margin, on a
fully
tax-equivalent
basis (1) 2.97% 2.91% 2.83% 2.82% 2.51%
-------------------
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents
the ratio of operating expenses divided by the sum
of net interest and dividend income and non-interest
income, excluding realized and unrealized gains and
losses on securities, gain on non-marketable equity
investments, and gain on bank-owned life insurance
death benefits.
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
December September
March 31, 31, 30, June 30, March 31,
2026 2025 2025 2025 2025
----------- ----------- ----------- ----------- -------------
Cash and cash
equivalents $ 56,137 $ 40,381 $ 82,942 $ 93,308 $ 110,579
Securities
available-for-sale,
at fair value 173,215 175,800 179,234 178,785 167,800
Securities held to
maturity, at
amortized cost 185,392 188,800 193,446 197,671 201,557
Marketable equity
securities, at fair
value 610 632 471 444 414
Federal Home Loan
Bank of Boston and
other restricted
stock - at cost 5,736 5,359 5,818 5,818 5,818
Loans 2,200,956 2,183,592 2,131,308 2,092,631 2,079,561
Allowance for credit
losses (20,451) (20,297) (20,542) (19,733) (19,669)
--------- --------- --------- --------- ---------
Net loans 2,180,505 2,163,295 2,110,766 2,072,898 2,059,892
Bank-owned life
insurance 77,679 79,019 78,527 78,045 77,529
Goodwill 12,487 12,487 12,487 12,487 12,487
Core deposit
intangible 969 1,063 1,156 1,250 1,344
Other assets 71,807 69,644 70,683 70,443 71,864
--------- --------- --------- --------- ---------
TOTAL ASSETS $2,764,537 $2,736,480 $2,735,530 $2,711,149 $2,709,284
========= ========= ========= ========= =========
Total deposits $2,381,792 $2,360,908 $2,349,875 $2,330,113 $2,328,593
Short-term
borrowings 23,810 13,270 2,980 4,040 4,520
Long-term debt 73,000 73,000 98,000 98,000 98,000
Subordinated debt 19,800 19,790 19,781 19,771 19,761
Securities pending
settlement - 242 - - 2,093
Other liabilities 18,039 21,633 21,254 19,797 18,641
--------- --------- --------- --------- ---------
TOTAL LIABILITIES 2,516,441 2,488,843 2,491,890 2,471,721 2,471,608
--------- --------- --------- --------- ---------
TOTAL SHAREHOLDERS'
EQUITY 248,096 247,637 243,640 239,428 237,676
--------- --------- --------- --------- ---------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY $2,764,537 $2,736,480 $2,735,530 $2,711,149 $2,709,284
========= ========= ========= ========= =========
WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
Other Data
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2026 2025 2025 2025 2025
---------------- ---------------- ---------------- ---------------- ----------------
Shares
outstanding at
end of period 20,240,872 20,372,786 20,491,966 20,494,501 20,774,319
Operating
results:
Net interest
income $ 18,825 $ 18,829 $ 18,092 $ 17,642 $ 15,534
Provision for
(reversal of)
credit losses 75 (485) 1,293 (615) 142
Non-interest
income 3,433 3,173 3,173 3,411 2,759
Non-interest
expense 16,008 15,870 15,778 15,656 15,184
Income before
income
provision for
income taxes 6,175 6,617 4,194 6,012 2,967
Income tax
provision 1,398 1,408 1,027 1,422 664
Net income 4,777 5,209 3,167 4,590 2,303
Performance
Ratios:
Net interest
margin 2.95% 2.89% 2.81% 2.80% 2.49%
Net interest
margin, on a
fully
tax-equivalent
basis 2.97% 2.91% 2.83% 2.82% 2.51%
Interest rate
spread 2.28% 2.21% 2.13% 2.10% 1.74%
Interest rate
spread, on a
fully
tax-equivalent
basis 2.30% 2.23% 2.14% 2.12% 1.76%
Return on
average
assets 0.71% 0.75% 0.46% 0.69% 0.35%
Return on
average
equity 7.77% 8.40% 5.20% 7.76% 3.94%
Efficiency
ratio (GAAP) 71.92% 72.13% 74.20% 74.36% 83.00%
Adjusted
efficiency
ratio
(non-GAAP)(1) 73.36% 72.11% 74.27% 75.32% 82.98%
Per Common Share
Data:
Basic earnings
per share $ 0.24 $ 0.26 $ 0.16 $ 0.23 $ 0.11
Earnings per
diluted share 0.24 0.26 0.16 0.23 0.11
Cash dividend
declared 0.07 0.07 0.07 0.07 0.07
Book value per
share 12.26 12.16 11.89 11.68 11.44
Tangible book
value per
share
(non-GAAP)(2) 11.59 11.49 11.22 11.01 10.78
Asset Quality:
30-89 day
delinquent
loans $ 2,317 $ 2,098 $ 3,123 $ 2,525 $ 2,459
90 days or more
delinquent
loans 840 1,047 1,425 1,328 2,027
Total
delinquent
loans 3,157 3,145 4,548 3,853 4,486
Total
delinquent
loans as a
percentage of
total loans 0.14% 0.14% 0.21% 0.18% 0.22%
Nonaccrual
loans $ 4,681 $ 5,162 $ 5,649 $ 5,752 $ 6,014
Nonaccrual
loans as a
percentage of
total loans 0.21% 0.24% 0.27% 0.27% 0.29%
Nonaccrual
assets as a
percentage of
total assets 0.17% 0.19% 0.21% 0.21% 0.22%
Allowance for
credit losses
as a
percentage of
nonaccrual
loans 436.89% 393.20% 363.64% 343.06% 327.05%
Allowance for
credit losses
as a
percentage of
total loans 0.93% 0.93% 0.96% 0.94% 0.95%
Net loan
charge-offs
(recoveries) $ 55 $ 41 $ 43 $ (585) $ 29
Net loan
charge-offs
(recoveries)
as a
percentage of
average loans 0.00% 0.00% 0.00% (0.03)% 0.00%
____________________________
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and gain on bank-owned life insurance death benefits.
(2) Tangible book value per share (non-GAAP) represents the value of the Company's tangible assets divided by its current outstanding shares.
The following table sets forth the information relating to our average balances and net interest income for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
Three Months Ended
--------------------------------------------------------------------------------------------------------
March 31, 2026 December 31, 2025 March 31, 2025
---------------------------------- --------------------------------- ---------------------------------
Average Average Average
Average Yield/ Average Yield/ Average Yield/
Balance Interest Cost(8) Balance Interest Cost(8) Balance Interest Cost(8)
---------- --------- ----------- ---------- -------- ----------- ---------- -------- -----------
(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2) $2,186,529 $27,559 5.11% $2,166,804 $27,616 5.06% $2,073,486 $25,105 4.91%
Securities(2) 363,983 2,505 2.79 370,210 2,588 2.77 365,371 2,422 2.69
Other investments 15,585 147 3.83 14,752 164 4.41 14,819 191 5.23
Short-term
investments(3) 24,831 189 3.09 32,544 294 3.58 76,039 840 4.48
--------- ------ --------- ------ --------- ------
Total
interest-earning
assets 2,590,928 30,400 4.76 2,584,310 30,662 4.71 2,529,715 28,558 4.58
------ ------ ------
Total
non-interest-earning
assets 153,783 156,258 156,733
--------- --------- ---------
Total assets $2,744,711 $2,740,568 $2,686,448
========= ========= =========
LIABILITIES AND EQUITY:
Interest-bearing
liabilities
Interest-bearing
checking accounts $ 148,869 300 0.82 $ 163,174 371 0.90 $ 140,960 250 0.72
Savings accounts 190,080 43 0.09 187,428 43 0.09 183,869 40 0.09
Money market accounts 728,590 3,822 2.13 723,501 3,889 2.13 704,215 3,968 2.29
Time deposit accounts 691,612 5,813 3.41 686,966 5,993 3.46 702,748 7,118 4.11
--------- ------ --------- ------ --------- ------
Total
interest-bearing
deposits 1,759,151 9,978 2.30 1,761,069 10,296 2.32 1,731,792 11,376 2.66
Short-term borrowings
and long-term debt 126,193 1,478 4.75 112,904 1,412 4.96 122,786 1,527 5.04
------ ------ ------
Interest-bearing
liabilities 1,885,344 11,456 2.46 1,873,973 11,708 2.48 1,854,578 12,903 2.82
--------- ------ --------- ------ --------- ------
Non-interest-bearing
deposits 588,503 596,462 569,638
Other
non-interest-bearing
liabilities 21,413 24,231 25,464
--------- --------- ---------
Total
non-interest-bearing
liabilities 609,916 620,693 595,102
--------- --------- ---------
Total liabilities 2,495,260 2,494,666 2,449,680
Total equity 249,451 245,902 236,768
--------- --------- ---------
Total liabilities and
equity $2,744,711 $2,740,568 $2,686,448
========= ========= =========
Less: Tax-equivalent
adjustment(2) (119) (125) (121)
------ ------ ------
Net interest and
dividend income $18,825 $18,829 $15,534
====== ====== ======
Net interest rate
spread(4) 2.28% 2.21% 1.74%
Net interest rate
spread, on a
tax-equivalent
basis(5) 2.30% 2.23% 1.76%
Net interest margin(6) 2.95% 2.89% 2.49%
Net interest margin, on
a tax-equivalent
basis(7) 2.97% 2.91% 2.51%
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities 137.42% 137.91% 136.40%
__________________________________________________
(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the tax-equivalent weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.
Reconciliation of Non-GAAP to GAAP Financial Measures -----------------------------------------------------
The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.
For the quarter ended
------------------------------------------------------------------------------
3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025
-------------- -------------- -------------- -------------- --------------
(Dollars in thousands)
Loan interest (no tax
adjustment) $ 27,440 $ 27,491 $ 26,690 $ 26,214 $ 24,984
Tax-equivalent
adjustment 119 125 120 121 121
Loan interest
(tax-equivalent
basis) $ 27,559 $ 27,616 $ 26,810 $ 26,335 $ 25,105
========= ========= ========= ========= =========
Loan interest
(tax-equivalent
basis) $ 27,559 $ 27,616 $ 26,810 $ 26,335 $ 25,105
Less:
Prepayment
penalties and
fees - - 34 425 -
---------- ---------- ---------- ---------- ----------
Adjusted loan income,
excluding prepayment
penalties
(tax-equivalent
basis) (non-GAAP) $ 27,559 $ 27,616 $ 26,776 $ 25,910 $ 25,105
========= ========= ========= ========= =========
Average loans $2,186,529 $2,166,804 $2,112,394 $2,081,319 $2,073,486
Average loan yield
(no tax adjustment) 5.09% 5.03% 5.01% 5.05% 4.89%
Average loan yield
(no tax adjustment),
excluding prepayment
penalties
(non-GAAP) 5.09% 5.03% 5.01% 4.97% 4.89%
Average loan yield
(tax-equivalent) 5.11% 5.06% 5.04% 5.08% 4.91%
Average loan yield
(tax-equivalent
basis), excluding
prepayment penalties
(non-GAAP) 5.11% 5.06% 5.03% 4.99% 4.91%
Net interest income
(no tax adjustment) $ 18,825 $ 18,829 $ 18,092 $ 17,642 $ 15,534
Tax equivalent
adjustment 119 125 120 121 121
Net interest income
(tax-equivalent
basis) $ 18,944 $ 18,954 $ 18,212 $ 17,763 $ 15,655
========= ========= ========= ========= =========
Net interest income
(no tax adjustment) $ 18,825 $ 18,829 $ 18,092 $ 17,642 $ 15,534
Less:
Prepayment
penalties - - 34 425 -
Adjusted net interest
income (non-GAAP) $ 18,825 $ 18,829 $ 18,058 $ 17,217 $ 15,534
========= ========= ========= ========= =========
Average
interest-earning
assets $2,590,928 $2,584,310 $2,553,849 $2,530,077 $2,529,715
Net interest margin
(no tax adjustment) 2.95% 2.89% 2.81% 2.80% 2.49%
Net interest margin
(tax-equivalent
basis) 2.97% 2.91% 2.83% 2.82% 2.51%
Adjusted net interest
margin, excluding
prepayment penalties
(no tax adjustment)
(non-GAAP) 2.95% 2.89% 2.81% 2.73% 2.49%
At or for the quarter ended
------------------------------------------------------------------
3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025
----------- -------------- ----------- ----------- -----------
(Dollars in thousands, except per share data)
Book Value per
Share (GAAP) $ 12.26 $ 12.16 $ 11.89 $ 11.68 $ 11.44
---------------
Non-GAAP
adjustments:
Goodwill (0.62) (0.61) (0.61) (0.61) (0.60)
Core deposit
intangible (0.05) (0.06) (0.06) (0.06) (0.06)
Tangible Book
Value per
Share
(non-GAAP) $ 11.59 $ 11.49 $ 11.22 $ 11.01 $ 10.78
====== ====== ====== ====== ======
Efficiency
Ratio:
---------------
Non-interest
Expense
(GAAP) $16,008 $ 15,870 $15,778 $15,656 $15,184
Net Interest
Income (GAAP) $18,825 $ 18,829 $18,092 $17,642 $15,534
Non-interest
Income (GAAP) $ 3,433 $ 3,173 $ 3,173 $ 3,411 $ 2,759
Non-GAAP
adjustments:
Unrealized
losses (gains)
on marketable
equity
securities 13 7 (22) (25) 5
Gain on
non-marketable
equity
investments - - - (243) -
Gain on
bank-owned
life insurance
death
benefits (449) - - - -
Non-interest
Income for
Adjusted
Efficiency
Ratio
(non-GAAP) $ 2,997 $ 3,180 $ 3,151 $ 3,143 $ 2,764
Total Revenue
for Adjusted
Efficiency
Ratio
(non-GAAP) $21,822 $ 22,009 $21,243 $20,785 $18,298
====== ====== ====== ====== ======
Efficiency
Ratio (GAAP) 71.92% 72.13% 74.20% 74.36% 83.00%
Adjusted
Efficiency
Ratio
(Non-interest
Expense
(GAAP)/Total
Revenue for
Adjusted
Efficiency
Ratio
(non-GAAP)) 73.36% 72.11% 74.27% 75.32% 82.98%
For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911
(END) Dow Jones Newswires
April 28, 2026 16:05 ET (20:05 GMT)