Western New England Bancorp (WNEB) investor relations material

Executive summary

• Net income for Q1 2026 was $4.8 million ($0.24 per diluted share), up 107% year-over-year and down from $5.2 million in Q4 2025, driven by higher net interest income and lower provision for credit losses.

• Net interest income rose 21.2% year-over-year to $18.8 million, with net interest margin up 46 basis points to 2.97% compared to Q1 2025.

• Non-interest income grew 24.4% to $3.4 million, aided by BOLI death benefits and higher service charges and wealth management income.

• Non-interest expense rose 5.4% to $16.0 million, mainly due to higher salaries, benefits, occupancy, and snow removal costs.

• Quarterly cash dividend of $0.07 per share declared, payable in May 2026.

Financial highlights

• Total assets reached $2.8 billion, up 1.0% from year-end 2025.

• Loans increased 0.8% to $2.2 billion, with growth in residential real estate, commercial and industrial, and commercial real estate segments.

• Investment securities totaled $359.2 million, representing 13.0% of total assets.

• Allowance for credit losses was $20.5 million (0.93% of loans), covering 436.9% of nonaccrual loans.

• Efficiency ratio improved to 71.9% from 83.0% year-over-year.

Outlook and guidance

• Management remains focused on disciplined capital management, continued loan growth, share repurchases, and quarterly dividends.

• Ongoing monitoring of macroeconomic variables, including interest rates, inflation, and global unrest; reserves considered adequate for the current environment.

• The company continues to monitor economic and regulatory developments that could impact future performance.

• No material changes to risk factors or critical accounting policies were reported for the quarter.