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Western New England Bancorp, Inc. (WNEB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered stable profitability with diluted EPS of $0.11, down from $0.16 in Q4 2024 and $0.14 in Q1 2024, while net interest margin expanded 8 bps sequentially to 2.49% on disciplined funding cost management .
  • Revenue beat and EPS modestly missed consensus: S&P Global consensus (Q1 2025) EPS was $0.12 vs actual $0.11 (miss), while consensus revenue was $15.58M vs actual $18.15M (beat)*. Values retrieved from S&P Global.
  • Core deposit mix improved (core deposits 70.0% of total) and loan-to-deposit ratio fell to 89.3%, reinforcing liquidity and margin trajectory; immediately available liquidity covered uninsured deposits by 171.5% .
  • Capital return remained active: $0.07 dividend declared and a new 1.0M share repurchase authorization (approx. 4.8% of shares) to commence after completing the 2024 plan .
  • Potential stock reaction catalysts: continued NIM tailwinds from liability-sensitive balance sheet, stronger core deposit growth, and expanded buyback capacity .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin increased 8 bps QoQ to 2.49% as average funding costs fell 4 bps and time deposit costs declined 20 bps; management highlighted proactive liability management and a liability-sensitive balance sheet .
  • Core deposits rose $70.2M (+4.5% QoQ), improving mix to 70.0% of total deposits and reducing the loan-to-deposit ratio to 89.3% .
  • Liquidity strong: $1.1B immediately available liquidity vs $665.6M uninsured deposits (171.5% coverage), with substantial unused FHLB and Fed capacity .

What Went Wrong

  • EPS declined to $0.11 from $0.16 in Q4 2024 and $0.14 in Q1 2024, with efficiency ratio rising to 83.0% on higher expenses and lower non-interest income vs Q4 2024 .
  • Provision for credit losses increased to $142K vs a $762K reversal in Q4 2024 and a $550K reversal in Q1 2024, primarily reflecting changes in macroeconomic forecasts .
  • Non-interest income fell 15.2% QoQ to $2.8M due to absence of prior-period loan-level swap fees and non-marketable equity gains; salaries/benefits and occupancy costs (snow removal) contributed to higher expenses .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Net Interest & Dividend Income ($USD)$14.728M $15.273M $15.534M
Non-Interest Income ($USD)$3.141M $3.254M $2.759M
Total Revenue ($USD)$17.869M $18.527M $18.293M
Diluted EPS ($USD)$0.09 $0.16 $0.11
Net Interest Margin (%)2.40% 2.41% 2.49%
Efficiency Ratio (%)80.62% 80.56% 83.00%
ROA (%)0.29% 0.49% 0.35%
ROE (%)3.19% 5.48% 3.94%
Estimates vs Actuals (Q1 2025)ConsensusActualStatus
EPS ($USD)$0.12*$0.11 Miss*
Revenue ($USD)$15.58M*$18.15M*Beat*
# of EPS Estimates3*——
# of Revenue Estimates2*——
Values retrieved from S&P Global.

Segment/KPI breakdown:

Loans (Q1 2025)Amount ($000)% of Total Loans
Commercial Real Estate (Total)$1,072,687 51.7%
• Non-owner occupied$881,105 —
• Owner-occupied$191,582 —
Residential Real Estate (Total)$783,788 —
• Residential$659,984 —
• Home Equity$123,804 —
Commercial & Industrial$216,368 —
Consumer$3,865 —
Total Gross Loans$2,076,708 100%
Deposits (Q1 2025)Amount ($000)% of Total
Demand (NIB)$589,996 25.3%
Interest-bearing Checking$140,769 —
Savings$191,398 —
Money Market$707,153 —
Total Core Deposits$1,629,316 70.0%
Time Deposits$699,277 30.0%
Total Deposits$2,328,593 100%
Core KPIsQ3 2024Q4 2024Q1 2025
Total Deposits ($USD)$2,224,206 $2,262,647 $2,328,593
Total Loans ($USD)$2,049,002 $2,070,189 $2,079,561
Loan-to-Deposit Ratio (%)92.1% 91.5% 89.3%
Core Deposits (% of total)68.5% 68.9% 70.0%
NPL / Loans (%)0.24% 0.26% 0.29%
ACL / Loans (%)0.97% 0.94% 0.95%
ACL / NPL (%)409.50% 362.93% 327.05%
Liquidity Coverage (Liquidity/Uninsured Deposits)183% 171.8% 171.5%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Dividend per ShareQ2 2025 pay date$0.07 (Q4 2024 maintained) $0.07 declared; payable ~May 21, 2025; record May 7, 2025 Maintained
Share Repurchase AuthorizationOngoing2024 Plan: 1.0M shares; 472,318 remaining at 12/31/24 2025 Plan: Authorize up to 1.0M shares, to begin after 2024 Plan completion Raised buyback capacity
Quantitative Outlook (NIM, OpEx, Tax Rate, Revenue)Q2/Q3 2025Not providedNot provided; management expects NIM support from liability-sensitive balance sheet N/A

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in our dataset.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Funding costs/NIMNIM 2.40%; rising cost of funds; fair value hedge impact; proactive pricing NIM 2.41%; cost of deposits easing; fair value hedge matured; margin tick-up NIM 2.49%; average funding costs -4 bps; deposit mix improved Improving
Deposit mix/core growthCore 68.5%; time deposit migration continues Core 68.9%; average deposit cost down to 2.01% Core 70.0%; core up $70.2M QoQ Improving
Liquidity$1.1B liquidity; 183% coverage $1.1B liquidity; 171.8% coverage $1.1B liquidity; 171.5% coverage Stable/strong
Credit quality/CRE exposureNPL 0.24%; ACL/NPL 410%; classified loans 2.1% NPL 0.26%; ACL/NPL 362.9%; office concentration detailed NPL 0.29%; ACL/NPL 327%; vigilant CRE monitoring Slight deterioration, still solid
Capital managementRepurchases ongoing; dividends maintained $0.07 dividend; 934K shares repurchased in 2024 $0.07 dividend; new 1.0M buyback announced Continued return
Regulatory/legalPrior class action settlement impact discussed (Q4 2023) Efficiency ratio impacted YoY; settlement accrual prior year No new items noted No new issues
Macro/tariffs commentaryMonitoring inflation/rates, tariffs Monitoring inflation/rates Monitoring rates/tariffs/economic downturn risk Ongoing caution

Management Commentary

  • “Our strong, diversified core deposit base and our disciplined approach to managing our funding costs have resulted in an increase in net interest income for the third consecutive quarter. The net interest margin increased eight basis points to 2.49% compared to the preceding quarter.” — James C. Hagan, President & CEO .
  • “In the first quarter, core deposits increased $70.2 million, or 4.5%, and represented 70.0% of total deposits while the loan-to-deposit ratio decreased to 89.3%.” — James C. Hagan .
  • “Our asset quality remains strong, with nonaccrual loans at 0.29% of total loans as of March 31, 2025.” — James C. Hagan .
  • “We continue to believe that buying back shares represents a valuable use of the Company’s capital… we announced the 2025 Plan… to repurchase up to 1.0 million shares.” — James C. Hagan .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available in the document set. As a result, no Q&A highlights or clarifications could be extracted.

Estimates Context

  • EPS: Consensus $0.12 vs actual $0.11 — modest miss likely driven by higher efficiency ratio (83.0%) and lower non-interest income vs Q4 2024; provision moved to a charge from prior quarter reversal*. Values retrieved from S&P Global.
  • Revenue: Consensus $15.58M vs actual $18.15M — beat, consistent with improved NIM and steady net interest income*. Values retrieved from S&P Global.
  • Estimate implications: Continued NIM expansion and improving core deposit mix support revenue trajectory; however, expense control and non-interest income variability (swap fees, non-marketable equity gains absent) may temper EPS estimates near term .

Key Takeaways for Investors

  • Margin tailwinds: Liability-sensitive balance sheet and declining funding costs pushed NIM to 2.49%; further easing in deposit costs could sustain margin improvement .
  • Mix quality: Core deposits rose to 70% of total, improving funding stability and reducing LDR to 89.3% — a constructive setup for spread and liquidity .
  • Credit remains resilient: NPLs ticked up to 0.29%, ACL/loans at 0.95%, and coverage of uninsured deposits remains robust; management proactively monitors CRE, especially office .
  • Capital return consistent: $0.07 dividend maintained and 1.0M-share buyback authorized post-2024 plan completion; these actions can provide support to per-share metrics .
  • Operating efficiency a watch item: Efficiency ratio rose to 83.0% amid seasonal occupancy and lower non-interest income; execution on expense initiatives is key to EPS trajectory .
  • Estimate stance: EPS slightly missed while revenue beat in Q1 2025; near-term estimate revisions likely center on expense normalization and non-interest income cadence*. Values retrieved from S&P Global.
  • Liquidity cushion: $1.1B immediately available liquidity vs $665.6M uninsured deposits (171.5% coverage) reduces funding risk and supports growth optionality .

Prior Two Quarters’ Earnings (for trend)

  • Q4 2024: EPS $0.16; NIM 2.41%; core deposits 68.9%; LDR 91.5%; liquidity coverage 171.8% .
  • Q3 2024: EPS $0.09; NIM 2.40%; core deposits 68.5%; LDR 92.1%; liquidity coverage 183% .

Other Relevant Q1 2025 Press Releases

  • Q1 2025 earnings press release (results, dividend, buyback authorization) was issued on April 22, 2025 .

Document Notes

  • Form 8-K Item 2.02 filed April 22, 2025 furnished the Q1 2025 earnings press release as Exhibit 99.1 .
  • Q4 2024 and Q3 2024 earnings press releases and investor presentations were read in full to support trend analysis – –.