Executive Summary

EPS of $0.16 on net income of $3.29M, up 73% q/q (Q3: $0.09), as NII rose 3.7% q/q and credit costs flipped to a $0.76M reversal; NIM ticked to 2.41% and 2.40% ex-hedge (+7 bps ex-hedge q/q) .
Deposits grew 5.6% y/y to $2.26B; core deposits +1.7% y/y to $1.56B; loan-to-deposit fell to 91.5% (from 94.6% at year-end 2023), supporting balance-sheet resilience .
Credit remained solid: NPLs 0.26% of loans; ACL 0.94% of loans and 363% of NPLs; Q4 had net recoveries of $0.13M .
Capital return continued: 220k shares repurchased in Q4 (avg $9.00); $0.07 dividend declared; TCE 8.47% (AFS losses reduced TCE by 0.9%) .
Versus street: S&P Global consensus was unavailable; secondary sources show EPS beat ($0.16 vs $0.12, +$0.04) which, coupled with sequential NIM stabilization and deposit growth, is a potential positive catalyst .

What Went Well and What Went Wrong

What Went Well
- NII inflected higher for a second straight quarter (+3.7% q/q), with NIM ex-hedge up 7 bps; management emphasized disciplined funding-cost management and margin stabilization .
- Deposit growth and mix control: total deposits +5.6% y/y; core deposits +1.7% y/y; loan-to-deposit ratio decreased to 91.5%, bolstering liquidity .
- Credit quality remained robust (NPLs 0.26% of loans; ACL/NPL 363%); net recoveries recorded in Q4 .
What Went Wrong
- Y/Y margin pressure persisted (2.41% vs 2.64% in Q4’23) on higher funding costs and an unfavorable mix shift to time deposits .
- Efficiency ratio remained elevated at ~81% on an adjusted basis (GAAP 80.6%), reflecting revenue pressure and higher operating expenses (notably salaries/benefits, FDIC, software) .
- Uninsured deposits rose to 28.4% of total deposits (offset by 172% immediate liquidity coverage), and time deposits increased 15% y/y, underlining ongoing price competition .

Financial Results

Income statement highlights (all $USD millions unless noted). Periods shown oldest→newest.

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Interest Income	16.176	14.470	14.728	15.273
Non-Interest Income	2.714	3.834	3.141	3.254
Total Revenue (GAAP)	18.890	18.304	17.869	18.527
(Adj. Revenue, non-GAAP)	18.891	17.313	17.859	18.236
Diluted EPS ($)	0.12	0.17	0.09	0.16
Net Interest Margin (%)	2.64	2.42	2.40	2.41
NIM (tax-eq, %)	2.66	2.44	2.42	2.43
Efficiency Ratio (GAAP, %)	78.27	82.03	80.62	80.56
Adj. Efficiency Ratio (%)	78.26	82.68	80.67	81.85

Balance sheet & credit KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Period-end Loans ($B)	2.027	2.049	2.070
Period-end Deposits ($B)	2.144	2.224	2.263
Loan-to-Deposit Ratio (%)	94.6	92.1	91.5
NPLs / Loans (%)	0.32	0.24	0.26
ACL / Loans (%)	1.00	0.97	0.94
ROA (%)	0.39	0.29	0.49
ROE (%)	4.31	3.19	5.48

Deposit mix and costs (quarterly)

Metric	Q3 2024	Q4 2024
Avg Deposit Cost (%)	2.04	2.01
Avg Core Deposit Cost (%)	0.93	0.98
Avg Time Deposit Cost (%)	4.44	4.31
Uninsured Deposits (% of Total)	27.7	28.4
Immediate Liquidity ($B)	1.12	1.11
Liquidity / Uninsured Deposits (%)	183	172

EPS vs Consensus

Metric	Q4 2024
EPS Actual ($)	0.16
EPS Consensus ($)	0.12
Surprise ($)	+0.04

Note: S&P Global consensus could not be retrieved due to data limits; we cite MarketBeat as a secondary source for EPS. S&P Global values were unavailable.

Guidance Changes

No formal quantitative guidance was provided. The company declared a $0.07 quarterly dividend and continued repurchases under the 2024 plan.

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Dividend per share	Q1 2025 payout	$0.07	$0.07 declared, payable ~Feb 26, 2025	Maintained
Share repurchases	Ongoing (2024 Plan up to 1.0M shares)	692,318 shares remaining at 9/30/24	472,318 shares remaining at 12/31/24	Continuation (utilized 220k in Q4)
Revenue/Margin/Expense	N/A	N/A	No numeric guidance disclosed in Q4 release	N/A

Earnings Call Themes & Trends

We searched for a Q4 2024 earnings call transcript but did not find it in our corpus or on the IR site; MarketBeat lists a call time but no transcript. Themes below draw from Q4 and Q3 press releases and the Q4 slide deck. .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Funding costs & NIM	Q2→Q3: NIM 2.42%→2.40%; cost of funds rose; fair value hedge added 7 bps; strategy to manage deposit pricing	NIM 2.41%; ex-hedge +7 bps q/q as hedge rolled off; avg deposit cost eased 3 bps to 2.01%	Stabilizing/Improving ex-hedge
Deposit mix	Q3: core -0.5% y/y; time +14.5% y/y; L/D 92.1%	Core +1.7% y/y; time +15.1% y/y; L/D 91.5%	Gradual improvement in core, mix still competitive
Liquidity & uninsured deposits	Q3 coverage 183%; uninsured 27.7%	Coverage 172%; uninsured 28.4%	Strong, modestly lower coverage as balances rose
Credit quality	Q2→Q3: NPLs 0.29%→0.24%; ACL/loans 0.96%→0.97%	NPLs 0.26%; ACL/loans 0.94%; net recoveries $0.13M	Stable/benign
CRE/Office exposure	Q3 office $212.7M; 95.5% pass-rated	Office $200.1M; 95.4% pass-rated; med-office concentration	Reduced balances; quality remains high
Capital & buybacks	Q3: 244k shares repurchased; TCE 8.90%	Q4: 220k repurchased; TCE 8.47% (AFS -0.9% to TCE)	Ongoing capital return; TCE modestly lower

Management Commentary

“Our strong, diversified, core deposit base was integral in effectively managing our funding costs… Our disciplined approach… resulted in an increase in net interest income for the second consecutive quarter in 2024.” — CEO James C. Hagan .
“Our asset quality remains strong, with nonaccrual loans at 0.26% of total loans… classified loans at 1.9% of total loans as of December 31, 2024.” — CEO James C. Hagan .
“We continue to believe that buying back shares represents a prudent use of the Company’s capital… growth in book value per share… and tangible book value per share increased $0.33 to $10.63 at December 31, 2024.” — CEO James C. Hagan .

Q&A Highlights

We searched for the Q4 2024 earnings call transcript but did not find a transcript in our document set or on the company’s IR pages; MarketBeat lists a call time but no transcript. As a result, Q&A-specific details and any intra-quarter guidance clarifications were not accessible.

Estimates Context

S&P Global consensus data was unavailable at the time of this analysis due to data limits.
Secondary sources indicate EPS consensus of $0.12 vs actual $0.16, a beat of $0.04; revenue is reported at ~$18.53M (GAAP NII + non-interest income), broadly in line with the 8‑K .
Yahoo Finance similarly shows revenue of $18.53M for the quarter ended December 2024, consistent with the 8‑K totals .

Key Takeaways for Investors

Margin stabilization: Sequential NIM improvement ex-hedge (+7 bps) and 3.7% q/q NII growth suggest pressure is abating as deposit costs ease modestly; watch for further repricing tailwinds if rates drift lower .
Solid core funding and liquidity: Core deposits +1.7% y/y; L/D down to 91.5%; immediate liquidity ($1.11B) comfortably covers uninsured deposits (172% coverage) .
Credit benign, buffers intact: NPLs 0.26%, ACL/loans 0.94% and 363% of NPLs; net recoveries in Q4 .
CRE/Office exposure manageable: Office portfolio $200.1M, 95.4% pass-rated, concentrated in medical office; continue to monitor maturities through 2026 ($36.8M) and LTVs .
Capital return persists: Ongoing repurchases (220k in Q4) and steady $0.07 dividend provide shareholder yield while maintaining well-capitalized status (Bank Tier 1 Leverage 9.34%) .
Estimate setup: With an EPS beat vs secondary consensus and signs of NIM stabilization, near-term sentiment may improve; medium term hinges on deposit mix normalization and further cost discipline .
Watch list: trajectory of core vs time deposits, further relief in deposit costs, fee income variability (e.g., non-marketable equity gains), and operating expense control (efficiency ratio >80%) .

Sources

Q4 2024 press release (8‑K Item 2.02; includes full financial tables and commentary) .
Q4 2024 investor presentation slide deck .
Q3 2024 press release (for trend analysis) .
Secondary estimates and revenue references (S&P Global unavailable): MarketBeat EPS consensus and outcome ; Yahoo Finance revenue .

Western New England Bancorp, Inc. (WNEB)·Q4 2024 Earnings Summary