Western New England Bancorp (WNEB) investor relations material

Executive summary

• Net interest income rose 9.5% year-over-year to $19.3 million for Q2 2026, with net interest margin up 20 basis points to 3.00% compared to Q2 2025.

• Net income for Q2 2026 was $3.6 million ($0.18 per diluted share), down from $4.6 million ($0.23) in Q2 2025 and $4.8 million ($0.24) in Q1 2026.

• Six-month net income rose to $8.4 million ($0.42 per share) from $6.9 million ($0.34) year-over-year.

• Total loans increased 0.5% since year-end to $2.2 billion, while total deposits grew 1.7% to $2.4 billion.

• Quarterly cash dividend of $0.07 per share declared for August 2026.

Financial highlights

• Provision for credit losses was $1.6 million in Q2 2026, up from a reversal of $615,000 in Q2 2025, mainly due to a $1.8 million charge-off on a commercial real estate participation loan.

• Non-interest income for Q2 2026 was $3.4 million, nearly flat year-over-year; service charges and wealth management income increased, but gains from non-marketable equity investments and swap fees were lower.

• Non-interest expense rose 4.5% year-over-year to $16.4 million, driven by higher salaries, benefits, and software costs.

• Efficiency ratio improved to 72.0% from 74.4% in Q2 2025.

• Average loan yield (tax-equivalent) increased to 5.14% from 5.08% a year ago.

Outlook and guidance

• Management remains attentive to credit quality, proactive in risk mitigation, and focused on disciplined capital management and loan growth.

• Ongoing monitoring of macroeconomic risks, including interest rates, inflation, and commercial real estate market conditions.

• The company maintains strong liquidity and capital positions, supporting ongoing operations and growth.