# EDGAR Filing Document

**Accession Number:** 0001157647
**File Stem:** 0001387131-23-000531
**Filing Date:** 2023-1
**Character Count:** 109075
**Document Hash:** 4d78c9c9b533a992f6015835ff00b488
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001387131-23-000531.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0001387131-23-000531

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 40

**CONFORMED PERIOD OF REPORT**: 20230124

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Western New England Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001157647
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **IRS NUMBER:** 731627673
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-16767
- **FILM NUMBER:** 23548540

**BUSINESS ADDRESS:**
- **STREET 1:** 141 ELM STREET
- **CITY:** WESTFIELD
- **STATE:** MA
- **ZIP:** 01085
- **BUSINESS PHONE:** 413-568-1911

**MAIL ADDRESS:**
- **STREET 1:** 141 ELM STREET
- **CITY:** WESTFIELD
- **STATE:** MA
- **ZIP:** 01085

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WESTFIELD FINANCIAL INC
- **DATE OF NAME CHANGE:** 20010816

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **January 24, 2023**

**WESTERN NEW ENGLAND BANCORP, INC.**

(Exact name of registrant as specified in its charter)

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Massachusetts**<br> *(State or other jurisdiction of<br> incorporation)* | &nbsp;&nbsp;**001-16767**<br> *(Commission<br> File Number)* | &nbsp;&nbsp;**001-16767**<br> *(Commission<br> File Number)* | &nbsp;&nbsp;**73-1627673**<br> *(I.R.S. Employer<br> Identification No.)* |
| &nbsp;&nbsp;**141 Elm Street**<br> **Westfield, Massachusetts**<br> *(Address of principal executive offices)*  | &nbsp;&nbsp;**141 Elm Street**<br> **Westfield, Massachusetts**<br> *(Address of principal executive offices)*  | &nbsp;&nbsp;**01085**<br> *(zip code)*  | &nbsp;&nbsp;**01085**<br> *(zip code)*  |

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Registrant's telephone number, including area code: **(413) 568-1911**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;**Common Stock, $0.01 par value per share** | &nbsp;&nbsp;**WNEB** | &nbsp;&nbsp;**NASDAQ** |

---

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition.** |

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On January 24, 2023, Western New England Bancorp, Inc. (the "Company") issued a press release announcing its financial results for the quarter and twelve months ended December 31, 2022. The press release also announced a regular cash dividend of $0.07 per share, an increase of $0.01 per share from the previous quarter. A copy of the press release is furnished as Exhibit 99.1 hereto and is hereby incorporated by reference into this Item 2.02.

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|:---|:---|
| **Item 7.01.** | **Regulation FD Disclosure.** |

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On January 24, 2023, the Company made available an investor presentation to be used during investor meetings. The slide show for the investor presentation is attached to this report as Exhibit 99.2.

The information contained in this Item 7.01 and Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor will such information or exhibits be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such filing. The furnishing of the information included in Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.

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|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

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(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.

The exhibits required by this item are set forth on the Exhibit Index attached hereto.

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| [99.1](ex99-1.htm) | Press Release of Western New England Bancorp, Inc. dated January 24, 2023. |
| [99.2](ex99-2.htm) | Investor Presentation dated January 24, 2023 for Western New England Bancorp, Inc. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| **WESTERN NEW ENGLAND BANCORP, INC.** | **WESTERN NEW ENGLAND BANCORP, INC.** |
| By: | /s/ Guida R. Sajdak |
|  | Guida R. Sajdak |
|  | Chief Financial Officer |

---

Dated: January 24, 2023

## Exhibit 99.1

[WESTERN NEW ENGLAND BANCORP, INC. 8-K](wneb-8k_012423.htm)

**Exhibit 99.1**

**For further information contact:**<br> James C. Hagan, President and CEO <br> Guida R. Sajdak, Executive Vice President and CFO <br> Meghan Hibner, Vice President and Investor Relations Officer<br>413-568-1911<br>

**WESTERN NEW ENGLAND BANCORP, INC. REPORTS RESULTS FOR THE THREE MONTHS AND**

**YEAR ENDED DECEMBER 31, 2022 AND ANNOUNCES 17% INCREASE IN QUARTERLY CASH DIVIDEND** 

**Westfield, Massachusetts, January 24, 2023:** 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 and twelve months ended December 31, 2022. For the three months ended December 31, 2022, the Company reported net income of $9.0 million, or $0.42 per diluted share, compared to net income of $6.2 million, or $0.28 per diluted share, for the three months ended December 31, 2021. On a linked quarter basis, net income was $9.0 million, or $0.42 per diluted share, as compared to net income of $6.0 million, or $0.28 per diluted share, for the three months ended September 30, 2022. For the twelve months ended December 31, 2022, net income was $25.9 million, or $1.18 per diluted share, compared to net income of $23.7 million, or $1.02 per diluted share, for the twelve months ended December 31, 2021.

The Company also announced today that the Board of Directors declared a quarterly cash dividend of $0.07 per share on its common stock, representing an increase of $0.01 per share, or 17%, as compared to the prior quarter. The dividend will be payable on or about February 22, 2023 to shareholders of record on February 8, 2023.

James Hagan, President and Chief Executive Officer, commented, "We are very pleased to report that the Company delivered record earnings for the fourth quarter along with concrete earnings for 2022, with an increasing net interest margin, strong revenue and a lower efficiency ratio derived from solid loan growth across all loan segments. As a Company, we have continued to focus on expanding and attracting new loan and core deposit relationships in our existing and expanded markets, which resulted in loan growth coming in ahead of internal targets on a quarterly and annual basis. As a result of these continuing efforts, for the year-ended December 31, 2022, average non-interest bearing demand deposits represented 28.6% of total average deposits. With our strong balance sheet, combined with rising interest rates, and with the deployment of excess liquidity to fund our loan growth, we are pleased to report a higher net interest margin of 3.44% for the fourth quarter 2022 as compared to September 30, 2022. As the Paycheck Protection Program ("PPP") comes to an end, the Company generated year-over-year net interest income growth of 8.3%, overcoming a $6.0 million, or 89.2%, decrease in PPP interest and fee income, by increasing total loans, excluding PPP loans, by $149.7 million, or 8.1%, from December 31, 2021."

Hagan concluded*,* "We continue to see opportunities to add to our earnings and remain committed to continued growth while managing the risks associated with inflationary pressures and potential disruption in financial markets. We will continue to remain focused on increasing efficiencies, maintaining our strong asset quality, prudently growing our loan portfolio and managing funding costs in a competitive environment.

This was a remarkable year for our Company as we once again continued to achieve solid annual earnings, net interest income expansion and increasing loan growth. We could not be more proud of our team who executed and delivered to achieve these excellent 2022 results. We remain optimistic about the Company's future as we enter 2023."

**Key Highlights:**

**Loans and Deposits.** At December 31, 2022, total loans of $2.0 billion increased $126.7 million, or 6.8%, from December 31, 2021. During the same period, excluding PPP loans, total loans increased $149.7 million, or 8.1%, from $1.9 billion at December 31, 2021. The increase in total loans was due to an increase in commercial real estate loans of $89.4 million, or 9.1%, an increase in commercial and industrial loans of $16.2 million, or 8.1%, and an increase in residential real estate loans, including home equity loans, of $43.0 million, or 6.6%.

At December 31, 2022, total deposits were $2.2 billion, a decrease of $27.5 million, or 1.2%, from December 31, 2021. Core deposits, which the Company defines as all deposits except time deposits, decreased $37.1 million, or 2.0%, from $1.9 billion, or 82.2% of total deposits, at December 31, 2021, to $1.8 billion, or 81.5% of total deposits at December 31, 2022. The loan to deposit ratio increased from 82.6% at December 31, 2021 to 89.3% at December 31, 2022.

**Allowance for Loan Losses and Credit Quality.** At December 31, 2022, the allowance for loan losses as a percentage of total loans and as a percentage of nonperforming loans was 1.00% and 350.0%, respectively. At December 31, 2022, nonperforming loans totaled $5.7 million, or 0.29% of total loans, compared to $5.0 million, or 0.27% of total loans, at December 31, 2021. Total delinquency increased $2.3 million, or 108.8%, from $2.1 million, or 0.11% of total loans, at December 31, 2021 to $4.5 million, or 0.22% of total loans, at December 31, 2022**.**

**Net Interest Margin.** The net interest margin was 3.44% for the three months ended December 31, 2022 compared to 3.08% for the three months ended December 31, 2021 and 3.35% for the three months ended September 30, 2022. The net interest margin, on a tax-equivalent basis, was 3.47% for the three months ended December 31, 2022, compared to 3.10% for the three months ended December 31, 2021 and 3.37% for the three months ended September 30, 2022.

**Repurchases.** On October 13, 2022, the Company announced the completion of its previously authorized stock repurchase plan (the "2021 Plan") pursuant to which the Company was authorized to repurchase up to 2.4 million shares, or 10% of its outstanding common stock, as of the date the 2021 Plan was adopted. On July 26, 2022, the Board of Directors authorized a new stock repurchase plan (the "2022 Plan"), pursuant to which the Company is authorized to repurchase up to 1.1 million shares, which is approximately 5.0% of the Company's outstanding common stock as of the date the 2022 Plan was adopted. During the three months ended December 31, 2022, the Company repurchased 78,826 shares of common stock under the 2022 Plan and during the twelve months ended December 31, 2022, the Company repurchased 720,975 shares of common stock under both the 2021 and 2022 Plans. As of December 31, 2022, there were 1,056,344 shares of common stock available for repurchase under the 2022 Plan.

The shares of common stock repurchased under the 2022 Plan will 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 management determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2022 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.

**Capital Management.** The Company's book value per share was $10.27 at December 31, 2022 compared to $9.87 at December 31, 2021, while tangible book value per share, a non-GAAP financial measure, increased $0.40, or 4.3%, from $9.21 at December 31, 2021 to $9.61 at December 31, 2022. Reflected in the book value and tangible book value changes during the year ended December 31, 2022 are the Federal Reserve's 425 basis points interest rate increases, which resulted in significant changes in unrealized gains and losses on investment securities. Such unrealized gains and losses are generally due to changes in interest rates and represent the difference, net of applicable income tax effect, between the estimated fair value and amortized cost of investment securities classified as available-for-sale. The Company had no other-than-temporary impairment charges in its investment portfolio in 2022 or 2021. Tangible book value is a non-GAAP measure. See pages 17-20 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

**Pension Plan.** On October 31, 2022, the Board of Director's previously approved termination of the Westfield Bank Defined Benefit Pension Plan ("DB Plan") became effective, subject to regulatory approvals. Once the Company has received regulatory approval to terminate the DB Plan, which is expected in the first quarter of 2023, the Company will make an additional cash contribution during the second quarter of 2023, if necessary, in order to fully fund the DB Plan on a plan termination basis, followed by the purchase of annuity contracts to transfer its remaining liabilities under the DB Plan, for those participants who do not opt for a one-time lump sum payment. The actual amount of this cash contribution, if any, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. At December 31, 2022, the Company reversed $7.3 million in net unrealized losses recorded in accumulated other comprehensive income attributed to both the DB plan curtailment resulting from the termination of the DB Plan as well as changes in discount rates. In addition, the Company recorded a gain on curtailment of $2.8 million through non-interest income. The improvement in book value and tangible book value for the three months ended December 31, 2022 were primarily related to the termination of the DB Plan.

**Net Income for the Three Months Ended December 31, 2022 Compared to the Three Months Ended September 30, 2022.**

The Company reported net income of $9.0 million, or $0.42 per diluted share, for the three months ended December 31, 2022, compared to net income of $6.0 million, or $0.28 per diluted share, for the three months ended September 30, 2022. Net interest income increased $566,000, or 2.8%, non-interest income increased $3.1 million, or 118.3%, and non-interest expense decreased $340,000, or 2.4%, while the provision for loan losses decreased $525,000, or 77.8%, during the same period. Return on average assets and return on average equity were 1.40% and 16.67%, respectively, for the three months ended December 31, 2022, compared to 0.93% and 10.90%, respectively, for the three months ended September 30, 2022.

**Net Interest Income and Net Interest Margin**

On a sequential quarter basis, net interest income increased $566,000, or 2.8%, to $20.9 million for the three months ended December 31, 2022, from $20.3 million for the three months ended September 30, 2022. The increase in net interest income was primarily due to an increase in interest and dividend income of $1.8 million, or 8.4%, partially offset by an increase in interest expense of $1.3 million, or 86.3%. During the three months ended December 31, 2022 and the three months ended September 30, 2022, interest and dividend income included PPP interest and fee income ("PPP income") of $18,000 and $19,000, respectively. During the three months ended December 31, 2022 and the three months ended September 30, 2022, the Company recognized prepayment penalties of $134,000 and $99,000, respectively. During the three months ended December 31, 2022, the Company also recorded $87,000 in positive purchase accounting adjustments, compared to $16,000 in negative purchase accounting adjustments during the three months ended September 30, 2022.

The net interest margin was 3.44% for the three months ended December 31, 2022 compared to 3.35% for the three months ended September 30, 2022. The net interest margin, on a tax-equivalent basis, was 3.47% for the three months ended December 31, 2022, compared to 3.37% for the three months ended September 30, 2022. The average yield on interest-earning assets was 3.90% for the three months ended December 31, 2022, compared to 3.59% for the three months ended September 30, 2022. The average loan yield was 4.23% for the three months ended December 31, 2022, compared to 3.93% for the three months ended September 30, 2022.

During the three months ended December 31, 2022, average interest-earning assets increased $143,000 to $2.4 billion, primarily due to an increase in average loans of $21.3 million, or 1.1%, partially offset by a decrease in short-term investments of $6.3 million, or 45.3%, and a decrease in average securities of $15.5 million, or 3.8%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 22 basis points from 0.25% for the three months ended September 30, 2022 to 0.47% for the three months ended December 31, 2022. The average cost of core deposits, including non-interest bearing demand deposits, increased 15 basis point to 0.34% for the three months ended December 31, 2022, from 0.19% for the three months ended September 30, 2022. The average cost of time deposits increased 35 basis points from 0.30% for the three months ended September 30, 2022 to 0.65% for the three months ended December 31, 2022. The rising interest rate environment has affected costs for both money market accounts and time deposits.

The average cost of borrowings, including subordinated debt, increased 17 basis points from 4.12% for the three months ended September 30, 2022 to 4.29% for the three months ended December 31, 2022. Average demand deposits, an interest-free source of funds, increased $5.0 million, or 0.8%, from $658.9 million, or 29.0% of total average deposits, for the three months ended September 30, 2022, to $663.8 million, or 29.4% of total average deposits, for the three months ended December 31, 2022.

**Provision for Loan Losses**

During the three months ended December 31, 2022, the provision for loan losses decreased $525,000, or 77.8%, from the three months ended September 30, 2022. Management continues to assess the exposure of the Company's loan portfolio to the COVID-19 pandemic, economic trends and their potential effect on asset quality. The adoption of the Current Expected Credit Loss allowance methodology became effective for the Company on January 1, 2023. Management will continue to closely monitor portfolio conditions and re-evaluate the adequacy of the allowance.

The Company recorded net charge-offs of $426,000 for the three months ended December 31, 2022, as compared to net charge-offs of $27,000 for the three months ended September 30, 2022. At December 31, 2022, nonperforming loans totaled $5.7 million, or 0.29% of total loans, and total delinquency as a percentage of total loans was 0.22%.

**Non-Interest Income**

On a sequential quarter basis, non-interest income increased $3.1 million, or 118.3%, to $5.7 million for the three months ended December 31, 2022, from $2.6 million for the three months ended September 30, 2022. Service charges and fees increased $106,000, or 4.8%, from the three months ended September 30, 2022 to $2.3 million for the three months ended December 31, 2022. Income from bank-owned life insurance increased $37,000, or 9.5%, from the three months ended September 30, 2022 to $428,000 for the three months ended December 31, 2022.

The termination of the DB Plan became effective October 31, 2022, subject to regulatory approvals, with final settlement occurring in the second quarter of 2023. During the three months ended December 31, 2022, the Company recorded a curtailment gain related to the DB Plan termination of $2.8 million through non-interest income. During the three months ended December 31, 2022, the Company reported unrealized gains on marketable equity securities of $19,000, compared to unrealized losses of $235,000 for the three months ended September 30, 2022. During the three months ended December 31, 2022, the Company also reported a gain of $70,000 on non-marketable equity investments, compared to a gain of $211,000 during the three months ended September 30, 2022. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes.

**Non-Interest Expense**

For the three months ended December 31, 2022, non-interest expense decreased $340,000, or 2.4%, to $14.0 million from the three months ended September 30, 2022. Salaries and employee benefits increased $172,000, or 2.1%, to $8.2 million, primarily related to higher incentive compensation accruals, data processing expense increased $17,000, or 2.4%, and furniture and equipment expense increased $14,000, or 3.0%. These increases were partially offset by a decrease in advertising expense of $241,000, or 57.5%, a decrease in professional fees of $186,000, or 23.2%, a decrease in FDIC insurance expense of $18,000, or 6.6%, a decrease in occupancy expense of $8,000, or 0.7%, and a decrease in other non-interest expense of $90,000, or 3.7%. For the three months ended December 31, 2022, the efficiency ratio was 52.8%, compared to 62.7% for September 30, 2022. For the three months ended December 31, 2022, the adjusted efficiency ratio, a non-GAAP financial measure, was 59.3%, compared to 62.6% for the three months ended September 30, 2022. See pages 17-20 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

**Income Tax Provision**

Income tax expense for the three months ended December 31, 2022 was $3.3 million, or an effective tax rate of 26.9%, compared to $1.9 million, or an effective tax rate of 23.7%, for the three months ended September 30, 2022.

**Net Income for the Three Months Ended December 31, 2022 Compared to the Three Months Ended December 31, 2021.**

The Company reported net income of $9.0 million, or $0.42 per diluted share, for the three months ended December 31, 2022, compared to net income of $6.2 million, or $0.28 per diluted share, for the three months ended December 31, 2021. Return on average assets and return on average equity were 1.40% and 16.67%, respectively, for the three months ended December 31, 2022, as compared to 0.97% and 11.22%, respectively, for the three months ended December 31, 2021.

**Net Interest Income and Net Interest Margin**

Net interest income increased $2.3 million, or 12.2%, to $20.9 million, for the three months ended December 31, 2022, from $18.6 million for the three months ended December 31, 2021. The increase in net interest income was due to an increase in interest and dividend income of $3.7 million, or 18.4%, partially offset by an increase in interest expense of $1.4 million, or 103.2%. Interest expense on deposits increased $1.1 million, or 102.2%, and interest expense on borrowings increased $272,000. Net interest income for the three months ended December 31, 2022 includes PPP income of $18,000, compared to $973,000 during the three months ended December 31, 2021. During the same period, excluding PPP income, net interest income increased $3.2 million, or 18.3%. During the three months ended December 31, 2022 and the three months ended December 31, 2021, the Company recognized prepayment penalties of $134,000 and $21,000, respectively. In addition, interest income for the three months ended December 31, 2022 includes $87,000 in positive purchase accounting adjustments, compared to $31,000 in negative accounting adjustments for the three months ended December 31, 2021.

The net interest margin was 3.44% for the three months ended December 31, 2022, compared to 3.08%, for the three months ended December 31, 2021. The net interest margin, on a tax-equivalent basis, was 3.47% for the three months ended December 31, 2022, compared to 3.10% for the three months ended December 31, 2021. The increase in the net interest margin was due to an increase in average loans outstanding of $144.7 million, or 7.8%, a decrease in average securities of $13.3 million, or 3.3%, and a decrease in average short-term investments, consisting of cash and cash equivalents, of $124.1 million, or 94.2%, from the three months ended December 31, 2021, compared to the three months ended December 31, 2022.

The average yield on interest-earning assets increased 60 basis points from 3.30% for the three months ended December 31, 2021 to 3.90% for the three months ended December 31, 2022. During the three months ended December 31, 2022, the average cost of funds, including non-interest-bearing demand accounts and borrowings, increased 24 basis points, from 0.23% for the three months ended December 31, 2021 to 0.47% for the three months ended December 31, 2022. The average cost of core deposits, which include non-interest-bearing demand accounts, increased 19 basis points, from 0.15% for the three months ended December 31, 2021 to 0.34% for the three months ended December 31, 2022. The average cost of time deposits increased 26 basis points from 0.39% for the three months ended December 31, 2021 to 0.65% for the three months ended December 31, 2022. The average cost of borrowings, including subordinated debt, decreased 15 basis points from 4.44% for the three months ended December 31, 2021 to 4.29% for the three months ended December 31, 2022. For the three months ended December 31, 2022, average demand deposits, an interest-free source of funds, increased $9.5 million, or 1.4%, to $663.8 million, or 29.4% of total average deposits, from $654.3 million, or 29.0% of total average deposits for the three months ended December 31, 2021.

During the three months ended December 31, 2022, average interest-earning assets increased $7.3 million, or 0.3%, to $2.4 billion compared to the three months ended December 31, 2021, primarily due to an increase in average loans of $144.7 million, or 7.8%, offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $124.1 million, or 94.2%, and a decrease in average securities of $13.3 million, or 3.3%. Excluding average PPP loans, average interest-earning assets increased $48.8 million, or 2.1%, and average loans increased $183.9 million, or 10.2%, from the three months ended December 31, 2021 to the three months ended December 31, 2022.

**Provision for Loan Losses**

The Company recorded a provision for loan losses of $150,000 for three months ended December 31, 2022, compared to a provision for loan losses of $300,000 for the three months ended December 31, 2021. The decrease in the provision for loan losses was primarily due to a reduction of qualitative adjustment factors that had previously been increased in the allowance for credit losses related to the COVID-19 pandemic and the uncertainty in the economic environment. The Company recorded net charge-offs of $426,000 for the three months ended December 31, 2022, as compared to net charge-offs of $350,000 for the three months ended December 31, 2021. Management continues to assess the exposure of the Company's loan portfolio to the COVID-19 pandemic related factors, economic trends and their potential effect on asset quality.

**Non-Interest Income**

Non-interest income increased $1.8 million, or 46.6%, to $5.7 million for the three months ended December 31, 2022, from $3.9 million for the three months ended December 31, 2021. During the three months ended December 31, 2021, non-interest income included the recognition of $555,000 in bank-owned life insurance ("BOLI") death benefits. During the three months ended December 31, 2022, service charges and fees on deposits increased $59,000, or 2.6%, and income from BOLI decreased $58,000, or 11.9%, from $486,000 for the three months ended December 31, 2021 to $428,000 for the three months ended December 31, 2022. During the three months ended December 31, 2021, the Company reported $289,000 in mortgage banking income from the sale of fixed rate residential real estate loans. The Company did not sell any loans to the secondary market during the three months ended December 31, 2022.

On October 31, 2022, the termination of the DB Plan became effective, subject to regulatory approvals, with final settlement occurring in the second quarter of 2023. During the three months ended December 31, 2022, the Company recorded a curtailment gain related to the DB Plan termination of $2.8 million through non-interest income. Excluding the DB Plan termination curtailment gain and BOLI death benefits, non-interest income decreased $455,000, or 13.8%. During the three months ended December 31, 2022, the Company reported a gain on non-marketable equity investments of $70,000, compared to a gain of $352,000 during the three months ended December 31, 2021. In addition, the Company reported an unrealized gain on marketable equity securities of $19,000 during the three months ended December 31, 2022, compared to an unrealized loss on marketable equity securities of $96,000 during the three months ended December 31, 2021. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes.

**Non-Interest Expense**

For the three months ended December 31, 2022, non-interest expense increased $80,000, or 0.6%, to $14.0 million, from $13.9 million for the three months ended December 31, 2021. The increase in non-interest expense was due to an increase in salaries and benefits expense of $4,000, an increase in professional fees of $140,000, or 29.4%, an increase in occupancy expense of $74,000, or 6.5%, and an increase in FDIC insurance expense of $53,000, or 26.2%. These increases were partially offset by a decrease in advertising expense of $84,000, or 32.1%, a decrease in furniture and equipment expense of $69,000, or 12.6%, a decrease in data processing expense of $2,000, or 0.3%, and a decrease in other non-interest expense of $36,000, or 1.5%.

For the three months ended December 31, 2022, the efficiency ratio was 52.8%, compared to 62.1% for the three months ended December 31, 2021. For the three months ended December 31, 2022, the adjusted efficiency ratio, a non-GAAP financial measure, was 59.3%, compared to 64.4% for the three months ended December 31, 2021. See pages 17-20 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

**Income Tax Provision**

Income tax expense for the three months ended December 31, 2022 was $3.3 million, representing an effective tax rate of 26.9%, compared to $2.0 million, representing an effective tax rate of 24.3%, for three months ended December 31, 2021.

**Net Income for the Twelve Months Ended December 31, 2022 Compared to the Twelve Months Ended December 31, 2021**

For the twelve months ended December 31, 2022, the Company reported net income of $25.9 million, or $1.18 per diluted share, compared to $23.7 million, or $1.02 per diluted share, for the twelve months ended December 31, 2021. Return on average assets and return on average equity were 1.02% and 11.85% for the twelve months ended December 31, 2022, respectively, compared to 0.96% and 10.64% for the twelve months ended December 31, 2021, respectively. Excluding PPP income and the gain on defined benefit curtailment as a result of the termination of the DB Plan, income before provision and taxes increased $7.8 million, or 32.5%, from $24.0 million for the twelve months ended December 31, 2021 to $31.8 million for the twelve months ended December 31, 2022.

**Net Interest Income and Net Interest Margin**

During the twelve months ended December 31, 2022, net interest income increased $6.0 million, or 8.3%, to $79.2 million, compared to $73.2 million for the twelve months ended December 31, 2021. The increase in net interest income was due to an increase in interest and dividend income of $6.1 million, or 7.6%, partially offset by an increase in interest expense of $24,000, or 0.4%. For the twelve months ended December 31, 2022, the Company generated net interest income growth of 8.3%, overcoming a $6.0 million, or 89.2%, decrease in PPP income as the PPP program comes to a close. Excluding PPP income of $728,000 and $6.8 million for the twelve months ended December 31, 2022 and the twelve months ended December 31, 2021, respectively, net interest income increased $12.1 million, or 18.2% for the same period.

The net interest margin for the twelve months ended December 31, 2022 was 3.31%, compared to 3.14% during the twelve months ended December 31, 2021. The net interest margin, on a tax-equivalent basis, was 3.33% for the twelve months ended December 31, 2022, compared to 3.16% for the twelve months ended December 31, 2021. Excluding the PPP income, the net interest margin increased 29 basis points from 2.99% for the twelve months ended December 31, 2021 to 3.28% for the twelve months ended December 31, 2022.

The average yield on interest-earning assets increased 15 basis point from 3.43% for the twelve months ended December 31, 2021 to 3.58% for the twelve months ended December 31, 2022. During the twelve months ended December 31, 2022, the average cost of funds, including non-interest-bearing demand accounts and borrowings, decreased one basis point from 0.30% for the twelve months ended December 31, 2021 to 0.29% for the twelve months ended December 31, 2022. For the twelve months ended December 31, 2022, the average cost of core deposits, including non-interest-bearing demand deposits, increased three basis points from 0.17% for the twelve months ended December 31, 2021 to 0.20% for the twelve months ended December 31, 2022. The average cost of time deposits decreased 12 basis points from 0.53% for the twelve months ended December 31, 2021 to 0.41% during the same period in 2022. The average cost of borrowings, which include FHLB advances and subordinated debt, increased 122 basis points from 3.04% for the twelve months ended December 31, 2021 to 4.26% for the twelve months ended December 31, 2022, due to the issuance of $20.0 million in subordinated debt in April 2021.

For the twelve months ended December 31, 2022, average demand deposits, an interest-free source of funds, increased $39.0 million, or 6.4%, from $609.0 million, or 28.0% of total average deposits, for the twelve months ended December 31, 2021, to $648.0 million, or 28.6% of total average deposits, for the twelve months ended December 31, 2022.

During the twelve months ended December 31, 2022, average interest-earning assets increased $67.1 million, or 2.9%, to $2.4 billion. The increase in average interest-earning assets was due to an increase in average loans of $65.6 million, or 3.5%, as well as an increase in average securities of $87.7 million, or 27.4%, partially offset by a decrease of $86.2 million, or 77.0%, in short-term investments, which consists of cash and cash equivalents. Excluding average PPP loans, average loans increased $170.5 million, or 9.6%, and average interest-earnings assets increased $172.0 million, or 7.7%.

**Provision for Loan Losses**

For the twelve months ended December 31, 2022, the provision for loan losses was $700,000, compared to a credit for loan losses of $925,000 for the twelve months ended December 31, 2021. The Company recorded net charge-offs of $556,000 for the twelve months ended December 31, 2022, as compared to net charge-offs of $445,000 for the twelve months ended December 31, 2021.

**Non-Interest Income**

For the twelve months ended December 31, 2022, non-interest income increased $768,000, or 6.1%, from $12.6 million for the twelve months ended December 31, 2021 to $13.3 million for the twelve months ended December 31, 2022. During the twelve months ended December 31, 2021, non-interest income included the recognition of $555,000 in BOLI death benefits. During the twelve months ended December 31, 2022, service charges and fees increased $712,000, or 8.5%, and mortgage banking income decreased $1.4 million from the twelve months ended December 31, 2021 to the twelve months ended December 31, 2022. In 2021, the Company sold $59.7 million in fixed rate residential real estate loans to the secondary market, compared to $277,000 in sales during the twelve months ended December 31, 2022. Other income from loan-level swap fees on commercial loans decreased $33,000, or 56.9%, and income from BOLI decreased $187,000, or 9.8%.

On October 31, 2022, the termination of the DB Plan became effective, subject to regulatory approvals, with final settlement occurring in the second quarter of 2023. During the twelve months ended December 31, 2022, the Company recorded a curtailment gain related to the DB Plan termination of $2.8 million through non-interest income. Excluding the defined benefit curtailment gain as a result of the termination of the DB Plan and BOLI death benefits, non-interest income decreased $1.5 million, or 12.5%. During the twelve months ended December 31, 2022, the Company reported unrealized losses on marketable equity securities of $717,000, compared to unrealized losses of $168,000 during the twelve months ended December 31, 2021. During the twelve months ended December 31, 2022, the Company also reported realized losses on the sale of securities of $4,000, compared to realized losses on the sale of securities of $72,000 during the twelve months ended December 31, 2021. In addition, the Company reported a gain of $422,000 on non-marketable equity investments during the twelve months ended December 31, 2022, compared to $898,000 during the twelve months ended December 31, 2021. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the twelve months ended December 31, 2021, the Company also recognized a loss on interest rate swap termination of $402,000 representing the unamortized portion of a $3.4 million loss associated with the previous termination of a $32.5 million interest rate swap on March 16, 2016.

**Non-Interest Expense**

For the twelve months ended December 31, 2022, non-interest expense increased $2.3 million, or 4.2%, to $57.2 million, compared to $54.9 million for the twelve months ended December 31, 2021. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits expense of $511,000, or 1.6%, due to normal annual salary increases as well as higher incentive compensation costs. Other non-interest expense increased $878,000, or 10.2%, professional fees increased $531,000, or 24.3%, which is comprised of legal fees, audit and compliance fees, as well as other professional fees. Occupancy expense increased $328,000, or 7.0%, advertising expense increased $116,000, or 9.0%, and FDIC insurance expense increased $50,000, or 5.0%. These increases were partially offset by a decrease in furniture and equipment expense of $58,000, or 2.8%, and a decrease in data processing expense of $18,000, or 0.6%. During the twelve months ended December 31, 2021, the Company prepaid $32.5 million of FHLB borrowings resulting in a loss of $45,000. For the twelve months ended December 31, 2022, the efficiency ratio was 61.8%, compared to 64.1% for the twelve months ended December 31, 2021. For the twelve months ended December 31, 2022, the adjusted efficiency ratio, a non-GAAP financial measure, was 63.6%, compared to 64.6% for the twelve months ended December 31, 2021. See pages 17-20 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

**Income Tax Provision**

Income tax expense for the twelve months ended December 31, 2022 was $8.7 million, representing an effective tax rate of 25.2%, compared to $8.0 million, representing an effective tax rate of 25.3%, for twelve months ended December 31, 2021.

**Balance Sheet**

At December 31, 2022, total assets were $2.6 billion, an increase of $14.7 million, or 0.6%, from December 31, 2021. During the twelve months ended December 31, 2022, cash and cash equivalents decreased $73.1 million, or 70.7%, to $30.3 million, investment securities decreased $45.1 million, or 10.5%, to $383.4 million and total loans increased $126.7 million, or 6.8%, to $2.0 billion.

**Investments** 

At December 31, 2022, the Company's available-for-sale securities portfolio decreased $47.4 million, or 24.4%, from $194.4 million at December 31, 2021 to $147.0 million at December 31, 2022. The held-to-maturity securities portfolio, recorded at amortized cost, increased $7.9 million, or 3.6%, from $222.3 million at December 31, 2021 to $230.2 million at December 31, 2022. The marketable equity securities portfolio decreased $5.7 million, or 47.6%, from $11.9 million at December 31, 2021 to $6.2 million at December 31, 2022. The decreases were due to principal pay downs and redemptions, as well as an increase in unrealized loss on securities available-for-sale. The primary objective of the investment portfolio is to provide liquidity and maximize income while preserving the safety of principal.

**Total Loans**

At December 31, 2022, total loans were $2.0 billion, an increase of $126.7 million, or 6.8%, from December 31, 2021. Excluding PPP loans, total loans increased $149.7 million, or 8.1%, driven by an increase in commercial real estate loans of $89.4 million, or 9.1%, an increase in total commercial and industrial loans of $16.2 million, or 8.1%, an increase in residential real estate loans, which include home equity loans, of $43.0 million, or 6.6%, and a decrease in PPP loans of $23.1 million, or 91.0%, from December 31, 2021.

The following table is a summary of our outstanding loan balances for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  | (Dollars in thousands) | (Dollars in thousands) |
| Commercial real estate loans | $1069323 | $979969 |
| Residential real estate loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential | 589503 | 552332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 105557 | 99759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total residential real estate loans | 695060 | 652091 |
| Commercial and industrial loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PPP loans | 2274 | 25329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial loans | 217574 | 201340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial and industrial loans | 219848 | 226669 |
| Consumer loans | 5045 | 4250 |
| **Total gross loans** | 1989276 | 1862979 |
| Unamortized PPP loan fees | (109) | (781) |
| Unamortized premiums and net deferred loans fees and costs | 2233 | 2518 |
| **Total loans** | $1991400 | $1864716 |

---

<br> **Credit Quality**

Management continues to remain attentive to any signs of deterioration in borrowers' financial conditions and is proactive in taking the appropriate steps to mitigate risk. At December 31, 2022, nonperforming loans totaled $5.7 million, or 0.29% of total loans, compared to $5.0 million, or 0.27% of total loans, at December 31, 2021. At December 31, 2022, there were no loans 90 or more days past due and still accruing interest. Nonperforming assets to total assets, was 0.22% at December 31, 2022, compared to 0.20% at December 31, 2021. The allowance for loan losses as a percentage of total loans was 1.00% at December 31, 2022, compared to 1.06% at December 31, 2021. At December 31, 2022, the allowance for loan losses as a percentage of nonperforming loans was 350.0%, compared to 398.6%, at December 31, 2021.

**Deposits**

At December 31, 2022, total deposits were $2.2 billion, a decrease of $27.5 million, or 1.2%, from December 31, 2021, primarily due to a decrease in core deposits of $37.1 million, or 2.0%. Core deposits, which the Company defines as all deposits except time deposits, decreased from $1.9 billion, or 82.2% of total deposits, at December 31, 2021, to $1.8 billion, or 81.5% of total deposits, at December 31, 2022. Non-interest-bearing deposits increased $4.2 million, or 0.7%, to $645.5 million, interest-bearing checking accounts increased $3.0 million, or 2.1%, to $148.7 million, savings accounts increased $4.8 million, or 2.2%, to $222.4 million, and money market accounts decreased $49.3 million, or 5.8%, to $801.1 million. Time deposits increased $9.7 million, or 2.4%, from $402.0 million at December 31, 2021 to $411.7 million at December 31, 2022.

**Borrowings and Subordinated Debt**

At December 31, 2022, total borrowings increased $39.9 million, or 178.9%, from $22.3 million at December 31, 2021, to $62.2 million. Short-term borrowings and long-term debt increased $39.9 million to $42.5 million and subordinated debt outstanding totaled $19.7 million at December 31, 2022 and $19.6 million at December 31, 2021.

**Capital**

At December 31, 2022, shareholders' equity was $228.1 million, or 8.9% of total assets, compared to $223.7 million, or 8.8% of total assets, at December 31, 2021. The increase in shareholders' equity reflects net income of $25.9 million, partially offset by $6.4 million for the repurchase of the Company's common stock, the payment of regular cash dividends of $5.3 million and an increase in accumulated other comprehensive loss of $12.7 million. Total shares outstanding as of December 31, 2022 were 22,216,789.

**Capital Management** 

The Company's book value per share was $10.27 at December 31, 2022 compared to $9.87 at December 31, 2021, while tangible book value per share, a non-GAAP financial measure, increased $0.40, or 4.3%, from $9.21 at December 31, 2021 to $9.61 at December 31, 2022. Reflected in the book value and tangible book value changes during the year ended December 31, 2022 are the Federal Reserve's 425 basis points interest rate increases, which resulted in significant changes in unrealized gains and losses on investment securities. Such unrealized gains and losses are generally due to changes in interest rates and represent the difference, net of applicable income tax effect, between the estimated fair value and amortized cost of investment securities classified as available-for-sale. The Company had no other-than-temporary impairment charges in its investment portfolio in 2022 or 2021. Tangible book value is a non-GAAP measure. See pages 17-20 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

The Company's regulatory capital ratios remain in compliance with regulatory "well capitalized" requirements and internal target minimal levels. At December 31, 2022, the Company's Tier 1 leverage, common equity tier 1 capital, and total risk-based capital ratios were 9.3%, 12.2%, and 14.2%, respectively, and the Bank's Tier 1 leverage, common equity tier 1 capital, and total risk-based capital ratios were 9.5%, 12.5%, and 13.5%, respectively, compared with regulatory "well capitalized" minimums of 5.00%, 6.50%, and 10.00%, respectively.

**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 northern 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, business, measures being taken in response to the COVID-19 pandemic and the impact of the COVID-19 impact on the Company's 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the
duration and scope of the COVID-19 pandemic and the local, national and global impact of COVID-19;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the
emergence of new COVID-19 variants and the response thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in the interest rate environment that reduce margins;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 Act Wall Street Reform and Consumer
Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the
highly competitive industry and market area in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general
economic conditions, either nationally or regionally, resulting in, among other things, a deterioration in credit quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in business conditions and inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in credit market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the
inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and
other acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in the securities markets which affect investment management revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases
in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in technology used in the banking business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the
soundness of other financial services institutions which may adversely affect our credit risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain
of our intangible assets may become impaired in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our
controls and procedures may fail or be circumvented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new
lines of business or new products and services, which may subject us to additional risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes
in key management personnel which may adversely impact our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• severe
weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other
factors detailed from time to time in our SEC filings.

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** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | | | | | | **December 31,** | **December 31,** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
| INTEREST AND DIVIDEND INCOME: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $21274 | $19543 | $18500 | $17947 | $18089 | $77264 | $74200 |
| &nbsp;&nbsp;&nbsp;Securities | 2174 | 2104 | 2068 | 1950 | 1763 | 8296 | 5394 |
| &nbsp;&nbsp;&nbsp;Other investments | 75 | 47 | 30 | 25 | 25 | 177 | 116 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 62 | 60 | 48 | 21 | 49 | 191 | 139 |
| &nbsp;&nbsp;&nbsp;Total interest and dividend income | 23585 | 21754 | 20646 | 19943 | 19926 | 85928 | 79849 |
| INTEREST EXPENSE: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 2206 | 1164 | 990 | 992 | 1091 | 5352 | 5508 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | 272 | 48 | 10 |  |  | 330 |  |
| &nbsp;&nbsp;&nbsp;Long-term debt |  |  |  |  |  |  | 458 |
| &nbsp;&nbsp;&nbsp;Subordinated debt | 253 | 254 | 254 | 253 | 253 | 1014 | 706 |
| &nbsp;&nbsp;&nbsp;Total interest expense | 2731 | 1466 | 1254 | 1245 | 1344 | 6696 | 6672 |
| &nbsp;&nbsp;&nbsp;Net interest and dividend income | 20854 | 20288 | 19392 | 18698 | 18582 | 79232 | 73177 |
| PROVISION (CREDIT) FOR LOAN LOSSES | 150 | 675 | 300 | (425) | 300 | 700 | (925) |
| &nbsp;&nbsp;&nbsp;Net interest and dividend income after provision (credit) for loan losses | 20704 | 19613 | 19092 | 19123 | 18282 | 78532 | 74102 |
| NON-INTEREST INCOME: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges and fees | 2329 | 2223 | 2346 | 2174 | 2270 | 9072 | 8360 |
| &nbsp;&nbsp;&nbsp;Income from bank-owned life insurance | 428 | 391 | 458 | 448 | 486 | 1725 | 1912 |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance death benefits |  |  |  |  | 555 |  | 555 |
| &nbsp;&nbsp;&nbsp;Loss on sales of securities, net |  |  |  | (4) |  | (4) | (72) |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on marketable equity securities | 19 | (235) | (225) | (276) | (96) | (717) | (168) |
| &nbsp;&nbsp;&nbsp;Gain on sale of mortgages |  |  |  | 2 | 289 | 2 | 1423 |
| &nbsp;&nbsp;&nbsp;Gain on non-marketable equity investments | 70 | 211 | 141 |  | 352 | 422 | 898 |
| &nbsp;&nbsp;&nbsp;Loss on interest rate swap terminations |  |  |  |  |  |  | (402) |
| &nbsp;&nbsp;&nbsp;Gain on defined benefit plan curtailment | 2807 |  |  |  |  | 2807 |  |
| &nbsp;&nbsp;&nbsp;Other income |  |  | 21 | 4 |  | 25 | 58 |
| &nbsp;&nbsp;&nbsp;Total non-interest income | 5653 | 2590 | 2741 | 2348 | 3856 | 13332 | 12564 |
| NON-INTEREST EXPENSE: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employees benefits | 8197 | 8025 | 8236 | 8239 | 8193 | 32697 | 32186 |
| &nbsp;&nbsp;&nbsp;Occupancy | 1218 | 1226 | 1177 | 1363 | 1144 | 4984 | 4656 |
| &nbsp;&nbsp;&nbsp;Furniture and equipment | 479 | 465 | 539 | 543 | 548 | 2026 | 2084 |
| &nbsp;&nbsp;&nbsp;Data processing | 724 | 707 | 731 | 723 | 726 | 2885 | 2903 |
| &nbsp;&nbsp;&nbsp;Professional fees | 617 | 803 | 719 | 577 | 477 | 2716 | 2185 |
| &nbsp;&nbsp;&nbsp;FDIC insurance | 255 | 273 | 234 | 286 | 202 | 1048 | 998 |
| &nbsp;&nbsp;&nbsp;Advertising | 178 | 419 | 412 | 399 | 262 | 1408 | 1292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on prepayment of borrowings |  |  |  |  |  |  | 45 |
| &nbsp;&nbsp;&nbsp;Other | 2335 | 2425 | 2385 | 2326 | 2371 | 9471 | 8593 |
| &nbsp;&nbsp;&nbsp;Total non-interest expense | 14003 | 14343 | 14433 | 14456 | 13923 | 57235 | 54942 |
| INCOME BEFORE INCOME TAXES | 12354 | 7860 | 7400 | 7015 | 8215 | 34629 | 31724 |
| INCOME TAX PROVISION | 3320 | 1861 | 1865 | 1696 | 1995 | 8742 | 8025 |
| NET INCOME | $9034 | $5999 | $5535 | $5319 | $6220 | $25887 | $23699 |
| Basic earnings per share | $0.42 | $0.28 | $0.25 | $0.24 | $0.28 | $1.18 | $1.02 |
| Weighted average shares outstanding | 21676892 | 21757027 | 21991383 | 22100076 | 22097968 | 21879657 | 23223633 |
| Diluted earnings per share | $0.42 | $0.28 | $0.25 | $0.24 | $0.28 | $1.18 | $1.02 |
| Weighted average diluted shares outstanding | 21751409 | 21810036 | 22025687 | 22172909 | 22203876 | 21938323 | 23300637 |
| **Other Data:** |  |  |  |  |  |  |  |
| Return on average assets (1) | 1.40% | 0.93% | 0.87% | 0.85% | 0.97% | 1.02% | 0.96% |
| Return on average equity (1) | 16.67% | 10.90% | 10.22% | 9.65% | 11.22% | 11.85% | 10.64% |
| Efficiency ratio | 52.83% | 62.69% | 65.21% | 68.69% | 62.05% | 61.83% | 64.08% |
| Adjusted efficiency ratio (2) | 59.31% | 62.63% | 64.96% | 67.79% | 64.38% | 63.55% | 64.64% |
| Net interest margin | 3.44% | 3.35% | 3.24% | 3.18% | 3.08% | 3.31% | 3.14% |
| Net interest margin, on a fully tax-equivalent basis | 3.47% | 3.37% | 3.26% | 3.20% | 3.10% | 3.33% | 3.16% |

---

(1) Annualized.

(2) The adjusted efficiency ratio (non-GAAP) represents the
ratio of operating expenses, excluding loss on prepayment of borrowings, divided by the sum of net interest and dividend income
and non-interest income, excluding bank-owned life insurance death benefits, realized and unrealized gains and losses on securities,
gain on non-marketable equity investments, loss on interest rate swap termination, and gain on defined benefit plan curtailment.

**WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES**

**Consolidated Balance Sheets** 

**(Dollars in thousands)**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
| Cash and cash equivalents | $30342 | $27113 | $47513 | $62898 | $103456 |
| Available-for-sale securities, at fair value | 146997 | 148716 | 160925 | 173910 | 194352 |
| Held to maturity securities, at amortized cost | 230168 | 234387 | 233803 | 237575 | 222272 |
| Marketable equity securities, at fair value | 6237 | 11280 | 11453 | 11643 | 11896 |
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 3352 | 2234 | 1882 | 2594 | 2594 |
| Loans | 1991400 | 2007672 | 1975700 | 1926285 | 1864716 |
| Allowance for loan losses | (19931) | (20208) | (19560) | (19308) | (19787) |
| Net loans | 1971469 | 1987464 | 1956140 | 1906977 | 1844929 |
| Bank-owned life insurance | 74620 | 74192 | 73801 | 73343 | 72895 |
| Goodwill | 12487 | 12487 | 12487 | 12487 | 12487 |
| Core deposit intangible | 2188 | 2281 | 2375 | 2469 | 2563 |
| Other assets | 75290 | 78671 | 76978 | 71542 | 70981 |
| TOTAL ASSETS | $2553150 | $2578825 | $2577357 | $2555438 | $2538425 |
| Total deposits | $2229443 | $2287754 | $2301972 | $2278164 | $2256898 |
| Short-term borrowings | 41350 | 21500 | 4790 |  |  |
| Long-term debt | 1178 | 1178 | 1360 | 1686 | 2653 |
| Subordinated debt | 19673 | 19663 | 19653 | 19643 | 19633 |
| Securities pending settlement | 133 | 9 |  | 146 |  |
| Other liabilities | 33230 | 37021 | 34252 | 36736 | 35553 |
| TOTAL LIABILITIES | 2325007 | 2367125 | 2362027 | 2336375 | 2314737 |
| TOTAL SHAREHOLDERS' EQUITY | 228143 | 211700 | 215330 | 219063 | 223688 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $2553150 | $2578825 | $2577357 | $2555438 | $2538425 |

---

**WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES**

**Other Data**

**(Dollars in thousands, except per share data)**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
| Shares outstanding at end of period | 22216789 | 22246545 | 22465991 | 22742189 | 22656515 |
| **Operating results:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $20854 | $20288 | $19392 | $18698 | $18582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for loan losses | 150 | 675 | 300 | (425) | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest income | 5653 | 2590 | 2741 | 2348 | 3856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest expense | 14003 | 14343 | 14433 | 14456 | 13923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income provision for income taxes | 12354 | 7860 | 7400 | 7015 | 8215 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | 3320 | 1861 | 1865 | 1696 | 1995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 9034 | 5999 | 5535 | 5319 | 6220 |
| **Performance Ratios:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest margin, on a fully tax-equivalent basis | 3.47% | 3.37% | 3.26% | 3.20% | 3.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate spread, on a fully tax-equivalent basis | 3.26% | 3.26% | 3.17% | 3.10% | 2.99% |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average assets | 1.40% | 0.93% | 0.87% | 0.85% | 0.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on average equity | 16.67% | 10.90% | 10.22% | 9.65% | 11.22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted efficiency ratio (non-GAAP) <sup>(1)</sup> | 59.31% | 62.63% | 64.96% | 67.79% | 64.38% |
| **Per Common Share Data:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share | $0.42 | $0.28 | $0.25 | $0.24 | $0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Per diluted share | 0.42 | 0.28 | 0.25 | 0.24 | 0.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividend declared | 0.06 | 0.06 | 0.06 | 0.06 | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Book value per share | 10.27 | 9.52 | 9.58 | 9.63 | 9.87 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible book value per share (non-GAAP) | 9.61 | 8.85 | 8.92 | 8.97 | 9.21 |
| **Asset Quality:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;30-89 day delinquent loans | $2578 | $2630 | $1063 | $1407 | $1102 |
| &nbsp;&nbsp;&nbsp;&nbsp;90 days or more delinquent loans | 1891 | 669 | 1149 | 1401 | 1039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total delinquent loans | 4469 | 3299 | 2212 | 2808 | 2141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total delinquent loans as a percentage of total loans | 0.22% | 0.16% | 0.11% | 0.15% | 0.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total delinquent loans as a percentage of total loans, excluding PPP | 0.22% | 0.16% | 0.11% | 0.15% | 0.12% |
| Nonperforming loans | $5694 | $4432 | $4105 | $3988 | $4964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming loans as a percentage of total loans | 0.29% | 0.22% | 0.21% | 0.21% | 0.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming loans as a percentage of total loans, excluding PPP | 0.29% | 0.22% | 0.21% | 0.21% | 0.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets as a percentage of total assets | 0.22% | 0.17% | 0.16% | 0.16% | 0.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonperforming assets as a percentage of total assets, excluding PPP | 0.22% | 0.17% | 0.16% | 0.16% | 0.20% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses as a percentage of nonperforming loans | 350.04% | 455.96% | 476.49% | 484.15% | 398.61% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses as a percentage of total loans | 1.00% | 1.01% | 0.99% | 1.00% | 1.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses as a percentage of total loans, excluding PPP | 1.00% | 1.01% | 0.99% | 1.01% | 1.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loan charge-offs | $426 | $27 | $48 | $54 | $350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loan charge-offs as a percentage of average loans | 0.02% | 0.00% | 0.00% | 0.00% | 0.02% |

---

(1) The adjusted efficiency ratio (non-GAAP) represents the
ratio of operating expenses, excluding loss on prepayment of borrowings, divided by the sum of net interest and dividend income
and non-interest income, excluding bank-owned life insurance death benefits, realized and unrealized gains and losses on securities,
gain on non-marketable equity investments, loss on interest rate swap termination, and gain on defined benefit plan curtailment.

The following tables set forth the information relating to our average balances and net interest income for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | **Average<br> Balance** | **Interest** | **Average Yield/<br> Cost<sup>(8)</sup>** | **Average<br> Balance** | **Interest** | **Average Yield/<br> Cost<sup>(8)</sup>** | **Average<br> Balance** | **Interest** | **Average <br> Yield/<br> Cost<sup>(8)</sup>** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **ASSETS:** |  |  |  |  |  |  |  |  |  |
| **Interest-earning assets** |  |  |  |  |  |  |  |  |  |
| Loans(1)(2) | $1994874 | $21403 | 4.26% | $1973580 | $19665 | 3.95% | $1850162 | $18197 | 3.90% |
| Securities(2) | 388529 | 2175 | 2.22 | 404005 | 2105 | 2.07% | 401811 | 1764 | 1.74 |
| Other investments | 10638 | 75 | 2.80 | 10037 | 47 | 1.86% | 10654 | 25 | 0.93 |
| Short-term investments(3) | 7635 | 62 | 3.22 | 13911 | 60 | 1.71% | 131770 | 49 | 0.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 2401676 | 23715 | 3.92 | 2401533 | 21877 | 3.61% | 2394397 | 20035 | 3.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest-earning assets | 159042 |  |  | 154955 |  |  | 149151 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2560718 |  |  | $2556488 |  |  | $2543548 |  |  |
| **LIABILITIES AND EQUITY:** |  |  |  |  |  |  |  |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |  |  |  |
| Interest-bearing checking accounts | $149928 | 206 | 0.55% | $139678 | 123 | 0.35% | $132028 | 106 | 0.32% |
| Savings accounts | 221964 | 39 | 0.07 | 224112 | 38 | 0.07% | 214961 | 36 | 0.07 |
| Money market accounts | 862523 | 1375 | 0.63 | 911282 | 743 | 0.32% | 849023 | 546 | 0.26 |
| Time deposit accounts | 359555 | 586 | 0.65 | 339614 | 260 | 0.30% | 410149 | 403 | 0.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1593970 | 2206 | 0.55 | 1614686 | 1164 | 0.29% | 1606161 | 1091 | 0.27 |
| Short-term borrowings and long-term debt | 48579 | 525 | 4.29 | 29076 | 302 | 4.12% | 22614 | 253 | 4.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1642549 | 2731 | 0.66 | 1643762 | 1466 | 0.35% | 1628775 | 1344 | 0.33 |
| Non-interest-bearing deposits | 663814 |  |  | 658853 |  |  | 654334 |  |  |
| Other non-interest-bearing liabilities | 39399 |  |  | 35558 |  |  | 40428 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest-bearing liabilities | 703213 |  |  | 694411 |  |  | 694762 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2345762 |  |  | 2338173 |  |  | 2323537 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 214956 |  |  | 218315 |  |  | 220011 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $2560718 |  |  | $2556488 |  |  | $2543548 |  |  |
| Less: Tax-equivalent adjustment (2) |  | (130) |  |  | (123) |  |  | (109) |  |
| Net interest and dividend income |  | $20854 |  |  | $20288 |  |  | $18582 |  |
| Net interest rate spread (4) |  |  | 3.24% |  |  | 3.24% |  |  | 2.97% |
| Net interest rate spread, on a tax-equivalent basis (5) |  |  | 3.26% |  |  | 3.26% |  |  | 2.99% |
| Net interest margin (6) |  |  | 3.44% |  |  | 3.35% |  |  | 3.08% |
| Net interest margin, on a tax-equivalent basis (7) |  |  | 3.47% |  |  | 3.37% |  |  | 3.10% |
| Ratio of average interest-earning assets to average interest-bearing liabilities |  |  | 146.22% |  |  | 146.10% |  |  | 147.01% |

---

The following tables set forth the information relating to our average balances and net interest income for the twelve months ended December 31, 2022 and 2021 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
|  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|  | **Average** <br> **Balance** | **Interest** | **Average Yield/**<br> **Cost** | **Average**<br> **Balance** | **Interest** | **Average Yield/**<br> **Cost** |
|  | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| **ASSETS:** |  |  |  |  |  |  |
| **Interest-earning assets** |  |  |  |  |  |  |
| Loans(1)(2) | $1953527 | $77758 | 3.98% | $1887926 | $74620 | 3.95% |
| Securities(2) | 407444 | 8299 | 2.04 | 319778 | 5398 | 1.69 |
| Other investments | 10289 | 177 | 1.72 | 10242 | 115 | 1.12 |
| Short-term investments(3) | 25712 | 191 | 0.74 | 111931 | 139 | 0.12 |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets | 2396972 | 86425 | 3.61 | 2329877 | 80272 | 3.45 |
| &nbsp;&nbsp;&nbsp;Total non-interest-earning assets | 152941 |  |  | 147980 |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $2549913 |  |  | $2477857 |  |  |
| **LIABILITIES AND EQUITY:** |  |  |  |  |  |  |
| **Interest-bearing liabilities** |  |  |  |  |  |  |
| Interest-bearing checking accounts | $139993 | 530 | 0.38% | $109648 | 399 | 0.36% |
| Savings accounts | 222267 | 161 | 0.07 | 205394 | 154 | 0.07 |
| Money market accounts | 890763 | 3187 | 0.36 | 776725 | 2412 | 0.31 |
| Time deposit accounts | 363258 | 1474 | 0.41 | 477067 | 2543 | 0.53 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1616281 | 5352 | 0.33 | 1568834 | 5508 | 0.35 |
| Short-term borrowings and long-term debt | 31556 | 1344 | 4.26 | 38294 | 1164 | 3.04 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 1647837 | 6696 | 0.41 | 1607128 | 6672 | 0.42 |
| Non-interest-bearing deposits | 647971 |  |  | 608936 |  |  |
| Other non-interest-bearing liabilities | 35615 |  |  | 39108 |  |  |
| &nbsp;&nbsp;&nbsp;Total non-interest-bearing liabilities | 683586 |  |  | 648044 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | 2331423 |  |  | 2255172 |  |  |
| &nbsp;&nbsp;&nbsp;Total equity | 218490 |  |  | 222685 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities and equity | $2549913 |  |  | $2477857 |  |  |
| Less: Tax-equivalent adjustment (2) |  | (497) |  |  | (423) |  |
| Net interest and dividend income |  | $79232 |  |  | $73177 |  |
| Net interest rate spread (4) |  |  | 3.18% |  |  | 3.01% |
| Net interest rate spread, on a tax-equivalent basis (5) |  |  | 3.20% |  |  | 3.03% |
| Net interest margin (6) |  |  | 3.31% |  |  | 3.14% |
| Net interest margin, on a tax-equivalent basis (7) |  |  | 3.33% |  |  | 3.16% |
| Ratio of average interest-earning assets to average interest-bearing liabilities |  |  | 145.46% |  |  | 144.97% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Loans,
 including nonaccrual loans, are net of deferred loan origination costs and unadvanced
 funds.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Short-term
 investments include federal funds sold.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Net
 interest margin represents net interest and dividend income as a percentage of average
 interest-earning assets.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Annualized.

**<u>Reconciliation of Non-GAAP to GAAP Financial Measures</u>**

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its 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** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** |
|  | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
| Loans (no tax adjustment) | $21274 | $19543 | $18500 | $17947 | $18089 |
| Tax-equivalent adjustment | 129 | 122 | 124 | 120 | 108 |
| &nbsp;&nbsp;&nbsp;Loans (tax-equivalent basis) | $21403 | $19665 | $18624 | $18067 | $18197 |
| Securities (no tax adjustment) | $2174 | $2104 | $2068 | $1950 | $1763 |
| Tax-equivalent adjustment | 1 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Securities (tax-equivalent basis) | $2175 | $2105 | $2068 | $1950 | $1764 |
| Net interest income (no tax adjustment) | $20854 | $20288 | $19392 | $18698 | $18582 |
| Tax equivalent adjustment | 130 | 123 | 124 | 120 | 109 |
| &nbsp;&nbsp;&nbsp;Net interest income (tax-equivalent basis) | $20984 | $20411 | $19516 | $18818 | $18691 |
| Net interest income (no tax adjustment) | $20854 | $20288 | $19392 | $18698 | $18582 |
| Less: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase accounting adjustments | 87 | (16) | 64 | 39 | (31) |
| &nbsp;&nbsp;&nbsp;Prepayment penalties and fees | 134 | 99 | 26 | 21 | 21 |
| &nbsp;&nbsp;&nbsp;PPP fee income | 18 | 19 | 129 | 562 | 973 |
| Adjusted net interest income (non-GAAP) | $20615 | $20186 | $19173 | $18076 | $17619 |
| Average interest-earning assets | $2401676 | $2401533 | $2398526 | $2385932 | $2394397 |
| Average interest-earning assets, excluding average PPP loans | $2399297 | $2398998 | $2395463 | $2370852 | $2352858 |
| Net interest margin (no tax adjustment) | 3.44% | 3.35% | 3.24% | 3.18% | 3.08% |
| Net interest margin, tax-equivalent | 3.47% | 3.37% | 3.26% | 3.20% | 3.10% |
| Adjusted net interest margin, excluding purchase accounting adjustments, PPP fee income and prepayment penalties (non-GAAP) | 3.41% | 3.34% | 3.21% | 3.10% | 2.97% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** |
|  | **12/31/2022** | **9/30/2022** | **6/30/2022** | **3/31/2022** | **12/31/2021** |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
| <u>Book Value per Share (GAAP)</u> | $10.27 | $9.52 | $9.58 | $9.63 | $9.87 |
| Non-GAAP adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | (0.56) | (0.56) | (0.55) | (0.55) | (0.55) |
| &nbsp;&nbsp;&nbsp;Core deposit intangible | (0.10) | (0.11) | (0.11) | (0.11) | (0.11) |
| Tangible Book Value per Share (non-GAAP) | $9.61 | $8.85 | $8.92 | $8.97 | $9.21 |
| <u>Income Before Income Taxes (GAAP)</u> | $12354 | $7860 | $7400 | $7015 | $8215 |
| Provision (credit) for loan losses | 150 | 675 | 300 | (425) | 300 |
| PPP income | (18) | (19) | (129) | (562) | (973) |
| Gain on defined benefit plan curtailment | (2807) |  |  |  |  |
| Income Before Taxes, Provision, PPP Income and Defined Benefit Curtailment (non-GAAP) | $9679 | $8516 | $7571 | $6028 | $7542 |
| <u>Efficiency Ratio:</u> |  |  |  |  |  |
| Non-interest Expense (GAAP) | $14003 | $14343 | $14433 | $14456 | $13923 |
| Non-interest Expense for Adjusted Efficiency Ratio | $14003 | $14343 | $14433 | $14456 | $13923 |
| Net Interest Income (GAAP) | $20854 | $20288 | $19392 | $18698 | $18582 |
| Non-interest Income (GAAP) | $5653 | $2590 | $2741 | $2348 | $3856 |
| Non-GAAP adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance death benefit |  |  |  |  | (555) |
| &nbsp;&nbsp;&nbsp;Loss (gain) on securities, net |  |  |  | 4 |  |
| &nbsp;&nbsp;&nbsp;Unrealized (gains) losses on marketable equity securities | (19) | 235 | 225 | 276 | 96 |
| &nbsp;&nbsp;&nbsp;Gain on non-marketable equity investments | (70) | (211) | (141) |  | (352) |
| &nbsp;&nbsp;&nbsp;Gain on defined benefit plan curtailment | (2807) |  |  |  |  |
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $2757 | $2614 | $2825 | $2628 | $3045 |
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $23611 | $22902 | $22217 | $21326 | $21627 |
| Efficiency Ratio (GAAP) | 52.83% | 62.69% | 65.21% | 68.69% | 62.05% |
| Adjusted Efficiency Ratio (Non-interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 59.31% | 62.63% | 64.96% | 67.79% | 64.38% |

---

---

| | | |
|:---|:---|:---|
|  | **For the twelve months ended** | **For the twelve months ended** |
|  | **12/31/2022** | **12/31/2021** |
|  | (In thousands) | (In thousands) |
| Loans (no tax adjustment) | $77264 | $74200 |
| Tax-equivalent adjustment | 494 | 420 |
| &nbsp;&nbsp;&nbsp;Loans (tax-equivalent basis) | $77758 | $74620 |
| Securities (no tax adjustment) | $8296 | $5394 |
| Tax-equivalent adjustment | 3 | 4 |
| &nbsp;&nbsp;&nbsp;Securities (tax-equivalent basis) | $8299 | $5398 |
| Net interest income (no tax adjustment) | $79232 | $73177 |
| Tax equivalent adjustment | 497 | 424 |
| &nbsp;&nbsp;&nbsp;Net interest income (tax-equivalent basis) | $79729 | $73601 |
| Net interest income (no tax adjustment) | $79232 | $73177 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase accounting adjustments | 175 | (55) |
| &nbsp;&nbsp;&nbsp;Prepayment penalties and fees | 281 | 181 |
| &nbsp;&nbsp;&nbsp;PPP fee income | 728 | 6769 |
| Adjusted net interest income (non-GAAP) | $78048 | $66282 |
| Average interest-earning assets | $2396972 | $2329877 |
| Average interest-earnings asset, excluding average PPP loans | $2391252 | $2219286 |
| Net interest margin (no tax adjustment) | 3.31% | 3.14% |
| Net interest margin, tax-equivalent | 3.33% | 3.16% |
| Adjusted net interest margin, excluding purchase accounting adjustments, PPP fee income and prepayment penalties (non-GAAP) | 3.26% | 2.99% |

---

---

| | | |
|:---|:---|:---|
|  | **For the twelve months ended** | **For the twelve months ended** |
|  | **12/31/2022** | **12/31/2021** |
|  | (In thousands) | (In thousands) |
| <u>Income Before Income Taxes (GAAP)</u> | $34629 | $31724 |
| Provision (credit) for loan losses | 700 | (925) |
| PPP income | (728) | (6769) |
| Gain on defined benefit plan curtailment | (2807) |  |
| Income Before Taxes, Provision, PPP Income and Defined Benefit Curtailment (non-GAAP) | $31794 | $24030 |
| <u>Adjusted Efficiency Ratio:</u> |  |  |
| Non-interest Expense (GAAP) | $57235 | $54942 |
| Non-GAAP adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Loss on prepayment of borrowings |  | (45) |
| Non-interest Expense for Adjusted Efficiency Ratio (non-GAAP) | $57235 | $54897 |
| Net Interest Income (GAAP) | $79232 | $73177 |
| Non-interest Income (GAAP) | $13332 | $12564 |
| Non-GAAP adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Loss on securities, net | 4 | 72 |
| &nbsp;&nbsp;&nbsp;Unrealized losses on marketable equity securities | 717 | 168 |
| &nbsp;&nbsp;&nbsp;Loss on interest rate swap termination |  | 402 |
| &nbsp;&nbsp;&nbsp;Gain on non-marketable equity investments | (422) | (898) |
| &nbsp;&nbsp;&nbsp;Gain on defined benefit plan curtailment | (2807) |  |
| Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) | $10824 | $12308 |
| Total Revenue for Adjusted Efficiency Ratio (non-GAAP) | $90056 | $85485 |
| Efficiency Ratio (GAAP) | 61.83% | 64.08% |
| Adjusted Efficiency Ratio (Non-interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 63.55% | 64.64% |

---

## Exhibit 99.2

[WESTERN NEW ENGLAND BANCORP, INC. 8-K](wneb-8k_012423.htm)

**Exhibit 99.2**

![](ex99-2_img001.jpg)

Local banking is better than ever. INVESTOR PRESENTATION FOURTH QUARTER 2022

![](ex99-2_img002.jpg)

FORWARD - LOOKING STATEMENTS 2 We may, from time to time, make written or oral "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements contained in our filings with the Securities and Exchange Commission (the "SEC"), our reports to shareholders and in other communications by us . This presentation contains "forward - looking statements" with respect to the Company's financial condition, liquidity, results of operations, future performance, business, measures being taken in response to the coronavirus disease 2019 ("COVID - 19 ") pandemic and the impact of COVID - 19 on the Company's 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 : • the duration and scope of the COVID - 19 pandemic and the local, national and global impact of COVID - 19; • the speed and effectiveness of COVID - 19 vaccine and treatment developments and their deployment, including public adoption rates of COVID - 19 vaccines; • the emergence of new COVID - 19 variants and the response thereto; • changes in the interest rate environment that reduce margins; • the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standa rds , the nature and timing of the adoption and effectiveness of new requirements under the Dodd - Frank Act Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations; • the highly competitive industry and market area in which we operate; • general economic conditions, either nationally or regionally, resulting in, among other things, a deterioration in credit qua lit y; • changes in business conditions and inflation; • changes in credit market conditions; • the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations an d other acquisitions; • changes in the securities markets which affect investment management revenues; • increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; • changes in technology used in the banking business; • the soundness of other financial services institutions which may adversely affect our credit risk; • certain of our intangible assets may become impaired in the future; • our controls and procedures may fail or be circumvented; • 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; • severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our bu sin ess; and • other factors detailed from time to time in our SEC filings . 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 .

![](ex99-2_img003.jpg)

WHO WE ARE Every day, we focus on showing Westfield Bank customers " what better banking is all about . " For us, the idea of better banking starts with putting customers first, while adhering to our core values . Our Core Values : • Integrity • Enhance Shareholder Value • Customer Focus • Community Focus Our Core Mission : Our purpose is to help customers succeed in our community, while creating and increasing shareholder value . The Company's purpose drives the outcome we envision for Western New England Bancorp . 3 70 Center Street, Chicopee, MA.

![](ex99-2_img004.jpg)

SENIOR MANAGEMENT TEAM James C . Hagan, President & Chief Executive Officer Guida R . Sajdak, Executive Vice President, Chief Financial Officer & Treasurer Allen J . Miles III, Executive Vice President & Chief Lender Officer Kevin C . O'Connor, Executive Vice President & Chief Banking Officer Louis O . Gorman, Senior Vice President & Chief Credit Officer Leo R . Sagan, Jr . , Senior Vice President & Chief Risk Officer Darlene Libiszewski , Senior Vice President & Chief Information Officer John Bonini , Senior Vice President & General Counsel Christine Phillips , Senior Vice President, Human Resources 4

![](ex99-2_img005.jpg)

4 Q2022 QUARTERLY EARNINGS 5 ($ in thousands , except EPS) 4Q2022 3Q2022 2Q2022 1Q2022 4Q2021 Net interest income $20,854 $20,288 $19,392 $18,698 $18,582 Provision (credit) for loan losses 150 675 300 (425) 300 Non - interest income 5,653 2,590 2,741 2,348 3,856 Non - interest expense 14,003 14,343 14,433 14,456 13,923 Income before taxes 12,354 7,860 7,400 7,015 8,215 Income tax expense 3,320 1,861 1,865 1,696 1,995 Net income $9,034 $5,999 $5,535 $5,319 $6,220 Diluted earnings per share (EPS) $0.42 $0.28 $0.25 $0.24 $0.28 ROA 1.40% 0.93% 0.87% 0.85% 0.97% ROE 16.67% 10.90% 10.22% 9.65% 11.22% Net interest margin 3.44% 3.35% 3.24% 3.18% 3.08% Net interest margin, on a tax - equivalent basis 3.47% 3.37% 3.26% 3.20% 3.10%

![](ex99-2_img006.jpg)

NET INTEREST INCOME AND NET INTEREST MARGIN 6 $18.6 $18.7 $19.4 $20.3 $20.9 3.08% 3.18% 3.24% 3.35% 3.44% 2.97% 3.10% 3.23% 3.35% 3.44% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $16.5 $17.5 $18.5 $19.5 $20.5 $21.5 $22.5 $23.5 $24.5 Net interest income ($) Net interest margin (%) Net interest margin excluding PPP income (1) Net interest income increased $566 , 000 , or 2 . 8 % , from $20 . 3 million for the quarter ended September 30 , 2022 to $20 . 9 million for the quarter ended December 31 , 2022 . Net interest margin increased nine basis points from 3 . 35 % for the quarter ended September 30 , 2022 to 3 . 44 % for the quarter ended December 31 , 2022 . Excluding Paycheck Protection Program interest and fee income ("PPP income"), net interest margin increased nine basis points from 3 . 35 % for the quarter ended September 30 , 2022 to 3 . 44 % for the quarter ended December 31 , 2022 , and net interest income, excluding PPP income, increased $567 , 000 , or 2 . 8 % , from $20 . 3 million to $20 . 8 million, during the same period . (1) Excludes PPP income ($ in millions)

![](ex99-2_img007.jpg)

TOTAL LOANS 7 $1,809 $1,880 $1,946 $1,971 $1,992 3.75% 3.75% 3.79% 3.93% 4.23% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 Average Loans Outstanding (excludes PPP loans) Average Loans Outstanding Average Loan Yield $1,839 $1,920 $1,973 $2,006 $1,989 $25 $6 $3 $2 $2 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 Period - end Loans Outstanding Loans PPP Loans Excluding PPP loans, average loans of $2 . 0 billion increased $21 . 5 million, or 1 . 1 % , from the linked quarter . Total loans outstanding of $2 . 0 billion at December 31 , 2022 increased $126 . 7 million, or 6 . 8 % , from December 31 , 2021 , driven by an increase of $89 . 4 million, or 9 . 1 % , in commercial real estate loans, an increase in commercial and industrial loans of $16 . 2 million, or 8 . 1 % , and an increase in residential real estate loans of $43 . 0 million, or 6 . 6 % . Excluding PPP loans, total loans increased $149 . 7 million, or 8 . 1 % , from year - end . ($ in millions)

![](ex99-2_img008.jpg)

COMMERCIAL AND INDUSTRIAL LOANS 8 $201 $210 $215 $230 $218 $25 $6 $3 $2 $2 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $100 $120 $140 $160 $180 $200 $220 $240 C&I Loans (excluding PPP loans) PPP Loans Excluding PPP loans, commercial and industrial loans (" C&I") of $217 . 6 million at December 31 , 2022 increased $16 . 2 million, or 8 . 1 % , from December 31 , 2021 . At December 31 , 2022 , total delinquent C&I loans, excluding PPP loans, totaled $202 , 000 , or 0 . 09 % , of the C&I portfolio . ($ in millions)

![](ex99-2_img009.jpg)

C&I PORTFOLIO (1) 9 (1) % of total C&I loans as of December 31, 2022 Manufacturing 16% Sand and Gravel Mining 8% Wholesale trade 21% Educational services 8% Hotels 1% Heavy and civil engineering construction , 9% Specialty trade 5% All other C&I 32%

![](ex99-2_img010.jpg)

COMMERCIAL REAL ESTATE LOANS 10 $980 $1,039 $1,075 $1,082 $1,069 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 • Commercial real estate ("CRE") loans of $1 . 1 billion at December 31 , 2022 increased $89 . 4 million, or 9 . 1 % , from December 31 , 2021 . • At December 31 , 2022 , there were no modified loans remaining under the CARES Act . • At December 31 , 2022 , total CRE delinquency was $1 . 6 million, or 0 . 15 % , of the CRE portfolio . ($ in millions) Period - end Loans Outstanding

![](ex99-2_img011.jpg)

COMMERCIAL REAL ESTATE LOANS (1) 11 (1) % of total commercial real estate loans at December 31, 2022 Adult Care/Assisted Living 3% Apartment 14% Auto Sales 4% College/School 2% Hotel 5% Industrial/Warehouse 16% Mixed - use 3% Office 22% Other 7% Residential Non - Owner 5% Retail/Shopping 16% Student Housing 3%

![](ex99-2_img012.jpg)

RESIDENTIAL AND CONSUMER LOANS 12 $656 $669 $681 $691 $700 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $630 $640 $650 $660 $670 $680 $690 $700 $710 Residential and Consumer Loans Period - end Loans Outstanding At December 31 , 2022 , residential loans, including home equity loans, and consumer loans increased $43 . 8 million, or 6 . 7 % , from December 31 , 2021 . As of December 31 , 2022 , the Company serviced $79 . 3 million in loans sold to the secondary market, with servicing retained, which are not included on the Company's balance sheet under residential and consumer loans . At December 31 , 2022 , total delinquent residential and consumer loans totaled $2 . 6 million, or 0 . 37 % of total residential and consumer loans . ($ in millions)

![](ex99-2_img013.jpg)

TOTAL DEPOSITS 13 $1,855 $1,899 $1,952 $1,944 $1,818 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $1,750 $1,800 $1,850 $1,900 $1,950 $2,000 PERIOD - END CORE DEPOSITS At December 31 , 2022 , core deposits, which the Company defines as all deposits except time deposits, of $1 . 8 billion decreased $37 . 1 million, or 2 . 0 % , from December 31 , 2021 , while time deposits increased $9 . 7 million, or 2 . 4 % , during the same period . The ratio of core deposits as a percentage of total deposits was 81 . 5 % at December 31 , 2022 , compared to 82 . 2 % at December 31 , 2021 . $402 $379 $350 $343 $412 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $250 $270 $290 $310 $330 $350 $370 $390 $410 $430 PERIOD - END TIME DEPOSITS ($ in millions)

![](ex99-2_img014.jpg)

AVERAGE TOTAL DEPOSITS 14 $1,606 $1,618 $1,639 $1,615 $1,594 $654 $633 $636 $659 $664 0.19% 0.18% 0.17% 0.20% 0.39% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $300 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 Average Deposits and Rates Interest-bearing deposits Non-interest-bearing deposits Average deposit cost Average deposits, consisting of interest - bearing and non - interest bearing deposits, of $2.3 billion decreased $15.8 million from the linked quarter. Average cost of deposits increased 19 basis points, from 0.20% for the quarter ended September 30, 2022 to 0.39% for the quarter ended December 31, 2022 . ($ in millions)

![](ex99-2_img015.jpg)

AVERAGE CORE AND TIME DEPOSITS 15 $1,850 $1,862 $1,909 $1,934 $1,898 0.15% 0.14% 0.15% 0.19% 0.34% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% $1,820 $1,840 $1,860 $1,880 $1,900 $1,920 $1,940 Average Core Deposits and Rates Average core deposits, including non - interest bearing deposits, decreased $36 . 0 million, or 1 . 8 % , from the linked quarter . Average time deposits of $359 . 6 million increased $19 . 9 million, or 5 . 9 % , from the linked quarter . The average cost of core deposits increased 15 basis points, while the cost of time deposits increased 35 basis points for the same period . ($ in millions) $410 $389 $365 $340 $360 0.39% 0.35% 0.32% 0.30% 0.65% 0.25% 0.45% 0.65% 0.85% 1.05% 1.25% $300 $320 $340 $360 $380 $400 $420 Average Time Deposits and Rates

![](ex99-2_img016.jpg)

LOAN - TO - DEPOSIT RATIO 16 83% 85% 86% 88% 89% 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 78% 80% 82% 84% 86% 88% 90% Period - end Loan - to - Deposit Ratio 82% 83% 85% 85% 82% 18% 17% 15% 15% 18% 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Core Deposits and Time Deposits as a % of Total Deposits Core deposits/Total deposits Time deposits/Total deposits

![](ex99-2_img017.jpg)

________ Source: SNL Financial as of June 30, 2022. Note: Total number of Westfield Bank branches shown includes the Big E seasonal branch and online deposit channel. Three Wes tfi eld branches are located in Hampshire County, MA and four Westfield branches are located in Hartford County, CT outside of Springfield MSA. DEPOSIT MARKET SHARE IN HAMPDEN COUNTY, MA AS OF JUNE 30, 2022 17 Total Deposit Rank 2022 Parent Company Name Deposits in Market ($000) Market Share # of Branches 1 PeoplesBank 2,054,380 13.9% 13 1,762,519 13.1% 20 2 Westfield Bank 2,028,805 13.7% 20 3 TD Bank 2,016,611 13.6% 16 4 KeyBank 1,856,857 12.5% 7 5 Bank of America 1,819,614 12.3% 8 6 M&T Bank 1,476,185 10.0% 14 7 Berkshire Bank 1,213,428 8.2% 11 8 Country Bank 576,762 3.9% 5 9 Monson Savings Bank 520,769 3.5% 4 10 Citizens Bank 514,808 3.5% 12

![](ex99-2_img018.jpg)

ASSET QUALITY INDICATORS 18 4Q2021 (1) 1Q2022 (1) 2Q2022 (1) 3Q2022 (2) 4Q2022 (2) Total loans modified under the CARES Act $42.5M $12.1M $9.1M $- $- Loans modified as a % of total loans 2.3% 0.6% 0.5% - % - % Total delinquent loans $2.1M $2.8M $2.2M $3.3M $4.5M Delinquent loans as a % of total loans 0.12% 0.15% 0.11% 0.16% 0.22% Nonperforming loans (NPL) $5.0M $4.0M $4.1M $4.4M $5.7M NPL as a % of total loans 0.27% 0.21% 0.21% 0.22% 0.29% NPL as a % of total assets 0.20% 0.16% 0.16% 0.17% 0.22% Allowance for loan losses % of total loans 1.08% 1.00% 0.99% 1.01% 1.00% Allowance for loan losses % of NPL 399% 484% 476% 456% 350% Net charge - offs $350K $54K $48K $27K $426K Net charge - offs as a % average loans 0.02% 0.00% 0.00% 0.00% 0.02% (1) Excludes PPP loans (2) Includes PPP loans

![](ex99-2_img019.jpg)

ASSET QUALITY 19 Management continues to remain attentive to any signs of deterioration in borrowers' financial conditions and is proactive in taking the appropriate steps to mitigate risk . The allowance for loan losses as a percentage of total loans was 1 . 00 % at December 31 , 2022 , compared to 1 . 08 % at December 31 , 2021 (excluding PPP loans) . At December 31 , 2022 , the allowance for loan losses as a percentage of nonperforming loans was 350 . 0 % , compared to 398 . 6 % , at December 31 , 2021 . The adoption of the Current Expected Credit Loss allowance methodology became effective for the Company on January 1 , 2023 . Management will continue to closely monitor portfolio conditions and re - evaluate the adequacy of the allowance . December 31, 2021 December 31, 2022 ALLL (1) Loans Outstanding (1)(3) ALLL/ Total Loan Segment ALLL (1) Loans Outstanding (1) ALLL/ Total Loan Segment Commercial and industrial $2,643 $201,340 1.31% $3,160 $219,848 1.44% Commercial real estate 12,970 979,969 1.32% 12,199 1,069,323 1.14% Residential (2) 3,964 652,091 0.61% 4,312 695,060 0.62% Consumer 197 4,250 4.64% 245 5,045 4.86% Unallocated 13 - - 15 - - Total Loans $19,787 $1,837,650 1.08% $19,931 $1,989,276 1.00% (1) $ in thousands (2) Includes home equity loans and home equity lines of credit (3) Excludes PPP loans

![](ex99-2_img020.jpg)

ASSET QUALITY 20 ($ in Millions) 4Q2021 (1) 1Q2022 (1) 2Q2022 (1) 3Q2022 (2) 4Q2022 (2) Special Mention $24.2 $28.1 $22.0 $39.8 $14.1 Special Mention - Hotel $27.3 $27.1 $18.3 $17.6 $7.6 Total Special Mention $51.5 $55.2 $40.3 $57.4 $21.7 % of Total Loans 2.8% 2.9% 2.0% 2.9% 1.1% Substandard $31.1 $30.8 $28.6 $28.4 $42.3 % of Total Loans 1.7% 1.6% 1.5% 1.4% 2.1% Total Watch List Loans $82.6 $86.0 $68.9 $85.8 $64.0 % of Total Loans 4.5% 4.5% 3.5% 4.3% 3.2% At December 31 , 2022 , total Watch List loans were $64 . 0 million, or 3 . 2 % of total loans, representing a decrease of $18 . 6 million, or 22 . 5 % , from December 31 , 2021 . (1) % of total loans excludes PPP loans (2) % of total loans includes PPP loans

![](ex99-2_img021.jpg)

CAPITAL MANAGEMENT 21 We are well - capitalized with excess capital. Consolidated Ratio at December 31, 2022 Leverage Ratio 9.27% Common Equity Tier 1 Ratio 12.18% Tier 1 Capital Ratio 12.18% Total Capital Ratio 14.20% x From a regulatory standpoint, we are well - capitalized with excess capital. x We take a prudent approach to capital management. Westfield Bank Ratio at December 31, 2022 Well Capitalized Leverage Ratio 9.49% 5.0% Common Equity Tier 1 Ratio 12.48% 6.5% Tier 1 Capital Ratio 12.48% 8.0% Total Capital Ratio 13.50% 10.0%

![](ex99-2_img022.jpg)

CAPITAL RETURN TO SHAREHOLDERS 22 Year # of Shares 2018 2,189,276 2019 1,938,667 2020 1,391,496 2021 2,758,051 1Q2022 112,674 2Q2022 293,173 3Q2022 236,302 4Q2022 78,826 Year Annual Dividends per Share 2018 $0.16 2019 $0.20 2020 $0.20 2021 $0.20 1Q2022 $0.06 2Q2022 $0.06 3Q2022 $0.06 4Q2022 $0.06 Share Repurchases Dividends On April 27 , 2021 , the Board of Directors authorized a stock repurchase plan (the " 2021 Plan"), pursuant to which the Company was authorized to repurchase up to 2 . 4 million shares, or 10 % of its outstanding common stock, as of the date the 2021 Plan was adopted . On October 13 , 2022 , the Company announced the completion of the 2021 Plan . On July 26 , 2022 , the Board of Directors authorized a new stock repurchase plan (the " 2022 Plan"), pursuant to which the Company is authorized to repurchase up to 1 . 1 million shares of common stock, or approximately 5 . 0 % of the Company's outstanding shares as of the date the 2022 Plan was adopted . During the three months ended December 31 , 2022 , the Company repurchased 78 , 826 shares of common stock under the 2022 Plan and during the twelve months ended December 31 , 2022 , the Company repurchased 720 , 975 shares of common stock under both the 2021 and 2022 Plans . As of December 31 , 2022 , there were 1 , 056 , 344 shares of common stock available for repurchase under the 2022 Plan .

![](ex99-2_img023.jpg)

CAPITAL MANAGEMENT 23 $9.87 $9.63 $9.58 $9.52 $10.27 $9.21 $8.97 $8.92 $8.85 $9.61 Book Value per Share Tangible Book Value per Share (non - GAAP) (1) Book Value Tangible Book Value (non-GAAP) Book value per share increased $0.40, or 4.3%, from $9.87 at December 31, 2021 to $10.27 at December 31, 2022. Tangible book value per share (non - GAAP) increased $0.40, or 4.3%, from $9.21 at December 31, 2021 to $9.61 at December 31, 2022. During the year ended December 31, 2022, accumulated other comprehensive income/loss reduced the tangible book value per common share due to the impact of higher interest rates on the fair value of available - for - sale securities. (1) Tangible book value is a non - GAAP measure. See slides 24 and 25 for the related tangible book value calculation and a reconc iliation of GAAP to non - GAAP financial measures.

![](ex99-2_img024.jpg)

APPENDIX: NON - GAAP TO GAAP RECONCILIATION 24 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 i ts financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Loans (no tax adjustment) 21,274$19,543$18,500$17,947$18,089$ Tax-equivalent adjustment 129 122 124 120 108 Loans (tax-equivalent basis) 21,403$19,665$18,624$18,067$18,197$ Securities (no tax adjustment) 2,174$2,104$2,068$1,950$1,763$ Tax-equivalent adjustment 1 1 - - 1 Securities (tax-equivalent basis) 2,175$2,105$2,068$1,950$1,764$ Net interest income (no tax adjustment) 20,854$20,288$19,392$18,698$18,582$ Tax equivalent adjustment 130 123 124 120 109 Net interest income (tax-equivalent basis) 20,984$20,411$19,516$18,818$18,691$ Net interest income (no tax adjustment) 20,854$20,288$19,392$18,698$18,582$ Less: Purchase accounting adjustments 87 (16) 64 39 (31) Prepayment penalties and fees 134 99 26 21 21 PPP fee income 18 19 129 562 973 Adjusted net interest income (non-GAAP) 20,615$20,186$19,173$18,076$17,619$ Average interest-earning assets 2,401,676$2,401,533$2,398,526$2,385,932$2,394,397$ Average interest-earnings asset, excluding average PPP loans $2,399,297 $2,398,998 $2,395,463 $2,370,852 $2,352,858 Net interest margin (no tax adjustment) 3.44% 3.35% 3.24% 3.18% 3.08% Net interest margin, tax-equivalent 3.47% 3.37% 3.26% 3.20% 3.10% Adjusted net interest margin, excluding purchase accounting adjustments, PPP fee income and prepayment penalties (non-GAAP) 3.41% 3.34% 3.21% 3.10% 2.97% For the quarter ended (In thousands)

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APPENDIX: NON - GAAP TO GAAP RECONCILIATION 25 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 i ts financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly title d measures calculated by other companies. A reconciliation of these non - GAAP financial measures is provided below. 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Book Value per Share (GAAP) 10.27$9.52$9.58$9.63$9.87$ Non-GAAP adjustments: Goodwill (0.56) (0.56) (0.55) (0.55) (0.55) Core deposit intangible (0.10) (0.11) (0.11) (0.11) (0.11) Tangible Book Value per Share (non-GAAP) 9.61$8.85$8.92$8.97$9.21$ Income Before Income Taxes (GAAP) 12,354$7,860$7,400$7,015$8,215$ Provision (credit) for loan losses 150 675 300 (425) 300 PPP income (18) (19) (129) (562) (973) Gain on defined benefit plan curtailment (2,807) - - - - Income Before Taxes, Provision, PPP Income and Defined Benefit Curtailment (non-GAAP) 9,679$8,516$7,571$6,028$7,542$ Efficiency Ratio: Non-interest Expense (GAAP) 14,003$14,343$14,433$14,456$13,923$ Non-Interest Expense for Adjusted Efficiency Ratio (non- GAAP) $14,003 $14,343 $14,433 14,456$13,923$ Net Interest Income (GAAP) 20,854$20,288$19,392$18,698$18,582$ Non-Interest Income (GAAP) 5,653$2,590$2,741$2,348$3,856$ Non-GAAP adjustments: Bank-owned life insurance death benefit - - - - (555) Loss on securities, net - - - 4 - Unrealized (gains) losses on marketable equity securities (19) 235 225 276 96 Gain on non-marketable equity investments (70) (211) (141) - (352) Gain on defined benefit plan curtailment (2,807) - - - - Non-Interest Income for Adjusted Efficiency Ratio (non- GAAP) $2,757 $2,614 $2,825 2,628$3,045$ Total Revenue for Adjusted Efficiency Ratio (non-GAAP) $23,611 $22,902 $22,217 21,326$21,627$ Efficiency Ratio (GAAP) 52.83% 62.69% 65.21% 68.69% 62.05% Adjusted Efficiency Ratio (Non-interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) 59.31% 62.63% 64.96% 67.79% 64.38% For the quarter ended (In thousands)

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WESTFIELD BANK "WHAT BETTER BANKING'S ALL ABOUT" James C. Hagan , President and Chief Executive Officer Guida R. Sajdak , Executive Vice President and Chief Financial Officer Meghan Hibner , Vice President and Investor Relations Officer 26 141 Elm Street, Westfield, MA