Western New England Bancorp reports 31% increase in Q2 earnings

WESTFIELD, Mass. - Western New England Bancorp, Inc. (NASDAQ:WNEB), the holding company for Westfield Bank, with a market capitalization of $206 million and trading near its 52-week high, reported net income of $4.6 million, or $0.23 per diluted share, for the second quarter ended June 30, 2025, up 30.7% from $3.5 million, or $0.17 per diluted share, for the same period in 2024. According to InvestingPro analysis, the stock appears fairly valued at current levels.

The company’s net interest income increased $3.2 million, or 21.9%, to $17.6 million compared to the second quarter of 2024, driven by a higher net interest margin which rose to 2.80% from 2.42% a year earlier.

"We are pleased to report solid earnings for the second quarter of 2025, along with strong overall loan growth and core deposit growth," said James C. Hagan, President and Chief Executive Officer, in a statement based on the company’s press release.

Total gross loans increased $22.1 million, or 1.1%, to $2.1 billion since December 31, 2024, with commercial and industrial loans rising $22.8 million, or 10.8%, and residential real estate loans increasing $29.7 million, or 3.8%.

Core deposits, defined as all deposits except time deposits, grew $81.4 million, or 5.2%, since year-end to $1.6 billion, representing 70.4% of total deposits as of June 30, 2025.

Asset quality remained strong with nonperforming assets to total assets at 0.21% and total delinquency as a percentage of total loans at 0.18%.

The company’s board of directors declared a quarterly cash dividend of $0.07 per share, payable on or about August 20, 2025, to shareholders of record on August 6, 2025. InvestingPro data shows WNEB has maintained dividend payments for 24 consecutive years, with a current yield of 2.79%.

During the six months ended June 30, 2025, Western New England Bancorp repurchased 497,318 shares of common stock at an average price of $9.31 per share as part of its capital management strategy.

The company’s regulatory capital ratios remained well above minimum requirements, with a total capital to risk-weighted assets ratio of 14.42% at the end of the quarter. The stock has delivered a strong 23% return over the past year, outperforming many peers. InvestingPro subscribers can access additional insights, including 7 more ProTips and comprehensive financial metrics for WNEB.

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