WNEB earnings analysis
What we found in WNEB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
WNEB delivered stronger first-half results, with six-month net income up 21.5% to $8.375 million, supported by 15.0% net interest income growth and a 33-basis-point expansion in net interest margin. Q2 performance was weaker, with diluted EPS declining to $0.18 from $0.23 as a $1.8 million CRE participation-loan charge-off drove higher credit costs. Loan and deposit balances grew modestly and capital remained strong, but rising criticized loans, nonaccruals and substantial CRE concentration temper the positive earnings and liquidity trends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net interest income and margin expanded
- Net interest income increased 9.5% year over year to $19.321 million, while net interest margin expanded 20 basis points to 3.00% from 2.80%. Management attributed the improvement primarily to average loan growth of 5.2% and a 7-basis-point increase in average loan yield.
- First-half earnings improved; Q2 softened
- Six-month net income increased 21.5% to $8.375 million from $6.893 million, and six-month diluted EPS rose to $0.42 from $0.34. However, Q2 net income declined 21.6% to $3.598 million from $4.590 million, with diluted EPS falling to $0.18 from $0.23.
- Residential and C&I drove loan growth
- Loan balances increased $9.9 million, or 0.5%, from December 31, 2025 to $2.194 billion. Residential real estate loans increased $31.7 million, or 3.7%, and commercial and industrial loans rose $12.5 million, or 5.6%, partly offsetting a $33.7 million, or 3.1%, decline in commercial real estate loans.
- Deposits rose as borrowings declined
- Deposits increased $40.5 million, or 1.7%, to $2.401 billion, while total borrowings declined $43.5 million, or 41.0%, to $62.550 million. Long-term debt fell $48.0 million to $25.0 million, supporting a lower funding balance.
- Operating cash flow strengthened
- Operating cash flow for the first six months was $6.986 million versus $6.009 million in the prior-year period. Capital spending was $1.502 million versus $582,000, while no free cash flow measure was disclosed.
- Capital and liquidity remained strong
- Capital remained above regulatory well-capitalized thresholds: the bank's total risk-based capital ratio was 13.47% versus a 10.00% well-capitalized minimum, and its common equity Tier 1 ratio was 12.47% versus a 6.50% minimum.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- CRE participation-loan charge-off
- The company recorded a $1.557 million Q2 provision for credit losses, including a $1.8 million partial charge-off on a commercial real estate participation loan after the borrower filed Chapter 11 bankruptcy on June 4, 2026. The remaining carrying value of the company's portion was $1.6 million.
- Criticized and nonaccrual loans increased
- Credit quality weakened: criticized loans increased to $63.877 million, or 2.9% of total loans, from $39.659 million, or 1.8%, at December 31, 2025. Nonaccrual loans rose to $7.759 million, or 0.35% of loans, from $5.162 million, or 0.24%.
- Elevated CRE concentration
- Commercial real estate concentration remains significant at $1.065 billion, or 48.6% of total loans and 383.2% of consolidated bank risk-based capital. Non-owner-occupied CRE was $882.978 million, or 317.6% of risk-based capital, exposing the company to property values, vacancies and refinancing conditions.
- Large securities unrealized losses
- The securities portfolio carried substantial unrealized losses: available-for-sale losses were $23.499 million and held-to-maturity losses were $30.686 million at June 30, 2026. Management attributed the losses primarily to interest-rate and market conditions and stated it does not anticipate being required to sell the securities before recovery.
- Funding mix shifted toward time deposits
- Core deposits declined $5.3 million, or 0.3%, to $1.666 billion, while time deposits increased $45.8 million, or 6.6%, to $735.749 million. In addition, $715.1 million, or 97.2% of total time deposits, was scheduled to mature within one year, creating potential repricing and retention risk.
- Credit costs offset operating gains
- Q2 net income fell $992,000, or 21.6%, to $3.598 million despite a $1.682 million increase in net interest income, as the credit-loss provision increased $2.172 million year over year and non-interest expense rose $699,000, or 4.5%, to $16.355 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Segment
- Single reportable segment: banking services; Q2 2026 net interest and dividend income $19.321 million and non-interest income $3.394 million, for total revenue of $22.715 million.
What they said about what is next.
No numeric forward revenue or EPS guidance was provided in the 10-Q. Management stated it anticipates sufficient funds to meet current funding commitments for the next 12 months and beyond, and expects a significant portion of time deposits maturing within one year to remain on deposit.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- Western New England Bancorp (WNEB) reported strong Q1 2026 results with a net income of $4.8 million, up 107.4% from the previous year, driving diluted EPS to $0.24. Revenue also increased significantly to $22.3…
- 10-K · March 10, 2026
- Western New England Bancorp (WNEB) emphasizes a deposit-funded, community-bank lending strategy focused on residential real estate plus growing commercial & industrial relationships in its New England market. 2025 saw…
- 10-Q · November 7, 2025
- Western New England Bancorp reported Q3 2025 net revenue (net interest and dividend income plus non‑interest income) of $21,265,000 and diluted EPS of $0.16, both higher year‑over‑year. Net interest income improved…
- 10-Q · August 8, 2025
- Western New England Bancorp reported a strong quarter: total revenue (net interest income + non-interest income) implied at $21,053 (17,642 net interest and dividend income + 3,411 non‑interest income) and diluted EPS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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