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…
Earnings analysis · 10-Q
WNEB earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
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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.
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Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- 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 stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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%.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.