WNEB

Western New England Bancorp (WNEB) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -28.00%. A quarter ago, it was expected that this bank holding company would post earnings of $0.21 per share when it actually produced earnings of $0.24, delivering a surprise of +14.29%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Western New England Bancorp, which belongs to the Zacks Banks - Foreign industry, posted revenues of $22.72 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $21.05 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Western New England Bancorp shares have added about 14.1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Western New England Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Western New England Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $23.08 million in revenues for the coming quarter and $1.00 on $91.16 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Credicorp (BAP), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This Peruvian finance company is expected to post quarterly earnings of $7.20 per share in its upcoming report, which represents a year-over-year change of +15.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Credicorp's revenues are expected to be $1.72 billion, up 9.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western New England Bancorp (WNEB) : Free Stock Analysis Report Credicorp Ltd. (BAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WESTFIELD, Mass., July 28, 2026 (GLOBE NEWSWIRE) -- 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 six months ended June 30, 2026. For the three months ended June 30, 2026, the Company reported net income of $3.6 million, or $0.18 per diluted share, compared to net income of $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025. On a linked quarter basis, net income was $3.6 million, or $0.18 per diluted share, as compared to net income of $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026. For the six months ended June 30, 2026, net income was $8.4 million, or $0.42 per diluted share, compared to net income of $6.9 million, or $0.34 per diluted share, for the six months ended June 30, 2025. The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 26, 2026 to shareholders of record on August 12, 2026. James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the second quarter of 2026. Our diversified loans and deposits, along with our disciplined approach to managing funding costs, resulted in an increase in the net interest margin to 3.00%. At June 30, 2026, core deposits and non-interest-bearing deposits represented 69.4% and 25.0% of total deposits, respectively, while the average cost of deposits stood at 1.74% for the three months ended June 30, 2026. We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate risk-adjusted return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. At June 30, 2026, our asset quality remained strong, with total delinquency at 0.21% of total loans, and total nonaccrual loans at 0.35% of total loans.” Hagan concluded, “We remain disciplined in our capital management strategies. During the six months ended June 30, 2026, we repurchased 381,000 shares of common stock and have 491,465 shares of common stock available for repurchase under the 2025 Repurchase Plan. We remain committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.” Key Highlights: Loans and Deposits At June 30, 2026, total loans increased $9.9 million, or 0.5%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025, to $2.2 billion, or 80.2% of total assets. The increase was primarily driven by an increase in residential real estate loans, including home equity loans, of $31.7 million, or 3.7%, and an increase in commercial and industrial loans of $12.5 million, or 5.6%, partially offset by a decrease in commercial real estate loans of $33.7 million, or 3.1%. At June 30, 2026, total deposits of $2.4 billion increased $40.5 million, or 1.7%, from December 31, 2025, primarily due to an increase in time deposits of $45.8 million, or 6.6%. Allowance for Credit Losses and Credit Quality At June 30, 2026, the allowance for credit losses was $20.2 million, or 0.92% of total loans, compared to $20.3 million, or 0.93% of total loans, at December 31, 2025. The allowance for credit losses, as a percentage of nonaccrual loans, was 260.2% and 393.2% at June 30, 2026, and December 31, 2025, respectively. At June 30, 2026, nonaccrual loans totaled $7.8 million, or 0.35% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. Total delinquent loans increased from $3.1 million, or 0.14% of total loans, at December 31, 2025, to $4.7 million, or 0.21% of total loans, at June 30, 2026. Of the $4.7 million in past due loans, 95.1% are residential real estate loans. At June 30, 2026, and December 31, 2025, the Company did not have any other real estate owned. Net Interest Margin The net interest margin increased five basis points from 2.95% for the three months ended March 31, 2026 to 3.00% for the three months ended June 30, 2026. The net interest margin, on a tax-equivalent basis, increased five basis points from 2.97% for the three months ended March 31, 2026, to 3.02% for the three months ended June 30, 2026. Stock Repurchase Program On April 22, 2025, the Board of Directors authorized the 2025 Repurchase Plan (“2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company’s then-outstanding shares of common stock. During the three months ended June 30, 2026, the Company repurchased 195,000 shares of its common stock at an average price per share of $13.80. For the six months ended June 30, 2026, the Company repurchased 381,000 shares of its common stock at an average price per share of $13.64. As of June 30, 2026, there were 491,465 shares of common stock available for repurchase under the 2025 Plan. The repurchase of shares under the 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to 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 the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 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. Book Value and Tangible Book Value The Company’s book value per share was $12.39 at June 30, 2026, compared to $12.16 at December 31, 2025, while tangible book value per share, a non-GAAP financial measure, increased $0.23, or 2.0%, from $11.49 at December 31, 2025, to $11.72 at June 30, 2026. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures. Building Sale Subsequent to the end of the reporting period, on July 10, 2026, the Company successfully completed the sale of its two buildings located at 219 and 229 Exchange Street, Chicopee, Massachusetts to the City of Chicopee. The transaction resulted in a total gross cash consideration of $2.4 million and a preliminary estimated gain on sale of approximately $717,000, which will be recognized in the consolidated financial statements for the third quarter of 2026. The staff was reassigned from this Chicopee facility to other locations within the organization which will yield operational efficiencies. Net Income for the Three Months Ended June 30, 2026 Compared to the Three Months Ended March 31, 2026 For the three months ended June 30, 2026, the Company reported net income of $3.6 million, or $0.18 per diluted share, compared to $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026. Net interest income increased $496,000, or 2.6%, the provision for credit losses increased $1.5 million, non-interest income decreased $39,000, or 1.1%, and non-interest expense increased $347,000, or 2.2%. Return on average assets and return on average equity were 0.53% and 5.84%, respectively, for the three months ended June 30, 2026, compared to 0.71% and 7.77%, respectively, for the three months ended March 31, 2026. Net Interest Income and Net Interest Margin Net interest income, our primary driver of revenues, increased $496,000, or 2.6%, from $18.8 million for the three months ended March 31, 2026, to $19.3 million for the three months ended June 30, 2026. The increase in net interest income was due to an increase in interest and dividend income of $500,000, or 1.7%, driven by higher interest income from loans. During the same period, interest expense on deposits increased $380,000, or 3.8%, which was offset by a decrease in interest expense on borrowings of $376,000, or 25.4%. During the three months ended June 30, 2026, the net interest margin was 3.00%, compared to 2.95% for the three months ended March 31, 2026. The net interest margin, on a tax-equivalent basis, was 3.02% for the three months ended June 30, 2026, compared to 2.97% for the three months ended March 31, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased three basis points from 4.74% for the three months ended March 31, 2026, to 4.77% for the three months ended June 30, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased three basis points from 5.09% for the three months ended March 31, 2026, to 5.12% for the three months ended June 30, 2026. During the same period, average loans increased $3.3 million, or 0.2%, and average short-term investments increased $1.2 million, or 4.8%, while average securities decreased $8.1 million, or 2.2%, and average other investments decreased $1.4 million, or 9.1%. For the three months ended June 30, 2026, the average cost of core deposits, which the Company defines as all deposits except time deposits, was 1.03%, compared to 1.02% for the three months ended March 31, 2026. The average cost of time deposits decreased three basis points from 3.41% for the three months ended March 31, 2026, to 3.38% for the three months ended June 30, 2026. The average cost of borrowings, including subordinated debt, increased 40 basis points from 4.75% for the three months ended March 31, 2026, to 5.15% for the three months ended June 30, 2026. Average demand deposits, an interest-free source of funds, increased $4.6 million, or 0.8%, from $588.5 million, or 25.1% of total average deposits, for the three months ended March 31, 2026, to $593.1 million, or 24.9% of total average deposits, for the three months ended June 30, 2026. For the three months ended June 30, 2026, the average cost of total funds, including non-interest bearing accounts and borrowings, decreased two basis points to 1.86%. Provision for (Reversal of) Credit Losses The provision for credit losses was $1.6 million during the three months ended June 30, 2026, compared to $75,000, during the three months ended March 31, 2026. The increase in the provision for credit losses was primarily due to a partial charge-off of $1.8 million on a non-owner occupied commercial real estate participation loan relationship (“participation loan”) secured by an office building. The Company does not have any additional exposure to the borrower or guarantor involved in the participation loan. In June 2026, the Company was notified by the lead bank of the participation loan that on June 4, 2026, the borrower filed for Chapter 11 Bankruptcy (“Bankruptcy Filing”). Immediately prior to notification of the Bankruptcy Filing, the Company’s 40% portion of the participation loan had a carrying value of $3.4 million and the borrower was then current with its scheduled payments. During the three months ended June 30, 2026, due to the Bankruptcy Filing, the Company downgraded the participation loan to substandard, placed the loan on nonaccrual status and recognized a partial charge-off of $1.8 million. At June 30, 2026, the Company’s portion of the remaining carrying value of the participation loan was $1.6 million, down from the $3.5 million carrying value at March 31, 2026. The Company currently expects full recovery of the remaining carrying value through the anticipated sale of the underlying collateral. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. During the three months ended June 30, 2026, the Company recorded net charge-offs of $1.8 million, or 0.33% of average loans, on an annualized basis, compared to net charge-offs of $55,000, or 0.01% of average loans, on an annualized basis, for the three months ended March 31, 2026. The increase in net charge-offs during the three months ended June 30, 2026 was due to the $1.8 million charge-off of the participation loan discussed above. Non-Interest Income For the three months ended June 30, 2026, non-interest income of $3.4 million decreased $39,000, or 1.1%, from the three months ended March 31, 2026. During the three months ended March 31, 2026, non-interest income included the recognition of $449,000 in bank-owned life insurance (“BOLI”) death benefits. Excluding the BOLI death benefits, non-interest income increased $409,000, or 13.7%. Service charges and fees on deposits increased $291,000, or 13.7%, from $2.1 million for the three months ended March 31, 2026, to $2.4 million for the three months ended June 30, 2026. For the three months ended June 30, 2026, and the three months ended March 31, 2026, wealth management income totaled $389,000 and $390,000, respectively. During the same period, assets under management increased from $235.6 million at March 31, 2026, to $256.6 million at June 30, 2026, reflecting net investment appreciation and assets acquired. Income from BOLI increased $59,000, or 12.4%, from the three months ended March 31, 2026, to $535,000 for the three months ended June 30, 2026. During the three months ended June 30, 2026, the Company reported unrealized gains on marketable equity securities of $47,000, compared to unrealized losses of $13,000 during the three months ended March 31, 2026. Non-Interest Expense For the three months ended June 30, 2026, non-interest expense increased $347,000, or 2.2%, to $16.4 million from the three months ended March 31, 2026. During the three months ended June 30, 2026, salaries and employee benefits increased $247,000, or 2.7%, primarily due to one additional day of payroll expense. Data processing expense increased $140,000, or 17.1%, professional fees increased $113,000, or 22.2%, software related expenses increased $23,000, or 3.3%, advertising expense increased $15,000, or 3.4%, and other non-interest expense increased $115,000, or 9.1%. These increases were partially offset by a decrease in occupancy expense of $243,000, or 15.6%, from the three months ended March 31, 2026. During the three months ended March 31, 2026, occupancy expense included $240,000 in snow removal expense. The Company did not have a comparable expense during the three months ended June 30, 2026. Furniture and equipment expense decreased $29,000, or 6.7%, debit card processing and ATM network costs decreased $19,000, or 2.9%, and FDIC insurance expense decreased $15,000, or 3.8%. For the three months ended June 30, 2026, and the three months ended March 31, 2026, the efficiency ratio was 72.0% and 71.9%, respectively. For the three months ended June 30, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 72.2% compared to 73.4% for the three months ended March 31, 2026. See pages 19-21 for the related efficiency ratio and adjusted efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures. Income Tax Provision Income tax expense for the three months ended June 30, 2026 was $1.2 million, with an effective tax rate of 25.1%, compared to $1.4 million, with an effective tax rate of 22.6%, for the three months ended March 31, 2026. Net Income for the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025 The Company reported a decrease in net income of $992,000, or 21.6%, from $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025, to $3.6 million, or $0.18 per diluted share, for the three months ended June 30, 2026. Net interest income increased $1.7 million, or 9.5%, provision for credit losses increased $2.2 million, non-interest income decreased $17,000, or 0.5%, and non-interest expense increased $699,000, or 4.5%. Return on average assets and return on average equity were 0.53% and 5.84%, respectively, for the three months ended June 30, 2026, compared to 0.69% and 7.76%, respectively, for the three months ended June 30, 2025. Net Interest Income and Net Interest Margin Net interest income increased $1.7 million, or 9.5%, to $19.3 million, for the three months ended June 30, 2026, from $17.6 million for the three months ended June 30, 2025. The increase in net interest income was due to an increase in interest and dividend income of $1.2 million, or 3.9%, and a decrease in interest expense of $510,000, or 4.3%. During the three months ended June 30, 2026, and the three months ended June 30, 2025, the Company recorded prepayment penalties related to payoffs in the commercial real estate portfolio of $82,000 and $425,000, respectively. Excluding the prepayment penalties, net interest income increased $2.0 million, or 11.7%. The increase in interest and dividend income was primarily due to an increase in average loans of $108.6 million, or 5.2%, and an increase of seven basis points in the average loan yield, without the impact of tax-equivalent adjustments, from the three months ended June 30, 2025 to the three months ended June 30, 2026. The net interest margin increased 20 basis points from 2.80% for the three months ended June 30, 2025 to 3.00% for the three months ended June 30, 2026. The net interest margin, on a tax-equivalent basis, increased 20 basis points from 2.82% for the three months ended June 30, 2025 to 3.02% for the three months ended June 30, 2026. Excluding the prepayment penalties discussed above, the net interest margin increased 25 basis points from 2.73% for the three months ended June 30, 2025 to 2.98%, for the three months ended June 30, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased eight basis points from 4.69% for the three months ended June 30, 2025 to 4.77%, for the three months ended June 30, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased seven basis points from 5.05% for the three months ended June 30, 2025, to 5.12% for the three months ended June 30, 2026. During the three months ended June 30, 2026, average interest-earning assets increased $55.9 million, or 2.2%, to $2.6 billion, primarily due to an increase in average loans of $108.6 million, or 5.2%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $32.6 million, or 55.6%, and a decrease in average securities of $19.2 million, or 5.1%. The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 12 basis points from 1.98% for the three months ended June 30, 2025, to 1.86% for the three months ended June 30, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased two basis points from 1.01% for the three months ended June 30, 2025, to 1.03% for the three months ended June 30, 2026. The average cost of time deposits decreased 31 basis points from 3.69% for the three months ended June 30, 2025, to 3.38% for the three months ended June 30, 2026. The average cost of borrowings, including subordinated debt, increased 11 basis points from 5.04% for the three months ended June 30, 2025, to 5.15%, for the three months ended June 30, 2026. Average demand deposits, an interest-free source of funds, increased $20.3 million, or 3.5%, from $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025, to $593.1 million, or 24.9% of total average deposits, for the three months ended June 30, 2026. Provision for (Reversal of) Credit Losses The Company recorded a provision for credit losses of $1.6 million during the three months ended June 30, 2026, compared to a reversal of credit losses of $615,000 during the three months ended June 30, 2025. The increase in the provision for credit losses was primarily due to the charge-off of $1.8 million on the participation loan discussed above. The reversal of credit losses, during the three months ended June 30, 2025, was a result of a recovery in the amount of $624,000 on a charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. The Company recorded net charge-offs of $1.8 million, or 0.33% of average loans, on an annualized basis, for the three months ended June 30, 2026, compared to net recoveries of $585,000, or 0.11% of average loans, on an annualized basis, for the three months ended June 30, 2025. The increase in net charge-offs during the three months ended June 30, 2026 was due to the $1.8 million charge-off of the participation loan discussed above.Non-Interest Income Non-interest income decreased $17,000, or 0.5%, to $3.4 million for the three months ended June 30, 2026 from $3.4 million for the three months ended June 30, 2025. During the three months ended June 30, 2026, service charges and fees on deposits increased $187,000, or 8.4%, wealth management income increased $96,000, or 32.8%, income from BOLI increased $19,000, or 3.7%, from $516,000 for the three months ended June 30, 2025, to $535,000 for the three months ended June 30, 2026. During the three months ended June 30, 2026 and the three months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $47,000 and $25,000, respectively. During the three months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments and did not have comparable income during the three months ended June 30, 2026. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2026. Non-Interest Expense For the three months ended June 30, 2026, non-interest expense increased $699,000, or 4.5%, to $16.4 million from $15.7 million for the three months ended June 30, 2025. The increase in non-interest expense was due to an increase in salaries and benefits of $645,000, or 7.3%, an increase in software related expense of $67,000, or 10.4%, an increase in occupancy expense of $54,000, or 4.3%, an increase in other non-interest expense of $31,000, or 2.3%, an increase in data processing expense of $28,000, or 3.0%, and an increase in advertising and marketing expense of $14,000, or 3.2%. These increases were partially offset by a decrease in furniture and equipment expense of $87,000, or 17.7%, a decrease in debit card and ATM processing fees of $30,000, or 4.5%, and a decrease in FDIC insurance expense of $22,000, or 5.5%. For the three months ended June 30, 2026, the efficiency ratio was 72.0%, compared to 74.4% for the three months ended June 30, 2025. For the three months ended June 30, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 72.2% compared to 75.3% for the three months ended June 30, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by an increase in total revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. See pages 19-21 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 June 30, 2026, was $1.2 million, or an effective tax rate of 25.1%, compared to $1.4 million, or an effective tax rate of 23.7%, for the three months ended June 30, 2025. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2026. Net Income for the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025 For the six months ended June 30, 2026, the Company reported net income of $8.4 million, or $0.42 per diluted share, compared to $6.9 million, or $0.34 per diluted share, for the six months ended June 30, 2025. Net interest income increased $5.0 million, or 15.0%, provision for credit losses increased $2.1 million, non-interest income increased $657,000, or 10.6%, and non-interest expense increased $1.5 million, or 4.9%, during the same period. Return on average assets and return on average equity were 0.62% and 6.80% for the six months ended June 30, 2026, respectively, compared to 0.52% and 5.87% for the six months ended June 30, 2025, respectively. Net Interest Income and Net Interest Margin During the six months ended June 30, 2026, net interest income increased $5.0 million, or 15.0%, to $38.1 million, compared to $33.2 million for the six months ended June 30, 2025. The increase in net interest income was due to an increase in interest and dividend income of $3.0 million, or 5.2%, driven by higher interest income from loans, and a decrease in interest expense of $2.0 million, or 7.9%. The decrease in interest expense was due to a decrease in interest expense on deposits of $1.5 million, or 6.8%, and a decrease in interest expense on borrowings of $480,000, or 15.7%. The net interest margin increased 33 basis points from 2.64%, for the six months ended June 30, 2025, to 2.97% for the six months ended June 30, 2026. The net interest margin, on a tax-equivalent basis, increased 33 basis points from 2.66%, for the six months ended June 30, 2025, to 2.99% for the six months ended June 30, 2026. During the six months ended June 30, 2026, and the six months ended June 30, 2025, the Company recorded $98,000 and $425,000, respectively, in prepayment penalties related to payoffs in the commercial portfolio. Excluding the prepayment penalties, the net interest margin increased 35 basis points from 2.61% for the six months ended June 30, 2025, to 2.96% for the six months ended June 30, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.76% for the six months ended June 30, 2026, compared to 4.63% for the six months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, was 5.11% for the six months ended June 30, 2026, compared to 4.97% for the six months ended June 30, 2025. During the six months ended June 30, 2026, average interest-earning assets increased $58.5 million, or 2.3%, to $2.6 billion, from the same period in 2025. The increase was primarily due to an increase in average loans of $110.8 million, or 5.3%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $41.8 million, or 62.2%, and a decrease in average securities of $10.3 million, or 2.8%. The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 20 basis points from 2.07% for the six months ended June 30, 2025, to 1.87% for the six months ended June 30, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased three basis points to 1.02% for the six months ended June 30, 2026, from 1.05% for the six months ended June 30, 2025. The average cost of time deposits decreased 50 basis points from 3.90% for the six months ended June 30, 2025, to 3.40% for the six months ended June 30, 2026. The average cost of borrowings, including subordinated debt, decreased 13 basis points from 5.04% for the six months ended June 30, 2025, to 4.91% for the six months ended June 30, 2026. Average demand deposits, an interest-free source of funds, increased $19.6 million, or 3.4%, from $571.2 million, or 24.8% of total average deposits, for the six months ended June 30, 2025, to $590.8 million, or 25.0% of total average deposits, for the six months ended June 30, 2026. Provision for (Reversal of) Credit Losses The Company recorded a provision for credit losses of $1.6 million during the six months ended June 30, 2026, compared to a reversal of credit losses of $473,000 during the six months ended June 30, 2025. The increase in the provision for credit losses was primarily due to the partial charge-off of $1.8 million on the participation loan discussed above. The provision for credit losses was also determined by a number of factors: the continued overall strong credit performance of the Company’s diversified loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. The Company recorded net charge-offs of $1.8 million, or 0.34% of average loans, on an annualized basis, for the six months ended June 30, 2026, as compared to net recoveries of $556,000, or 0.11%, of average loans, on an annualized basis, for the six months ended June 30, 2025. The increase in net charge-offs during the six months ended June 30, 2026 was due to the $1.8 million charge-off of the participation loan discussed above. During the six months ended June 30, 2025, the Company recorded a recovery of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. Non-Interest Income For the six months ended June 30, 2026, non-interest income increased $657,000, or 10.6%, from $6.2 million during the six months ended June 30, 2025, to $6.8 million. During the six months ended June 30, 2026, non-interest income included the recognition of $450,000 in BOLI death benefits. Excluding the BOLI death benefits, non-interest income increased $207,000, or 3.4%. During the same period, service charges and fees on deposits increased $295,000, or 6.9%, wealth management income increased $225,000, or 40.6%, and income from BOLI increased $22,000, or 2.2%. During the six months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments and did not have comparable income during the six months ended June 30, 2026. During the six months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the six months ended June 30, 2026. During the six months ended June 30, 2026, the Company reported unrealized gains on marketable equity securities of $34,000, compared to unrealized gains on marketable equity securities of $20,000 during the six months ended June 30, 2025. 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 six months ended June 30, 2025, the Company reported $11,000 in gains from mortgage banking activities and did not have comparable gains or losses during the six months ended June 30, 2026. Non-Interest Expense For the six months ended June 30, 2026, non-interest expense increased $1.5 million, or 4.9%, to $32.4 million, compared to $30.8 million for the six months ended June 30, 2025. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.5 million, or 8.5%, due to annual merit increases and increases in health insurance benefits. During the same period, occupancy expense increased $204,000, or 7.6%, due to an increase in snow removal costs of $111,000, or 76.6%. Software related expenses increased $97,000, or 7.4%, debit card and ATM processing fees increased $56,000, or 4.5%, and advertising expense increased $27,000, or 3.1%. These increases were partially offset by a decrease in furniture and equipment expense of $141,000, or 14.4%, a decrease in FDIC insurance expense of $61,000, or 7.3%, a decrease in other non-interest expense of $49,000, or 1.8%, a decrease in professional fees of $38,000, or 3.3%, and a decrease in data processing expense of $33,000, or 1.8%. For the six months ended June 30, 2026, the efficiency ratio was 72.0% compared to 78.4% for the six months ended June 30, 2025. For the six months ended June 30, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 72.7%, compared to 78.9% for the six months ended June 30, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues, defined as the sum of net interest income and non-interest income, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The adjusted efficiency ratio is a non-GAAP measure. See pages 19-21 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures. Income Tax Provision Income tax expense for the six months ended June 30, 2026, was $2.6 million, representing an effective tax rate of 23.7%, compared to $2.1 million, representing an effective tax rate of 23.2%, for the six months ended June 30, 2025. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2026. Balance Sheet At June 30, 2026, total assets were $2.7 billion, a decrease of $4.2 million, or 0.1%, from December 31, 2025. The decrease in total assets was primarily due to a decrease in investment securities of $12.2 million, or 3.4%, and a decrease in cash and cash equivalents of $2.7 million, or 6.7%, partially offset by an increase in total loans of $9.9 million, or 0.5%. Investments At June 30, 2026, the investment securities portfolio totaled $353.0 million, or 12.9% of total assets, compared to $365.2 million, or 13.3% of total assets, at December 31, 2025. At June 30, 2026, the Company’s available-for-sale securities portfolio, recorded at fair market value, decreased $5.2 million, or 3.0%, from $175.8 million at December 31, 2025 to $170.6 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $7.1 million, or 3.8%, from $188.8 million at December 31, 2025, to $181.7 million at June 30, 2026. At June 30, 2026, the Company reported net unrealized losses on the available-for-sale securities portfolio of $22.9 million, or 11.8% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $22.4 million, or 11.3% of the amortized cost basis of the available-for-sale securities at December 31, 2025. At June 30, 2026, the Company reported net unrealized losses on the held-to-maturity securities portfolio of $30.5 million, or 16.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $30.3 million, or 16.1% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2025. The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $13.1 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses within the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity. Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2026, and December 31, 2025, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's objective to provide liquidity. Total Loans Total loans increased $9.9 million, or 0.5%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025, to $2.2 billion, or 80.2% of total assets, at June 30, 2026. The increase in total loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $31.7 million, or 3.7%, an increase in commercial and industrial loans of $12.5 million, or 5.6%, partially offset by a decrease in commercial real estate loans of $33.7 million, or 3.1%. The decrease in commercial real estate loans was primarily driven by an increased level of prepayments in the commercial real estate loan portfolio and the partial charge-off of $1.8 million on the participation loan discussed above. Non-owner occupied commercial real estate loans decreased $27.3 million, or 3.0%, to $883.0 million, or 40.3% of total loans and owner-occupied commercial real estate loans decreased $6.5 million, or 3.4%, to $182.4 million, or 8.3% of total loans. The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated: Credit Quality Total delinquency was $4.7 million, or 0.21% of total loans, at June 30, 2026, compared to $3.1 million, or 0.14% of total loans at December 31, 2025. Of the $4.7 million in past due loans, 95.1% are residential real estate loans. At June 30, 2026, nonaccrual loans totaled $7.8 million, or 0.35% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. The increase in nonaccrual loans was primarily attributable to the participation loan discussed above, which was placed on nonaccrual status following the borrower’s Bankruptcy Filing. At June 30, 2026, and December 31, 2025, there were no loans 90 or more days past-due and still accruing interest. Total nonperforming assets, defined as nonaccrual loans and other real estate owned, totaled $7.8 million, or 0.28% of total assets, at June 30, 2026, compared to $5.2 million, or 0.19% of total assets, at December 31, 2025. At June 30, 2026, and December 31, 2025, the Company did not have any other real estate owned. At June 30, 2026, the allowance for credit losses was $20.2 million, or 0.92% of total loans and 260.2% of nonaccrual loans, compared to $20.3 million, or 0.93% of total loans and 393.2% of nonaccrual loans, at December 31, 2025. The decrease in the allowance for credit losses as a percentage of nonaccrual loans was due to the increase in nonaccrual loans from $5.2 million at December 31, 2025, to $7.8 million at June 30, 2026. Management continues to closely monitor the loan portfolio for any signs of weakness due to the speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and higher interest rates as well as any signs of deterioration in the borrower’s financial condition. Management continues to proactively take steps to mitigate risk in the loan portfolio. At June 30, 2026, total criticized loans, defined as special mention and substandard loans, totaled $63.9 million, or 2.9% of total loans, compared to $39.7 million, or 1.8% of total loans, at December 31, 2025. Loans designated special mention, which are not considered classified, increased $23.1 million, from $17.2 million, or 0.8% of total loans, at December 31, 2025, to $40.3 million, or 1.8% of total loans, at June 30, 2026. During the same period, substandard loans increased $1.1 million, or 4.9%, to $23.6 million, or 1.1% of total loans. Of the $40.3 million in loans designated special mention at June 30, 2026, $17.8 million, or 44.2%, are commercial and industrial loans, and $22.5 million, or 55.8%, are commercial real estate loans. Of the $23.6 million in loans categorized substandard at June 30, 2026, $7.2 million, or 30.5%, are commercial and industrial loans, $10.5 million, or 44.5%, are commercial real estate loans, and $5.9 million, or 25.0%, are residential real estate loans. Of the total $63.9 million in criticized loans at June 30, 2026, 95.6% are current and paying as agreed. The increase in special mention loans from December 31, 2025, to June 30, 2026, resulted from the downgrade of two commercial relationships totaling $21.5 million, from pass risk ratings to special mention. The increase in substandard loans from December 31, 2025, to June 30, 2026, resulted from the downgrade of the participation loan with a carrying value of $1.6 million, net of the $1.8 million charge-off, discussed above. Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At June 30, 2026, the commercial real estate portfolio totaled $1.1 billion and represented 48.6% of total loans. Of the $1.1 billion, $883.0 million, or 82.9% of the commercial real estate portfolio, was categorized as non-owner occupied commercial real estate and represented 317.6% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation. Deposits At June 30, 2026, total deposits were $2.4 billion and increased $40.5 million, or 1.7%, from December 31, 2025. Core deposits, which the Company defines as all deposits except time deposits, decreased $5.3 million, or 0.3%, from $1.7 billion, or 70.8% of total deposits, at December 31, 2025, to $1.7 billion, or 69.4% of total deposits, at June 30, 2026. Non-interest-bearing deposits increased $6.1 million, or 1.0%, to $600.6 million, and represented 25.0% of total deposits, money market accounts increased $2.7 million, or 0.4%, to $718.4 million, and savings accounts increased $6.6 million, or 3.5%, to $193.2 million. These increases were partially offset by a decrease in interest-bearing checking accounts of $20.7 million, or 11.9%, to $153.5 million. At June 30, 2026, time deposits increased $45.8 million, or 6.6%, from $689.9 million at December 31, 2025, to $735.7 million. The Company did not have brokered time deposits at June 30, 2026 and December 31, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At June 30, 2026, the Bank’s uninsured deposits totaled $722.7 million, or 30.1% of total deposits, compared to $697.6 million, or 29.5% of total deposits, at December 31, 2025. Uninsured amounts were based on the portion of customer account balances that exceeded the FDIC limit of $250,000. At June 30, 2026, there was one consumer deposit relationship, which is our largest deposit relationship, with a household concentration comprising 5.8% of total deposits, compared to 5.0% of total deposits at December 31, 2025. The next largest deposit relationship is to a local municipality with a concentration of 1.3% of total deposits at June 30, 2026, and 1.9% at December 31, 2025. The table below is a summary of our deposit balances for the periods noted: FHLB and Subordinated Debt At June 30, 2026, total borrowings decreased $43.5 million, or 41.0%, from $106.1 million at December 31, 2025, to $62.6 million. At June 30, 2026, short-term borrowings increased $4.5 million, or 33.7%, to $17.7 million, compared to $13.3 million at December 31, 2025. At June 30, 2026, long-term borrowings decreased $48.0 million, or 65.8%, to $25.0 million from $73.0 million at December 31, 2025. At June 30, 2026, and December 31, 2025, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes (“Notes”). On April 20, 2021, the Company issued $20.0 million in aggregate principal amount of fixed-to-floating rate Notes due on May 1, 2031. On May 1, 2026, the Company’s Notes converted from an annual fixed rate of 4.875% to a floating rate equal to the 90-day average secured overnight financing rate (“SOFR”) plus 412 basis points. The Company has the ability to call the Notes, in whole, or in part, on or after May 1, 2026, and at any time upon the occurrence of certain events, subject in each case to the approval of the Board of Governors of the Federal Reserve System (the “Federal Reserve”). The Notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital adequacy regulations. As of June 30, 2026, the Company had $547.5 million of additional borrowing capacity at the FHLB, $392.7 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks. Capital At June 30, 2026, shareholders’ equity was $248.3 million, or 9.1% of total assets, compared to $247.6 million, or 9.1% of total assets, at December 31, 2025. The change was primarily attributable to net income of $8.4 million, partially offset by cash dividends paid of $2.8 million and the repurchase of 381,000 shares at a cost of $5.2 million. At June 30, 2026, total shares outstanding were 20,045,872. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. 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, and 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: unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry; the possibility that future credit losses, loan defaults and charge-off rates are higher than expected due to changes in economic assumptions or adverse economic developments; general business and economic conditions on a national basis and in the local markets in which we operate, including those impacting credit quality; unstable political and economic conditions, including changes in tariff policies, which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including potential future increases in interest rates that reduce net interest margins; 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 Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations; changes in regulation, regulatory policy, legislation, accounting standards and practices, and fiscal monetary policy, particularly in light of the shift in presidential administrations and the potential for related shifts in agency policy and leadership; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity incidents, technological integration, including AI, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions or litigation; disruptive technologies in payment systems and other services traditionally provided by financial institutions; the risk that we may not be successful in the implementation of our business strategy; severe weather, natural disasters, pandemics, acts of war, or terrorism and other external events which could significantly impact our business; declines in real estate values in the Company’s market area, which may adversely affect our loan production; decreases in the value of securities and other assets, or changes in the securities markets which affect investment management revenue; decreases in deposit levels necessitating increased borrowing to fund loans, investments and other needs; competitive pressures from other financial institutions; the soundness of other financial services institutions which may adversely affect our credit risk; failure or circumvention of our internal controls or procedures; the risk that goodwill and intangibles recorded in our financial statements will become impaired; increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; introduction of 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; and other risks and uncertainties detailed in Part 1A “Risk Factors” of the Company’s 2025 Annual Report on Form 10-K. 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. __________________________ (1)  The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and gain on bank-owned life insurance death benefits. (2)  Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares. The following table sets forth the information relating to our average balances and net interest income for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2026 and 2025 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. (1)  Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.(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.(3)  Short-term investments include federal funds sold.(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.  (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 weighted average cost of interest-bearing liabilities.(6)  Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.(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. (8)  Annualized. 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 its results of operations and 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 further information contact:James C. Hagan, President and CEOGuida R. Sajdak, Executive Vice President and CFOMeghan Hibner, First Vice President and Investor Relations Officer413-568-1911

WESTFIELD, Mass., April 28, 2026 (GLOBE NEWSWIRE) -- 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 months ended March 31, 2026. The Company reported net income of $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026, compared to net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025. On a linked quarter basis, net income was $4.8 million, or $0.24 per diluted share, compared to net income of $5.2 million, or $0.26 per diluted share, for the three months ended December 31, 2025. The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about May 27, 2026 to shareholders of record on May 13, 2026. James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the first quarter of 2026. Our loan growth, strong and diversified core deposit base, along with our disciplined approach to managing funding costs resulted in an increase in the net interest margin to 2.95%. In the first quarter, core deposits and non-interest bearing deposits represented 70.2% and 25.1% of total deposits, respectively, while the average cost of deposits decreased to 1.72%. We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. At March 31, 2026, our asset quality remained strong, with total delinquency at 0.14% of total loans, and total nonaccrual loans at 0.21% of total loans.” Hagan concluded, “We remain disciplined in our capital management strategies. During the three months ended March 31, 2026, we repurchased 186,000 shares of common stock and have 686,465 shares of common stock available for repurchase under the 2025 Repurchase Plan. We are pleased with our first quarter results and are committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.” Key Highlights: Loans and Deposits At March 31, 2026, total loans increased $17.2 million, or 0.8%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 79.5% of total assets. The increase was primarily driven by an increase in residential real estate loans, including home equity loans, of $9.6 million, or 1.1%, an increase in commercial and industrial loans of $6.0 million, or 2.7%, and an increase in commercial real estate loans of $2.1 million, or 0.2%. At March 31, 2026, total deposits of $2.4 billion, increased $20.9 million, or 0.9%, from December 31, 2025, primarily due to a $19.9 million, or 2.9%, increase in time deposits. Allowance for Credit Losses and Credit Quality At March 31, 2026, the allowance for credit losses was $20.5 million, or 0.93% of total loans, compared to $20.3 million, or 0.93% of total loans, at December 31, 2025. The allowance for credit losses, as a percentage of nonaccrual loans, was 436.9% and 393.2% at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026, nonaccrual loans totaled $4.7 million, or 0.21% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. Total delinquent loans increased from $3.1 million, or 0.14% of total loans, at December 31, 2025 to $3.2 million, or 0.14% of total loans, at March 31, 2026. At March 31, 2026 and December 31, 2025, the Company did not have any other real estate owned. Net Interest Margin The net interest margin increased six basis points from 2.89% for the three months ended December 31, 2025 to 2.95% for the three months ended March 31, 2026. The net interest margin, on a tax-equivalent basis, increased six basis points from 2.91% for the three months ended December 31, 2025 to 2.97% for the three months ended March 31, 2026. Stock Repurchase Program On April 22, 2025, the Board of Directors authorized the 2025 Repurchase Plan (the “2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company’s then-outstanding shares of common stock beginning in June of 2025. During the three months ended March 31, 2026, the Company repurchased 186,000 shares of its common stock at an average price per share of $13.48. As of March 31, 2026, there were 686,465 shares of common stock available for repurchase under the 2025 Plan. The repurchase of shares under the 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to 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 the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 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. Book Value and Tangible Book Value The Company’s book value per share was $12.26 at March 31, 2026, compared to $12.16 at December 31, 2025, while tangible book value per share, a non-GAAP financial measure, increased $0.10, or 0.9%, from $11.49 at December 31, 2025 to $11.59 at March 31, 2026. See pages 16-17 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures. Net Income for the Three Months Ended March 31, 2026 Compared to the Three Months Ended December 31, 2025 For the three months ended March 31, 2026, the Company reported net income of $4.8 million, or $0.24 per diluted share, compared to $5.2 million, or $0.26 per diluted share, for the three months ended December 31, 2025. Net interest income totaled $18.8 million for the three months ended March 31, 2026 and the three months ended December 31, 2025. The provision for credit losses increased $560,000, non-interest income increased $260,000, or 8.2%, and non-interest expense increased $138,000 or 0.9%. Return on average assets and return on average equity were 0.71% and 7.77%, respectively, for the three months ended March 31, 2026, compared to 0.75% and 8.40%, respectively, for the three months ended December 31, 2025. Net Interest Income and Net Interest Margin Net interest income, our primary driver of revenues, totaled $18.8 million for the three months ended March 31, 2026 and the three months ended December 31, 2025. During the three months ended March 31, 2026, interest and dividend income decreased $256,000, or 0.8%, which was offset by a decrease in interest expense of $252,000, or 2.2%. The net interest margin was 2.95% for the three months ended March 31, 2026, compared to 2.89% for the three months ended December 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.97% for the three months ended March 31, 2026, compared to 2.91% for the three months ended December 31, 2025. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased five basis points from 4.69% for the three months ended December 31, 2025 to 4.74% for the three months ended March 31, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased six basis points from 5.03% for the three months ended December 31, 2025, to 5.09% for the three months ended March 31, 2026. During the same period, average loans increased $19.7 million, or 0.9%, average securities decreased $6.2 million, or 1.7%, and average short-term investments decreased $7.7 million, or 23.7%. For the three months ended March 31, 2026 and the three months ended December 31, 2025, the average cost of total funds, including non-interest bearing accounts and borrowings, was 1.88%. For the three months ended March 31, 2026 and the three months ended December 31, 2025, the average cost of core deposits, which the Company defines as all deposits except time deposits, was 1.02%. The average cost of time deposits decreased five basis points from 3.46% for the three months ended December 31, 2025, to 3.41% for the three months ended March 31, 2026. The average cost of borrowings, including subordinated debt, decreased 21 basis points from 4.96% for the three months ended December 31, 2025 to 4.75% for the three months ended March 31, 2026. Average demand deposits, an interest-free source of funds, decreased $8.0 million, or 1.3%, from $596.5 million, or 25.3%, of total average deposits, for the three months ended December 31, 2025, to $588.5 million, or 25.1% of total average deposits, for the three months ended March 31, 2026. Provision for (Reversal of) Credit Losses During the three months ended March 31, 2026, the Company recorded a provision for credit losses of $75,000, compared to a reversal of credit losses of $485,000 during the three months ended December 31, 2025. The provision for credit losses was determined by a number of factors, including, Management’s consideration of existing economic conditions and the economic outlook, the continued strong credit performance of the Company’s loan portfolio, and changes in the loan portfolio mix. Management continues to monitor macroeconomic variables related to the current interest rate environment, tariffs, global unrest resulting from conflicts, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment and supportable forecast. During the three months ended March 31, 2026, the Company recorded net charge-offs of $55,000, compared to net charge-offs of $41,000 for the three months ended December 31, 2025. Non-Interest Income Non-interest income increased $260,000, or 8.2%, from $3.2 million for the three months ended December 31, 2025 to $3.4 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, non-interest income included the recognition of $449,000 in bank-owned life insurance (“BOLI”) death benefits. Service charges and fees on deposits decreased $103,000, or 4.6%, from $2.2 million for the three months ended December 31, 2025 to $2.1 million for the three months ended March 31, 2026. For the three months ended March 31, 2026, wealth management income totaled $390,000, compared to $319,000 for the three months ended December 31, 2025. During the same period, assets under management increased from $234.0 million at December 31, 2025 to $235.6 million at March 31, 2026, reflecting net investment appreciation and assets acquired. Income from BOLI decreased $16,000, or 3.3%, from the three months ended December 31, 2025 to $476,000 for the three months ended March 31, 2026. During the three months ended December 31, 2025, the Company reported $135,000 in income from loan-level swap fees on commercial loans and did not report comparable income during the three months ended March 31, 2026. During the three months ended March 31, 2026 and the three months ended December 31, 2025, the Company reported unrealized losses on marketable equity securities of $13,000 and $7,000, respectively. Non-Interest Expense For the three months ended March 31, 2026, non-interest expense increased $138,000, or 0.9%, to $16.0 million from the three months ended December 31, 2025. Occupancy expense increased $250,000, or 19.1%, primarily due to snow removal costs of $255,000 during the three months ended March 31, 2026, compared to $53,000 during the three months ended December 31, 2025. Professional fees increased $121,000, or 31.2%, advertising expense increased $93,000, or 26.6%, debit card processing and ATM network costs increased $64,000, or 10.7%, and software related expenses increased $2,000, or 0.3%. These increases were partially offset by a decrease in other non-interest expense of $160,000, or 11.2%, a decrease in salaries and employee benefits of $144,000, or 1.5%, a decrease in data processing of $78,000, or 8.7%, a decrease in FDIC insurance expense of $6,000, or 1.5%, and a decrease in furniture and equipment expense of $4,000, or 0.9%. For the three months ended March 31, 2026 and the three months ended December 31, 2025, the efficiency ratio was 71.9% and 72.1%, respectively. For the three months ended March 31, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 73.4% compared to 72.1% for the three months ended December 31, 2025. See pages 16-17 for the related efficiency ratio and adjusted efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures. Income Tax Provision Income tax expense for the three months ended March 31, 2026 was $1.4 million, with an effective tax rate of 22.6%, compared to $1.4 million, with an effective tax rate of 21.3%, for the three months ended December 31, 2025. Net Income for the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025 The Company reported an increase in net income of $2.5 million, or 107.4%, from $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, to $4.8 million, or $0.24 per diluted share, for the three months ended March 31, 2026. Net interest income increased $3.3 million, or 21.2%, provision for credit losses decreased $67,000, or 47.2%, non-interest income increased $674,000, or 24.4%, and non-interest expense increased $824,000, or 5.4%, during the same period. Return on average assets and return on average equity were 0.71% and 7.77%, respectively, for the three months ended March 31, 2026, compared to 0.35% and 3.94%, respectively, for the three months ended March 31, 2025. Net Interest Income and Net Interest Margin Net interest income increased $3.3 million, or 21.2%, to $18.8 million, for the three months ended March 31, 2026, from $15.5 million for the three months ended March 31, 2025. The increase in net interest income of $3.3 million was due to an increase in interest and dividend income of $1.8 million, or 6.5%, and a decrease in interest expense of $1.4 million, or 11.2%. The decrease in interest expense was primarily due to a decrease in the average cost of interest-bearing liabilities of 36 basis points, from 2.82% for the three months ended March 31, 2025 to 2.46% for the three months ended March 31, 2026. As a result, the net interest margin increased from 2.49% for the three months ended March 31, 2025, to 2.95% for the three months ended March 31, 2026. The net interest margin, on a tax-equivalent basis, increased 46 basis points from 2.51% for the three months ended March 31, 2025 to 2.97% for the three months ended March 31, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 18 basis points from 4.56% for the three months ended March 31, 2025 to 4.74% for the three months ended March 31, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased 19 basis points, from 4.90% for the three months ended March 31, 2025, to 5.09% for the three months ended March 31, 2026. During the three months ended March 31, 2026, average interest-earning assets increased $61.2 million, or 2.4%, to $2.6 billion, primarily due to an increase in average loans of $113.0 million, or 5.5%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $51.2 million, or 67.3%. The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 28 basis points from 2.16% for the three months ended March 31, 2025, to 1.88% for the three months ended March 31, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased six basis points from 1.08% for the three months ended March 31, 2025 to 1.02% for the three months ended March 31, 2026. The average cost of time deposits decreased 70 basis points from 4.11% for the three months ended March 31, 2025 to 3.41% for the three months ended March 31, 2026. The average cost of borrowings, including subordinated debt, decreased 29 basis points from 5.04% for the three months ended March 31, 2025 to 4.75% for the three months ended March 31, 2026. Average demand deposits, an interest-free source of funds, increased $18.9 million, or 3.3%, from $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025, to $588.5 million, or 25.1% of total average deposits, for the three months ended March 31, 2026. Provision for Credit Losses During the three months ended March 31, 2026, the Company recorded a decrease in the provision for credit losses of $67,000, or 47.2%, from $142,000 for the three months ended March 31, 2025 to $75,000. The decrease was primarily due to a decrease in unfunded commitments. The provision for credit losses was determined by a number of factors, including, the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions. Management will continue to monitor macroeconomic variables related to the current interest rate environment, tariffs, global unrest resulting from conflicts, and the concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment and supportable forecast. During the three months ended March 31, 2026, the Company recorded net charge-offs of $55,000, compared to net charge-offs of $29,000 for the three months ended March 31, 2025. Non-Interest Income Non-interest income increased $674,000, or 24.4%, from $2.8 million, for the three months ended March 31, 2025 to $3.4 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, non-interest income included the recognition of $449,000 in BOLI death benefits. During the same period, service charges and fees on deposits increased $108,000, or 5.3%, and wealth management income increased $129,000, or 49.4%, from $261,000 for the three months ended March 31, 2025 to $390,000 for the three months ended March 31, 2026. Income from BOLI increased $3,000, or 0.6%, from $473,000 for the three months ended March 31, 2025 to $476,000 for the three months ended March 31, 2026. During the three months ended March 31, 2026 and the three months ended March 31, 2025, the Company reported unrealized losses on marketable equity securities of $13,000 and $5,000, respectively. During the three months ended March 31, 2025, the Company reported a gain of $7,000 from mortgage banking activities and did not have a comparable gain or loss during the three months ended March 31, 2026. Non-Interest Expense Non-interest expense increased $824,000, or 5.4%, from $15.2 million for the three months ended March 31, 2025 to $16.0 million for the three months ended March 31, 2026. The increase in non-interest expense was primarily due to an increase of $816,000, or 9.7%, in salaries and benefits due to increases in health insurance benefits and annual merit increases. Occupancy expense increased $150,000, or 10.6%, due to $255,000 in snow removal costs during the three months ended March 31, 2026 compared to $143,000 for the three months ended March 31, 2025. Debit card processing and ATM network costs increased $86,000, or 14.9%, software related expenses increased $30,000, or 4.6%, and advertising expense increased $13,000, or 3.0%. These expenses were partially offset by a decrease in other non-interest expense of $80,000, or 5.9%, a decrease in data processing expense of $61,000, or 6.9%, a decrease in furniture and equipment expense of $54,000, or 11.1%, a decrease in FDIC insurance expense of $39,000, or 9.0%, and a decrease in professional fees of $37,000, or 6.8%. For the three months ended March 31, 2026 and the three months ended March 31, 2025, the efficiency ratio was 71.9% and 83.0%, respectively. For the three months ended March 31, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 73.4% compared to 83.0% for the three months ended March 31, 2025. The decreases in both the efficiency ratio and the adjusted efficiency ratio were driven by a $4.0 million, or 21.7%, increase in total revenues from the three months ended March 31, 2025 to the three months ended March 31, 2026, while expenses increased $824,000, or 5.4%, during the same period. See pages 16-17 for the efficiency ratio and adjusted efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures. Income Tax Provision For the three months ended March 31, 2026, income tax expense was $1.4 million, with an effective tax rate of 22.6%, compared to $664,000, with an effective tax rate of 22.4%, for the three months ended March 31, 2025. Balance Sheet At March 31, 2026, total assets of $2.8 billion increased $28.0 million, or 1.0%, from December 31, 2025. The increase in total assets was primarily due to an increase in total loans of $17.2 million, or 0.8%, and an increase in cash and cash equivalents of $15.8 million, or 39.0%. Investments At March 31, 2026, the investment securities portfolio totaled $359.2 million, or 13.0% of total assets, compared to $365.2 million, or 13.3% of total assets, at December 31, 2025. At March 31, 2026, the Company’s available-for-sale securities portfolio, recorded at fair market value, decreased $2.6 million, or 1.5%, from $175.8 million at December 31, 2025 to $173.2 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $3.4 million, or 1.8%, from $188.8 million at December 31, 2025 to $185.4 million at March 31, 2026. At March 31, 2026, the Company reported unrealized losses on the available-for-sale securities portfolio of $23.0 million, or 11.7% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $22.4 million, or 11.3% of the amortized cost basis of the available-for-sale securities at December 31, 2025. At March 31, 2026, the Company reported unrealized losses on the held-to-maturity securities portfolio of $30.6 million, or 16.5% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $30.3 million, or 16.1% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2025. The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $11.0 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity. Management regularly reviews the portfolio for securities in an unrealized loss position. At March 31, 2026 and December 31, 2025, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's objective to provide liquidity. Total Loans Total loans increased $17.2 million, or 0.8%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025 to $2.2 billion, or 79.5% of total assets, at March 31, 2026. The increase in total loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $9.6 million, or 1.1%, an increase in commercial and industrial loans of $6.0 million, or 2.7%, and an increase in commercial real estate loans of $2.1 million, or 0.2%. The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated: Credit Quality Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio. Total delinquency was $3.2 million, or 0.14% of total loans, at March 31, 2026, compared to $3.1 million, or 0.14% of total loans at December 31, 2025. At March 31, 2026, nonaccrual loans totaled $4.7 million, or 0.21% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. At March 31, 2026 and December 31, 2025, there were no loans 90 or more days past-due and still accruing interest. Total nonperforming assets, defined as nonaccrual loans and other real estate owned, totaled $4.7 million, or 0.17% of total assets, at March 31, 2026, compared to $5.2 million, or 0.19% of total assets, at December 31, 2025. At March 31, 2026 and December 31, 2025, the Company did not have any other real estate owned. At March 31, 2026, the allowance for credit losses was $20.5 million, or 0.93% of total loans and 436.9% of nonaccrual loans, compared to $20.3 million, or 0.93% of total loans and 393.2% of nonaccrual loans, at December 31, 2025. At March 31, 2026, total criticized loans, defined as special mention and substandard loans, totaled $58.7 million, or 2.7% of total loans, compared to $39.7 million, or 1.8% of total loans, at December 31, 2025. Loans designated special mention, which are not considered classified, increased $20.5 million, from $17.2 million, or 0.8% of total loans, at December 31, 2025 to $37.6 million, or 1.7% of total loans, at March 31, 2026. During the same period, substandard loans decreased $1.4 million, or 6.1%, to $21.1 million, or 1.0% of total loans. Of the $37.6 million in loans designated special mention at March 31, 2026, $14.7 million, or 39.1%, are commercial and industrial loans, and $22.9 million, or 60.9%, are commercial real estate loans. Of the $21.1 million in loans categorized substandard at March 31, 2026, $7.3 million, or 34.4%, are commercial and industrial loans, $9.5 million, or 44.8%, are commercial real estate loans, and $4.4 million, or 20.8%, are residential real estate loans. Of the total $58.7 million in criticized loans at March 31, 2026, 96.1% are current and paying as agreed. The increase in special mention loans from December 31, 2025 to March 31, 2026 resulted from the downgrade of two commercial relationships totaling $21.5 million, from “pass” risk ratings to special mention. The two relationships are paying as agreed and are being monitored closely by Management. Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At March 31, 2026, the commercial real estate portfolio totaled $1.1 billion and represented 50.1% of total loans. Of the $1.1 billion, $918.2 million, or 83.4%, was categorized as non-owner occupied commercial real estate and represented 329.8% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation. Deposits At March 31, 2026, total deposits were $2.4 billion and increased $20.9 million, or 0.9%, from December 31, 2025. Core deposits, which the Company defines as all deposits except time deposits, increased $1.0 million, or 0.1%, from $1.7 billion, or 70.8% of total deposits, at December 31, 2025, to $1.7 billion, or 70.2% of total deposits, at March 31, 2026. Non-interest-bearing deposits increased $3.2 million, or 0.5%, to $597.7 million, and represented 25.1% of total deposits, money market accounts increased $18.1 million, or 2.5%, to $733.7 million, and savings accounts increased $10.5 million, or 5.6%, to $197.1 million. These increases were partially offset by a decrease in interest-bearing checking accounts of $30.8 million, or 17.7%, to $143.5 million. Time deposits increased $19.9 million, or 2.9%, from $689.9 million at December 31, 2025 to $709.8 million at March 31, 2026. The Company did not have brokered time deposits at March 31, 2026 and December 31, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At March 31, 2026, the Bank’s uninsured deposits totaled $706.2 million, or 29.6% of total deposits, compared to $697.6 million, or 29.5% of total deposits, at December 31, 2025. At March 31, 2026, there was one deposit relationship, which is our largest deposit relationship, with a household concentration comprising 5.7% of total deposits, compared to 5.0% of total deposits at December 31, 2025. The next largest deposit relationship is to a local municipality with a concentration of 1.5% of total deposits at March 31, 2026 and 1.9% at December 31, 2025. The table below is a summary of our deposit balances for the periods noted: FHLB and Subordinated Debt At March 31, 2026, total borrowings increased $10.5 million, or 9.9%, from $106.1 million at December 31, 2025 to $116.6 million. At March 31, 2026, short-term borrowings increased $10.5 million, or 79.4%, to $23.8 million, compared to $13.3 million at December 31, 2025. At March 31, 2026 and December 31, 2025, long-term borrowings totaled $73.0 million. At March 31, 2026 and December 31, 2025, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes. As of March 31, 2026, the Company had $485.1 million of additional borrowing capacity at the FHLB, $337.3 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks. Capital At March 31, 2026, shareholders’ equity was $248.1 million, or 9.0% of total assets, compared to $247.6 million, or 9.1% of total assets, at December 31, 2025. The change was primarily attributable to net income of $4.8 million, partially offset by an increase in accumulated other comprehensive loss of $458,000, cash dividends paid of $1.4 million and the repurchase of 186,000 shares at a cost of $2.5 million. At March 31, 2026, total shares outstanding were 20,240,872. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. 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 the Capital Region in 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, and 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: unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry; the possibility that future credit losses, loan defaults and charge-off rates are higher than expected due to changes in economic assumptions or adverse economic developments; general business and economic conditions on a national basis and in the local markets in which we operate, including those impacting credit quality; unstable political and economic conditions, including changes in tariff policies, which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including potential future increases in interest rates that reduce net interest margins; 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 Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations; changes in regulation, regulatory policy, legislation, accounting standards and practices, and fiscal monetary policy, particularly in light of the shift in presidential administrations and the potential for related shifts in agency policy and leadership; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity incidents, technological integration, including AI, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions or litigation; disruptive technologies in payment systems and other services traditionally provided by financial institutions; severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; declines in real estate values in the Company’s market area, which may adversely affect our loan production; decreases in the value of securities and other assets, or changes in the securities markets which affect investment management revenue; decreases in deposit levels necessitating increased borrowing to fund loans, investments and other needs; competitive pressures from other financial institutions; the soundness of other financial services institutions which may adversely affect our credit risk; failure or circumvention of our internal controls or procedures; the risk that goodwill and intangibles recorded in our financial statements will become impaired; the risk that we may not be successful in the implementation of our business strategy; increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; introduction of 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; and other risks and uncertainties detailed in Part 1A “Risk Factors” of the Company’s 2025 Annual Report on Form 10-K. 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. ____________________________ (1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and gain on bank-owned life insurance death benefits. (2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares. The following table sets forth the information relating to our average balances and net interest income for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. __________________________________________________ (1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds. (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. (3) Short-term investments include federal funds sold. (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. (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. (6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets. (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. (8) Annualized. The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and 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 further information contact: James C. Hagan, President and CEO Guida R. Sajdak, Executive Vice President and CFO Meghan Hibner, First Vice President and Investor Relations Officer 413-568-1911

Western New England Bancorp (WNEB) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.29%. A quarter ago, it was expected that this bank holding company would post earnings of $0.21 per share when it actually produced earnings of $0.26, delivering a surprise of +23.81%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Western New England Bancorp, which belongs to the Zacks Banks - Foreign industry, posted revenues of $22.26 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $18.29 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Western New England Bancorp shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 4.8%. While Western New England Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Western New England Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $22.75 million in revenues for the coming quarter and $0.96 on $91.59 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -66.7%. The consensus EPS estimate for the quarter has been revised 13% lower over the last 30 days to the current level. Banco Comercial Portugues S.A. Unsponsored ADR's revenues are expected to be $1.13 billion, up 16.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western New England Bancorp (WNEB) : Free Stock Analysis Report Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Western New England Bancorp (WNEB) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.81%. A quarter ago, it was expected that this bank holding company would post earnings of $0.19 per share when it actually produced earnings of $0.16, delivering a surprise of -15.79%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Western New England Bancorp, which belongs to the Zacks Banks - Foreign industry, posted revenues of $22 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $18.53 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Western New England Bancorp shares have added about 2.1% since the beginning of the year versus the S&P 500's gain of 1.5%. While Western New England Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Western New England Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $22.08 million in revenues for the coming quarter and $0.92 on $90.32 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Bank of Nova Scotia (BNS), another stock in the same industry, has yet to report results for the quarter ended January 2026. This bank is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of +14.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Bank of Nova Scotia's revenues are expected to be $6.85 billion, up 5.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western New England Bancorp (WNEB) : Free Stock Analysis Report Bank of Nova Scotia (The) (BNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WESTFIELD, Mass., Jan. 27, 2026 (GLOBE NEWSWIRE) -- 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, 2025. For the three months ended December 31, 2025, the Company reported net income of $5.2 million, or $0.26 per diluted share, compared to net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024. On a linked quarter basis, net income was $5.2 million, or $0.26 per diluted share, as compared to net income of $3.2 million, or $0.16 per diluted share, for the three months ended September 30, 2025. For the twelve months ended December 31, 2025, net income was $15.3 million, or $0.75 per diluted share, compared to net income of $11.7 million, or $0.56 per diluted share, for the twelve months ended December 31, 2024. The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about February 25, 2026 to shareholders of record on February 11, 2026. James C. Hagan, President and Chief Executive Officer, commented, “We are pleased to report solid earnings for the fourth quarter of 2025, along with strong loan growth and core deposit growth. Total loans increased $113.2 million, or 5.5%, and core deposits increased $111.9 million, or 7.2%, from December 31, 2024. At December 31, 2025, our non-interest-bearing deposits and total core deposits represented 25.2% and 70.8% of total deposits, respectively. Our loan growth and disciplined approach to managing funding costs have allowed us to expand our net interest margin to 2.91% during the three months ended December 31, 2025. This is the sixth consecutive quarter of growth in both net interest income and net interest margin for the Company. Asset quality remains strong, with nonperforming assets to total assets of 0.19%, total delinquency as a percentage of total loans of 0.14%, and strong loan reserve levels of 393.2% as a percentage of nonaccrual loans.” Hagan concluded, “We remain disciplined in our capital management strategies, and during the twelve months ended December 31, 2025, we repurchased 599,853 shares of common stock with an average price per share of $9.73. Over the last twelve months, book value per share increased $0.86, or 7.6%, to $12.16 and tangible book value per share, a non-GAAP financial measure, increased $0.86, or 8.1%, to $11.49. We are pleased with our fourth quarter results and are committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.” Key Highlights: Loans and Deposits At December 31, 2025, total loans increased $113.2 million, or 5.5%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.2 billion, or 79.7% of total assets. The increase was primarily driven by an increase in residential real estate loans, including home equity loans, of $81.2 million, or 10.5%, an increase in commercial and industrial loans of $10.1 million, or 4.8%, and an increase in commercial real estate loans of $23.3 million, or 2.2%. The increase in total loans was partially offset by a decrease in consumer loans of $1.5 million, or 33.3%. At December 31, 2025, total deposits of $2.4 billion increased $98.3 million, or 4.3%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $111.9 million, or 7.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.7 billion, or 70.8% of total deposits, at December 31, 2025. Time deposits decreased $13.7 million, or 1.9%, from $703.6 million at December 31, 2024 to $689.9 million at December 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at December 31, 2025. The loan-to-deposit ratio was 92.5% and 91.5% at December 31, 2025 and December 31, 2024, respectively. Allowance for Credit Losses and Credit Quality At December 31, 2025, the allowance for credit losses was $20.3 million, or 0.93% of total loans, compared to $19.5 million, or 0.94% of total loans, at December 31, 2024. The allowance for credit losses, as a percentage of nonaccrual loans, was 393.2% and 362.9% at December 31, 2025 and December 31, 2024, respectively. At December 31, 2025, nonaccrual loans totaled $5.2 million, or 0.24% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. Total delinquent loans decreased from $5.0 million, or 0.24% of total loans, at December 31, 2024 to $3.1 million, or 0.14% of total loans, at December 31, 2025. At December 31, 2025 and December 31, 2024, the Company did not have any other real estate owned. Net Interest Margin The net interest margin increased eight basis points from 2.81% for the three months ended September 30, 2025 to 2.89% for the three months ended December 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.83% for the three months ended September 30, 2025 to 2.91% for the three months ended December 31, 2025. Stock Repurchase Program On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company’s then-outstanding shares of common stock, upon the completion of the 2024 Plan. On June 3, 2025, the Company announced the completion of its 2024 Plan under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79. During the three months ended December 31, 2025, the Company repurchased 100,000 shares of its common stock at an average price per share of $11.80. During the twelve months ended December 31, 2025, the Company repurchased 599,853 shares of its common stock under the 2025 Plan and the 2024 Plan, as applicable, at an average price per share of $9.73. As of December 31, 2025, there were 872,465 shares of common stock available for repurchase under the 2025 Plan. The repurchase of shares under our 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to 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 the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 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. Book Value and Tangible Book Value The Company’s book value per share was $12.16 at December 31, 2025, compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.86, or 8.1%, from $10.63 at December 31, 2024 to $11.49 at December 31, 2025. See pages 18-20 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures. Net Income for the Three Months Ended December 31, 2025 Compared to the Three Months Ended September 30, 2025 For the three months ended December 31, 2025, the Company reported an increase in net income of $2.0 million, or 64.5%, from $3.2 million, or $0.16 per diluted share, for the three months ended September 30, 2025, to $5.2 million, or $0.26 per diluted share. Net interest income increased $737,000, or 4.1%, the provision for credit losses decreased $1.8 million, and non-interest expense increased $92,000 or 0.6%. Return on average assets and return on average equity were 0.75% and 8.40%, respectively, for the three months ended December 31, 2025, compared to 0.46% and 5.20%, respectively, for the three months ended September 30, 2025. Net Interest Income and Net Interest Margin On a sequential quarter basis, net interest income, our primary driver of revenues, increased $737,000, or 4.1%, to $18.8 million for the three months ended December 31, 2025, from $18.1 million for the three months ended September 30, 2025. The increase in net interest income was primarily due to an increase in interest income of $504,000, or 1.7%, and a decrease in interest expense of $233,000, or 2.0%. The net interest margin was 2.89% for the three months ended December 31, 2025, compared to 2.81% for the three months ended September 30, 2025. The net interest margin, on a tax-equivalent basis, was 2.91% for the three months ended December 31, 2025, compared to 2.83% for the three months ended September 30, 2025. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased two basis points from 4.67% for the three months ended September 30, 2025 to 4.69% for the three months ended December 31, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased two basis points from 5.01% for the three months ended September 30, 2025, to 5.03% for the three months ended December 31, 2025. During the same period, average loans increased $54.4 million, or 2.6%, average securities decreased $3.9 million, or 1.0%, and average short-term investments decreased $19.8 million, or 37.9%. The average cost of total funds, including non-interest bearing accounts and borrowings, decreased six basis points from 1.94% for the three months ended September 30, 2025 to 1.88% for the three months ended December 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased two basis points from 1.04% for the three months ended September 30, 2025, to 1.02% for the three months ended December 31, 2025. The average cost of time deposits decreased five basis points from 3.51% for the three months ended September 30, 2025, to 3.46% for the three months ended December 31, 2025. The average cost of borrowings, including subordinated debt, was 4.96% for the three months ended December 31, 2025, compared to 5.03%, for the three months ended September 30, 2025. Average demand deposits, an interest-free source of funds, increased $14.7 million, or 2.5%, from $581.8 million, or 25.0%, of total average deposits, for the three months ended September 30, 2025, to $596.5 million, or 25.3% of total average deposits, for the three months ended December 31, 2025. (Reversal of) Provision for Credit Losses During the three months ended December 31, 2025, the Company recorded a reversal of credit losses of $485,000, compared to a provision for credit losses of $1.3 million during the three months ended September 30, 2025. The $1.8 million decrease in the provision for credit losses was primarily due to a decrease in unfunded commitments of $22.6 million, or 10.6%, and a slight improvement in macroeconomic forecasts. The reversal of credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve Bank’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. During the three months ended December 31, 2025, the Company recorded net charge-offs of $41,000, compared to net charge-offs of $43,000 for the three months ended September 30, 2025. Non-Interest Income During each of the three months ended December 31, 2025 and September 30, 2025, non-interest income was $3.2 million. Service charges and fees on deposits were $2.6 million for the three months ended September 30, 2025 and the three months ended December 31, 2025. Income from bank-owned life insurance (“BOLI”) increased $10,000, or 2.1%, from the three months ended September 30, 2025 to $492,000 for the three months ended December 31, 2025. Income from loan-level swap fees on commercial loans increased $18,000, or 15.4%, from the three months ended September 30, 2025 to the three months ended December 31, 2025. During the three months ended December 31, 2025, the Company reported unrealized losses on marketable equity securities of $7,000, compared to unrealized gains of $22,000 during the three months ended September 30, 2025. Non-Interest Expense For the three months ended December 31, 2025, non-interest expense increased $92,000, or 0.6%, to $15.9 million from $15.8 million for the three months ended September 30, 2025. Salaries and employee benefits increased $164,000, or 1.8%, due to an increase in deferred compensation expense to reflect updated year-end performance award estimates. Occupancy expense increased $75,000, or 6.1%, primarily due to snow removal costs of $54,000. Software related expenses increased $35,000, or 5.4%, FDIC insurance expense increased $22,000, or 5.9%, and other non-interest expense increased of $19,000, or 1.3%. These increases were partially offset by a decrease in advertising expense of $84,000, or 19.4%, a decrease in professional fees of $72,000, or 15.7%, a decrease in debit card processing and ATM network costs of $34,000, or 5.4%, a decrease in data processing of $17,000, or 1.9%, and a decrease in furniture and equipment expense of $16,000, or 3.5%. For the three months ended December 31, 2025 and the three months ended September 30, 2025, the efficiency ratio was 72.1% and 74.2%, respectively. Income Tax Provision Income tax expense for the three months ended December 31, 2025 was $1.4 million, with an effective tax rate of 21.3%, compared to $1.0 million, with an effective tax rate of 24.5%, for the three months ended September 30, 2025. Net Income for the Three Months Ended December 31, 2025 Compared to the Three Months Ended December 31, 2024 The Company reported an increase in net income of $1.9 million, or 58.4%, from $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024 to $5.2 million, or $0.26 per diluted share, for the three months ended December 31, 2025. Net interest income increased $3.6 million, or 23.3%, reversal of credit losses decreased $277,000, or 36.4%, non-interest income decreased $81,000, or 2.5%, and non-interest expense increased $944,000, or 6.3%, during the same period. Return on average assets and return on average equity were 0.75% and 8.40%, respectively, for the three months ended December 31, 2025, compared to 0.49% and 5.48%, respectively, for the three months ended December 31, 2024. Net Interest Income and Net Interest Margin Net interest income increased $3.6 million, or 23.3%, to $18.8 million, for the three months ended December 31, 2025, from $15.3 million for the three months ended December 31, 2024. The increase in net interest income was due to an increase in interest and dividend income of $2.0 million, or 6.8%, and a decrease in interest expense of $1.6 million, or 12.1%. The increase in interest income was primarily due to the increase in average interest-earnings assets of $67.3 million, or 2.7%, and an increase in the average yield on interest-earning assets of 17 basis points, from the three months ended December 31, 2024 to the three months ended December 31, 2025. The net interest margin increased 48 basis points from 2.41% for the three months ended December 31, 2024 to 2.89% for the three months ended December 31, 2025. The net interest margin, on a tax-equivalent basis, increased 48 basis points from 2.43%, for the three months ended December 31, 2024 to 2.91% for the three months ended December 31, 2025. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 17 basis points from 4.52% for the three months ended December 31, 2024 to 4.69%, for the three months ended December 31, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased 17 basis points from 4.86% for the three months ended December 31, 2024 to 5.03% for the three months ended December 31, 2025. During the same period, average loans increased $104.0 million, or 5.0%. The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 32 basis points from 2.20% for the three months ended December 31, 2024 to 1.88% for the three months ended December 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased four basis points from 0.98% for the three months ended December 31, 2024 to 1.02% for the three months ended December 31, 2025. The average cost of time deposits decreased 85 basis points from 4.31% for the three months ended December 31, 2024 to 3.46% for the three months ended December 31, 2025. The average cost of borrowings, including subordinated debt, decreased eight basis points from 5.04% for the three months ended December 31, 2024 to 4.96%, for the three months ended December 31, 2025. Average demand deposits, an interest-free source of funds, increased $17.3 million, or 3.0%, from $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024, to $596.5 million, or 25.3% of total average deposits, for the three months ended December 31, 2025. Reversal of Credit Losses During the three months ended December 31, 2025, the Company recorded a reversal of credit losses of $485,000, compared to a reversal of credit losses of $762,000 during the three months ended December 31, 2024. The reversal of credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve Bank’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. The Company recorded net charge-offs of $41,000 for the three months ended December 31, 2025, as compared to net recoveries of $128,000 for the three months ended December 31, 2024. Non-Interest Income Non-interest income decreased $81,000, or 2.5%, to $3.2 million for the three months ended December 31, 2025, from the three months ended December 31, 2024. During the three months ended December 31, 2025, service charges and fees on deposits increased $252,000, or 11.0%, income from BOLI increased $6,000, or 1.2%, from $486,000 for the three months ended December 31, 2024 to $492,000 for the three months ended December 31, 2025. During the three months ended December 31, 2025, the Company reported $135,000 in other income from loan-level swap fees on commercial loans, compared to $187,000 during the three months ended December 31, 2024. During the three months ended December 31, 2025, the Company reported unrealized losses on marketable equity securities of $7,000, compared to unrealized losses of $9,000 during the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported a loss of $11,000 from mortgage banking activities and did not have a comparable gain or loss during the three months ended December 31, 2025. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have a comparable gain or loss during the three months ended December 31, 2025. Non-Interest Expense For the three months ended December 31, 2025, non-interest expense increased $944,000, or 6.3%, to $15.9 million from $14.9 million for the three months ended December 31, 2024. Salaries and employee benefits increased $920,000, or 10.9%, to $9.4 million, due to an increase in deferred compensation expense to reflect updated year-end performance award estimates, software expenses increased $45,000, or 7.0%, advertising expense increased $39,000, or 12.6%, occupancy expense increased $10,000, or 0.7%, FDIC insurance expense increased $9,000, or 2.3%, net debit card processing and ATM network costs increased $6,000, or 1.0%, and other non-interest expense increased $67,000, or 5.0%. These increases were partially offset by a decrease in professional fees of $83,000, or 17.6%, a decrease in furniture and equipment expense of $68,000, or 13.5%, and a decrease in data processing of $1,000, or 0.1%. For the three months ended December 31, 2025, the efficiency ratio was 72.1%, compared to 80.6% for the three months ended December 31, 2024. The decrease in the efficiency ratio was driven by an increase net interest income of $3.6 million, or 23.3%, from the three months ended December 31, 2024 to the three months ended December 31, 2025. Income Tax Provision Income tax expense for the three months ended December 31, 2025 was $1.4 million, or an effective tax rate of 21.3%, compared to $1.1 million, or an effective tax rate of 24.6%, for the three months ended December 31, 2024. Net Income for the Twelve Months Ended December 31, 2025 Compared to the Twelve Months Ended December 31, 2024 For the twelve months ended December 31, 2025, the Company reported net income of $15.3 million, or $0.75 per diluted share, compared to $11.7 million, or $0.56 per diluted share, for the twelve months ended December 31, 2024. Net interest income increased $10.3 million, or 17.2%, provision for credit losses increased $1.0 million, non-interest income decreased $387,000, or 3.0%, and non-interest expense increased $4.1 million, or 6.9%, during the same period in 2024. Return on average assets and return on average equity were 0.56% and 6.35% for the twelve months ended December 31, 2025, respectively, compared to 0.45% and 4.93% for the twelve months ended December 31, 2024, respectively. Net Interest Income and Net Interest Margin During the twelve months ended December 31, 2025, net interest income increased $10.3 million, or 17.2%, to $70.1 million, compared to $59.8 million for the twelve months ended December 31, 2024. The increase in net interest income was due to an increase in interest income of $8.8 million, or 8.0%, and a decrease in interest expense of $1.5 million, or 3.0%. The net interest margin for the twelve months ended December 31, 2025 was 2.75%, compared to 2.45% for the twelve months ended December 31, 2024. The net interest margin, on a tax-equivalent basis, was 2.77% for the twelve months ended December 31, 2025, compared to 2.47% for the twelve months ended December 31, 2024. During the twelve months ended December 31, 2024, the Company had fair value hedge income of $1.4 million, which contributed six basis points to the net interest margin. The adjusted net interest margin, excluding income from the fair value hedge, a non-GAAP financial measure, increased 36 basis points from 2.39% for the twelve months ended December 31, 2024 to 2.75% for the twelve months ended December 31, 2025. The fair value hedge matured in October of 2024. See pages 18-20 for the related net interest margin, excluding prepayment penalties and income from the fair value hedge calculation and a reconciliation of GAAP to non-GAAP financial measures. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 15 basis points from 4.50% for the twelve months ended December 31, 2024 to 4.65% for the twelve months ended December 31, 2025. The average yield on loans, without the impact of tax-equivalent adjustments, increased 14 basis points from 4.86% for the twelve months ended December 31, 2024 to 5.00% for the twelve months ended December 31, 2025. During the twelve months ended December 31, 2025, average interest-earning assets increased $108.9 million, or 4.5%, to $2.5 billion, compared to the twelve months ended December 31, 2024, primarily due to an increase in average loans of $73.6 million, or 3.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $21.5 million, or 64.7%, and an increase in average securities of $13.6 million, or 3.8%. During the twelve months ended December 31, 2025, the average cost of funds, including non-interest-bearing demand accounts and borrowings, decreased 15 basis points from 2.14% for the twelve months ended December 31, 2024 to 1.99%. For the twelve months ended December 31, 2025, the average cost of core deposits, including non-interest-bearing demand deposits, increased 15 basis points from 0.89% for the twelve months ended December 31, 2024, to 1.04%. The average cost of time deposits decreased 63 basis points from 4.32% for the twelve months ended December 31, 2024 to 3.69% for the twelve months ended December 31, 2025. The average cost of borrowings, which include borrowings and subordinated debt, increased 2 basis points from 5.00% for the twelve months ended December 31, 2024 to 5.02% for the twelve months ended December 31, 2025. For the twelve months ended December 31, 2025, average demand deposits, an interest-free source of funds, increased $20.9 million, or 3.7%, from $561.3 million, or 25.8% of total average deposits, for the twelve months ended December 31, 2024, to $582.2 million, or 25.1% of total average deposits. Provision for (Reversal of) Credit Losses During the twelve months ended December 31, 2025, the Company recorded a provision for credit losses of $335,000, compared to a reversal of credit losses of $665,000 during the twelve months ended December 31, 2024. The $1.0 million increase in the provision for credit losses was primarily due to an increase in total loans of $113.2 million, or 5.5%, as well as an increase in unfunded commitments of $15.0 million, or 8.6%. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve Bank’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. The Company recorded net recoveries of $472,000 for the twelve months ended December 31, 2025, as compared to net recoveries of $87,000 for the twelve months ended December 31, 2024. During the twelve months ended December 31, 2025, the Company recorded a recovery of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship paid in full. Non-Interest Income For the twelve months ended December 31, 2025, non-interest income decreased $387,000, or 3.0%, from $12.9 million during the twelve months ended December 31, 2024 to $12.5 million. During the same period, service charges and fees on deposits increased $715,000, or 7.8%, and income from BOLI increased $52,000, or 2.7%. During the twelve months ended December 31, 2025, the Company reported $347,000 in other income from loan-level swap fees on commercial loans, compared to $261,000 during the same period in 2024. During the twelve months ended December 31, 2025, the Company reported a gain of $243,000 on non-marketable equity investments, compared to a gain of $1.3 million during the twelve months ended December 31, 2024. During the twelve months ended December 31, 2025, the Company reported unrealized gains on marketable equity securities of $35,000, compared to unrealized gains on marketable equity securities of $13,000 during the twelve months ended December 31, 2024. 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, 2025, the Company reported $11,000 in gains from mortgage banking activities, compared to $235,000 during the twelve months ended December 31, 2024 due to the sale of fixed rate residential real estate loans. In addition, during the twelve months ended December 31, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000 and did not have a comparable gain or loss during the twelve months ended December 31, 2025. Non-Interest Expense For the twelve months ended December 31, 2025, non-interest expense increased $4.1 million, or 6.9%, to $62.5 million, compared to $58.4 million for the twelve months ended December 31, 2024. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $3.0 million, or 9.3%, due to an increase in deferred compensation expense to reflect updated year-end performance award estimates as well as annual merit increases. Advertising expense increased $385,000, or 30.3%, data processing expense increased $153,000, or 4.4%, FDIC insurance expense increased $144,000, or 9.9%, software related expenses increased $124,000, or 4.9%, debit card and ATM processing fees increased $46,000, or 1.9%, and other non-interest expense increased $410,000, or 8.0%. These increases were partially offset by a decrease in occupancy expense of $11,000 or 0.2%, a decrease in furniture and equipment expense of $87,000, or 4.5%, and a decrease in professional fees of $144,000, or 6.7%. For the twelve months ended December 31, 2025, the efficiency ratio was 75.6%, compared to 80.4% for the twelve months ended December 31, 2024. The decrease in the efficiency ratio was driven by higher net interest income during the twelve months ended December 31, 2025 compared to the twelve months ended December 31, 2024. Income Tax Provision Income tax expense for the twelve months ended December 31, 2025 was $4.5 million, representing an effective tax rate of 22.8%, compared to $3.3 million, representing an effective tax rate of 22.0%, for the twelve months ended December 31, 2024. The increase in income tax expense was due to higher pre-tax income for the twelve months ended December 31, 2025. Balance Sheet At December 31, 2025, total assets increased $83.4 million, or 3.1%, from December 31, 2024 to $2.7 billion. The increase in total assets was primarily due to an increase in total loans of $113.2 million, or 5.5%, partially offset by a decrease in cash and cash equivalents of $26.1 million, or 39.2%. Investments At December 31, 2025, the investment securities portfolio totaled $365.2 million, or 13.3% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At December 31, 2025, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $15.1 million, or 9.4%, from $160.7 million at December 31, 2024 to $175.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $16.2 million, or 7.9%, from $205.0 million at December 31, 2024 to $188.8 million at December 31, 2025. At December 31, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $22.4 million, or 11.3% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities at December 31, 2024. At December 31, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $30.3 million, or 16.1% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2024. The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $10.9 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity. Management regularly reviews the portfolio for securities in an unrealized loss position. At December 31, 2025 and December 31, 2024, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's objective to provide liquidity. Total Loans Total loans increased $113.2 million, or 5.5%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.2 billion, or 79.7% of total assets, at December 31, 2025. The increase in total loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $81.2 million, or 10.5%, an increase in commercial and industrial loans of $10.1 million, or 4.8%, and an increase in commercial real estate loans of $23.3 million, or 2.2%. The increase in total loans was partially offset by a decrease in consumer loans of $1.5 million, or 33.3%. The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated: Credit Quality Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio. Total delinquency was $3.1 million, or 0.14% of total loans, at December 31, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At December 31, 2025, nonaccrual loans totaled $5.2 million, or 0.24% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At December 31, 2025 and December 31, 2024, there were no loans 90 or more days past-due and still accruing interest. Total nonperforming assets, defined as nonaccrual loans and other real estate owned, totaled $5.2 million, or 0.19% of total assets, at December 31, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At December 31, 2025 and December 31, 2024, the Company did not have any other real estate owned. At December 31, 2025, the allowance for credit losses was $20.3 million, or 0.93% of total loans and 393.2% of nonaccrual loans, compared to $19.5 million, or 0.94% of total loans and 362.9% of nonaccrual loans, at December 31, 2024. Total criticized loans, defined as special mention and substandard loans, increased $1.3 million, or 3.4%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $39.7 million, or 1.8% of total loans, at December 31, 2025. Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At December 31, 2025, the commercial real estate portfolio totaled $1.1 billion and represented 50.4% of total loans. Of the $1.1 billion, $900.5 million, or 81.9%, was categorized as non-owner occupied commercial real estate and represented 325.1% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation. Deposits At December 31, 2025, total deposits were $2.4 billion and increased $98.3 million, or 4.3%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $111.9 million, or 7.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.7 billion, or 70.8% of total deposits, at December 31, 2025. Non-interest-bearing deposits increased $28.9 million, or 5.1%, to $594.5 million, and represent 25.2% of total deposits, money market accounts increased $54.1 million, or 8.2%, to $715.6 million, interest-bearing checking accounts increased $23.9 million, or 15.9%, to $174.2 million, and savings accounts increased $5.0 million, or 2.7%, to $186.6 million. Time deposits decreased $13.7 million, or 1.9%, from $703.6 million at December 31, 2024 to $689.9 million at December 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at December 31, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At December 31, 2025, the Bank’s uninsured deposits totaled $697.6 million, or 29.5% of total deposits, compared to $643.6 million, or 28.4% of total deposits, at December 31, 2024. The table below is a summary of our deposit balances for the periods noted: FHLB and Subordinated Debt At December 31, 2025, total borrowings decreased $17.1 million, or 13.9%, from $123.1 million at December 31, 2024 to $106.1 million. At December 31, 2025, short-term borrowings increased $7.9 million, or 146.2%, to $13.3 million, compared to $5.4 million at December 31, 2024. Long-term borrowings decreased $25.0 million, or 25.5%, from $98.0 million at December 31, 2024 to $73.0 million at December 31, 2025. At December 31, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes. As of December 31, 2025, the Company had $538.6 million of additional borrowing capacity at the FHLB, $349.0 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks. Capital At December 31, 2025, shareholders’ equity was $247.6 million, or 9.1% of total assets, compared to $235.9 million, or 8.9% of total assets, at December 31, 2024. The change was primarily attributable to net income of $15.3 million and a decrease in accumulated other comprehensive loss of $6.6 million, partially offset by cash dividends paid of $5.7 million and the repurchase of shares at a cost of $6.2 million. At December 31, 2025, total shares outstanding were 20,372,786. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. 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, and 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: unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry; unstable political and economic conditions, including changes in tariff policies, which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including potential future increases in interest rates that reduce margins; 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 Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigation; disruptive technologies in payment systems and other services traditionally provided by banks; the highly competitive industry and market area in which we operate; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; failure or circumvention of our internal controls or procedures; changes in the securities markets which affect investment management revenues; increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments; 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; the duration and scope of potential pandemics, including the emergence of new variants and the response thereto; 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 business; and other risk 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 ___________________________ ___________________________ The following table sets forth the information relating to our average balances and net interest income for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. The following tables set forth the information relating to our average balances and net interest income for the twelve months ended December 31, 2025 and 2024 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. (1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds. (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. (3) Short-term investments include federal funds sold. (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. (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 weighted average cost of interest-bearing liabilities. (6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets. (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. (8) Annualized. 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 its results of operations and 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 further information contact: James C. Hagan, President and CEO Guida R. Sajdak, Executive Vice President and CFO Meghan Hibner, First Vice President and Investor Relations Officer 413-568-1911

Western New England Bancorp (WNEB) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.79%. A quarter ago, it was expected that this bank holding company would post earnings of $0.14 per share when it actually produced earnings of $0.23, delivering a surprise of +64.29%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Western New England Bancorp, which belongs to the Zacks Banks - Foreign industry, posted revenues of $21.27 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.29%. This compares to year-ago revenues of $17.87 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Western New England Bancorp shares have added about 23.9% since the beginning of the year versus the S&P 500's gain of 16.9%. While Western New England Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Western New England Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $21.32 million in revenues for the coming quarter and $0.73 on $81.44 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Deutsche Bank (DB), another stock in the same industry, has yet to report results for the quarter ended September 2025. The results are expected to be released on October 29. This bank is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Deutsche Bank's revenues are expected to be $8.96 billion, up 8.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western New England Bancorp (WNEB) : Free Stock Analysis Report Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research