Western New England Bancorp (WNEB) is like:

• A local Bank of America for Western Massachusetts and Northern Connecticut.

• KeyBank, but focused on Western Massachusetts and Northern Connecticut.

• Deposit Accounts: The bank offers various accounts such as checking, savings, money market, and certificates of deposit to help individuals and businesses manage and save their money.
• Commercial Loans: These loans provide financing solutions to businesses for real estate, working capital, equipment purchases, and other operational needs.
• Residential Mortgage Loans: The bank provides loans to individuals for the purchase or refinancing of residential properties.
• Consumer Loans: These include personal loans, auto loans, and home equity lines of credit, offering financing to individuals for various personal needs.

Western New England Bancorp (symbol: WNEB) is the holding company for Westfield Bank, a community bank primarily serving individuals and businesses in its operating regions. As such, it does not have "major customers" in the traditional sense of a manufacturing or service company selling to a few large corporate clients. Instead, its customer base is diverse and categorized as follows:

• Retail Banking Customers (Individuals): This category includes individual consumers who utilize the bank for a wide range of personal financial services. These services typically include checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgage loans, home equity loans and lines of credit, and various other consumer loans (e.g., auto loans, personal loans).
• Commercial Banking Customers (Businesses): This category encompasses small to medium-sized businesses and commercial enterprises. The bank provides them with business checking and savings accounts, commercial real estate loans, commercial and industrial loans (including lines of credit and term loans), treasury management services, and other business-focused financial products.
• Municipal and Non-Profit Customers: Community banks often serve local governmental entities (municipalities) and non-profit organizations within their service areas. This can include providing banking services for their operational funds, facilitating payroll, and offering specialized credit products for municipal projects or non-profit initiatives.

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James C. Hagan, President and Chief Executive Officer

Mr. Hagan has been the Chief Executive Officer of Western New England Bancorp since December 31, 2008, and President since June 2005. He also serves as a director on the company's Board since 2009. Prior to his CEO role, he was Chief Operating Officer from June 2005 to December 2008. Before that, he held the positions of Senior Vice President and Commercial Loan Department Manager starting in 1998, and Vice President from 1994. His career before 1994 included working as a commercial lender and manager at other New England-based banking institutions.

Guida R. Sajdak, Executive Vice President, Chief Financial Officer, and Treasurer

Mrs. Sajdak was appointed Chief Financial Officer and Treasurer in April 2017 and Executive Vice President in October 2016. She served as Chief Risk Officer from October 2016 to April 2017. Before October 2016, Mrs. Sajdak was Senior Vice President, Chief Financial Officer, and Treasurer of the legacy Chicopee Bancorp, Inc. and legacy Chicopee Savings Bank since 2010. She has been with Chicopee Savings Bank in various roles since 1989, including Internal Auditor and Commercial Lender.

Kevin C. O'Connor, Executive Vice President and Chief Banking Officer

Mr. O'Connor was appointed Executive Vice President and Chief Banking Officer in February 2017. He previously served as Senior Vice President of Retail Banking since February 2015 and as Vice President since 2010. With over twenty-five years of experience in retail and branch banking, Mr. O'Connor has held positions as Vice President and regional manager of retail banking and sales, including small business sales, at both national and regional banking institutions.

Allen J. Miles, III, Executive Vice President and Senior Lender

Mr. Miles was appointed Executive Vice President in December 2008 and currently serves as the Bank's Senior Lender. Before this role, he was Senior Vice President and Senior Lender of the Company and the Bank starting in August 2005. From 1998 to 2005, Mr. Miles served as Vice President and Commercial Loan Officer.

Leo R. Sagan, Jr., Senior Vice President and Chief Risk Officer

Mr. Sagan was appointed Senior Vice President and Chief Risk Officer in 2017. Prior to this, he served as Chief Financial Officer since December 2008. His earlier roles include Vice President and Controller from 2003 to 2008, Controller from 2002 to 2003, and Assistant Treasurer from 1999 to 2002. He is a Certified Risk Professional and an Nstitute Certified Vendor Management Professional.

1. Liquidity Risk and Dependency on Brokered and Reciprocal Deposits: Western New England Bancorp exhibits significant exposure to liquidity risk, primarily stemming from its reliance on brokered and reciprocal deposits. As of December 31, 2023, the company had brokered time deposits totaling $1.7 million and substantial involvement in reciprocal deposit programs, with $28.7 million in CDARS and $35.1 million in ICS network deposits. While reciprocal deposits are not classified as brokered deposits under recent reforms, a heavy reliance on such funding sources can impact the company's liquidity and operational outcomes, particularly in a stressed financial environment, and could lead to increased cost of funds and potential regulatory scrutiny.
2. Exposure to a Prolonged High-Interest Rate Environment and Credit Loss Provisions: A prolonged high-interest rate environment significantly impacts the bank's loan portfolio and overall financial performance. This can lead to increased funding costs and potentially affect the quality of its loan portfolio. The company's Q3 2025 results, for example, showed a higher provision for credit losses, which hit $1.3 million, largely tied to growth in its commercial real estate (CRE) portfolio. Economic downturns and volatility in financial markets would likely exacerbate these issues, adversely affecting the company's business, financial condition, and results of operations.
3. Operational Risks, Particularly Cybersecurity: The company, like all financial institutions, is exposed to various operational risks, with cybersecurity being a prominent concern. Failures in internal processes, people, and systems, or from external events, including cyberattacks, could lead to financial losses, reputational damage, and disruption of services.

The increasing market penetration and sophistication of digitally native banks (neobanks) and specialized financial technology (Fintech) companies. These entities leverage technology to offer streamlined, often lower-cost, and highly convenient banking services such as online-only accounts, instant payment transfers, and simplified loan applications. This trend threatens to erode traditional deposit bases, loan origination opportunities, and customer relationships, particularly among younger, digitally-savvy demographics who prioritize technological convenience and seamless user experience over physical branch presence.

Western New England Bancorp (WNEB) primarily operates through its subsidiary, Westfield Bank, offering a range of commercial and retail banking products and services, as well as wealth management products. The company's main operating region includes Hampden County and Hampshire County in western Massachusetts and northern Connecticut.

The addressable markets for Western New England Bancorp's main products and services are as follows:

• Commercial Banking and Lending: The market size for the Commercial Banking industry in Massachusetts is estimated to be $34.3 billion in 2025. Globally, the commercial lending market was valued at $9.7 trillion in 2023 and is projected to grow to $23.06 trillion by 2032.
• Retail Banking: The United States retail banking market is valued at $0.87 trillion in 2025 and is forecasted to reach $1.08 trillion by 2030, growing at a CAGR of 4.22% during this period.
• Wealth Management: Market size information for wealth management specifically for Western New England Bancorp's defined operating region (western Massachusetts and northern Connecticut) is not readily available.

1. Growth in Commercial and Industrial (C&I) and Residential Real Estate Loans: Western New England Bancorp has demonstrated a strategic focus on increasing its loan portfolio, particularly within commercial and industrial (C&I) and residential real estate segments. In the third quarter of 2025, total loans increased by 2.9%, driven by a 3.0% rise in commercial real estate loans and a 2.8% increase in residential real estate loans. This trend was also evident in the second quarter of 2025, with a 10.8% increase in commercial and industrial loans and a 3.8% increase in residential real estate loans, including home equity loans, since the year-end. Continued expansion in these loan categories is expected to be a primary contributor to future interest income.

2. Net Interest Margin (NIM) Expansion: The company has successfully expanded its net interest margin through disciplined management of funding costs. The net interest margin improved to 2.81% in Q3 2025, up from 2.40% in Q3 2024, by decreasing the cost of interest-bearing liabilities and reducing reliance on time deposits. This positive trend in NIM, supported by increasing loan yields and effective funding strategies, is anticipated to enhance net interest income and drive overall revenue growth.

3. Core Deposit Growth: A strong and diversified core deposit base provides a stable and lower-cost funding source for lending activities, directly impacting net interest income. Western New England Bancorp reported a 6.3% increase in core deposits from year-end in the third quarter of 2025. This growth in core deposits allows the bank to fund its loan growth more efficiently, thereby supporting revenue expansion.

4. Growth in Non-Interest Income: While a smaller component of overall revenue compared to net interest income, growth in non-interest income can contribute to diversification and overall revenue expansion. The company saw a modest 1.0% year-over-year increase in non-interest income in the third quarter of 2025. Continued efforts to generate revenue from fees and other non-interest sources could incrementally drive future revenue.

5. Improved Efficiency Ratio: Although primarily an indicator of cost management, an improving efficiency ratio indirectly supports sustainable revenue growth by making the existing revenue more impactful and potentially freeing up resources for revenue-generating initiatives. Western New England Bancorp's efficiency ratio improved to 74.2% in Q3 2025 from 80.6% in Q3 2024. This operational improvement indicates better profitability from current revenue levels and provides a stronger foundation for future growth.

Share Repurchases

• On June 3, 2025, Western New England Bancorp completed its 2024 Repurchase Plan, having repurchased 1.0 million shares at an average price of $8.79 per share.
• On April 22, 2025, the Board of Directors authorized a new 2025 stock repurchase plan, allowing for the repurchase of up to 1.0 million shares, which is approximately 4.8% of the company's outstanding common stock.
• As of October 28, 2025, the company had repurchased 499,853 shares year-to-date under the 2025 plan at an average price of $9.31 per share, with 972,465 shares remaining available under this authorization.

Capital Expenditures

• Western New England Bancorp's latest trailing twelve months (TTM) Capital Expenditure (CapEx) Compound Annual Growth Rate (CAGR) for three years stood at 16.69%.
• Over the past five years, the average CapEx CAGR for three years was -5.84%, with a median of -6.38%.
• Capital expenditures for a bank typically include investments in physical assets such as equipment, facilities, buildings, and technology to support and expand operations.