Western New England Bancorp Q2 net income rises 30.7%

Overview

• Western New England Bancorp Q2 net income rises 30.7% yr/yr to $4.6 mln

• Net interest income up 21.9%, net interest margin improves to 2.80%

• Company repurchased 290,609 shares under 2025 plan

Outlook

• Company focuses on loan growth and reducing reliance on time deposits

• Company aims to expand net interest margins through managing funding costs

Result Drivers

• LOAN GROWTH - Co reports increase in commercial and industrial loans by $22.8 mln, or 10.8%, and residential real estate loans by $29.7 mln, or 3.8%

• DEPOSIT STRATEGY - Core deposits rose $81.4 mln, or 5.2% since year-end

• NET INTEREST MARGIN - Net interest margin improved to 2.80%, driven by higher interest income and lower interest expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Western New England Bancorp Inc is $10.00, about 0.4% below its July 21 closing price of $10.04

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX2Br7GG