Western New England Bancorp, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2017
January 30, 2018 at 09:00 pm
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Western New England Bancorp, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported a net loss of $353,000, or $0.01 loss per diluted share, for the three months ended December 31, 2017, compared to net income of $3.8 million, or $0.13 per diluted share, for the three months ended September 30, 2017. The results for the three months ended December 31, 2017 includes a one-time, non-cash write-down in the amount of $4.0 million as a result of the Tax Act. Excluding the $4.0 million write-down, core net income was $3.6 million, or $0.12 per diluted share, for the three months ended December 31, 2017, compared to $3.8 million, or $0.13 per diluted share, for the three months ended September 30, 2017. Net income, excluding favorable purchase accounting amortization of $953,000 during the three months ended December 31, 2017 and $448,000 during the three months ended September 30, 2017, was $2.7 million, or $0.09 per diluted share and $3.4 million, or $0.11 per diluted share, respectively. Net interest and dividend income was $15,352,000 compared to $12,739,000 a year ago. The increase in net interest income was due to an increase of $723,000, or 3.9%, in interest and dividend income, partially offset by an increase in interest expense of $167,000, or 4.5%. The increase in interest income was primarily due to the full payoff of a credit-marked classified loan in the fourth quarter which resulted in favorable purchase accounting amortization of $675,000 to interest income. Income before income taxes was $5,475,000 compared to $2,925,000 a year ago. Total interest and dividend income was $19,239,000 compared to $16,107,000 a year ago. Return on average assets was negative 0.07% compared to return on average assets of 0.38% a year ago. Return on average equity was negative 0.56% compared to return on average equity of 3.18% a year ago. Return on average assets, exclusive of merger expenses, tax benefits and deferred tax asset adjustment for corporate rate change was 0.70% against 0.69% a year ago. Return on average equity, exclusive of merger expenses, tax benefits and deferred tax asset adjustment for corporate rate change was 5.75% against 5.79% a year ago. Core diluted EPS, exclusive of merger related expense, tax benefits impact and deferred tax asset adjustment for corporate rate change was $0.12 against $0.12 a year ago. Core return on average assets, exclusive of merger related expense, tax benefits impact and deferred tax asset adjustment for corporate rate change was 0.70% against 0.69% a year ago. Core return on average equity, exclusive of merger related expense, tax benefits impact and corporate rate change was 5.75% against 5.79% a year ago.
For the twelve months ended December 31, 2017, the company reported net income of $12.3 million, or $0.41 per diluted share, compared to $4.8 million, or $0.24 per diluted share, for the twelve months ended December 31, 2016. For the twelve months ended December 31, 2017, core net income of $14.9 million, or $0.50 per diluted share, increased $6.8 million, or 83.7%, from $8.1 million, or $0.41 per diluted share for the twelve months ended December 31, 2016. Core net income of $14.9 million for the twelve months ended December 31, 2017 excludes $377,000, net of tax, of merger related expenses, $1.8 million in tax benefits recorded in connection with the reversal of a deferred tax valuation allowance and the exercises of stock options, and the $4.0 million one-time, non-cash write-down of the Company's DTA. Core net income of $8.1 million for the twelve months ended December 31, 2016 excludes $3.3 million, net of tax, of merger related expenses. Adjusting for favorable purchase accounting amortization of $2.4 million for the twelve months ended December 31, 2017 and $194,000 for the twelve months ended December 31, 2016, respectively, net income was $12.5 million and $7.9 million, respectively. For the twelve months ended December 31, 2017, return on average assets and return on average equity were 0.59% and 4.94%, respectively, compared to 0.32% and 2.95%, for the twelve months ended December 31, 2016, respectively. Net interest income increased $22.1 million, or 59.2%, to $59.4 million for the twelve months ended December 31, 2017 from $37.3 million for the twelve months ended December 31, 2016. The increase in net interest income was primarily due to an increase in interest and dividend income of $25.4 million, or 52.3%, partially offset by an increase in interest expense of $3.4 million, or 29.8%, from the twelve months ended December 31, 2016. The increase in interest income was primarily due to the increase in average loans outstanding of $584.0 million, or 57.6%. The company's tangible book value per share increased by $0.32, or 4.4%, to $7.57 at December 31, 2017 from $7.25 at December 31, 2016. Income before income taxes was $21,748,000 compared to $7,403,000 a year ago. Return on average assets was 0.59% compared to 0.32% a year ago. Return on average equity was 4.94% compared to 2.95% a year ago. Total interest and dividend income was $74,039,000 compared to $48,598,000 a year ago. Return on average assets, exclusive of merger expenses, tax benefits and deferred tax asset adjustment for corporate rate change was 0.72% against 0.54% a year ago. Return on average equity, exclusive of merger expenses, tax benefits and deferred tax asset adjustment for corporate rate change was 5.97% against 4.94% a year ago. Book value per share at December 31, 2017 was $8.11 against $7.85 at December 31, 2016. Core diluted EPS, exclusive of merger related expense, tax benefits impact and deferred tax asset adjustment for corporate rate change was $0.50 against $0.41 a year ago. Core return on average assets, exclusive of merger related expense, tax benefits impact and deferred tax asset adjustment for corporate rate change was 0.72% against 0.54% a year ago. Core return on average equity, exclusive of merger related expense, tax benefits impact and corporate rate change was 5.97% against 4.94% a year ago.
The Company recorded net charge-offs of $197,000 for the three months ended December 31, 2017, as compared to $99,000 for the three months ended September 30, 2017.
Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company. The Company is the parent company of Westfield Bank (the Bank), CSB Colts, Inc. (CSB Colts), Elm Street Securities Corporation (Elm), WFD Securities, Inc. (WFD) and WB Real Estate Holdings, LLC (WB). The Bank is a full-service, community oriented financial institution offering a full range of commercial and retail products and services as well as wealth management financial products. The Bank also provides a variety of banking services, including telephone and online banking, remote deposit capture, cash management services, overdraft facilities, night deposit services, and safe deposit facilities. CSB Colts, Elm, and WFD are engaged in holding qualified securities. WB is engaged in holding other real estate owned (OREO). The Bank operates about 25 banking offices in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Huntington, Ludlow, South Hadley, Southwick, Springfield, Ware, and others.
Western New England Bancorp, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2017