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.