Western New England Bancorp Q2 profit falls on higher credit loss provision

Western New England Bancorp

28/07/2026 21:30

Overview
US regional bank's Q2 net income and EPS declined yr/yr
Q2 net interest income rose 9.5% yr/yr, net interest margin improved to 3.00%
Company repurchased 195,000 shares in Q2 and maintained quarterly dividend

Outlook
Company says it continues to monitor interest rates, tariffs, inflation and economic uncertainty
Western New England Bancorp says it remains disciplined in capital management strategies
Company says it is proactively identifying and managing credit risk within its loan portfolio

Result Drivers
CREDIT LOSS PROVISION - Q2 provision for credit losses rose sharply due to a $1.8 mln charge-off on a commercial real estate participation loan after a bankruptcy filing
NET INTEREST INCOME - Net interest income rose 9.5% yr/yr, driven by higher loan interest and lower interest expense
NON-INTEREST EXPENSES - Higher salaries, benefits, software and occupancy costs contributed to a 4.5% yr/yr rise in non-interest expense

Company press release: ID:nGNX7gvhwR

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.18
 
Q2 Net Income
 
$3.60 mln
 
Q2 Net Interest Income
 
$19.32 mln
 
Q2 Dividend
 
$0.07
 
Q2 Net Interest Margin
 
3.00%
 

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 $15.00, about 4.2% above its July 27 closing price of $14.40
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 27 - Citizens Community Bancorp Q2 profit drops on higher credit losses
July 28 - Summit State Bank posts Q2 loss on higher credit provisions
July 27 - FirstSun Capital Q2 adjusted EPS misses estimates as charge-offs weigh

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)