Declared Dividend • May 01
First quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 13th May 2026 Payment date: 27th May 2026 Dividend yield will be 2.0%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 8.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 12% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 30
First quarter 2026 earnings: EPS exceeds analyst expectations First quarter 2026 results: EPS: US$0.24 (up from US$0.11 in 1Q 2025). Revenue: US$22.2m (up 22% from 1Q 2025). Net income: US$4.78m (up 107% from 1Q 2025). Profit margin: 22% (up from 13% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to stay flat during the next 2 years compared to a 8.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Announcement • Apr 30
Western New England Bancorp, Inc. announces Quarterly dividend, payable on May 27, 2026 Western New England Bancorp, Inc. announced Quarterly dividend of USD 0.0700 per share payable on May 27, 2026, ex-date on May 13, 2026 and record date on May 13, 2026. New Risk • Apr 29
New major risk - Revenue and earnings growth Earnings have declined by 9.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Price Target Changed • Apr 29
Price target increased by 8.6% to US$14.67 Up from US$13.50, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$13.99. Stock is up 52% over the past year. The company is forecast to post earnings per share of US$1.03 for next year compared to US$0.76 last year. Announcement • Apr 07
Western New England Bancorp, Inc., Annual General Meeting, May 14, 2026 Western New England Bancorp, Inc., Annual General Meeting, May 14, 2026. Location: sheraton springfield monarch place hotel, one monarch place, springfield, massachusetts, 01144, United States Reported Earnings • Mar 12
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: US$0.76 (up from US$0.56 in FY 2024). Revenue: US$82.3m (up 12% from FY 2024). Net income: US$15.3m (up 31% from FY 2024). Profit margin: 19% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 2.77% (up from 2.47% in FY 2024). Cost-to-income ratio: 75.9% (down from 81.8% in FY 2024). Non-performing loans: 0.24% (down from 0.26% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.6%. Revenue is forecast to stay flat during the next 2 years compared to a 8.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Declared Dividend • Jan 30
Fourth quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 11th February 2026 Payment date: 25th February 2026 Dividend yield will be 2.1%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (37% payout ratio) and is expected to be well covered in 3 years' time (26% forecast payout ratio). The dividend has increased by an average of 8.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 37% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Jan 28
Price target increased by 14% to US$14.50 Up from US$12.75, the current price target is an average from 2 analysts. New target price is 10% above last closing price of US$13.17. Stock is up 42% over the past year. The company is forecast to post earnings per share of US$0.94 for next year compared to US$0.76 last year. Price Target Changed • Dec 16
Price target increased by 10% to US$13.50 Up from US$12.25, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of US$13.28. Stock is up 36% over the past year. The company is forecast to post earnings per share of US$0.71 for next year compared to US$0.56 last year. Declared Dividend • Oct 31
Third quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 12th November 2025 Payment date: 26th November 2025 Dividend yield will be 2.5%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (43% payout ratio) and is expected to be well covered in 3 years' time (28% forecast payout ratio). The dividend has increased by an average of 8.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 44% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Oct 29
Price target increased by 9.3% to US$12.75 Up from US$11.67, the current price target is an average from 2 analysts. New target price is 13% above last closing price of US$11.33. Stock is up 30% over the past year. The company is forecast to post earnings per share of US$0.71 for next year compared to US$0.56 last year. Buy Or Sell Opportunity • Sep 18
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 44% to US$12.50. The fair value is estimated to be US$10.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.7% over the last 3 years. Earnings per share has declined by 30%. Revenue is forecast to decline by 4.4% in a year. Earnings are forecast to grow by 29% in the next year. New Risk • Sep 08
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$88k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Major Estimate Revision • Jul 29
Consensus EPS estimates increase by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from US$66.3m to US$69.6m. EPS estimate increased from US$0.597 to US$0.723 per share. Net income forecast to grow 29% next year vs 14% growth forecast for Banks industry in the US. Consensus price target up from US$10.33 to US$11.67. Share price rose 8.9% to US$11.05 over the past week. Declared Dividend • Jul 25
Second quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 6th August 2025 Payment date: 20th August 2025 Dividend yield will be 2.5%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 8.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 22% over the next year, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Jul 24
Price target increased by 13% to US$11.67 Up from US$10.33, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$11.37. Stock is up 34% over the past year. The company is forecast to post earnings per share of US$0.72 for next year compared to US$0.56 last year. Reported Earnings • Jul 23
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$0.23 (up from US$0.17 in 2Q 2024). Revenue: US$21.7m (up 17% from 2Q 2024). Net income: US$4.59m (up 31% from 2Q 2024). Profit margin: 21% (up from 19% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.9%. Earnings per share (EPS) also surpassed analyst estimates by 60%. Revenue is expected to decline by 1.1% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 7.5%. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jul 23
Western New England Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on or About August 20, 2025 Western New England Bancorp, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 20, 2025 to shareholders of record on August 6, 2025. Declared Dividend • Apr 25
First quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 7th May 2025 Payment date: 21st May 2025 Dividend yield will be 3.1%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 1.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 23
First quarter 2025 earnings: EPS misses analyst expectations First quarter 2025 results: EPS: US$0.11 (down from US$0.14 in 1Q 2024). Revenue: US$18.2m (down 2.3% from 1Q 2024). Net income: US$2.30m (down 22% from 1Q 2024). Profit margin: 13% (down from 16% in 1Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.7%. Revenue is forecast to stay flat during the next 2 years compared to a 7.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$7.95, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 10x in the Banks industry in the US. Negligible returns to shareholders over past three years. Announcement • Apr 07
Western New England Bancorp, Inc., Annual General Meeting, May 14, 2025 Western New England Bancorp, Inc., Annual General Meeting, May 14, 2025. Location: sheraton springfield monarch place hotel, one monarch place, springfield, 01144, massachusetts United States Reported Earnings • Mar 16
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$0.56 (down from US$0.70 in FY 2023). Revenue: US$73.4m (down 6.3% from FY 2023). Net income: US$11.7m (down 23% from FY 2023). Profit margin: 16% (down from 19% in FY 2023). The decrease in margin was driven by lower revenue. Net interest margin (NIM): 2.47% (down from 2.84% in FY 2023). Cost-to-income ratio: 81.8% (up from 74.3% in FY 2023). Non-performing loans: 0.26% (down from 0.32% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.7%. Revenue is expected to decline by 1.3% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 7.4%. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Price Target Changed • Feb 06
Price target increased by 7.0% to US$10.17 Up from US$9.50, the current price target is an average from 3 analysts. New target price is 7.6% above last closing price of US$9.45. Stock is up 18% over the past year. The company is forecast to post earnings per share of US$0.60 for next year compared to US$0.56 last year. Declared Dividend • Jan 31
Fourth quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 12th February 2025 Payment date: 26th February 2025 Dividend yield will be 3.0%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (50% payout ratio) and is expected to be covered in 3 years' time (40% forecast payout ratio). The dividend has increased by an average of 1.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 29
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$0.56 (down from US$0.70 in FY 2023). Revenue: US$73.4m (down 6.3% from FY 2023). Net income: US$11.7m (down 23% from FY 2023). Profit margin: 16% (down from 19% in FY 2023). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.7%. Revenue is expected to decline by 3.3% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 7.3%. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Jan 29
Western New England Bancorp, Inc. Declares Quarterly Cash Dividend on Common Stock, Payable on or About February 26, 2025 Western New England Bancorp, Inc. announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about February 26, 2025 to shareholders of record on February 12, 2025. Price Target Changed • Dec 16
Price target increased by 8.6% to US$9.50 Up from US$8.75, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of US$9.94. Stock is up 18% over the past year. The company is forecast to post earnings per share of US$0.52 for next year compared to US$0.70 last year. Reported Earnings • Oct 24
Third quarter 2024 earnings: EPS misses analyst expectations Third quarter 2024 results: EPS: US$0.092 (down from US$0.21 in 3Q 2023). Revenue: US$16.9m (down 10% from 3Q 2023). Net income: US$1.90m (down 58% from 3Q 2023). Profit margin: 11% (down from 24% in 3Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to stay flat during the next 3 years compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Oct 24
Western New England Bancorp, Inc. Announces Net Charge-Offs for the Third Quarter Ended September 30, 2024 Western New England Bancorp, Inc. announced net charge-offs for the third quarter ended September 30, 2024. During the three months ended September 30, 2024, the Company recorded net charge-offs of $98,000, compared to net charge-offs of $78,000 for the three months a year ago. Price Target Changed • Sep 23
Price target increased by 8.0% to US$9.00 Up from US$8.33, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of US$8.72. Stock is up 34% over the past year. The company is forecast to post earnings per share of US$0.51 for next year compared to US$0.70 last year. Recent Insider Transactions • Aug 21
Senior VP & Chief Information Officer recently sold US$51k worth of stock On the 19th of August, Darlene Libiszewski sold around 6k shares on-market at roughly US$8.50 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$33k more than they bought in the last 12 months. Declared Dividend • Jul 26
Second quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 7th August 2024 Payment date: 21st August 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 3.3% over the next year. However, it would need to fall by 51% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jul 24
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: US$0.17 (up from US$0.13 in 2Q 2023). Revenue: US$18.6m (down 2.9% from 2Q 2023). Net income: US$3.51m (up 27% from 2Q 2023). Profit margin: 19% (up from 14% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 6.6%. Earnings per share (EPS) exceeded analyst estimates by 50%. Revenue is expected to decline by 7.8% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 6.3%. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Jul 24
Western New England Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on or About August 21, 2024 Western New England Bancorp, Inc. announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 21, 2024 to shareholders of record on August 7, 2024. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$7.84, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Banks industry in the US. Total returns to shareholders of 9.6% over the past three years. Price Target Changed • May 26
Price target decreased by 9.3% to US$8.50 Down from US$9.38, the current price target is an average from 3 analysts. New target price is 25% above last closing price of US$6.80. Stock is up 15% over the past year. The company is forecast to post earnings per share of US$0.50 for next year compared to US$0.70 last year. Declared Dividend • Apr 26
First quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 7th May 2024 Payment date: 22nd May 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 5.4% over the next year, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Apr 26
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$65.7m to US$62.3m. EPS estimate also fell from US$0.56 per share to US$0.495 per share. Net income forecast to shrink 12% next year vs 0.9% growth forecast for Banks industry in the US . Consensus price target down from US$9.38 to US$9.00. Share price rose 2.6% to US$6.66 over the past week. Reported Earnings • Apr 24
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: US$0.14 (down from US$0.24 in 1Q 2023). Revenue: US$18.6m (down 15% from 1Q 2023). Net income: US$2.96m (down 44% from 1Q 2023). Profit margin: 16% (down from 24% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is expected to decline by 3.3% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 5.9%. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Apr 24
Western New England Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on or About May 22, 2024 Western New England Bancorp, Inc. announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about May 22, 2024 to shareholders of record on May 8, 2024. Announcement • Mar 30
Western New England Bancorp, Inc., Annual General Meeting, May 09, 2024 Western New England Bancorp, Inc., Annual General Meeting, May 09, 2024, at 10:00 Eastern Daylight. Location: Sheraton Springfield Monarch Place Hotel One Monarch Place,Springfield, Massachusetts 01114 Springfield United States Agenda: To consider election of the nominees named in the attached Proxy Statement as directors to serve on the Board for a term of office stated; to consider consideration and approval of a non-binding advisory resolution on the compensation of Named Executive Officers; to consider ratification of the appointment of Wolf & Company as independent registered public accounting firm for the fiscal year ending December 31, 2024; and to consider other business issues. Reported Earnings • Mar 11
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$0.70 (down from US$1.18 in FY 2022). Revenue: US$78.3m (down 12% from FY 2022). Net income: US$15.1m (down 42% from FY 2022). Profit margin: 19% (down from 29% in FY 2022). Net interest margin (NIM): 2.84% (down from 3.33% in FY 2022). Cost-to-income ratio: 74.3% (up from 63.6% in FY 2022). Non-performing loans: 0.32% (up from 0.29% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.4%. Revenue is expected to decline by 5.0% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 5.8%. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jan 30
Upcoming dividend of US$0.07 per share at 3.2% yield Eligible shareholders must have bought the stock before 06 February 2024. Payment date: 21 February 2024. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (4.6%). In line with average of industry peers (3.2%). Declared Dividend • Jan 26
Fourth quarter dividend of US$0.07 announced Dividend of US$0.07 is the same as last year. Ex-date: 6th February 2024 Payment date: 21st February 2024 Dividend yield will be 3.2%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (40% payout ratio) and is expected to be well covered in 3 years' time (40% forecast payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to remain steady over the next 2 years, which should provide adequate earnings cover for the dividend. New Risk • Jan 24
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 19% Last year net profit margin: 29% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.7% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (19% net profit margin). Price Target Changed • Jan 11
Price target increased by 7.6% to US$8.81 Up from US$8.19, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$9.01. Stock is down 6.3% over the past year. The company is forecast to post earnings per share of US$0.72 for next year compared to US$1.18 last year. Price Target Changed • Jan 04
Price target increased by 13% to US$8.75 Up from US$7.75, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$9.13. Stock is down 3.6% over the past year. The company is forecast to post earnings per share of US$0.72 for next year compared to US$1.18 last year. Upcoming Dividend • Oct 31
Upcoming dividend of US$0.07 per share at 3.9% yield Eligible shareholders must have bought the stock before 07 November 2023. Payment date: 22 November 2023. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of American dividend payers (5.4%). In line with average of industry peers (4.1%). New Risk • Oct 26
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 22% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 22% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: US$0.21 (down from US$0.28 in 3Q 2022). Revenue: US$19.6m (down 12% from 3Q 2022). Net income: US$4.49m (down 25% from 3Q 2022). Profit margin: 23% (down from 27% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 40%. Revenue is expected to decline by 8.8% p.a. on average during the next 3 years, while revenues in the Banks industry in the US are expected to grow by 4.3%. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 01
Upcoming dividend of US$0.07 per share at 4.2% yield Eligible shareholders must have bought the stock before 08 August 2023. Payment date: 23 August 2023. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.4%). Reported Earnings • Jul 26
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: US$0.13 (down from US$0.25 in 2Q 2022). Revenue: US$19.2m (down 12% from 2Q 2022). Net income: US$2.76m (down 50% from 2Q 2022). Profit margin: 14% (down from 25% in 2Q 2022). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is expected to decline by 13% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jul 26
Western New England Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on or About August 23, 2023 Western New England Bancorp, Inc. announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 23, 2023 to shareholders of record on August 9, 2023. Price Target Changed • Jun 26
Price target decreased by 11% to US$8.50 Down from US$9.50, the current price target is an average from 4 analysts. New target price is 44% above last closing price of US$5.90. Stock is down 23% over the past year. The company is forecast to post earnings per share of US$0.74 for next year compared to US$1.18 last year. Major Estimate Revision • May 02
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$84.2m to US$77.7m. EPS estimate also fell from US$1.06 per share to US$0.803 per share. Net income forecast to shrink 32% next year vs 5.1% decline forecast for Banks industry in the US. Consensus price target down from US$10.63 to US$9.50. Share price fell 20% to US$6.01 over the past week. Upcoming Dividend • May 02
Upcoming dividend of US$0.07 per share at 4.7% yield Eligible shareholders must have bought the stock before 09 May 2023. Payment date: 24 May 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of American dividend payers (5.0%). Higher than average of industry peers (3.6%). Price Target Changed • Apr 30
Price target decreased by 11% to US$9.50 Down from US$10.63, the current price target is an average from 4 analysts. New target price is 40% above last closing price of US$6.77. Stock is down 21% over the past year. The company is forecast to post earnings per share of US$0.80 for next year compared to US$1.18 last year. Reported Earnings • Mar 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$1.18 (up from US$1.02 in FY 2021). Revenue: US$91.9m (up 6.7% from FY 2021). Net income: US$25.9m (up 9.2% from FY 2021). Profit margin: 28% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is expected to decline by 2.4% p.a. on average during the next 2 years, while revenues in the Mortgage industry in the US are expected to grow by 7.7%. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 09
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be US$12.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to decline by 4.7% in 2 years. Earnings is forecast to decline by 7.3% in the next 2 years. Buying Opportunity • Feb 09
Now 20% undervalued Over the last 90 days, the stock is up 4.7%. The fair value is estimated to be US$12.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to decline by 4.7% in 2 years. Earnings is forecast to decline by 7.3% in the next 2 years. Upcoming Dividend • Jan 31
Upcoming dividend of US$0.07 per share at 2.9% yield Eligible shareholders must have bought the stock before 07 February 2023. Payment date: 22 February 2023. Trailing yield: 2.9%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (6.1%). Reported Earnings • Jan 25
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$1.18 (up from US$1.02 in FY 2021). Revenue: US$91.9m (up 6.7% from FY 2021). Net income: US$25.9m (up 9.2% from FY 2021). Profit margin: 28% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is expected to decline by 2.3% p.a. on average during the next 2 years, while revenues in the Mortgage industry in the US are expected to grow by 7.3%. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Dec 02
Insider recently sold US$93k worth of stock On the 28th of November, Louis Gorman sold around 10k shares on-market at roughly US$9.72 per share. This transaction amounted to 19% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$107k more than they bought in the last 12 months. Board Change • Nov 17
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. Independent Director Gary Fitzgerald was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Nov 01
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 08 November 2022. Payment date: 23 November 2022. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of American dividend payers (4.4%). Lower than average of industry peers (6.5%). Reported Earnings • Oct 26
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: US$0.28. Revenue: US$22.2m (flat on 3Q 2021). Net income: US$6.00m (flat on 3Q 2021). Profit margin: 27% (in line with 3Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.7%. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Mortgage industry in the US. Upcoming Dividend • Aug 02
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 09 August 2022. Payment date: 24 August 2022. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of American dividend payers (4.1%). Lower than average of industry peers (5.6%). Reported Earnings • Jul 28
Second quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2022 results: EPS: US$0.25. Revenue: US$21.8m (up 2.0% from 2Q 2021). Net income: US$5.54m (down 2.1% from 2Q 2021). Profit margin: 25% (down from 26% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is expected to shrink by 7.1% compared to a 11% decline forecast for the industry in the US. 
