Western New England Bancorp 8K Regulation FD Disclosure | WNEB 9 Feb 10

Investor Handouts

Sterne Agee

Financial Services Symposium

February 9 & 10, 2010

FORWARD - LOOKING STATEMENTS

Today’s presentation may contain “forward-looking statements” which may be
identified by the use of such words as “believe,” “expect,” “anticipate,” “should,”
“planned,” “estimated,” and “potential.” Examples of forward-looking statements
include, but are not limited to, estimates with respect to our financial condition
and results of operation and business that are subject to various factors which
could cause actual results to differ materially from these estimates. These factors
include, but are not limited to:

general and local economic conditions;

changes in interest rates, deposit flows, demand for mortgages and other loans,
real estate values, and competition;

changes in accounting principles, policies, or guidelines;

changes in legislation or regulation; and

other economic, competitive, governmental, regulatory, and technological factors
affecting our operations, pricing, products, and services.

Any or all of our forward-looking statements in today’s presentation or in any
other public statements we make may turn out to be wrong. They can be affected
by inaccurate assumptions we might make or known or unknown risks and
uncertainties. Consequently, no forward-looking statements can be
guaranteed. We disclaim any obligation to subsequently revise any forward-
looking statements to reflect events or circumstances after the date of such
statements, or to reflect the occurrence of anticipated or unanticipated events.

Overview

Headquartered in Westfield, MA

11 branch offices located
throughout Hampden County

Strategic Focus is Commercial &
Industrial Relationships

Did not participate in TARP

Commercial and Industrial Relationships
(C & I)

Non-Real Estate

Owner-Occupied Commercial Real Estate

WB has developed the capital, expertise,
culture, & reputation to support business
development.

Westfield Bank has not conducted any
subprime lending programs

Strategic Focus

2009 Financial Highlights

Very well capitalized. Stockholders’
equity/total asset ratio of 20.76%

Net income of $5.5 million, or $0.18
diluted EPS for 2009

Deposits increased by $60 million, or 10%

Commercial real estate loan growth of
$5.2 million, or 2.3%

2009 Financial Highlights

Slight Margin Compression:

3.04% in 2009 compared to 3.23%

in 2008

Nonperforming loans/total loans of
1.15%

Allowance loan loss/total loans of
1.60%

Capital Management

Possible uses of capital:

Repurchase shares of our common stock

Pay dividends to shareholders

Fund organic growth or leverage the
balance sheet

Finance acquisitions of other financial
institutions or other businesses related to
banking

Stock Repurchase Plan

On January 22, 2008 the Board of Directors
approved a repurchase plan to buy back
3.2 million shares or 10%

As of December 31, 2009 Westfield Financial
had repurchases of 2.6 million shares

Dividends Paid to
Shareholders

2009

Regular Dividends $ 0.20

Special Dividends 0.30

Calendar Year 2009 $ 0.50

2008

Regular Dividends $ 0.20

Special Dividends 0.40

Calendar Year 2008 $ 0.60

Total Assets

797

805

997

1,039

1,109

1,191

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

Dec

Stockholders’ Equity /
Total Assets
The decrease in equity was primarily due to the stock
repurchase program, along with regular and special
dividends

14.83

14.39

29.03

27.56

23.44

20.76

0.00

10.00

20.00

30.00

40.00

Dec

Total Loan Portfolio
December 2009
(dollars in millions)

Commercial & Industrial
Loans

Commercial Real Estate
Loans

OWNER OCCUPIED 42.5%

NON-OWNER OCCUPIED 32.9%

APARTMENT & MULTI FAMILY
12.5%

ACCOMMODATION SERVICES
6.5%

ALL OTHER REAL ESTATE 5.6%

DELINQUENCIES 30 – 89:
$722,066

(2 BORROWERS)

NONACCRUAL: $782,417

(2 BORROWERS)

Nonperforming Loans

2.2

1.9

1.0

1.2

8.8

5.5

$10

Dec

Asset Quality Ratios

Securities Portfolio
December 2009
(dollars in millions)

Securities Portfolio
December 2009

PRIVATE LABEL
MBS

BOOK: $15.3 MILLION

MARKET: $13.1
MILLION

Balance Sheet Funding
December 2009
(dollars in millions)

Total Deposits
In 2007 and 2008 management placed less emphasis on
gather time deposits in favor of alternative funding

613

623

627

603

588

648

$560

$580

$600

$620

$640

$660

Dec

Short and Long Term
Borrowings

137

223

288

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

Dec

Net Income

Diluted Earnings Per Share

0.20

0.15

0.29

0.23

0.18

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

Dec

Net Interest Margin
(fully taxable equivalent basis)

3.24

3.23

3.17

3.11

3.07

3.04

0.00

1.00

2.00

3.00

4.00

Sep

Dec

Mar

Jun

Sep

Dec

Total Return
Performance

WESTFIELD
FINANCIAL, INC

Thank You

Western New England Bancorp (WNEB) 8-KRegulation FD Disclosure