About Western New England Bancorp

Western New England Bancorp, Inc. operates as the bank holding company for Westfield Bank that provides a full range of commercial and retail products and services, as well as wealth management financial products. The bank is a full-service, community oriented financial institution. 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. As a member of the Federal Deposit Insurance Corporation (‘FDIC’), the bank’s deposits are insured up to the maximum FDIC insurance coverage limits. The bank is also a member of the Federal Home Loan Bank of Boston (‘FHLB’). Market Area. Westfield Bank’s headquarters are located at 141 Elm Street in Westfield, Massachusetts. The bank’s primary lending and deposit market areas include all of Hampden County and Hampshire County in western Massachusetts and Hartford and Tolland counties in northern Connecticut. The bank operates banking offices in Agawam, Chicopee, Feeding Hills, East Longmeadow, Holyoke, Huntington, Ludlow, South Hadley, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts and Bloomfield, Enfield, Granby and West Hartford, Connecticut. The company operates full-service ATMs at the company’s branch locations and has freestanding ATM locations in Chicopee, Holyoke, Ludlow, Southwick, Springfield, West Springfield and Westfield, Massachusetts. The bank also conducts business through an additional freestanding and seasonal or temporary ATMs that are owned and serviced by a third party, whereby the bank pays a rental fee and shares in the surcharge revenue. In addition, the company provides online banking services, including online deposit account opening and residential mortgage and consumer loan applications through the company’s website at www.westfieldbank.com. The markets served by the company’s branches are primarily suburban markets located in western Massachusetts and in northern Connecticut. Westfield, Massachusetts, is located near the intersection of U.S. Interstates 90 (the Massachusetts Turnpike) and 91. The company’s middle market and commercial real estate lending team is located in Springfield, the Pioneer Valley’s primary urban market. The Pioneer Valley of western Massachusetts encompasses the sixth largest metropolitan area in New England. The Springfield Metropolitan area covers a relatively diverse area ranging from densely populated urban areas, such as Springfield, to outlying rural areas. The company’s Financial Services Center in West Hartford serves as the company’s Connecticut hub, housing employees across all commercial and retail lines of business. The company’s markets fall within New England’s Knowledge Corridor, an interstate partnership of regional economic development, planning, business, tourism and educational institutions that work together to advance the region’s economic progress. Lending Activities The company lends to individuals, business entities, non-profit organizations and professional practices. The company’s primary lending focus is on the development of high quality commercial relationships achieved through active business development efforts, long-term relationships with established commercial developers, community involvement, and focused marketing strategies. Loans made to businesses, non-profits, and professional practices may include commercial mortgage loans, construction and land development loans, commercial and industrial loans, including lines of credit and letters of credit. Loans made to individuals may include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner-occupied primary and secondary residences, and secured and unsecured personal loans and lines of credit. The company manages its loan portfolio to avoid concentration by industry, relationship size, and source of repayment to lessen its credit risk exposure. Commercial Real Estate Loans and Commercial and Industrial Loans The company originates commercial real estate loans throughout its market area for the purpose of acquiring, developing, and refinancing commercial real estate where the property is the primary collateral securing the loan. These loans are typically secured by a variety of commercial and industrial property types, including one-to-four and multi-family apartment buildings, office, industrial, or mixed-use facilities, or other commercial properties, and are generally guaranteed by the principals of the borrower. Commercial real estate loans generally have repayment periods of approximately fifteen to thirty years. Commercial construction loans may include the development of residential housing and condominium projects, the development of commercial and industrial use property, and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by underlying real estate collateral and are generally guaranteed by the principals of the borrowers. Construction lenders work to cultivate long-term relationships with established developers. The company limits the amount of financing provided to any single developer for the construction of properties built on a speculative basis. Commercial and industrial loans include seasonal revolving lines of credit, working capital loans, equipment financing and term loans. Commercial and industrial credits may be unsecured loans and lines to financially strong borrowers, loans secured in whole or in part by real estate unrelated to the principal purpose of the loan or secured by inventories, equipment, or receivables; and are generally guaranteed by the principals of the borrower. Commercial and industrial loans have average repayment periods of one to seven years. The company participates with other banks in the financing of certain commercial projects. Residential Real Estate Loans The company originates and funds residential real estate loans, including first mortgages, home equity loans, and home equity lines, secured by one-to-four family residential properties primarily located in western Massachusetts and northern Connecticut. The company processes and underwrites all of its originations internally through its Residential Loan Center located in Westfield, MA. Home Equity Loans The company originates home equity revolving loans and lines of credit for one-to-four family residential properties with maximum original loan-to-value ratios generally up to 85%. Consumer Loans The company offers a variety of consumer loans to retail customers in the communities the company serves. Examples of the company’s consumer loans include automobile loans, spa and pool loans, collateral loans and personal lines of credit tied to deposit accounts to provide overdraft protection. Investment Activities As of December 31, 2022, the company’s debt securities, such as government-sponsored enterprise obligations, state and municipal bonds, and corporate bonds; and mortgage-backed securities, such as government-sponsored residential mortgage-backed securities and U.S. government guaranteed residential mortgage-backed securities. Deposits Deposits have traditionally been the principal source of the company’s funds. The company offers commercial checking, small business, nonprofit and municipal checking, money market and sweep accounts, as well as certificates of deposit and specialty products, including escrow management accounts, Interest on Lawyers Trust Accounts, and Interest on Real Estate Brokers Trust Accounts. A broad selection of competitive retail deposit products are also offered, including interest-bearing and noninterest-bearing checking, money market and savings accounts, as well as certificates of deposit and individual retirement accounts, with terms on time deposits ranging from three months to sixty months. Cash Management Services In addition to the deposit products discussed above, commercial banking and municipal customers may take advantage of cash management services, including remote deposit capture, Automated Clearing House credit and debit origination, check payment fraud prevention, international and domestic wire transfers and corporate credit cards. Financial Services Westfield Bank also provides access to insurance and investment products through Westfield Investment Services through LPL Financial (‘LPL’), a third-party registered broker-dealer. Westfield Investment Services representatives provide a broad range of wealth management, investment, insurance, financial planning and strategic asset management services, helping clients meet all of their financial needs. Supervision and Regulation The company is subject to the jurisdiction of the SEC and is subject to the disclosure and other regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the SEC. The bank is regulated by the Office of the Comptroller of the Currency (‘OCC’). The company is a Massachusetts-chartered stock holding company and a registered savings and loan holding company under the Home Owners’ Loan Act (the ‘HOLA’), as amended, and is subject to the supervision of and regular examination by the Board of Governors of the Federal Reserve System (the ‘FRB,’ the ‘Federal Reserve Board’ or the ‘Federal Reserve’) as its primary federal regulator. In addition, the Federal Reserve Board has enforcement authority over the company and its non-savings association subsidiaries. The company is also subject to the jurisdiction of the SEC and is subject to the disclosure and other regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the SEC. Westfield Bank is organized as a federal savings association under the HOLA. The bank is subject to the supervision of, and to regular examination by, the OCC as its chartering authority and primary federal regulator. To a limited extent, the bank is also subject to the supervision and regulation of the FDIC as its deposit insurer. Financial products and services offered by the company and the bank are subject to federal consumer protection laws and implementing regulations promulgated by the Consumer Financial Protection Bureau (the ‘CFPB’). The company and the bank are also subject to oversight by state attorneys general for compliance with state consumer protection laws. The bank’s deposits are insured by the FDIC up to the applicable deposit insurance limits in accordance with FDIC laws and regulations. The bank is a member of the FHLB and is subject to the rules and requirements of the FHLB. The subsidiaries of the company and the bank are subject to federal and state laws and regulations, including regulations of the FRB and the OCC, respectively. The company is a savings and loan holding company as defined by the HOLA. The bank derives its lending and investment powers from the HOLA and its implementing regulations promulgated by the OCC. The bank received a rating of ‘Outstanding’ on its most recent Community Reinvestment Act examination. The company and the bank are subject to a number of federal and state laws designed to protect borrowers and promote fair lending. These laws include, among others, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, various state law counterparts, and the Consumer Financial Protection Act of 2010. The deposits of the bank are insured up to applicable limits by the DIF of the FDIC. The bank is subject to deposit insurance assessments to maintain the DIF. The bank is a member of the FHLB. The bank must also comply with the Customer Due Diligence Rule, which clarifies and strengthens the existing obligations for identifying new and existing customers and explicitly includes risk-based procedures for conducting ongoing customer due diligence. The company and the bank have in place a Bank Secrecy Act and Patriot Act compliance program and engage in limited transactions with foreign financial institutions or foreign persons. History The company was founded in 1853. It was incorporated in 2006. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in 2016.