WNEB Q2 Earnings Hit by $1.8M Office Loan Charge-Off; NIM Expands to 3.00%
WNEB sits 43% above its 52-week low of $10.25.
Summary
WNEB reported Q2 2026 net income of $3.6M ($0.18 EPS), down from $4.6M a year ago, as a $1.8M charge-off on an office loan overshadowed a 20bps NIM expansion to 3.00%.
Key Events · Earnings and Guidance · WNEB
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Q2 Net Income Drops on Loan Charge-Off
Net income fell to $3.6M ($0.18 EPS) from $4.6M ($0.23 EPS) a year ago, driven by a $1.8M charge-off on a non-owner occupied office participation loan after the borrower filed Chapter 11.
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Net Interest Margin Expands to 3.00%
NIM improved 20 basis points year-over-year to 3.00%, supported by higher loan yields and a lower cost of time deposits.
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Credit Quality Deterioration Isolated
The charged-off loan was a 40% participation in a $3.4M office loan; remaining $1.6M carrying value is expected to be fully recovered via collateral sale. Criticized loans rose to $63.9M (2.9% of total loans) from $39.7M at year-end.
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Capital Return Continues
The company repurchased 381,000 shares YTD at an average $13.64 and declared a $0.07 quarterly dividend. 491,465 shares remain under the 2025 buyback plan.
Analysis · WNEB · Finance
A $1.8 million charge-off on a commercial real estate participation loan—triggered by the borrower's Chapter 11 filing—wiped out the benefit of a 20-basis-point year-over-year net interest margin expansion to 3.00%, pushing Western New England Bancorp's Q2 net income down to $3.6 million, or $0.18 per share. The credit event is isolated to a single office-building loan with no additional exposure to the borrower, and management expects full recovery of the remaining $1.6 million carrying value through collateral sale. The quarter also saw continued share buybacks and a building sale that will add an estimated $717,000 gain in Q3. The mixed results—strong core profitability offset by a one-time credit hit—keep the investment thesis intact but highlight the risk in the commercial real estate portfolio.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 28.9% of the 1666 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WNEB was trading at $14.66 on NASDAQ in the Finance sector, with a market capitalization of approximately $295M. The 52-week trading range was $10.25 to $15.01. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.