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

Western New England Bancorp said second-quarter net income and earnings per share declined year over year.

The regional bank reported second-quarter EPS of $0.18 and net income of $3.60 million. Net interest income rose 9.5% year over year to $19.32 million, and net interest margin improved to 3.00%.

The company also said it repurchased 195,000 shares in the quarter and maintained its quarterly dividend at $0.07.

The provision for credit losses rose sharply in the quarter due to a $1.8 million charge-off on a commercial real estate participation loan after a bankruptcy filing.

Higher salaries, benefits, software and occupancy costs contributed to a 4.5% year-over-year increase in non-interest expense.

Net interest income rose because of higher loan interest and lower interest expense.

Western New England Bancorp said it continues to monitor interest rates, tariffs, inflation and economic uncertainty, and that it remains disciplined in capital management strategies.