Western New England Bancorp (WNEB) has disclosed a new risk, in the Debt & Financing category.
Western New England Bancorp exhibits significant exposure to liquidity risk due to its dependency on brokered and reciprocal deposits. As of December 31, 2023, the firm engaged in brokered time deposits totaling $1.7 million, a practice that could lead to increased cost of funds and potential regulatory scrutiny. Additionally, the bank has substantial involvement in reciprocal deposit programs, with $28.7 million in CDARS and $35.1 million in ICS network deposits. Although these are not classified as brokered deposits under recent reforms, heavy reliance on such sources may still impact the company’s liquidity and operational outcomes in a stressed financial environment.
Overall, Wall Street has a Hold consensus rating on WNEB stock based on 1 Hold.
To learn more about Western New England Bancorp’s risk factors, click here.
