Exhibit 99.1

Westfield Financial, Inc. Reports Results for the Quarter Ended June 30, 2012 and Declares Regular Dividend

WESTFIELD, Mass.--(BUSINESS WIRE)--July 25, 2012--Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $974,000, or $0.04 per diluted share, for the quarter ended June 30, 2012, compared to $2.3 million, or $0.09 per diluted share, for the three months ended March 31, 2012, and $1.6 million, or $0.06 per diluted share, for the three months ended June 30, 2011. Net income for the second quarter 2012 was negatively impacted by the redemption of bank-owned life insurance (“BOLI”) described below.

For the six months ended June 30, 2012, net income was $3.3 million, or $0.13 per diluted share, compared to $2.9 million, or $0.11 per diluted share, for the same period in 2011.

Selected financial highlights for the second quarter 2012 include:

• Net interest and dividend income increased $310,000 and the net interest margin increased 3 basis points from the first quarter 2012. This was a result of an increase in income from interest-earning assets and a decrease in the cost of interest-bearing liabilities.
• Management redeemed certain BOLI policies because of a sudden downgrade in the credit ratings of the insurance carrier and the carrier’s decision to close out its individual life policies to new sales. The redemption of BOLI resulted in an additional income tax provision of $160,000 and a charge to noninterest income of $102,000 for transferring the policies to a different carrier.
• Total loans increased by $25.6 million to $584.0 million. This was primarily the result of an increase in residential loans of $21.6 million and commercial and industrial loans of $3.7 million. While in recent quarters management has used residential loan growth to supplement the loan portfolio, the long-term strategy remains focused on commercial lending. As noted previously, the Company recently hired two experienced commercial lenders during the first half of 2012.

Income Statement Discussion and Analysis

Net interest and dividend income increased $310,000 to $7.7 million for the second quarter 2012, compared to the $7.4 million for the first quarter 2012. The net interest margin, on a tax-equivalent basis, was 2.58% for the second quarter 2012, compared to 2.55% for the first quarter 2012. This was the result of an increase in average interest-earning assets of $31.3 million for the second quarter 2012, compared to the first quarter 2012. In addition, the cost of interest-bearing liabilities decreased by 10 basis points in the second quarter to 1.30% from 1.40% in the first quarter due to decreases in deposit rates along with utilizing low cost borrowings from the Federal Home Loan Bank of Boston.

Net interest and dividend income was stable at $7.7 million for both the three months ended June 30, 2012 and 2011. For the six months ended June 30, 2012, net interest and dividend income decreased $232,000 to $15.1 million, compared to $15.4 million for the same period in 2011. The net interest margin, on a tax-equivalent basis, was 2.57% and 2.73% for the six months ended June 30, 2012 and 2011, respectively. The decrease in the net interest margin was due to the yield on interest-earning assets decreasing 37 basis points, partially offset by a decrease of 27 basis points in cost of funds, both occurring as a result of the low interest rate environment.

Noninterest income decreased $1.7 million to $901,000 in the second quarter 2012 from $2.6 million in the first quarter 2012. In the second quarter 2012, the Company recorded $97,000 net gains on the sale of securities compared to $1.6 million in the first quarter 2012. Income from BOLI decreased $176,000 to $283,000 for the second quarter 2012, compared to $459,000 in the first quarter 2012. Management redeemed certain BOLI policies because of a sudden downgrade in the credit ratings of the insurance carrier and the carrier’s decision to close out its individual life policies to new sales. The decrease in income from BOLI was primarily the result of a $102,000 charge associated with transferring the policies to a different carrier. The remainder of the Company’s BOLI policies are diversified among eight other carriers, all of which have high credit quality.

Noninterest expense was $6.8 million for both the three months ended June 30, 2012 and March 31, 2012. Salaries and benefits decreased $150,000 to $4.1 million in the second quarter primarily due to deferred expenses on loan originations and lower salary-related taxes as maximum caps had been reached. This was partially offset by an increase of $95,000 in professional fees due to a one-time expense for $74,000 regarding the change of a retirement plan administrator.

Noninterest expense increased $704,000 to $13.7 million for the six months ended June 30, 2012, compared to $13.0 million for the same period in 2011. Salaries and benefits increased $691,000 to $8.4 million for the six months ended June 30, 2012, which was mainly the result of new personnel, particularly in the commercial lending and compliance divisions, along with normal increases in salaries and benefits.

Income taxes were $561,000 for the second quarter 2012 and $567,000 for the first quarter 2012. This represents 36.5% and 19.5% of income before taxes for second and first quarters of 2012, respectively. The increase for the quarter ended June 30, 2012, was primarily due to the redemption of BOLI which resulted in an additional income tax provision of $160,000, or 10.4% of income before income taxes.

Balance Sheet Growth

Total assets were $1.3 billion at June 30, 2012, showing an increase of $25.0 million compared to March 31, 2012. This represents an increase of $55.4 million in total assets since December 31, 2011. Securities decreased $4.3 million to $653.9 million at June 30, 2012, from $658.2 million at March 31, 2012. Cash flow from securities was used to help fund loan growth during the second quarter 2012.

Total loans increased by $25.6 million to $584.0 million at June 30, 2012, from $558.4 million at March 31, 2012. Residential loans increased $21.6 million to $222.8 million at June 30, 2012, from $201.2 million at March 31, 2012. Commercial and industrial loans increased $3.7 million to $123.7 million at June 30, 2012, from $120.0 million at March 31, 2012. While in recent quarters management has used residential loan growth to supplement the Bank’s portfolio, the long-term strategy remains focused on commercial lending. As announced previously, the Bank hired two experienced commercial lenders during the first half of 2012.

Total deposits were $747.6 million at June 30, 2012, compared to $748.6 million at March 31, 2012. The Bank modified the interest rate structure on consumer checking accounts and savings accounts in 2011 and continues to see funds shift out of these accounts and into a relationship-based money market account. In the second quarter 2012, interest-bearing checking accounts decreased $6.6 million and savings accounts decreased $2.9 million, while money market accounts increased $8.6 million. Since December 31, 2011, total deposits increased $14.6 million. Money markets increased $26.2 million from December 31, 2011, while interest-bearing checking and savings accounts decreased $11.4 million and $3.5 million, respectively, because of the new rate structure described above.

Short-term borrowings and long-term debt increased $30.0 million to $348.5 million at June 30, 2012, compared to $318.5 million at March 31, 2012. This was due to an increase in borrowings from the Federal Home Loan Bank of Boston as the Company took advantage of low rate funding offered in the current economic environment.

Shareholders’ equity was $211.4 million and $215.5 million, which represented 16.0% and 16.7% of total assets at June 30, 2012 and March 31, 2012, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 657,406 shares of our common stock at a cost of $4.7 million pursuant to the Company’s stock repurchase program and the payment of regular and special dividends amounting to $4.1 million. This decrease partially offset an increase in other comprehensive income of $3.0 million, due to the change in market value of securities, net income of $974,000 for the quarter ended June 30, 2012, and an increase of $738,000 related to the recognition of share-based compensation and the exercise of 17,579 stock options.

On December 22, 2011, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,333,496 shares, or 5% of its outstanding common stock. There were 431,190 shares remaining to be purchased under the repurchase program as of June 30, 2012.

Credit Quality

The allowance for loan losses was $8.1 million at June 30, 2012, and $7.8 million at March 31, 2012, representing 1.38% and 1.40% of total loans, respectively. This represents 296% and 283% of nonperforming loans at June 30, 2012, and March 31, 2012, respectively.

An analysis of the changes in the allowance for loan losses is as follows:

During the second quarter 2012, nonperforming loans decreased $35,000 to $2.7 million, representing 0.47% of total loans at June 30, 2012. Loans delinquent 30 – 89 days decreased $2.4 million to $1.6 million at June 30, 2012, from $4.0 million at March 31, 2012. The decrease is primarily due to a single commercial real estate relationship of $2.5 million that was brought current. There are no loans 90 or more days past due and still accruing interest.

Declaration of Regular Dividend

James C. Hagan, Chief Executive Officer stated, “On July 24, 2012, the Board of Directors declared a regular cash dividend of $0.06 per share, payable on August 23, 2012 to all shareholders of record on August 9, 2012.”

About Westfield Financial, Inc.

Westfield Financial, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Westfield Financial and its subsidiaries are headquartered in Westfield, Massachusetts and operates through 12 banking offices in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts.

Forward-Looking Statements

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011, and in subsequent filings with the Securities and Exchange Commission. The Company and the Bank do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to 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.

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(1) Three and six months results have been annualized.

The following tables sets forth the information relating to our average balance at, and net interest income for, the three months ended June 30, 2012 and March 31, 2012, along with the three and six months ended June 30, 2012 and 2011, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

(1) Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.

(2) Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.

(3) Short-term investments include federal funds sold.

(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.

(1) Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.

(2) Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.

(3) Short-term investments include federal funds sold.

(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.

(1) Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.

(2) Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.

(3) Short-term investments include federal funds sold.

(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.

CONTACT:
Westfield Financial, Inc.
James C. Hagan, 413-568-1911
President & CEO
or
Leo R. Sagan, Jr., 413-568-1911
CFO