Attached files
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| 8-K - WESTFIELD FINANCIAL, INC. 8-K - Western New England Bancorp, Inc. | a50547645.htm |
Exhibit 99.1
Westfield Financial, Inc. Reports Results for the Quarter and Year Ended December 31, 2012
WESTFIELD, Mass.--(BUSINESS WIRE)--January 30, 2013--Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.6 million, or $0.07 per diluted share, for the quarter ended December 31, 2012, compared to $1.4 million, or $0.06 per diluted share, for the quarter ended September 30, 2012, and $1.5 million, or $0.06 per diluted share, for the quarter ended December 31, 2011.
For the year ended December 31, 2012, net income was $6.3 million, or $0.26 per diluted share, compared to $5.9 million, or $0.22 per diluted share, for 2011.
Selected financial highlights for the fourth quarter 2012 include:
- During the fourth quarter 2012, commercial and industrial loans increased $10.7 million to $126.1 million at December 31, 2012. In addition, commercial real estate loans increased $5.4 million to $245.8 million at December 31, 2012. The increase in both commercial and industrial loans and commercial real estate loans was primarily due to new loan originations. While in prior quarters management has used residential loan growth to supplement the loan portfolio, the long-term strategy remains focused on commercial lending.
- The Company repurchased 2,424,554 shares of its common stock pursuant to its stock repurchase programs for a total of $17.6 million, which equates to 9.6% of the outstanding shares as of September 30, 2012. The shares were repurchased at an average price of $7.25.
- Net interest and dividend income decreased $109,000 to $7.6 million for the quarter ended December 31, 2012, compared to $7.7 million for the quarter ended September 30, 2012. The decrease in the yield on earning assets was greater than the decrease in the cost of funds due to the low rate environment.
- The Bank prepaid repurchase agreements in the amount $28.0 million and incurred a prepayment expense of $1.0 million. The repurchase agreements had a weighted average cost of 3.06% and the prepayment will decrease the cost of funds which will help increase the net interest margin. The repurchase agreements were paid off during the last week of December 2012 and therefore had minimal impact to the cost of funds in the fourth quarter 2012.
- There was no provision for loan losses for the fourth quarter 2012, compared to $218,000 for the third quarter 2012. There was net loan growth during the fourth quarter; however, an overall positive change in the risk profile of the loan portfolio offset the need for a provision.
Income Statement Discussion and Analysis
Net interest and dividend income decreased $109,000 to $7.6 million for the quarter ended December 31, 2012, compared to $7.7 million for the quarter ended September 30, 2012. The net interest margin decreased 5 basis points from the third quarter 2012. This resulted from a decrease of 9 basis points in the yield on average interest-earning assets partially offset by a decrease of 5 basis points in the cost of interest-bearing liabilities and an increase in average interest-earning assets of $6.4 million.
Net interest and dividend income increased $50,000 to $7.6 million for the three months ended December 31, 2012, as compared to $7.5 million for the same period in 2011. The increase in income was primarily the result of a $70.5 million increase in average interest-earning assets, driven by increases in both loans and securities.
For the year ended December 31, 2012, net interest and dividend income decreased $97,000 to $30.4 million, compared to $30.5 million for 2011. The net interest margin, on a tax-equivalent basis, was 2.53% and 2.67% for the year ended December 31, 2012 and 2011, respectively. The decrease in the net interest margin was due to the yield on average interest-earning assets decreasing 35 basis points, partially offset by a decrease of 26 basis points in the cost of interest-bearing liabilities, both occurring as a result of the low interest rate environment.
Noninterest income increased $173,000 for the fourth quarter 2012 compared to the third quarter 2012 primarily due to $156,000 in income from a commercial loan transaction and an increase of $98,000 in fee income from the third-party mortgage company. This increase in fee income was due to management’s decision to refer low-rate residential loans to the third-party mortgage company.
Net gains on sales of securities were $1.1 million for the fourth quarter 2012. Management sold mortgage-backed securities that were expected to prepay rapidly and decrease the expected yield. The Bank also prepaid repurchase agreements in the amount of $28.0 million and incurred a prepayment expense of $1.0 million. The repurchase agreements had a weighted average cost of 3.06% and the prepayment will decrease the cost of funds which will help increase the net interest margin. The repurchase agreements were paid off during the last week of December 2012 and therefore had minimal impact to the cost of funds in the fourth quarter 2012.
Noninterest expense decreased $52,000 to $6.7 million for the fourth quarter 2012, compared to $6.8 million for the third quarter 2012. Salaries and benefits decreased $250,000 to $3.9 million in the fourth quarter primarily due to the completion of vesting of certain stock-based compensation. This was partially offset by an increase of $178,000 in other real estate owned (“OREO”) expense primarily due to the write down of an OREO property.
Noninterest expense increased $1.2 million to $27.2 million for the year ended December 31, 2012, compared to $26.0 million for 2011. Salaries and benefits increased $973,000 to $16.5 million for the year ended December 31, 2012, which was due to normal increases in salaries and benefits and the hiring of new personnel, particularly in the commercial lending and compliance divisions.
Balance Sheet Growth
Total assets were stable at $1.3 billion at December 31, 2012, compared to September 30, 2012. Securities decreased $28.6 million to $635.8 million at December 31, 2012, from $664.4 million at September 30, 2012. This was due to using cash flow from securities along with securities sales to fund loan growth and share repurchases. Total assets increased $38.2 million from December 31, 2011.
During the fourth quarter 2012, commercial and industrial loans increased $10.7 million to $126.1 million at December 31, 2012. In addition, commercial real estate loans increased $5.4 million to $245.8 million at December 31, 2012. The increase in both commercial and industrial loans and commercial real estate loans was primarily due to new loan originations. This was offset by a decrease of $4.1 million residential real estate loans, which were $219.7 million at December 31, 2012. This decrease was due to management’s decision to refer low-rate residential loans to the third-party mortgage company.
Total deposits decreased $1.0 million to $753.4 million at December 31, 2012, compared to $754.4 million at September 30, 2012. For the year ended December 31, 2012, total deposits increased $20.4 million. Short-term borrowings and long-term debt increased $10.3 million to $348.8 million at December 31, 2012, compared to $338.5 million at September 30, 2012. The increase was due to the increase in borrowings from the Federal Home Loan Bank of Boston, partially offset by the prepayment of repurchase agreements in the amount of $28.0 million.
Shareholders’ equity was $189.2 million and $211.7 million, which represented 14.5% and 16.1% of total assets at December 31, 2012, and September 30, 2012, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 2.4 million shares of our common stock at a cost of $17.6 million pursuant to the Company’s stock repurchase programs, the payment of regular and special dividends amounting to $3.7 million and a decrease in other comprehensive income of $2.8 million, due to the change in market value of securities. This was partially offset by net income of $1.6 million for the quarter ended December 31, 2012.
On August 28, 2012, the Board of Directors authorized a stock repurchase program under which the Company was authorized to purchase up to 1,278,560 shares, or 5% of its outstanding common stock. The stock repurchase program was completed during the fourth quarter of 2012. On December 6, 2012, the Board of Directors authorized a new stock repurchase program under which the Company may purchase up to 2,427,000 shares, or 10% of its outstanding common stock. There were 1,006,662 shares remaining to be purchased under the repurchase program as of December 31, 2012.
Credit Quality
The allowance for loan losses was $7.8 million at December 31, 2012, and $8.2 million at September 30, 2012, representing 1.31% and 1.40% of total loans, respectively. This represents 259% and 282% of nonperforming loans at December 31, 2012, and September 30, 2012, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
| Three Months Ended | |||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||
| 2012 | 2012 | 2011 | |||||||||||||
| (In thousands) | |||||||||||||||
| Balance, beginning of period | $ | 8,176 | $ | 8,065 | $ | 7,087 | |||||||||
| Provision | - | 218 | 677 | ||||||||||||
| Charge-offs | (399 | ) | (123 | ) | (7 | ) | |||||||||
| Recoveries | 17 | 16 | 7 | ||||||||||||
| Balance, end of period | $ | 7,794 | $ | 8,176 | $ | 7,764 | |||||||||
During the fourth quarter 2012, nonperforming loans increased $111,000 to $3.0 million, representing 0.51% of total loans at December 31, 2012. Loans delinquent 30 – 89 days were $1.2 million at December 31, 2012, and $1.6 million September 30, 2012. 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 January 29, 2013, the Board of Directors approved the declaration of a regular cash dividend of $0.06 per share payable on February 20, 2013, to all shareholders of record on February 6, 2013.”
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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WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Income and Other Data (Dollars in thousands, except per share data) (Unaudited) |
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| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | ||||||||||||||||||||
|
2012 |
2012 |
2011 |
2012 |
2011 |
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| INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||||
| Loans | $ | 6,369 | $ | 6,476 | $ | 6,381 | $ | 25,603 | $ | 25,318 | |||||||||||||
| Securities | 4,228 | 4,353 | 4,530 | 17,399 | 19,624 | ||||||||||||||||||
| Other investments - at cost | 23 | 23 | 15 | 94 | 62 | ||||||||||||||||||
| Short-term investments | 6 | 1 | - | 8 | 1 | ||||||||||||||||||
| Total interest and dividend income | 10,626 | 10,853 | 10,926 | 43,104 | 45,005 | ||||||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||||
| Deposits | 1,478 | 1,505 | 1,699 | 6,142 | 7,589 | ||||||||||||||||||
| Long-term debt | 1,534 | 1,618 | 1,659 | 6,406 | 6,731 | ||||||||||||||||||
| Short-term borrowings | 20 | 27 | 24 | 115 | 147 | ||||||||||||||||||
| Total interest expense | 3,032 | 3,150 | 3,382 | 12,663 | 14,467 | ||||||||||||||||||
| Net interest and dividend income | 7,594 | 7,703 | 7,544 | 30,441 | 30,538 | ||||||||||||||||||
| PROVISION FOR LOAN LOSSES | - | 218 | 677 | 698 | 1,206 | ||||||||||||||||||
| Net interest and dividend income after provision for loan losses | 7,594 | 7,485 | 6,867 | 29,743 | 29,332 | ||||||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||||||
| Total other-than-temporary impairment losses on securities | - | - | - | - | (603 | ) | |||||||||||||||||
| Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive loss | - | - | - | - | 501 | ||||||||||||||||||
| Net other-than-temporary impairment losses recognized in income | - | - | - | - | (102 | ) | |||||||||||||||||
| Service charges and fees | 933 | 617 | 509 | 2,581 | 1,973 | ||||||||||||||||||
| Income from bank-owned life insurance | 387 | 390 | 395 | 1,519 | 1,546 | ||||||||||||||||||
| Loss on prepayment of borrowings | (1,017 | ) | - | - | (1,017 | ) | - | ||||||||||||||||
| Gain on sales of securities, net | 1,051 | 174 | 206 | 2,907 | 414 | ||||||||||||||||||
| Loss on sale of other real estate owned | - | - | - | - | (25 | ) | |||||||||||||||||
| Total noninterest income | 1,354 | 1,181 | 1,110 | 5,990 | 3,806 | ||||||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||||||
| Salaries and employees benefits | 3,938 | 4,188 | 3,847 | 16,530 | 15,557 | ||||||||||||||||||
| Occupancy | 703 | 663 | 645 | 2,775 | 2,671 | ||||||||||||||||||
| Data processing | 511 | 544 | 480 | 2,106 | 1,917 | ||||||||||||||||||
| Professional fees | 470 | 432 | 508 | 1,872 | 2,033 | ||||||||||||||||||
| OREO expense | 189 | 11 | 18 | 237 | 70 | ||||||||||||||||||
| FDIC insurance | 161 | 152 | 128 | 611 | 683 | ||||||||||||||||||
| Other | 774 | 808 | 720 | 3,092 | 3,027 | ||||||||||||||||||
| Total noninterest expense | 6,746 | 6,798 | 6,346 | 27,223 | 25,958 | ||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 2,202 | 1,868 | 1,631 | 8,510 | 7,180 | ||||||||||||||||||
| INCOME TAX PROVISION | 648 | 481 | 102 | 2,256 | 1,306 | ||||||||||||||||||
| NET INCOME | $ | 1,554 | $ | 1,387 | $ | 1,529 | $ | 6,254 | $ | 5,874 | |||||||||||||
| Basic earnings per share | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.26 | $ | 0.22 | |||||||||||||
| Weighted average shares outstanding | 23,041,733 | 24,391,585 | 26,106,911 | 24,501,951 | 26,482,064 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.26 | $ | 0.22 | |||||||||||||
| Weighted average diluted shares outstanding | 23,041,733 | 24,393,109 | 26,190,326 | 24,519,515 | 26,589,510 | ||||||||||||||||||
| Other Data: | |||||||||||||||||||||||
| Return on average assets (1) | 0.47 | % | 0.42 | % | 0.48 | % | 0.48 | % | 0.47 | % | |||||||||||||
| Return on average equity (1) | 3.09 | % | 2.61 | % | 2.71 | % | 2.97 | % | 2.65 | % | |||||||||||||
|
(1) Three month results have been annualized. |
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WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets and Other Data (Dollars in thousands, except per share data) (Unaudited) |
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| December 31, | September 30, | December 31, | |||||||||||||
|
2012 |
2012 |
2011 |
|||||||||||||
| Cash and cash equivalents | $ | 11,761 | $ | 11,653 | $ | 21,105 | |||||||||
| Securities available for sale, at fair value | 621,507 | 650,400 | 617,537 | ||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 14,269 | 14,045 | 12,438 | ||||||||||||
| Loans | 594,918 | 582,732 | 554,156 | ||||||||||||
| Allowance for loan losses | 7,794 | 8,176 | 7,764 | ||||||||||||
| Net loans | 587,124 | 574,556 | 546,392 | ||||||||||||
| Bank-owned life insurance | 46,222 | 45,835 | 44,040 | ||||||||||||
| Other real estate owned | 964 | 1,130 | 1,130 | ||||||||||||
| Other assets | 19,615 | 19,408 | 20,622 | ||||||||||||
| TOTAL ASSETS | $ | 1,301,462 | $ | 1,317,027 | $ | 1,263,264 | |||||||||
| Total deposits | $ | 753,413 | $ | 754,408 | $ | 732,958 | |||||||||
| Short-term borrowings | 69,934 | 41,352 | 52,985 | ||||||||||||
| Long-term debt | 278,861 | 297,166 | 247,320 | ||||||||||||
| Securities pending settlement | - | 352 | 363 | ||||||||||||
| Other liabilities | 10,067 | 12,092 | 10,650 | ||||||||||||
| TOTAL LIABILITIES | 1,112,275 | 1,105,370 | 1,044,276 | ||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 189,187 | 211,657 | 218,988 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,301,462 | $ | 1,317,027 | $ | 1,263,264 | |||||||||
| Book value per share | $ | 8.28 | $ | 8.37 | $ | 8.14 | |||||||||
| Other Data: | |||||||||||||||
| 30- 89 day delinquent loans | $ | 1,162 | $ | 1,577 | $ | 1,848 | |||||||||
| Nonperforming loans | 3,009 | 2,898 | 2,933 | ||||||||||||
| Nonperforming loans as a percentage of total loans | 0.51 | % | 0.50 | % | 0.53 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 0.31 | % | 0.31 | % | 0.32 | % | |||||||||
| Allowance for loan losses as a percentage of nonperforming loans | 259.02 | % | 282.13 | % | 264.71 | % | |||||||||
| Allowance for loan losses as a percentage of total loans | 1.31 | % | 1.40 | % | 1.40 | % | |||||||||
The following tables sets forth the information relating to our average balance at, and net interest income for, the three months ended December 31, 2012 and September 30, 2012, along with the three months and year ended December 31, 2012 and 2011, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | ||||||||||||||||||||
| December 31, 2012 | September 30, 2012 | |||||||||||||||||||
| Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||
| Loans(1)(2) | $ | 585,026 | $ | 6,408 | 4.38 | % | $ | 585,612 | $ | 6,517 | 4.45 | % | ||||||||
| Securities(2) | 642,554 | 4,396 | 2.74 | 643,701 | 4,521 | 2.81 | ||||||||||||||
| Other investments - at cost | 15,929 | 23 | 0.58 | 15,920 | 23 | 0.58 | ||||||||||||||
| Short-term investments(3) | 13,330 | 6 | 0.19 | 5,220 | 1 | 0.08 | ||||||||||||||
| Total interest-earning assets | 1,256,839 | 10,833 | 3.45 | 1,250,453 | 11,062 | 3.54 | ||||||||||||||
| Total noninterest-earning assets | 62,744 | 66,183 | ||||||||||||||||||
| Total assets | $ | 1,319,583 | $ | 1,316,636 | ||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| NOW accounts | $ | 56,089 | 46 | 0.33 | $ | 58,845 | 54 | 0.37 | ||||||||||||
| Savings accounts | 92,432 | 38 | 0.16 | 93,831 | 39 | 0.17 | ||||||||||||||
| Money market accounts | 177,358 | 189 | 0.43 | 176,729 | 197 | 0.45 | ||||||||||||||
| Time certificates of deposit | 323,952 | 1,205 | 1.49 | 316,612 | 1,215 | 1.54 | ||||||||||||||
| Total interest-bearing deposits | 649,831 | 1,478 | 646,017 | 1,505 | ||||||||||||||||
| Short-term borrowings and long-term debt | 345,033 | 1,554 | 1.80 | 343,696 | 1,645 | 1.91 | ||||||||||||||
| Interest-bearing liabilities | 994,864 | 3,032 | 1.22 | 989,713 | 3,150 | 1.27 | ||||||||||||||
| Noninterest-bearing deposits | 112,139 | 104,402 | ||||||||||||||||||
| Other noninterest-bearing liabilities | 12,732 | 11,075 | ||||||||||||||||||
| Total noninterest-bearing liabilities | 124,871 | 115,477 | ||||||||||||||||||
| Total liabilities | 1,119,735 | 1,105,190 | ||||||||||||||||||
| Total equity | 199,848 | 211,446 | ||||||||||||||||||
| Total liabilities and equity | $ | 1,319,583 | $ | 1,316,636 | ||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (207) | (209) | ||||||||||||||||||
| Net interest and dividend income | $ | 7,594 | $ | 7,703 | ||||||||||||||||
| Net interest rate spread(4) | 2.23 | % | 2.27 | % | ||||||||||||||||
| Net interest margin(5) | 2.47 | % | 2.52 | % | ||||||||||||||||
| Average interest-earning | ||||||||||||||||||||
| assets to average interest-bearing liabilities | 126.33 | 126.35 | ||||||||||||||||||
| (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. | |
| Three Months Ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||
| Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||
| Loans(1)(2) | $ | 585,026 | $ | 6,408 | 4.38 | % | $ | 544,577 | $ | 6,422 | 4.72 | % | ||||||||
| Securities(2) | 642,554 | 4,396 | 2.74 | 618,421 | 4,719 | 3.05 | ||||||||||||||
| Other investments - at cost | 15,929 | 23 | 0.58 | 14,123 | 15 | 0.42 | ||||||||||||||
| Short-term investments(3) | 13,330 | 6 | 0.19 | 9,242 | - | 0.00 | ||||||||||||||
| Total interest-earning assets | 1,256,839 | 10,833 | 3.45 | 1,186,363 | 11,156 | 3.76 | ||||||||||||||
| Total noninterest-earning assets | 62,744 | 66,687 | ||||||||||||||||||
| Total assets | $ | 1,319,583 | $ | 1,253,050 | ||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| NOW accounts | $ | 56,089 | 46 | 0.33 | $ | 76,874 | 132 | 0.69 | ||||||||||||
| Savings accounts | 92,432 | 38 | 0.16 | 99,805 | 88 | 0.35 | ||||||||||||||
| Money market accounts | 177,358 | 189 | 0.43 | 128,095 | 190 | 0.59 | ||||||||||||||
| Time certificates of deposit | 323,952 | 1,205 | 1.49 | 319,382 | 1,289 | 1.61 | ||||||||||||||
| Total interest-bearing deposits | 649,831 | 1,478 | 624,156 | 1,699 | ||||||||||||||||
| Short-term borrowings and long-term debt | 345,033 | 1,554 | 1.80 | 295,868 | 1,683 | 2.28 | ||||||||||||||
| Interest-bearing liabilities | 994,864 | 3,032 | 1.22 | 920,024 | 3,382 | 1.47 | ||||||||||||||
| Noninterest-bearing deposits | 112,139 | 98,789 | ||||||||||||||||||
| Other noninterest-bearing liabilities | 12,732 | 10,526 | ||||||||||||||||||
| Total noninterest-bearing liabilities | 124,871 | 109,315 | ||||||||||||||||||
| Total liabilities | 1,119,735 | 1,029,339 | ||||||||||||||||||
| Total equity | 199,848 | 223,711 | ||||||||||||||||||
| Total liabilities and equity | $ | 1,319,583 | $ | 1,253,050 | ||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (207) | (230) | ||||||||||||||||||
| Net interest and dividend income | $ | 7,594 | $ | 7,544 | ||||||||||||||||
| Net interest rate spread(4) | 2.23 | % | 2.29 | % | ||||||||||||||||
| Net interest margin(5) | 2.47 | % | 2.60 | % | ||||||||||||||||
| Average interest-earning | ||||||||||||||||||||
| assets to average interest-bearing liabilities | 126.33 | 128.95 | ||||||||||||||||||
| (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. | |
| Year Ended December 31, | ||||||||||||||||
| 2012 | 2011 | |||||||||||||||
| Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||
| (Dollars in thousands) | ||||||||||||||||
| ASSETS: | ||||||||||||||||
| Interest-earning assets | ||||||||||||||||
| Loans(1)(2) | $ 573,642 | $ 25,762 | 4.49 | % | $ 536,084 | $ 25,485 | 4.75 | % | ||||||||
| Securities(2) | 638,467 | 18,110 | 2.84 | 619,704 | 20,376 | 3.29 | ||||||||||
| Other investments - at cost | 15,287 | 94 | 0.61 | 14,034 | 61 | 0.43 | ||||||||||
| Short-term investments(3) | 11,074 | 8 | 0.07 | 7,503 | 1 | 0.01 | ||||||||||
| Total interest-earning assets | 1,238,470 | 43,974 | 3.55 | 1,177,325 | 45,923 | 3.90 | ||||||||||
| Total noninterest-earning assets | 64,629 | 70,133 | ||||||||||||||
| Total assets | $ 1,303,099 | $ 1,247,458 | ||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||
| NOW accounts | $ 61,277 | 266 | 0.43 | $ 85,094 | 762 | 0.90 | ||||||||||
| Savings accounts | 95,129 | 186 | 0.20 | 104,112 | 515 | 0.49 | ||||||||||
| Money market accounts | 170,171 | 807 | 0.47 | 99,319 | 619 | 0.62 | ||||||||||
| Time certificates of deposit | 318,000 | 4,883 | 1.54 | 332,327 | 5,693 | 1.71 | ||||||||||
| Total interest-bearing deposits | 644,577 | 6,142 | 620,852 | 7,589 | ||||||||||||
| Short-term borrowings and long-term debt | 332,129 | 6,521 | 1.96 | 303,909 | 6,878 | 2.26 | ||||||||||
| Interest-bearing liabilities | 976,706 | 12,663 | 1.30 | 924,761 | 14,467 | 1.56 | ||||||||||
| Noninterest-bearing deposits | 104,454 | 91,024 | ||||||||||||||
| Other noninterest-bearing liabilities | 11,179 | 9,754 | ||||||||||||||
| Total noninterest-bearing liabilities | 115,633 | 100,778 | ||||||||||||||
| Total liabilities | 1,092,339 | 1,025,539 | ||||||||||||||
| Total equity | 210,760 | 221,919 | ||||||||||||||
| Total liabilities and equity | $ 1,303,099 | $ 1,247,458 | ||||||||||||||
| Less: Tax-equivalent adjustment(2) | (870) | (918) | ||||||||||||||
| Net interest and dividend income | $ 30,441 | $ 30,538 | ||||||||||||||
| Net interest rate spread(4) | 2.24 | % | 2.34 | % | ||||||||||||
| Net interest margin(5) | 2.53 | % | 2.67 | % | ||||||||||||
| Average interest-earning | ||||||||||||||||
| assets to average interest-bearing liabilities | 126.80 | 127.30 | ||||||||||||||
| (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,
President & CEO
Leo R. Sagan, Jr., CFO
413-568-1911