Westfield Financial, Inc. Reports Results for the Quarter and Year Ended December 31, 2013 and Declares Quarterly Dividend
WESTFIELD, Mass., Jan. 29, 2014 /PRNewswire/ -- Westfield Financial, Inc. (the "Company") (NasdaqGS:WFD), the holding company for Westfield Bank (the "Bank"), reported net income of $1.8 million, or $0.09 per diluted share, for the quarter ended December 31, 2013, compared to $1.6 million, or $0.07 per diluted share, for the quarter ended December 31, 2012, which represents a 16.4% increase in net income over the fourth quarter 2012.
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For the year ended December 31, 2013, net income was $6.8 million, or $0.34 per diluted share, compared to $6.3 million, or $0.26 per diluted share, for the same period in 2012, which represents an 8.0% increase in net income over the same period in 2012.
Selected financial highlights for the fourth quarter and year ended 2013 include:
- Total loans increased $42.5 million, or 7.1%, at December 31, 2013 compared to December 31, 2012. This was primarily due to increases in commercial real estate loans of $18.7 million, commercial and industrial loans of $9.5 million, and residential loans of $14.4 million. On a sequential-quarter basis, total loans increased $17.2 million, or 2.8%, to $637.4 million for the fourth quarter 2013. This was primarily due to increases in commercial and industrial loans of $9.2 million and commercial real estate loans of $7.1 million.
- Net interest and dividend income increased $300,000 to $30.7 million for the year ended December 31, 2013, as compared to $30.4 million for the same period in 2012. On a sequential-quarter basis, net interest and dividend income decreased $221,000 to $7.6 million for the quarter ended December 31, 2013, as compared to $7.8 million for the quarter ended September 30, 2013. The decrease in the fourth quarter 2013 was primarily the result of a decrease in interest-earning assets. In executing our strategy to improve the balance sheet mix, a timing difference occurred between decreasing the securities portfolio in the third quarter 2013 and growing commercial loans, which primarily occurred at the end of the fourth quarter 2013. As a result, the average balance of loans was $619.2 million for the fourth quarter 2013, yet the ending balance was $637.4 million at December 31, 2013.
- The net interest margin for the quarter ended December 31, 2013 increased 10 basis points to 2.57%, as compared to 2.47% for the fourth quarter of 2012. On a sequential-quarter basis, the net interest margin decreased 5 basis points to 2.57% for the quarter ended December 31, 2013, as compared to 2.62% for the quarter ended September 30, 2013 primarily as a result of lower average interest-earning assets as described above.
- Noninterest expense decreased $581,000 to $26.6 million for the year ended December 31, 2013, compared to $27.2 million for the same period in 2012. On a sequential-quarter basis, noninterest expense decreased $363,000 to $6.5 million for the quarter ended December 31, 2013, as compared to $6.9 million for the quarter ended September 30, 2013.
President and CEO, James C. Hagan, stated, "I am pleased with our performance for both the quarter and the year ended 2013. This demonstrates our on-going commitment to prudently managing our noninterest expense and accentuates our strategy to grow commercial loans organically in our existing footprint. As previously announced, we also hired a seasoned commercial lender in the fourth quarter, which will help deepen our presence in the northern Connecticut market. We are also very excited about our newest initiative, the introduction of wealth management services, which is a new source of fee income."
Income Statement Discussion and Analysis
Net interest and dividend income was relatively unchanged at $7.6 million for both the quarters ended December 31, 2013 and 2012. The net interest margin increased 10 basis points to 2.57% for the quarter ended December 31, 2013, compared to 2.47% for the quarter ended December 31, 2012. The cost of average interest-bearing liabilities decreased 20 basis points, driven by the prepayment of long term debt, and was partially offset by a slight decrease of 3 basis points in the yield on average interest-earning assets.
Net interest and dividend income increased $300,000 to $30.7 million for the year ended December 31, 2013, as compared to $30.4 million for the same period in 2012. The net interest margin for the year ended December 31, 2013 increased 5 basis points to 2.58%, as compared to 2.53% for the same period in 2012. The increase in net interest income was primarily due to a 26 basis point decrease in the cost of average interest-bearing liabilities, driven by the prepayment of long term debt, and was partially offset by a 12 basis point decrease in the yield on average interest-earning assets.
Net gains on sales of securities were $330,000 for the fourth quarter 2013, compared to $1.1 million for the same period in 2012. The objective of the sales in the fourth quarter 2013 was to reduce the overall duration of the securities portfolio. The quarter ended December 31, 2012 also included a prepayment expense of $1.0 million associated with the payoff of long term debt, compared to none in the same period in 2013.
Noninterest expense decreased $258,000 for the quarter ended December 31, 2013 to $6.5 million, compared to the same period in 2012. This was primarily due to a decrease in salaries and benefits of $164,000 primarily due to the completion of vesting of certain stock-based compensation in the fourth quarter 2012. The efficiency ratio, excluding non-core items, was 75.3% for the fourth quarter 2013, compared to 75.7% for the same period in 2012.
Noninterest expense decreased $581,000 to $26.6 million for the year ended December 31, 2013, compared to $27.2 million for the same period in 2012. Salaries and benefits decreased $1.1 million to $15.5 million for the year ended December 31, 2013, primarily due to the completion of vesting of certain stock-based compensation in the fourth quarter 2012. This was partially offset by an increase in data processing expense of $234,000 due to increased use of technology in customer delivery channels and general bank operations. The efficiency ratio, excluding non-core items, improved to 76.8% for year ended December 31, 2013, compared to 78.8% for the same period in 2012.
Balance Sheet Growth
Securities decreased by $3.8 million, or 0.7%, to $553.8 million at December 31, 2013, compared to $557.6 million at September 30, 2013. Securities decreased $82.0 million, or 12.9%, at December 31, 2013, compared to $635.8 million at December 31, 2012. Cash flow from the securities portfolio was primarily used to fund loan originations, stock repurchases and to pay off borrowings.
Total loans increased $17.2 million, or 2.8%, to $637.4 million compared to September 30, 2013. This was primarily due to an increase in commercial and industrial loans of $9.2 million to $135.6 million and an increase in commercial real estate loans of $7.1 million to $264.5 million. Total loans increased $42.5 million, or 7.1%, at December 31, 2013 compared to December 31, 2012. This was primarily due to increases in commercial real estate loans of $18.7 million, commercial and industrial loans of $9.5 million and residential loans of $14.4 million.
Total deposits increased $23.6 million, or 3.0%, to $817.1 million at December 31, 2013, compared to $793.5 million at September 30, 2013. This was primarily due to increases in checking accounts of $20.8 million and term accounts of $6.2 million. This was partially offset by decreases in savings and money market accounts of $3.4 million. Total deposits increased $63.7 million, or 8.5%, at December 31, 2013, compared to $753.4 million at December 31, 2012, primarily due to increases of $36.3 million in money market accounts, $22.6 million in checking accounts and $15.4 million in term accounts.
Shareholders' equity was $154.1 million at December 31, 2013 and $156.9 million at September 30, 2013, which represented 12.1% and 12.3% of total assets, respectively. The decrease in shareholders' equity during the quarter reflects the repurchase of 595,477 shares of common stock for $4.4 million and the payment of a quarterly dividend of $1.2 million. This was partially offset by net income of $1.8 million for the quarter ended December 31, 2013.
On September 17, 2013, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,037,000 shares, or 5% of its outstanding common stock. As of December 31, 2013, the Company had repurchased 603,046 shares of its common stock at a cost of $4.5 million pursuant to this repurchase program.
Credit Quality
The allowance for loan losses was $7.5 million at December 31, 2013, $7.3 million at September 30, 2013 and $7.8 million at December 31, 2012, representing 1.17%, 1.18% and 1.31% of total loans, respectively. This represents 288.4%, 249.3% and 259.0% of nonperforming loans at December 31, 2013, September 30, 2013 and December 31, 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, | |||
2013 | 2013 | 2012 | |||
(In thousands) | |||||
Balance, beginning of period | $ 7,311 | $ 7,473 | $ 8,176 | ||
Provision (credit) | 120 | (71) | - | ||
Charge-offs | (5) | (116) | (399) | ||
Recoveries | 33 | 25 | 17 | ||
Balance, end of period | $ 7,459 | $ 7,311 | $ 7,794 | ||
During the fourth quarter of 2013, nonperforming loans decreased $347,000 to $2.6 million, representing 0.41% of total loans at December 31, 2013. Loans delinquent 30 – 89 days were $3.5 million at December 31, 2013, and $1.9 million September 30, 2013. There are no loans 90 or more days past due and still accruing interest.
Declaration of Quarterly Dividend
The Board of Directors approved the declaration of a quarterly cash dividend of $0.06 per share. The dividend is payable on February 20, 2014, to all shareholders of record on February 6, 2014.
About Westfield Financial, Inc.
Westfield Financial, Inc., with total assets of $1.3 billion at December 31, 2013, 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 operate through 11 banking offices located in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts and one banking office in Granby, Connecticut. To learn more, visit our website at www.westfieldbank.com.
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, 2012, 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.
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES | ||||||||||
Three Months Ended | Year Ended | |||||||||
December 31, | December 31, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||
Loans | $ 6,458 | $ 6,369 | $ 25,408 | $ 25,603 | ||||||
Securities | 3,594 | 4,228 | 15,521 | 17,399 | ||||||
Other investments - at cost | 33 | 23 | 93 | 94 | ||||||
Federal funds sold, interest-bearing | 4 | 6 | 9 | 8 | ||||||
Total interest and dividend income | 10,089 | 10,626 | 41,031 | 43,104 | ||||||
INTEREST EXPENSE: | ||||||||||
Deposits | 1,358 | 1,478 | 5,525 | 6,142 | ||||||
Long-term debt | 1,051 | 1,534 | 4,591 | 6,406 | ||||||
Short-term borrowings | 73 | 20 | 174 | 115 | ||||||
Total interest expense | 2,482 | 3,032 | 10,290 | 12,663 | ||||||
Net interest and dividend income | 7,607 | 7,594 | 30,741 | 30,441 | ||||||
PROVISION (CREDIT) FOR LOAN LOSSES | 120 | - | (256) | 698 | ||||||
Net interest and dividend income after | 7,487 | 7,594 | 30,997 | 29,743 | ||||||
NONINTEREST INCOME: | ||||||||||
Service charges and fees | 625 | 933 | 2,404 | 2,581 | ||||||
Income from bank-owned life | 388 | 387 | 1,549 | 1,519 | ||||||
Gain on bank-owned life insurance | - | - | 563 | - | ||||||
Loss on prepayment of borrowings | - | (1,017) | (3,370) | (1,017) | ||||||
Gain on sales of securities, net | 330 | 1,051 | 3,126 | 2,907 | ||||||
Total noninterest income | 1,343 | 1,354 | 4,272 | 5,990 | ||||||
NONINTEREST EXPENSE: | ||||||||||
Salaries and employees benefits | 3,774 | 3,938 | 15,458 | 16,530 | ||||||
Occupancy | 731 | 703 | 2,898 | 2,775 | ||||||
Data processing | 586 | 511 | 2,340 | 2,106 | ||||||
Professional fees | 497 | 470 | 2,033 | 1,872 | ||||||
OREO expense | - | 189 | 22 | 237 | ||||||
FDIC insurance | 162 | 161 | 655 | 611 | ||||||
Other | 738 | 774 | 3,236 | 3,092 | ||||||
Total noninterest expense | 6,488 | 6,746 | 26,642 | 27,223 | ||||||
INCOME BEFORE INCOME TAXES | 2,342 | 2,202 | 8,627 | 8,510 | ||||||
INCOME TAX PROVISION | 533 | 648 | 1,871 | 2,256 | ||||||
NET INCOME | $ 1,809 | $ 1,554 | $ 6,756 | $ 6,254 | ||||||
Basic earnings per share | $ 0.09 | $ 0.07 | $ 0.34 | $ 0.26 | ||||||
Weighted average shares outstanding | 19,379,466 | 23,041,733 | 20,079,251 | 24,501,951 | ||||||
Diluted earnings per share | $ 0.09 | $ 0.07 | $ 0.34 | $ 0.26 | ||||||
Weighted average diluted shares outstanding | 19,379,466 | 23,041,733 | 20,079,265 | 24,519,515 | ||||||
Other Data: | ||||||||||
Return on average assets (1) | 0.57% | 0.47% | 0.53% | 0.48% | ||||||
Return on average equity (1) | 4.61% | 3.09% | 4.04% | 2.97% | ||||||
Efficiency ratio (2) | 75.27% | 75.68% | 76.79% | 78.81% | ||||||
Net interest margin | 2.57% | 2.47% | 2.58% | 2.53% | ||||||
(1) Three month results have been annualized. | ||||||||||
(2) The efficiency ratio represents the ratio of operating expenses divided by the sum of net interest and dividend income and noninterest income, excluding | ||||||||||
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES | ||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||
2013 | 2013 | 2013 | 2013 | 2012 | ||||||
INTEREST AND DIVIDEND INCOME: | ||||||||||
Loans | $ 6,458 | $ 6,371 | $ 6,307 | $ 6,271 | $ 6,369 | |||||
Securities | 3,594 | 3,954 | 3,917 | 4,057 | 4,228 | |||||
Other investments – at cost | 33 | 20 | 21 | 19 | 23 | |||||
Federal funds sold, interest-bearing deposits | 4 | 3 | 1 | 2 | 6 | |||||
Total interest and dividend income | 10,089 | 10,348 | 10,246 | 10,349 | 10,626 | |||||
INTEREST EXPENSE: | ||||||||||
Deposits | 1,358 | 1,390 | 1,390 | 1,387 | 1,478 | |||||
Long-term debt | 1,051 | 1,094 | 1,188 | 1,258 | 1,534 | |||||
Short-term borrowings | 73 | 36 | 31 | 34 | 20 | |||||
Total interest expense | 2,482 | 2,520 | 2,609 | 2,679 | 3,032 | |||||
Net interest and dividend income | 7,607 | 7,828 | 7,637 | 7,670 | 7,594 | |||||
PROVISION (CREDIT) FOR LOAN LOSSES | 120 | (71) | (70) | (235) | - | |||||
Net interest and dividend income after | 7,487 | 7,899 | 7,707 | 7,905 | 7,594 | |||||
NONINTEREST INCOME: | ||||||||||
Service charges and fees | 625 | 615 | 594 | 572 | 933 | |||||
Income from bank-owned life insurance | 388 | 388 | 387 | 385 | 387 | |||||
Gain on bank-owned life insurance death benefit | - | - | 563 | - | - | |||||
Loss on prepayment of borrowings | - | (540) | (1,404) | (1,426) | (1,017) | |||||
Gain on sales of securities, net | 330 | 546 | 823 | 1,427 | 1,051 | |||||
Total noninterest income | 1,343 | 1,009 | 963 | 958 | 1,354 | |||||
NONINTEREST EXPENSE: | ||||||||||
Salaries and employees benefits | 3,774 | 4,059 | 3,817 | 3,808 | 3,938 | |||||
Occupancy | 731 | 733 | 730 | 705 | 703 | |||||
Data processing | 586 | 602 | 602 | 526 | 511 | |||||
Professional fees | 497 | 499 | 527 | 510 | 470 | |||||
OREO expense | - | - | - | 22 | 189 | |||||
FDIC insurance | 162 | 169 | 163 | 161 | 161 | |||||
Other | 738 | 789 | 950 | 783 | 774 | |||||
Total noninterest expense | 6,488 | 6,851 | 6,789 | 6,515 | 6,746 | |||||
INCOME BEFORE INCOME TAXES | 2,342 | 2,057 | 1,881 | 2,348 | 2,202 | |||||
INCOME TAX PROVISION | 533 | 476 | 297 | 566 | 648 | |||||
NET INCOME | $ 1,809 | $ 1,581 | $ 1,584 | $ 1,782 | $ 1,554 | |||||
Basic earnings per share | $ 0.09 | $ 0.08 | $ 0 .08 | $ 0.08 | $ 0.07 | |||||
Weighted average shares outstanding | 19,379,466 | 19,583,632 | 20,276,261 | 21,102,021 | 23,041,733 | |||||
Diluted earnings per share | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | |||||
Weighted average diluted shares outstanding | 19,379,466 | 19,583,632 | 20,276,261 | 21,102,075 | 23,041,733 | |||||
Other Data: | ||||||||||
Return on average assets (1) | 0.57% | 0.49% | 0.49% | 0.56% | 0.47% | |||||
Return on average equity (1) | 4.61% | 3.96% | 3.66% | 3.97% | 3.09% | |||||
Efficiency Ratio (2) | 75.27 | 77.58 | 78.78 | 75.52 | 75.68 | |||||
Net interest margin | 2.57% | 2.62% | 2.55% | 2.59% | 2.47% | |||||
(1) Three month results have been annualized. | ||||||||||
(2) The efficiency ratio represents the ratio of operating expenses divided by the sum of net interest and dividend income and noninterest income, excluding gain and loss on | ||||||||||
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets and Other Data (Dollars in thousands, except per share data) (Unaudited) | |||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||
Cash and cash equivalents | $ 19,742 | $ 28,418 | $ 15,706 | $ 19,183 | $ 11,761 | ||||
Securities available for sale, at fair value | 243,204 | 242,957 | 417,053 | 616,155 | 621,507 | ||||
Securities held to maturity, at cost | 295,013 | 298,988 | 173,982 | - | - | ||||
Federal Home Loan Bank of Boston and other restricted stock - at cost | 15,631 | 15,631 | 15,629 | 15,242 | 14,269 | ||||
Loans | 637,427 | 620,154 | 606,605 | 596,264 | 594,918 | ||||
Allowance for loan losses | 7,459 | 7,311 | 7,473 | 7,565 | 7,794 | ||||
Net loans | 629,968 | 612,843 | 599,132 | 588,699 | 587,124 | ||||
Bank-owned life insurance | 47,179 | 46,791 | 46,403 | 46,607 | 46,222 | ||||
Other real estate owned | - | - | - | - | 964 | ||||
Other assets | 26,104 | 25,703 | 25,730 | 20,967 | 19,615 | ||||
TOTAL ASSETS | $ 1,276,841 | $ 1,271,331 | $ 1,293,635 | $ 1,306,853 | $ 1,301,462 | ||||
Total deposits | $ 817,112 | $ 793,510 | $ 782,682 | $ 772,196 | $ 753,413 | ||||
Short-term borrowings | 48,197 | 61,784 | 69,972 | 55,827 | 69,934 | ||||
Long-term debt | 248,377 | 248,184 | 269,991 | 289,600 | 278,861 | ||||
Securities pending settlement | 299 | - | - | - | - | ||||
Other liabilities | 8,712 | 10,954 | 10,573 | 10,250 | 10,067 | ||||
TOTAL LIABILITIES | 1,122,697 | 1,114,432 | 1,133,218 | 1,127,873 | 1,112,275 | ||||
TOTAL SHAREHOLDERS' EQUITY | 154,144 | 156,899 | 160,417 | 178,980 | 189,187 | ||||
TOTAL LIABILITIES AND | $ 1,276,841 | $ 1,271,331 | $ 1,293,635 | $ 1,306,853 | $ 1,301,462 | ||||
Book value per share | $ 7.65 | $ 7.57 | $ 7.73 | $ 8.17 | $ 8.28 | ||||
Other Data: | |||||||||
30- 89 day delinquent loans | $ 3,459 | $ 1,860 | $ 1,438 | $ 1,919 | $ 1,162 | ||||
Nonperforming loans | 2,586 | 2,933 | 3,272 | 2,957 | 3,009 | ||||
Nonperforming loans as a | 0.41% | 0.47% | 0.54% | 0.50% | 0.51% | ||||
Nonperforming assets as a | 0.20% | 0.23% | 0.25% | 0.23% | 0.31% | ||||
Allowance for loan losses as a | 288.44% | 249.27% | 228.39% | 255.83% | 259.02% | ||||
Allowance for loan losses as a | 1.17% | 1.18% | 1.23% | 1.27% | 1.31% | ||||
The following tables set forth the information relating to our average balances and net interest income for the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, and the year ended December 31, 2013 and 2012, 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, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Average | Avg Yield/ | Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||
Loans(1)(2) | $ 619,240 | $ 6,495 | 4.20 | % | $ 609,876 | $ 6,409 | 4.20 | % | $ 585,026 | $ 6,408 | 4.38 | % | ||||||||
Securities(2) | 541,370 | 3,719 | 2.75 | 573,955 | 4,077 | 2.84 | 642,554 | 4,396 | 2.74 | |||||||||||
Other investments - at cost | 17,537 | 19 | 0.43 | 17,537 | 20 | 0.46 | 15,929 | 23 | 0.58 | |||||||||||
Short-term investments(3) | 18,383 | 4 | 0.09 | 9,373 | 3 | 0.13 | 13,330 | 6 | 0.19 | |||||||||||
Total interest-earning assets | 1,196,530 | 10,237 | 3.42 | 1,210,741 | 10,509 | 3.47 | 1,256,839 | 10,833 | 3.45 | |||||||||||
Total noninterest-earning assets | 73,528 | 73,123 | 62,744 | |||||||||||||||||
Total assets | $ 1,270,058 | $ 1,283,864 | $ 1,319,583 | |||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
NOW accounts | $ 44,521 | 29 | 0.26 | $45,756 | 34 | 0.30 | $ 56,089 | 46 | 0.33 | |||||||||||
Savings accounts | 82,535 | 21 | 0.10 | 85,960 | 26 | 0.12 | 92,432 | 38 | 0.16 | |||||||||||
Money market accounts | 207,801 | 199 | 0.38 | 206,674 | 206 | 0.40 | 177,358 | 189 | 0.43 | |||||||||||
Time certificates of deposit | 338,272 | 1,109 | 1.31 | 330,222 | 1,124 | 1.36 | 323,952 | 1,205 | 1.49 | |||||||||||
Total interest-bearing deposits | 673,129 | 1,358 | 668,612 | 1,390 | 649,831 | 1,478 | ||||||||||||||
Short-term borrowings and long-term debt | 304,403 | 1,124 | 1.48 | 326,785 | 1,130 | 1.38 | 345,033 | 1,554 | 1.80 | |||||||||||
Interest-bearing liabilities | 977,532 | 2,482 | 1.02 | 995,397 | 2,520 | 1.01 | 994,864 | 3,032 | 1.22 | |||||||||||
Noninterest-bearing deposits | 125,959 | 119,462 | 112,139 | |||||||||||||||||
Other noninterest-bearing liabilities | 10,762 | 10,676 | 12,732 | |||||||||||||||||
Total noninterest-bearing liabilities | 136,721 | 130,138 | 124,871 | |||||||||||||||||
Total liabilities | 1,114,253 | 1,125,535 | 1,119,735 | |||||||||||||||||
Total equity | 155,805 | 158,329 | 199,848 | |||||||||||||||||
Total liabilities and equity | $ 1,270,058 | $ 1,283,864 | $ 1,319,583 | |||||||||||||||||
Less: Tax-equivalent adjustment(2) | (148) | (161) | (207) | |||||||||||||||||
Net interest and dividend income | $ 7,607 | $ 7,828 | $ 7,594 | |||||||||||||||||
Net interest rate spread(4) | 2.40 | % | 2.46 | % | 2.23 | % | ||||||||||||||
Net interest margin(5) | 2.57 | % | 2.62 | % | 2.47 | % | ||||||||||||||
Ratio of average interest-earning | ||||||||||||||||||||
assets to average interest-bearing liabilities | 122.40 | 121.63 | 126.33 | |||||||||||||||||
(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 | ||||||||||||||||||||
(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, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||
(Dollars in thousands) | ||||||||||||||||
ASSETS: | ||||||||||||||||
Interest-earning assets | ||||||||||||||||
Loans(1)(2) | $ 604,732 | $ 25,558 | 4.23 | % | $ 573,642 | $ 25,762 | 4.49 | % | ||||||||
Securities(2) | 584,029 | 16,027 | 2.74 | 638,467 | 18,110 | 2.84 | ||||||||||
Other investments - at cost | 17,258 | 93 | 0.54 | 15,287 | 94 | 0.61 | ||||||||||
Short-term investments(3) | 9,790 | 9 | 0.09 | 11,074 | 8 | 0.07 | ||||||||||
Total interest-earning assets | 1,215,809 | 41,687 | 3.43 | 1,238,470 | 43,974 | 3.55 | ||||||||||
Total noninterest-earning assets | 69,753 | 64,629 | ||||||||||||||
Total assets | $ 1,285,562 | $ 1,303,099 | ||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||
Interest-bearing checking | $ 46,982 | 134 | 0.29 | $ 61,277 | 266 | 0.43 | ||||||||||
Savings accounts | 87,535 | 119 | 0.14 | 95,129 | 186 | 0.20 | ||||||||||
Money market accounts | 196,265 | 763 | 0.39 | 170,171 | 807 | 0.47 | ||||||||||
Time certificates of deposit | 330,510 | 4,509 | 1.36 | 318,000 | 4,883 | 1.54 | ||||||||||
Total interest-bearing deposits | 661,292 | 5,525 | 644,577 | 6,142 | ||||||||||||
Short-term borrowings and long-term debt | 327,783 | 4,765 | 1.45 | 332,129 | 6,521 | 1.96 | ||||||||||
Interest-bearing liabilities | 989,075 | 10,290 | 1.04 | 976,706 | 12,663 | 1.30 | ||||||||||
Noninterest-bearing deposits | 118,749 | 104,454 | ||||||||||||||
Other noninterest-bearing liabilities | 10,373 | 11,179 | ||||||||||||||
Total noninterest-bearing liabilities | 129,122 | 115,633 | ||||||||||||||
Total liabilities | 1,118,197 | 1,092,339 | ||||||||||||||
Total equity | 167,365 | 210,760 | ||||||||||||||
Total liabilities and equity | $ 1,285,562 | $ 1,303,099 | ||||||||||||||
Less: Tax-equivalent adjustment(2) | (656) | (870) | ||||||||||||||
Net interest and dividend income | $ 30,741 | $ 30,441 | ||||||||||||||
Net interest rate spread(4) | 2.39 | % | 2.24 | % | ||||||||||||
Net interest margin(5) | 2.58 | % | 2.53 | % | ||||||||||||
Ratio of average interest-earning | ||||||||||||||||
assets to average interest-bearing liabilities | 122.92 | 126.80 | ||||||||||||||
(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 | ||||||||||||||||
(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 | ||||||||||||||||
(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. | ||||||||||||||||
CONTACT: James C. Hagan, President & CEO / Leo R. Sagan, Jr., CFO / Meghan Hibner, VP Investor Relations Officer, 413-568-1911