Exhibit 99.1
FOR IMMEDIATE RELEASE
For further information contact:
Donald A. Williams, President & CEO
Michael J. Janosco Jr., CFO
413-568-1911
Westfield Financial, Inc. Reports Results for the Quarter Ended March 31,
2003.
Westfield, Massachusetts, April 24, 2003: (AMEX:WFD) Westfield Financial,
Inc. (the "Company") the holding company for Westfield Bank (the "Bank"),
reported a net loss of $1.6 million or $0.16 and $0.15 per basic and
diluted share, respectively, compared to net income of $1.1 million or
$0.10 per basic and diluted share for the same period in 2002.
As previously reported, the Company's first quarter results included an
accrual of $2.9 million representing an estimate of the additional state
tax liability, including interest, relating to the deduction for dividends
received from the Bank's real estate investment trust subsidiary (the
"REIT") for 2002 and prior years. Excluding the effect of this charge, the
Company's after-tax operating income was $1.2 million, or $0.12 per basic
and diluted share.
Donald A. Williams, President and Chief Executive Officer of the Company
and the Bank, stated, "We are pleased with our first quarter results as we
continue to invest the proceeds from the stock offering, as well as the
performance of our stock to date", Mr. Williams also stated, "The Board of
Directors declared a $0.05 cash dividend on April 22, 2003 to all
stockholders of record on May 7, 2003, payable on May 23, 2003".
Net interest and dividend income for the three months ended March 31, 2003
was $5.7 million compared with $6.1 million for the quarter ended March 31,
2002. For the quarter ended March 31, 2003, net interest and dividend
income was negatively affected by the Company's decision to invest in Bank
owned life insurance which resulted in income of $164,000 being recorded as
noninterest income. In addition, the Company's transition to its
residential loan program with a third party mortgage company and high
levels of refinancing activity resulted in lower interest and dividend
income. However, fees from the program resulted in noninterest income of
$85,000 for the quarter ended March 31, 2003 compared with $36,000 for the
same period in 2002. Net interest margin for the quarters ended March 31,
2003 and 2002 was 3.03% and 3.28%, respectively.
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The provision for loan losses for the three months ended March 31, 2003 and
2002 was $200,000 and $300,000, respectively.
Net gains from sales of securities for the three months ended March 31,
2003 were $60,000 as compared to net losses from sales and writedowns of
securities of $248,000 for the quarter ended March 31, 2002. Included in
the net loss for the 2002 quarter was a $304,000 writedown of certain
equity securities whose impairment was determined to be other than
temporary.
Other noninterest income for the three months ended March 31, 2003 was
$624,000 as compared to $379,000 for the same period in 2002. The increase
was the result of income on Bank owned life insurance of $164,000 for the
quarter ended March 31, 2003 as compared to $0 for the quarter ended March
31, 2002 and fees received of $85,000 for the quarter ended March 31, 2003
from the Bank's current residential real estate loan program with a third
party mortgage company as compared to $36,000 for the same period in 2002.
Noninterest expense for the three months ended March 31, 2003 was $4.6
million compared with $4.3 million for the same period in 2002. This was
primarily the result of a $328,000 charge taken during the first quarter of
2003 to accrue for interest expected to be due to the Commonwealth of
Massachusetts as a result of the recently enacted REIT legislation.
Total assets increased $2.0 million to $815.0 million at March 31, 2003
from $813.0 million at December 31, 2002.
Securities for the quarter ended March 31, 2003 decreased by $9.0 million
or 2.40%, to $366.7 million at March 31, 2003 from $375.7 million at
December 31, 2002. Net loans decreased by $10.5 million, or 2.9%, to
$346.7 million at March 31, 2003 from $357.2 million at December 31, 2002.
The decrease in net loans was primarily the result of the current
residential loan program with a third party mortgage company. Although the
program was in effect during the quarter ended March 31, 2003, maturities
and refinancings of residential mortgages caused net loans to continue to
decrease. As discussed above, increased fees from the program have caused
noninterest income to increase. During the quarter ended March 31, 2003
the Bank invested $15.7 million in Bank Owned Life Insurance (BOLI).
Total deposits increased $2.6 million to $658.7 million at March 31, 2003
from $656.1 million at December 31, 2002. Federal Home Loan Bank
borrowings totaled $15.0 million at March 31, 2003.
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Stockholders' equity at March 31, 2003 and December 31, 2002 was $122.3
million and $126.7 million, respectively, representing 15.0% and 15.6% of
total assets. The change is primarily comprised of a net loss of $1.6
million for the quarter ended March 31, 2003, a decrease in net unrealized
gains on securities available for sale of $746,000, net of income taxes,
the recording of the purchase of 128,700 shares of stock for the Company's
stock benefit plans amounting to $2.0 million and the payment of a $0.05 a
share or $529,000 paid on March 3, 2003.
The Company's annual meeting of shareholders will be held on Friday, May
30, 2003, at 10:00 a.m., at the Tekoa Country Club located at 459 Russell
Road, Westfield, Massachusetts 01085. At the meeting, shareholders of
record on April 9, 2003, will be asked to consider and vote upon: (I) the
election of three directors; (ii) the ratification of Article IX of the
Westfield Financial, Inc. 2002 Stock Option Plan; (iii) the ratification of
Article X of the Westfield Financial, Inc. Recognition and Retention Plan;
and (iv) any other matters as may properly come before the meeting, or any
adjournments thereof.
*
The Bank is headquartered in Westfield, Massachusetts and operates through
10 banking offices in Agawam, East Longmeadow, Holyoke, Southwick,
Springfield, West Springfield and Westfield, Massachusetts. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation and the
Depositors Insurance Fund.
The Company wishes to caution readers not to place undue reliance on any
such forward-looking statements contained in this news release, which speak
only as of the date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
period in any current statements. The Company and the Bank do not
undertake and specifically decline any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements
to reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Balance Sheet and Other Data
($ in thousands, except per share data)
(Unaudited)
March 31, December 31,
2003 2002
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<s> <c> <c>
Total assets $ 814,974 $ 812,980
Securities held to maturity 229,690 205,299
Securities available for sale 137,013 170,310
Loans 350,951 361,480
Allowance for loan losses (4,238) (4,325)
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Net loans 346,713 357,155
Total deposits 658,685 656,065
Stockholders' equity 122,264 126,699
Book value per share 12.18 12.25
Other Data:
Nonperforming loans $ 2,176 $ 2,383
Nonperforming loans as a percentage of total assets 0.27% 0.29%
Nonperforming loans as a percentage of total loans 0.62% 0.66%
Allowance for loan losses as a percent of
nonperforming loans 195% 181%
Allowance for loan losses as a percentage of total loans 1.21% 1.20%
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Statement of Operations and Other Data
($ in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2003 2002
<s> <c> <c>
Interest and dividend income $ 9,673 $ 11,107
Interest expense 3,957 5,012
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Interest and dividend income 5,716 6,095
Provision for loan losses 200 300
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Net interest and dividend income after
provision for loan losses 5,516 5,795
Net gains (losses) on sales of securities
available for sale 60 (248)
Other noninterest income 624 379
Other noninterest expense 4,629 4,276
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Income before income taxes 1,571 1,650
Income taxes 3,177 563
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Net (loss) Income $ (1,606) $ 1,087
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Basic (loss) earnings per share $ (0.16) $ 0.10
Average shares outstanding 10,104,737 10,494,900
Diluted (loss) earnings per share $ (0.15) $ 0.10
Diluted average shares outstanding 10,722,004 10,494,900
Other Data:
(Loss) return on Average Assets (1) (0.81)% 0.56%
(Loss) return on Average Equity (1) (5.19)% 3.37%
Net Interest Margin 3.03% 3.28%
<FN>
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<F1> three month results have been annualized.
</FN>
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