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 Earnings Results for the Quarter Ended
September 30, 2003
Westfield, Massachusetts, October 29, 2003: (AMEX:WFD) Westfield Financial,
Inc. (the "Company"), the holding company for Westfield Bank (the "Bank"),
reported net income of $1.1 million or $0.10 per diluted share for the
quarter ended September 30, 2003, compared to net income of $1.3 million or
$0.12 per diluted share for the same period in 2002.
Net interest and dividend income for the three months ended September 30,
2003 was $5.1 million compared with $6.1 million for the quarter ended
September 30, 2002. For the quarter ended September 30, 2003, net interest
and dividend income was negatively affected by the Company's decision to
purchase Bank Owned Life Insurance (BOLI) in January 2003, the income from
which is included in noninterest income. In addition, the Company's
transition to its current residential real estate loan program with a third
party mortgage company and high levels of refinancing activity resulted in
lower interest and dividend income. Interest expense for the three months
ended September 30, 2003 decreased $1.3 million to $3.3 million from $4.6
million for the same period in 2002. Net interest margin for the quarters
ended September 30, 2003 and 2002 was 2.64% and 3.11%, respectively.
The provision for loan losses for the three months ended September 30, 2003
and 2002 was $150,000 and $234,000, respectively.
Net gains from sales of securities for the three months ended September 30,
2003 were $70,000 as compared to net losses from sales and writedowns of
securities of $139,000 for the quarter ended 2002. Included in the net
losses from sales and writedowns of securities for the 2002 quarter was a
$414,000 writedown of certain equity securities whose impairment was
determined to be other than temporary.
Other noninterest income for the three months ended September 30, 2003 was
$710,000 as compared to $417,000 for the same period in 2002. The increase
was the result of income on Bank Owned Life Insurance of $214,000 for the
quarter ended September 30, 2003 as compared to $0 for the quarter ended
September 30, 2002 and fees received of $111,000 for the quarter ended
September 30, 2003 from the Bank's current residential real estate loan
program with a third party mortgage company as compared to $28,000 for the
same period in 2002.
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Noninterest expense for the three months ended September 30, 2003 was $4.3
million compared with $4.2 million for the same period in 2002. This change
was the result of an increase in salaries and benefits expense of $214,000
which was primarily the result of an increase in salaries expense of
$43,000 as a result of normal salary increases and an increase in stock
based benefit plan expense of $139,000. These increases were partially
offset by a decrease in advertising expense of $44,000 and a decrease in
charitable contribution expense of $42,000.
Total assets increased $3.2 million to $816.2 million at September 30, 2003
from $813.0 million at December 31, 2002. As discussed above, Bank Owned
Life Insurance amounted to $16.2 million on September 30, 2003. Securities
decreased $6.3 million, or 1.7%, to $369.3 million at September 30, 2003
from $375.6 million at December 31, 2002. Federal funds sold decreased from
$37.2 million at December 31, 2002 to $7.6 million at September 30, 2003.
Net loans during this period decreased by $11.5 million, or 3.2%, to $345.7
million at September 30, 2003, from $357.2 million at December 31, 2002.
Residential real estate loans decreased $41.2 million to $116.6 million at
September 30, 2003. This decrease is primarily the result of our current
residential real estate loan program with a third party mortgage company.
Indirect auto loans decreased $14.2 million to $19.6 million at September
30, 2003 from $33.8 million at December 31, 2002. Commercial real estate
loans increased $27.8 million to $128.7 million at September 30, 2003 from
$100.9 million at December 31, 2002. Commercial non real estate loans
increased $16.8 million to $78.3 million at September 30, 2003 from $61.5
million at December 31, 2002.
Total deposits were $653.2 million at September 30, 2003 and $656.1 million
at December 31, 2002. Customer repurchase agreements increased $5.4 million
to $14.1 million at September 30, 2003 from $8.7 million at December 31,
2002. Federal Home Loan Bank borrowings totaled $20.0 million at September
30, 2003 and $15.0 million at December 31, 2002.
Stockholders' equity at September 30, 2003 and December 31, 2002 was $124.2
million and $126.7 million, respectively, which represented 15.2% and 15.6%
of total assets. The change is primarily comprised of net income of $2.2
million for the nine months ended September 30, 2003, a decrease in net
unrealized gains on securities available for sale of $620,000, net of
income taxes, the recording of the purchase of 128,700 shares of common
stock for the Company's stock benefit plans for $2.0 million, the purchase
of 59,700 shares of treasury stock for $1.1 million and the declaration by
the Board of Directors of a $0.05 per share cash dividend on January 28,
2003, April 22, 2003, and July 22, 2003 amounting to $1.6 million.
Mr. Donald A. Williams, President and Chief Executive Officer of the
Company stated, "The Board of Directors declared a $0.05 cash dividend on
October 28, 2003 to all shareholders of record on November 7, 2003 payable
on November 21, 2003".
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The Bank is headquartered in Westfield, Massachusetts and operates through
10 banking offices in Agawam, East Longmeadow, Holyoke, Southwick,
Springfield, West Springfield and Westfield, Massachusetts. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation and the
Depositors Insurance Fund.
The Company wishes to caution readers not to place undue reliance on any
such forward-looking statements contained in this news release, which speak
only as of the date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
periods in any current statements. The Company and the Bank do not
undertake and specifically decline any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements
to reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Balance Sheet and Other Data
($ in thousands, except per share data)
(Unaudited)
September 30, December 31,
2003 2002
------------- ------------
<s> <c> <c>
Total assets $816,177 $812,980
Securities held to maturity 242,724 205,299
Securities available for sale 126,600 170,310
Loans 350,172 361,480
Allowance for loan losses (4,467) (4,325)
-------- --------
Net loans 345,705 357,155
Total deposits 653,151 656,065
Stockholders' equity 124,247 126,699
Book value per share 12.45 12.25
Other Data:
Nonperforming loans $ 1,939 $ 2,383
Nonperforming loans as a percentage of total assets 0.24% 0.29%
Nonperforming loans as a percentage of total loans 0.55% 0.66%
Allowance for loan losses as a percentage
of nonperforming loans 230% 181%
Allowance for loan losses as a percentage of total loans 1.28% 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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
<s> <c> <c> <c> <c>
Interest and dividend income $ 8,393 $ 10,745 $ 27,058 $ 32,817
Interest expense 3,320 4,637 10,853 14,460
---------- ---------- ---------- ----------
Interest and dividend income 5,073 6,108 16,205 18,357
Provision for loan losses 150 234 500 734
---------- ---------- ---------- ----------
Net interest and dividend income
after provision for loan losses 4,923 5,874 15,705 17,623
Net gains (losses) on sales of
securities available for sale 70 (139) 183 (896)
Other noninterest income 710 417 1,974 1,179
Other noninterest expense 4,315 4,220 13,422 12,765
---------- ---------- ---------- ----------
Income before income taxes 1,388 1,932 4,440 5,141
Income taxes 337 661 2,262 1,755
---------- ---------- ---------- ----------
Net income $ 1,051 $ 1,271 $ 2,178 $ 3,386
========== ========== ========== ==========
Basic earnings per share $ 0.11 $ 0.12 $ 0.22 $ 0.33
Average shares outstanding 10,008,874 10,298,797 10,050,423 10,403,483
Diluted earning per share $ 0.10 $ 0.12 $ 0.21 $ 0.33
Diluted average shares outstanding 10,199,074 10,298,797 10,187,177 10,403,483
Other Data:
Return on Average Assets (1) 0.51% 0.63% 0.36% 0.57%
Return on Average Equity (1) 3.35% 3.96% 2.35% 3.51%
Net Interest Margin 2.64% 3.11% 2.84% 3.18%
<FN>
<F1> Three and nine month results have been annualized.
</FN>
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