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,
2004
Westfield, Massachusetts, April 27, 2004: (AMEX:WFD) Westfield Financial,
Inc. (the "Company"), the holding company for Westfield Bank (the "Bank"),
reported net income of $1.6 million or $0.16 per diluted share compared to
a net loss of $1.6 million or $0.16 per diluted share for the same period
in 2003.
The first quarter of 2003 included an expense 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.
The tax matter was settled in the second quarter of 2003 resulting in a
reversal of $1.45 million of the expense.
Donald A. Williams, President and Chief Executive Officer of the Company
said, "We continue to experience significant growth in our commercial real
estate loans and commercial and industrial loans. For the quarter ended
March 31, 2004, commercial real estate loans and commercial and industrial
loans grew $8.6 million or 4.0% to $225.2 million at March 31, 2004 from
$216.6 million at December 31, 2003. Mr. Williams also stated, "The Board
of Directors declared a $0.05 cash dividend on April 26, 2004 to all
shareholders of record on May 11, 2004, payable on May 25, 2004.
Net interest and dividend income for the three months ended March 31, 2004
was $5.9 million compared with $5.7 million for the quarter ended March 31,
2003. Net interest margin for the quarters ended March 31, 2004 and 2003
was 3.14% and 3.03%, respectively. The increase in the net interest margin
was primarily due to lower funding costs in the quarter ended March 31,
2004.
The provision for loan losses for the three months ended March 31, 2004 and
2003 was $150,000 and $200,000, respectively. Nonperforming loans increased
$1.1 million to $2.9 million at March 31, 2004 compared to $1.8 million at
December 31, 2003. The increase in nonperforming loans was primarily due to
a single commercial real estate loan relationship of $1.4 million. The loan
is fully secured based on the estimated fair market value of the
collateral.
Net gains on sales of securities for the three months ended March 31, 2004
were $479,000 as compared to net gains on sales of securities of $60,000
for the quarter ended March 31, 2003.
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Other noninterest income for the three months ended March 31, 2004 was
$586,000 as compared to $624,000 for the same period in 2003. The decrease
was the result of fees received of $11,000 for the quarter ended March 31,
2004 from the Bank's residential real estate loan program with a third
party mortgage company as compared to $85,000 for the same period in 2003.
Fee income from the third party mortgage company in the future will be
affected by borrower activity, which generally decreases in a rising
interest rate environment.
Noninterest expense for the three months ended March 31, 2004 was $4.5
million compared with $4.6 million for the same period in 2003. The
decrease in noninterest expense was primarily the result of a $328,000
charge taken in the first quarter of 2003 to accrue for interest expected
to be due the Commonwealth of Massachusetts as a result of the enacted REIT
legislation partially offset by an increase of $231,000 in salaries and
benefits as a result of normal salary increases and an increase in stock
based benefit plan expense of $50,000.
Total assets increased $2.3 million to $797.5 million at March 31, 2004
from $795.2 million at December 31, 2003. Securities for the quarter ended
March 31, 2004 decreased by $26.1 million or 7.18%, to $337.5 million at
March 31, 2004 from $363.6 million at December 31, 2003. Net loans
increased by $10.0 million, or 2.9%, to $355.0 million at March 31, 2004
from $345.0 million at December 31, 2003. The growth in loans was primarily
the result of an increase in commercial real estate loans and commercial
and industrial loans.
Total deposits decreased $10.8 million to $621.6 million at March 31, 2004
from $632.4 million at December 31, 2003. Time certificates of deposit
decreased by $11.8 million while core deposits increased by $1.0 million.
The Bank's strategic plan calls for a lesser reliance on time deposit
accounts. The decrease in deposits was offset by a $10 million increase in
Federal Home Loan Bank borrowings.
Stockholders' equity at March 31, 2004 and December 31, 2003 was $125.4
million and $124.8 million, respectively, which represented 15.7% of total
assets in both periods. The change is primarily comprised of net income of
$1.6 million for the quarter ended March 31, 2004, the repurchase of 38,400
shares of common stock for $936,000, and the declaration by the Board of
Directors of a dividend of $0.05 per share, or $526,000, on January 27,
2004.
The Company's annual meeting of shareholders will be held on Friday, May
21, 2004 at 10:00 a.m., at the Tekoa Country Club located at 459 Russell
Road, Westfield, Massachusetts 01085. At the meeting, shareholders of
record on March 26, 2004, will be asked to consider and vote upon the
election of four directors: and any other matters as may properly come
before the meeting, or any adjournments thereof.
The Bank is headquartered in Westfield, Massachusetts and operates through
10 banking offices in Agawam, East Longmeadow, Holyoke, Southwick,
Springfield, West Springfield and Westfield, Massachusetts. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation and the
Depositors Insurance Fund.
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The Company wishes to caution readers not to place undue reliance on any
such forward-looking statements contained in this news release, which speak
only as of the date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
periods in any current statements. The Company and the Bank do not
undertake and specifically decline any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements
to reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Balance Sheet and Other Data
($ in thousands, except per share data)
(Unaudited)
March 31, December 31,
2004 2003
--------- ------------
<s> <c> <c>
Total assets $797,488 $795,216
Securities held to maturity 255,480 261,610
Securities available for sale 82,050 101,983
Stock in Federal Home Loan Bank of Boston
and other stock 4,237 4,237
Loans 359,738 349,622
Allowance for loan losses 4,699 4,642
-------- --------
Net loans 355,039 344,980
Total deposits 621,632 632,431
Customer repurchase agreements 15,087 12,135
Federal Home Loan Bank Advances 30,000 20,000
Stockholders' equity 125,435 124,804
Book value per share 12.61 12.50
Other Data:
Nonperforming loans $ 2,937 $ 1,768
Nonperforming loans as a percentage of total assets 0.37% 0.22%
Nonperforming loans as a percentage of total loans 0.82% 0.50%
Allowance for loan losses as a percentage
of nonperforming loans 160% 263%
Allowance for loan losses as a percentage of total loans 1.31% 1.33%
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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
2004 2003
---- ----
<s> <c> <c>
Interest and dividend income $ 8,620 $ 9,673
Interest expense 2,751 3,957
---------- ----------
Net interest and dividend income 5,869 5,716
Provision for loan losses 150 200
---------- ----------
Net interest and dividend income after
provision for loan losses 5,719 5,516
Net gains on sales of securities
Available for sale 479 60
Other noninterest income 586 624
Other noninterest expense 4,483 4,629
---------- ----------
Income before income taxes 2,301 1,571
Income taxes 694 3,177
---------- ----------
Net income (loss) $ 1,607 $ (1,606)
========== ==========
Basic earnings (loss) per share $ 0.16 $ (0.16)
Average shares outstanding 9,976,758 10,104,737
Diluted earnings (loss) per share $ 0.16 $ (0.16)
Diluted average shares outstanding 10,209,196 10,104,737
Other Data:
Return (Loss) on Average Assets (1) 0.81% (0.81)%
Return (Loss) on Average Equity (1) 5.15% (5.19)%
Net Interest Margin 3.14% 3.03%
<FN>
<F1> Three month results have been annualized.
</FN>
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