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. Declares Special Dividend and Reports Results for
the Quarter Ended March 31, 2005
Westfield, Massachusetts, April 27, 2005: (AMEX:WFD) Westfield Financial,
Inc. (the "Company"), the holding company for Westfield Bank (the "Bank"),
reported net income for the three months ended March 31, 2005 of $1.5
million or $0.16 per diluted share, versus $1.6 million, or $0.16 per
diluted share, for the comparable prior year period.
The 2004 results included net gains from the sale of securities of $479,000
for the three months ended March 31, 2004. This was primarily the result
of the Company selling its common stock portfolio in 2004. There were no
net gains from sales of securities for the three months ended March 31,
2005.
Donald A. Williams, President and Chief Executive Officer, said, "We
continue to execute our strategic plan of growing our commercial business
relationships. Commercial real estate loans and commercial and industrial
loans increased $10.0 million, or 4.2%, to $249.1 million at March 31, 2005
from $239.1 million at December 31, 2004." Mr. Williams also stated, "On
April 26, 2005 the Board of Directors declared a regular cash dividend of
$0.10 per share and for the first time, a special cash dividend of $0.20
per share to all shareholders of record on May 12, 2005 payable on May 26,
2005."
Net interest and dividend income was $5.9 million for the three months
ended March 31, 2005 and also the three months ended March 31, 2004. Net
interest margin for the three months ended March 31, 2005 was 3.21%
compared with 3.14% for the same period in 2004.
The provision for loan losses for the three months ended March 31, 2005 was
$140,000 compared with $150,000 for the same period in 2004.
Noninterest income for the three months ended March 31, 2005 was $748,000,
compared to $586,000 for the three months ended March 31, 2004. Net
checking account processing fee income was $390,000 for the three months
ended March 31, 2005 as compared to $284,000 for the same period in 2004.
The increase is a result of new products and services provided to Westfield
Bank's checking account customers commencing in the second quarter of 2004.
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Noninterest expense for the three months ended March 31, 2005 was $4.6
million compared to $4.5 million for the same period in 2004.
Total assets increased $2.8 million to $799.7 million at March 31, 2005
from $796.9 million at December 31, 2004. Net loans during this period
increased by $3.5 million to $372.1 million at March 31, 2005 from $368.6
million at December 31, 2004. Securities increased $3.7 million to $338.6
million at March 31, 2005 from $334.9 million at December 31, 2004.
Total deposits increased $3.2 million from $612.6 million at December 31,
2004 to $615.8 million at March 31, 2005. The increase in deposits was
primarily the result of an increase of $4.2 million in term deposits, which
were $317.3 million at March 31, 2005.
Customer repurchase agreements decreased $1.3 million from $14.6 million at
December 31, 2004 to $13.3 million at March 31, 2005. Federal Home Loan
Bank borrowings were $45.0 million at both March 31, 2005 and December 31,
2004.
Stockholders' equity at March 31, 2005 and December 31, 2004 was $118.8
million and $118.1 million, respectively, representing 14.9% and 14.8% of
total assets, respectively. The change is comprised of net income of $1.5
million for the three months ended March 31, 2005, an increase in net
unrealized losses on securities available for sale of $532,000, net of
taxes, and the declaration by the Board of Directors of a quarterly
dividend amounting to $401,000.
The Company's annual meeting of shareholders will be held on Friday, May
20, 2005 at 10:00 a.m., at the Tekoa Country Club located at 459 Russell
Road, Westfield, Massachusetts 01085. At the meeting, shareholders of
record on March 25, 2005, will be asked to consider and vote upon the
election of four directors and any other matters as may properly come
before the meeting, or any adjournments thereof.
The Bank is headquartered in Westfield, Massachusetts and operates through
10 banking offices in Agawam, East Longmeadow, Holyoke, Southwick,
Springfield, West Springfield and Westfield, Massachusetts. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation.
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The Company wishes to caution readers not to place undue reliance on any
such forward-looking statements contained in this news release, which speak
only as of the date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial performance and
could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
period in any current statements. The Company and the Bank do not
undertake and specifically decline any obligation to publicly release the
result of any revisions that may be made to any forward-looking statements
to reflect events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Statement of Operations and Other Data
($ in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2005 2004
---- ----
<s> <c> <c>
Interest and dividend income $ 8,878 $ 8,620
Interest expense 2,963 2,751
---------- -----------
Net interest and dividend income 5,915 5,869
Provision for loan losses 140 150
---------- -----------
Interest and dividend income after
provision for loan losses 5,775 5,719
Net gains on sales
on securities available for sale 0 479
Noninterest income 748 586
Noninterest expense 4,582 4,483
---------- -----------
Income before income taxes 1,941 2,301
Income taxes 430 694
---------- -----------
Net income $ 1,511 $ 1,607
========== ===========
Basic earnings per share $ 0.16 $ 0.16
Average shares outstanding 9,499,055 9,976,758
Diluted earnings per share $ 0.16 $ 0.16
Diluted average shares outstanding 9,712,330 10,209,196
Other Data:
Return on Average Assets (1) 0.77% 0.81%
Return on Average Equity (1) 5.17% 5.15%
Net Interest Margin 3.21% 3.14%
<FN>
<F1> Three month results have been annualized.
</FN>
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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
2005 2004
<s> <c> <c>
Total assets $799,687 $796,903
Securities held to maturity 239,982 246,600
Securities available for sale 98,613 88,284
Stock in Federal Home Loan Bank of Boston 4,237 4,237
Loans 377,402 373,828
Allowance for loan losses 5,289 5,227
-------- --------
Net loans 372,113 368,601
Total deposits 615,843 612,621
Federal home loan bank advances 45,000 45,000
Stockholders' equity 118,767 118,051
Book value per share 12.50 12.43
Other Data:
Nonperforming loans $ 2,204 $ 2,171
Nonperforming loans as a percentage of total assets 0.28% 0.27%
Nonperforming loans as a percentage of total loans 0.58% 0.58%
Allowance for loan losses as a percent of
nonperforming loans 240% 241%
Allowance for loan losses as a percentage of total loans 1.40% 1.40%
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