Exhibit 99.1
FOR IMMEDIATE RELEASE
For further information contact:
Donald A. Williams, Chairman & CEO
Michael J. Janosco Jr., CFO
413-568-1911
Westfield Financial, Inc. Declares Special Dividend and
Reports Results for the Quarter Ended September 30, 2005
Westfield, Massachusetts, October 26, 2005: (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 for the
quarter ended September 30, 2005, compared to net income of $1.6 million or
$0.16 per diluted share for the same period in 2004.
Commercial real estate loans and commercial and industrial loans increased
$28.4 million to $267.5 million at September 30, 2005 from $239.1 million at
December 31, 2004. James C. Hagan, President & Chief Operating Officer
stated, "As the local community bank, we continue to seek out quality local
commercial banking opportunities as part of our overall growth strategy."
Donald A. Williams, Chairman of the Board and Chief Executive Officer said,
"Our focus has been on maintaining and expanding our commercial business
relationships. Our performance this year underscores that commitment." Mr.
Williams also stated, "On October 25, 2005 the Board of Directors declared a
regular cash dividend of $0.15 per share, which represents a $0.05 per share
increase over the previous quarter. In addition, the Board of Directors
declared a special cash dividend of $0.25 per share. Both the regular and
special dividends are payable on November 22, 2005 to all shareholders of
record on November 9, 2005.
Net interest and dividend income for the three months ended September 30,
2005 was $6.0 million compared with $5.9 million for the three months ended
September 30, 2004. Net interest margin for the quarters ended September 30,
2005 and 2004 was 3.09% and 3.14%, respectively.
The provision for loan losses for the three months ended September 30, 2005
and 2004 was $100,000 and $200,000, respectively.
Noninterest income was $915,000 for the three months ended September 30, 2005
as compared to $778,000 the same period in 2004. Net checking account
processing fee income increased $63,000 to $500,000 for the three months
ended September 30, 2005 from $437,000 in the same period in 2004. Fees
received from the third party mortgage company increased $23,000 to $39,000
for the three months ended September 30, 2005 as compared to $16,000 the
three months ended September 30, 2004. This was the result of an increase in
referrals to the third party mortgage company. Fee income from the third
party mortgage company in the future may be affected by borrower activity,
which generally decreases in a rising interest rates environment.
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Noninterest expense was $4.6 million for the three months ended September 30,
2005 as compared to $4.3 million for the same period in 2004. Salaries and
benefits increased $326,000 for the three months ended September 30, 2005 as
compared to the same period in 2004. This was primarily the result of normal
increases in salaries and health care costs along with an increase in stock
based benefit plan expenses.
Total assets increased $15.6 million to $812.5 million at September 30, 2005
from $796.9 million at December 31, 2004.
Net loans increased $11.9 million to $380.5 million at September 30, 2005
from $368.6 million at December 31, 2004. Commercial real estate and
commercial and industrial loans increased $28.4 million to $267.5 million at
September 30, 2005 from $239.1 million at December 31, 2004. This is
consistent with Westfield Bank's strategic plan, which emphasizes commercial
lending. Residential real estate loans decreased $12.8 million to $110.4
million at September 30, 2005 from $123.2 million at December 31, 2004. The
decrease in residential real estate loans is primarily the result of a loan
program whereby substantially all of the Bank's residential real estate loans
are underwritten and originated by a third party mortgage company. The Bank
believes that this program diversifies its loan portfolio and reduces
interest rate risk.
Total deposits showed an increase of $13.3 million to $625.9 million at
September 30, 2005. Federal Home Loan Bank borrowings totaled $45.0 million
at both September 30, 2005 and December 31, 2004. Customer repurchase
agreements increased $2.0 million, to $16.6 million at September 30, 2005
from $14.6 million at December 31, 2004.
Stockholders' equity at September 30, 2005 and December 31, 2004 was $117.7
million and $118.1 million, respectively, which represented 14.5% of total
assets as of September 30, 2005 and 14.8% of total assets as of December 31,
2004. The change is primarily attributable to net income of $4.5 million for
the nine months ended September 30, 2005, offset by the repurchase of 152,400
shares of common stock for $3.7 million, and the declaration by the Board of
Directors of dividends of $0.10 per share on January 27, 2005, April 26,
2005, and July 26, 2005, as well as the declaration of a special dividend of
$0.20 per share on April 26, 2005, all of which aggregated $2.0 million.
The Bank is headquartered in Westfield, Massachusetts and operates through 10
banking offices in Agawam, East Longmeadow, Holyoke, Southwick, Springfield,
West Springfield and Westfield, Massachusetts. The Bank's deposits are
insured by the Federal Deposit Insurance Corporation.
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The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements contained in this news release, which speak only
as of the date made. The Company wishes to advise readers that the factors
listed above could affect the Company's financial performance and could cause
the Company's actual results for future periods to differ materially from any
opinions or statements expressed with respect to future period in any current
statements. The Company and the Bank do not undertake and specifically
decline any obligation to publicly release the result of any revisions that
may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the occurrence
of anticipated or unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Statement of Operations and Other Data
($ in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
---- ---- ---- ----
<s> <c> <c> <c> <c>
Interest and dividend income $ 9,504 $ 8,577 $ 27,556 $ 25,569
Interest expense 3,554 2,688 9,794 8,123
---------- ---------- ---------- ----------
Net interest and dividend income 5,950 5,889 17,762 17,446
Provision for loan losses 100 200 365 475
---------- ---------- ---------- ----------
Net interest and dividend income after
provision for loan losses 5,850 5,689 17,397 16,971
Net gains on sales of securities
available for sale - - 19 868
Other noninterest income 915 778 2,455 2,252
Other noninterest expense 4,617 4,286 13,998 13,249
---------- ---------- ---------- ----------
Income before income taxes 2,148 2,181 5,873 6,842
Income taxes 553 627 1,355 2,048
---------- ---------- ---------- ----------
Net income $ 1,595 $ 1,554 $ 4,518 $ 4,794
========== ========== ========== ==========
Basic earnings per share $ 0.17 $ 0.16 $ 0.48 $ 0.49
Average shares outstanding 9,451,534 9,526,346 9,484,074 9,777,166
Diluted earnings per share $ 0.16 $ 0.16 $ 0.46 $ 0.48
Diluted average shares outstanding 9,688,635 9,726,371 9,731,892 9,992,225
Other Data:
Return on Average Assets (1) 0.78% 0.78% 0.75% 0.80%
Return on Average Equity (1) 5.33% 5.28% 5.09% 5.25%
Net Interest Margin 3.09% 3.14% 3.14% 3.11%
<FN>
<F1> Three and nine 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)
September 30, December 31,
2005 2004
------------- ------------
<s> <c> <c>
Total assets $812,471 $796,903
Securities held to maturity 229,290 246,600
Securities available for sale 113,807 88,284
Stock in Federal Home Loan Bank of Boston
and other stock 4,237 4,237
Loans 385,981 373,878
Allowance for loan losses 5,452 5,277
-------- --------
Net loans 380,529 368,601
Total deposits 625,901 612,621
Federal Home Loan Bank Advances 45,000 45,000
Stockholders' equity 117,740 118,051
Book value per share 12.47 12.43
Other Data:
Nonperforming loans $ 1,989 $ 2,171
Nonperforming loans as a percentage of total
assets 0.24% 0.27%
Nonperforming loans as a percentage of
total loans 0.52% 0.58%
Allowance for loan losses as a percentage of
nonperforming loans 274% 243%
Allowance for loan losses as a percentage of
total loans 1.41% 1.41%
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