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. Reports Results for the Quarter and Year Ended
December 31, 2005
Westfield, Massachusetts, January 25, 2006: (AMEX:WFD) Westfield Financial,
Inc. (the "Company"), the holding company for Westfield Bank (the "Bank"),
reported net income of $1.7 million or $0.18 per diluted share for the
quarter ended December 31, 2005, compared to net income of $1.5 million or
$0.16 per diluted share for the same period in 2004.
Net income for the year ended December 31, 2005 was $6.2 million, or $0.64
per diluted share, compared to $6.3 million, or $0.64 per diluted share for
the year ended December 31, 2004. The 2004 results included net gains from
the sale of securities of $877,000 for the year ended December 31, 2004. This
was primarily the result of the Company selling its common stock portfolio in
2004. Net gains from sales of securities for the year ended December 31,
2005 were $19,000.
Commercial real estate loans and commercial and industrial loans increased
$30.5 million to $269.6 million at December 31, 2005 from $239.1 million at
December 31, 2004. James C. Hagan, President and COO noted, "Our strategy
has been and continues to be a focus on fully banking local commercial
customers. Our performance this year reflects that effort." Donald A.
Williams, CEO and Chairman of the Board stated, "As a local community bank we
continue to build quality business relationships and our results underscore
that commitment." Mr. Williams also stated, "On January 24, 2006 the Board
of Directors declared a regular cash dividend of $0.15 per share, payable on
February 23, 2006 to all shareholders of record on February 9, 2006.
Net interest and dividend income for the year and three months ended December
31, 2005 was $23.7 million and $5.9 million, respectively, compared with
$23.5 million and $6.1 million for the year and three months ended December
31, 2004. Net interest margin for the year and three months ended December
31, 2005 was 3.13% and 3.09%, respectively, compared with 3.13% and 3.20% for
the same periods in 2004.
The provision for loan losses for the year end and three months ended
December 31, 2005 was $465,000 and $100,000, respectively, compared with
$750,000 and $275,000 for the same periods in 2004.
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Noninterest income for the year and three months ended December 31, 2005 was
$3.4 million and $898,000, respectively, compared to $3.0 million and
$767,000 for the year and three months ended December 31, 2004. Net checking
account processing fee income was $1.8 million and $494,000 for the year and
three months ended December 31, 2005 as compared to $1.7 million and $421,000
for the same periods in 2004. Income from Bank Owned Life Insurance ("BOLI")
was $758,000 and $205,000 for the year and three months ended December 31,
2005, compared to $741,000 and $188,000 for the same periods in 2004. The
increase in income from BOLI was primarily due to rising interest rates.
Noninterest expense for the year and three months ended December 31, 2005 was
$18.5 million and $4.5 million, respectively, compared to $17.8 million and
$4.5 million respectively, for the same periods in 2004. Salaries and
benefits increased $402,000 for the year ended December 31, 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 $8.2 million to $805.1 million at December 31, 2005
from $796.9 million at December 31, 2004. Net loans during this period
increased by $10.2 million, or 2.8%, to $378.8 million at December 31, 2005
from $368.6 million at December 31, 2004. Securities increased $20.0
million, or 6.0%, to $354.9 million at December 31, 2005 from $334.9 million
at December 31, 2004.
Total deposits showed an increase of $10.4 million to $623.0 million at
December 31, 2005. Federal Home Loan Bank borrowings totaled $45.0 million
at both December 31, 2005 and December 31, 2004. Customer repurchase
agreements were $14.4 million at December, 2005 and $14.6 million at December
31, 2004.
Stockholders' equity at December 31, 2005 and December 31, 2004 was $115.8
million and $118.1 million, respectively, which represented 14.4% and 14.8%
of total assets. The change is comprised of net income of $6.2 million for
the year ended December 31, 2005, the net repurchase of 199,755 shares of
common stock for $4.9 million, and the declaration by the Board of Directors
of four quarterly and two special dividends aggregating $3.6 million.
The Bank is headquartered in Westfield, Massachusetts and operates through 10
banking offices in Agawam, East Longmeadow, Holyoke, Southwick, Springfield,
West Springfield and Westfield, Massachusetts. The Bank's deposits are
insured by the Federal Deposit Insurance Corporation.
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This press release contains certain forward-looking statements. These
forward-looking statements are made in good faith pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
The words "may," "could," "should," "would," "believe," "anticipate,"
"estimate," "expect," "intend," "plan" and similar expressions are intended
to identify forward-looking statements. These forward-looking statements may
be subject to significant known and unknown risks uncertainties, and other
factors, including, but not limited to, those matters referred to in the
preceding sentence.
Although we believe that the expectations reflected in such forward-looking
statements are reasonable, actual results may differ materially from the
results discussed in these forward-looking statements. You are cautioned not
to place undue reliance on these forward-looking statements, which speak only
as of the date hereof. The Company undertakes no obligation to republish
revised forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Statement of Operations and Other Data
($ in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
---- ---- ---- ----
<s> <c> <c> <c> <c>
Interest and dividend income $ 9,750 $ 8,858 $ 37,306 $ 34,428
Interest expense 3,803 2,790 13,597 10,913
Net interest and dividend income 5,947 6,068 23,709 23,515
Provision for loan losses 100 275 465 750
Net interest and dividend income
after provision for loan losses 5,847 5,793 23,244 22,765
Net gains on sales on securities
available for sale - 10 19 877
Noninterest income 898 767 3,353 3,019
Noninterest expense 4,466 4,527 18,464 17,776
Income before income taxes 2,279 2,043 8,152 8,885
Income taxes 578 514 1,933 2,562
Net income $ 1,701 $ 1,529 $ 6,219 $ 6,323
Basic earnings per share $ 0.18 $ 0.16 $ 0.66 $ 0.65
Average shares outstanding 9,396,396 9,493,478 9,467,340 9,705,856
Diluted earnings per share $ 0.18 $ 0.16 $ 0.64 $ 0.64
Diluted average shares outstanding 9,571,079 9,718,667 9,698,130 9,929,516
Other Data:
Return on Average Assets (1) 0.83% 0.76% 0.77% 0.79%
Return on Average Equity (1) 5.81% 5.19% 5.27% 5.24%
Net Interest Margin 3.09% 3.20% 3.13% 3.13%
<F1> Three month results have been annualized.
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WESTFIELD FINANCIAL, INC. and SUBSIDIARIES
Selected Consolidated Balance Sheet and Other Data
($ in thousands, except per share data)
(Unaudited)
December 31, December 31,
2005 2004
---- ----
<s> <c> <c>
Total assets $805,095 $796,903
Securities held to maturity 225,450 246,600
Securities available for sale 129,459 88,284
Stock in Federal Home Loan Bank of Boston
and other stock 4,237 4,237
Loans 384,259 373,878
Allowance for loan losses 5,422 5,277
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Net loans 378,837 368,601
Total deposits 623,045 612,621
Federal Home Loan Bank Advances 45,000 45,000
Stockholders' equity 115,842 118,051
Book value per share 12.37 12.43
Other Data:
Nonperforming loans $ 1,919 $ 2,171
Nonperforming loans as a percentage of total assets 0.24% 0.27%
Nonperforming loans as a percentage of total loans 0.50% 0.58%
Allowance for loan losses as a percentage of
nonperforming loans 283% 243%
Allowance for loan losses as a percentage of total loans 1.41% 1.41%
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