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 Dividend and Reports Results
for the Quarter Ended March 31, 2007
Westfield, Massachusetts, April 25, 2007: (AMEX:WFD) Westfield Financial, Inc.
(the "Company"), the holding company for Westfield Bank (the "Bank"), reported
net income of $2.0 million for the quarter ended March 31, 2007 compared to $1.3
million for the same period in 2006. This represents earnings of $0.07 per
diluted share for the quarter ended March 31, 2007, compared to $0.04 per
diluted share for the same period in 2006.
The increase in earnings was primarily the result of an increase in net interest
income. Net interest income was $7.5 million for the three months ended March
31, 2007 and $5.8 million for the same period in 2006. The increase in net
interest income was mainly due to a $154.6 million increase in average earning
assets as a result of funds raised in the second step stock offering. The net
interest margin, on a tax equivalent basis, was 3.34% for the three months ended
March 31, 2007, compared to 3.14% for the same period in 2006.
Noninterest expense for the three months ended March 31, 2007 was $5.3 million,
compared to $4.8 million for the same period in 2006. Salaries and benefits
increased $315,000 as a result of hiring new employees and normal increases in
expenses related to employee salaries and benefits. Occupancy expense increased
$94,000 primarily due to expenses associated with three new automated teller
machines and leasehold improvements.
Dividend Declaration
Donald A. Williams, Chairman and Chief Executive Officer stated, "On April 24,
2007, the Board of Directors declared a regular cash dividend of $0.05 per
share, payable on May 23, 2007, to all shareholders of record on May 9, 2007."
Balance Sheet Growth
Total assets increased $17.2 million to over $1.0 billion at March 31, 2007 from
$996.8 million at December 31, 2006.
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Investment securities increased $76.9 million, to $485.9 million at March 31,
2007 from $409.0 million at December 31, 2006. Investment securities increased
as Management invested the proceeds of the second step stock offering. Cash and
cash equivalents decreased $61.7 million, to $92.8 million at March 31, 2007
from $154.5 million at December 31, 2006. The decrease in cash and cash
equivalents is the result of using funds to purchase investment securities.
Net loans decreased by $8.7 million, to $376.4 million at March 31, 2007 from
$385.1 million at December 31, 2006. Commercial real estate loans decreased $8.9
million, to $165.6 million at March 31, 2007 from $174.5 million at December 31,
2006. This was primarily due to a single commercial relationship that divested
real estate holdings and paid off loans totaling $10.2 million. The decrease in
commercial real estate loans was partially offset by a $1.6 million increase in
commercial and industrial loans, which were $102.0 million at March 31, 2007.
Total deposits increased $561,000 to $628.0 million at March 31, 2007 from
$627.4 million at December 31, 2006. Customer repurchase agreements were at
$18.0 million at March 31, 2007 and $17.9 million at December 31, 2006. All of
Westfield Bank's customer repurchase agreements at March 31, 2007 were held by
commercial customers.
Stockholders' equity at March 31, 2007 and December 31, 2006 was $293.3 million
and $289.4 million, respectively, which represented 28.9% of total assets as of
March 31, 2007 and 29.0% of total assets as of December 31, 2006.
Credit Quality
Nonperforming loans were $1.1 million, or 0.28% of total loans, at March 31,
2007, compared to nonperforming loans of $1.0 million, or 0.26%, of total loans,
at December 31, 2006.
The allowance for loan losses was $5.6 million at March 31, 2007 and $5.4
million at December 31, 2006. This represents 1.45% of total loans at March 31,
2007 and 1.39% of total loans at December 31, 2006. At these levels, the
allowance for loan losses as a percentage of nonperforming loans was 517% at
March 31, 2007 and 529% at December 31, 2006.
James Hagan, President and COO, stated "Westfield Bank has emphasized high
quality commercial credit and we are pleased with our loan quality. The Bank has
not conducted any sub-prime residential lending programs." In September 2001,
Westfield Bank began referring substantially all of the originations of its
residential real estate loans to a third party mortgage company. Residential
real estate borrowers submit applications to Westfield Bank, but the loan is
approved by and closed on the books of the mortgage company. The third party
mortgage company owns the servicing rights and services the loans. Westfield
Bank retains no residual ownership interest in these loans.
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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.
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 Statement of Operations and Other Data
($ in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2007 2006
---- ----
Interest and dividend income $ 12,844 $ 9,928
Interest expense 5,323 4,150
----------- -----------
Net interest and dividend income 7,521 5,778
Provision for loan losses 100 75
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Net interest and dividend income after
provision for loan losses 7,421 5,703
Noninterest income 819 853
Noninterest expense 5,306 4,794
----------- -----------
Income before income taxes 2,934 1,762
Income taxes 913 449
----------- -----------
Net income $ 2,021 $ 1,313
=========== ===========
Basic earnings per share (1) $ 0.07 $ 0.04
Average shares outstanding (1) 30,103,285 30,618,337
Diluted earnings per share (1) $ 0.07 $ 0.04
Diluted average shares outstanding (1) 30,683,318 31,083,846
Other Data:
Return on Average Assets (2) 0.84% 0.66%
Return on Average Equity (2) 2.81% 4.62%
Net Interest Margin (3) 3.34% 3.14%
(1) Per share amounts related to periods prior to the date of completion of
the conversion (January 3, 2007) have been restated to give retroactive
recognition to the exchange ratio applied in the conversion.
(2) Three month results have been annualized.
(3) Net interest margin is calculated on a tax equivalent basis.
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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
2007 2006
---- ----
Total assets $1,014,099 $996,829
Securities held to maturity 278,792 240,392
Securities available for sale 207,152 168,629
Stock in Federal Home Loan Bank of Boston 4,029 4,246
Loans 381,999 390,621
Allowance for loan losses 5,553 5,437
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Net loans 376,446 385,184
Total deposits 628,027 627,466
Federal home loan bank advances 50,000 55,000
Customer repurchase agreements 18,012 17,919
Stockholders' equity 293,310 289,408
Book value per share 9.19 9.07
Other Data:
Nonperforming loans $ 1,075 $ 1,028
Nonperforming loans as a percentage
of total assets 0.11% 0.10%
Nonperforming loans as a percentage
of total loans 0.28% 0.26%
Allowance for loan losses as a percent
of nonperforming loans 517% 529%
Allowance for loan losses as a percentage
of total loans 1.45% 1.39%
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