Form 8-K WESTFIELD FINANCIAL INC For: Jan 30

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�

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

�

FORM 8-K

�

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

�

Date of Report (Date of earliest event reported): January 30, 2015

�

WESTFIELD FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

�

Massachusetts
(State or other jurisdiction of
incorporation or organization)

�

001-16767
(Commission
File Number)

�

73-1627673
(I.R.S. Employer
Identification No.)

�

141 Elm Street

Westfield, Massachusetts 01085
(Address of principal executive offices, zip code)

�

Registrant's telephone number, including area code: (413) 568-1911

�

(Former name or former address, if changed since last report)

�

��

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

�

� Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

� Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

� Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

� Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

�

Item 2.02. Results of Operations and Financial Condition

�

On January 30, 2015, Westfield Financial, Inc. (the Company) issued a press release announcing its financial results for the quarter and year ended December 31, 2014.��The press release also announced the declaration of a regular cash dividend of $0.03 per share.��A copy of the press release is furnished as Exhibit 99.1 hereto and is hereby incorporated by reference into this Item 2.02.

The information contained in this current report on Form 8-K, including Exhibit 99.1, shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

�

(a)�

Not applicable.

�

(b)�

Not applicable.

�

(c)�

Not applicable.

�

(d)�

Exhibits.

�

The exhibits required by this item are set forth on the Exhibit�Index attached hereto.

�

Exhibit

Number

�

Description

�

99.1

�

Press Release, dated January 30, 2015

�

SIGNATURES

�

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

�

�	WESTFIELD FINANCIAL, INC.
�	�
�	�
�	By:	/s/ Leo R. Sagan, Jr.	�
�	�	Leo R. Sagan, Jr.
�	�	Chief Financial Officer

��

Dated: January 30, 2015

�

EXHIBIT INDEX�

�

Exhibit

Number

�

Description

�

99.1

�

Press Release, dated January 30, 2015

�

WESTFIELD FINANCIAL, INC. 8-K

Exhibit 99.1

�

�	For further information contact: James C. Hagan, President & CEO Leo R. Sagan, Jr., CFO Meghan Hibner, VP Investor Relations Officer 413-568-1911

�

WESTFIELD FINANCIAL, INC. REPORTS RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2014 AND DECLARES QUARTERLY DIVIDEND

�

Loan growth continues to be strong at 13.7% year-over-year

�

Westfield, Massachusetts, January 30, 2015: Westfield Financial, Inc. (the Company) (NasdaqGS: WFD), the holding company for Westfield Bank (the Bank), reported net income of $1.7 million, or $0.09 per diluted share, for the quarter ended December 31, 2014, compared to $1.8 million, or $0.09 per diluted share, for the quarter ended December 31, 2013. For the year ended December 31, 2014, net income was $6.2 million, or $0.34 per diluted share, compared to $6.8 million, or $0.34 per diluted share, for the same period in 2013.

�

As a result of the significant loan growth experienced by the Bank over the past four quarters, both the three months and year ended December 31, 2014 included an expense for the provision for loan losses of $275,000 and $1.6 million, respectively. Whereas the three months ended December 31, 2013 included a provision for loan losses of $120,000, the full year ended December 31, 2013 included a credit for loan losses of $256,000 resulting from improved credit quality. In the 2014 periods, the increase to the provision for loan losses reflects significant loan growth and stabilized credit quality.

�

As the increase in the loan loss provision is largely a result of favorable loan growth, yet the impact is negative to current period earnings, the Company feels that pretax, pre-provision (PTPP) net income, exclusive of securities gains and other infrequent items (adjusted PTPP net income), is an appropriate measure that reflects the improvement being made in the Companys core franchise. A reconciliation of adjusted PTPP net income to GAAP pretax net income is provided in the financial table at the end of this press release. The Company recorded $2.4 million of adjusted PTPP net income for the fourth quarter of 2014, an increase of 13.3% over $2.1 million for the fourth quarter of 2013. For the year ended December 31, 2014, adjusted PTPP net income was $9.3 million, an increase of 15.5% over $8.1 million for the same period in 2013.

�

Selected financial highlights for fourth quarter 2014 include:

�

Total loans increased $87.3 million, or 13.7%, to $724.7 million at December 31, 2014 compared to $637.4 million at December 31, 2013. This was primarily due to increases in residential loans of $43.6 million, commercial and industrial loans of $30.1 million and commercial real estate loans of $13.9 million. On a sequential-quarter basis, total loans increased $5.1 million, or 0.7%, to $724.7 million for the fourth quarter of 2014. This was due to an increase in residential loans of $13.3 million, offset by a decrease in commercial real estate loans of $8.8 million due to a single payoff of $11.0 million on a commercial real estate loan during the fourth quarter 2014 that represented short-term construction financing.

�

Securities declined $45.0 million, or 8.1%, to $508.8 million at December 31, 2014, compared to $553.8 million at December 31, 2013. On a sequential-quarter basis, securities decreased by $2.1 million, or 0.4%, at December 31, 2014, compared to $510.9 million at September 30, 2014.

�

Net interest and dividend income increased $271,000 to $7.9 million for the quarter ended December 31, 2014 compared to $7.6 million for the comparable 2013 period. On a sequential-quarter basis, net interest and dividend income increased $44,000 for the quarter ended December 31, 2014, compared to the quarter ended September 30, 2014.

�

The net interest margin for the quarter ended December 31, 2014 decreased 1 basis point to 2.56%, as compared to 2.57% for the fourth quarter of 2013. On a sequential-quarter basis, the net interest margin decreased 2 basis points for the quarter ended December 31, 2014 compared to the quarter ended September 30, 2014.

�

Non-interest expense was $6.5 million for both the quarters ended December 31, 2014 and December 31, 2013. On a sequential-quarter basis, noninterest expense increased by $148,000 for the quarter ended December 31, 2014, compared to $6.3 million for the quarter ended September 30, 2014. The efficiency ratio, excluding non-core items, was 72.9% for the fourth quarter of 2014, compared to 75.3% for the same period in 2013.

�

President and CEO, James C. Hagan stated, During 2014, we successfully executed several strategic initiatives.� We have improved our balance sheet mix with loan growth of 13.7% year-over-year, while decreasing our securities portfolio. In addition, we introduced wealth management services, which is a new source of fee income for the Bank, and also carefully managed non-interest expenses, which resulted in significant improvement in our efficiency ratio in 2014. Our outlook remains positive for continued loan growth as we start 2015.

�

Hagan continued, We are excited about our newest branch in Enfield, Connecticut, which opened in November 2014. The northern Connecticut market has been very receptive to Westfield Bank. The Enfield branch along with our location in Granby, CT, which opened in June 2013, have combined deposits of over $20.0 million. The Enfield branch, along with relocating a commercial loan team to downtown Springfield, Massachusetts, provides proximity to the I-91 corridor and better access to the borrowers and centers of influence in the greater-Springfield area and northern Connecticut.

�

Additional Income Statement Discussion

�

Net interest and dividend income was $7.9 million for the quarter ended December 31, 2014 and $7.6 million for the quarter ended December 31, 2013. The net interest margin decreased 1 basis point to 2.56% for the quarter ended December 31, 2014, compared to 2.57% for the quarter ended December 31, 2013.

�

Net interest and dividend income increased $327,000 to $31.1 million for the year ended December 31, 2014, as compared to $30.7 million for the same period in 2013. The net interest margin for the year ended December 31, 2014 increased 2 basis points to 2.60%, as compared to 2.58% for the same period in 2013. The cost of average interest-bearing liabilities decreased 5 basis points, partially offset by a decrease of 2 basis points in the yield on average interest-earning assets.

�

Non-interest income decreased $266,000 to $1.1 million for the quarter ended December 31, 2014, compared to $1.3 million for the same period in 2013. The fourth quarter of 2014 included net gains on sales of securities of $44,000, whereas the fourth quarter of 2013 included securities gains of $330,000.

�

Non-interest expense was $6.5 million for the fourth quarters in both 2014 and 2013. Non-interest expense decreased $733,000 to $25.9 million from $26.6 million for the year ended December 31, 2014, compared to the same period in 2013, primarily driven by a $749,000 decrease in salaries and benefits. The efficiency ratio, excluding non-core items, was 73.6% and 76.8% for the years ended December 31, 2014 and 2013, respectively.

�

Additional Balance Sheet Discussion

�

Total deposits increased $17.1 million, or 2.1%, to $834.2 million at December 31, 2014, compared to $817.1 million at December 31, 2013. This was primarily due to increases in money market accounts of $22.8 million and term accounts of $16.3 million, partially offset by a decrease in checking accounts of $15.8 million and regular savings accounts of $6.2 million. On a consecutive quarter basis, total deposits increased $5.4 million, or 0.7%, to $834.2 million at December 31, 2014, compared to $828.8 million at September 30, 2014. In addition, short-term borrowings and long term debt increased $30.0 million to $326.5 million at December 31, 2014, compared to $296.5 million at December 31, 2013.��This was primarily due to an increase in borrowings from the Federal Home Loan Bank.

�

Shareholders equity was $142.5 million at December 31, 2014 and $144.3 million at September 30, 2014, which represented 10.8% and 11.0% of total assets, respectively. The decrease in shareholders equity during the quarter reflects the a decrease in accumulated other comprehensive income of $2.4 million, the repurchase of 87,933 shares of common stock for $632,000 (an average price of $7.18 per share) and the payment of a quarterly dividend of $530,000. This was offset by net income of $1.7 million for the quarter ended December 31, 2014.

�

On March 13, 2014, the Company announced a repurchase program under which it may repurchase up to 1,970,000 shares, or 10% of its outstanding common stock. At December 31, 2014, there were 999,460 shares remaining under this repurchase program.

�

Credit Quality

�

The allowance for loan losses was $7.9 million at December 31, 2014, $7.7 million at September 30, 2014 and $7.5 million at December 31, 2013, representing 1.10%, 1.07% and 1.17% of total loans, respectively. This represents 90.0%, 86.8% and 288.4% of nonperforming loans at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

�

An analysis of the changes in the allowance for loan losses is as follows:

�

Three Months Ended

�

December 31,

�

September 30,

�

December 31,

�

2014

�

2014

�

2013

�

(In thousands)

�

Balance, beginning of period

�

7,695

�

8,017

�

7,311

�

Provision

�

275

�

750

�

120

�

Charge-offs

�

(35

)

�

(1,076

)

�

)

�

Recoveries

�

Balance, end of period

�

7,948

�

7,695

�

7,459

�

Nonperforming loans were $8.8 million and $8.9 million, representing 1.22% and 1.23% of total loans at December 31, 2014 and September 30, 2014, respectively. Loans delinquent 30 89 days decreased $433,000 to $3.8 million at December 31, 2014 from $4.3 million at September 30, 2014. There are no loans 90 or more days past due and still accruing interest.

�

Declaration of Quarterly Dividend

�

The Board of Directors approved the declaration of a quarterly cash dividend of $0.03 per share. The dividend is payable on February 27, 2015 to all shareholders of record on February 13, 2015.

�

About Westfield Financial, Inc.

�

Westfield Financial, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Westfield Financial and its subsidiaries are headquartered in Westfield, Massachusetts and operate through 12 banking offices located in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts, and Granby and Enfield, Connecticut.��To learn more, visit our website at www.westfieldbank.com.

�

Forward-Looking Statements

�

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption Risk Factors in our Annual Report on Form�10-K for the year ended December 31, 2013, and in subsequent filings with the Securities and Exchange Commission. 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.

�

Non-GAAP Financial Measures

�

This press release and the reconciliation table included herein include a non-GAAP financial measure for adjusted net income. A description of the adjusted calculation and reconciliation to the comparable GAAP financial measures is provided in the following table titled Reconciliation of Adjusted Net Income to GAAP Pretax Net Income. Company management uses these non-GAAP financial measures to monitor and evaluate its operating results and trends on an on-going basis, and internally for operating, budgeting and financial planning purposes. Company management believes the non-GAAP information is useful for investors by offering the ability to better identify trends in our business and better understand how management evaluates the business. These non-GAAP measures have limitations, however, because they do not include all items of income and expense that affect the Company. These non-GAAP financial measures are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP.

�

WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES

RECONCILIATION OF ADJUSTED NET INCOME TO GAAP PRETAX NET INCOME - UNAUDITED

(Dollars in thousands)

�

Quarter Ended

�

Year Ended

�

December 31,

�

December 31,

�

2014

�

2013

�

Change

�

2014

�

2013

�

Change

�

Income before income taxes

�

2,184

�

2,342

�

8,044

�

8,627

�

Add back: provision (credit) for loan losses

�

275

�

120

�

1,575

�

(256

)

�

Pretax, pre-provision net income

�

2,459

�

2,462

�

9,619

�

8,371

�

Adjust for infrequent items:

�

��Gains on sales of securities, net

�

(44

)

�

(330

)

�

(320

)

�

(3,126

)

�

��Loss on prepayment of borrowings

�

—��

�

—��

�

—��

�

3,370

�

��Gain on bank-owned life insurance death benefit

�

—��

�

—��

�

—��

�

(563

)

�

Adjusted pretax, pre-provision net income

�

2,415

�

2,132

�

13.3

�

9,299

�

8,052

�

15.5

�

WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income and Other Data

(In thousands, except share and per share data)

(Unaudited)

�

Three Months Ended

�

Year Ended

�

December 31,

�

September 30,

�

June 30,

�

March 31,

�

December 31,

�

December 31,

�

2014

�

2014

�

2014

�

2014

�

2013

�

2014

�

2013

INTEREST AND DIVIDEND INCOME:

�

Loans

�

7,331

�

7,135

�

6,821

�

6,557

�

6,458

�

27,843

�

25,408

�

Securities

�

3,079

�

3,147

�

3,256

�

3,406

�

3,594

�

12,889

�

15,521

�

Other investments - at cost

�

246

�

Federal funds sold, interest-bearing deposits and other short-term investments

�

Total interest and dividend income

�

10,471

�

10,343

�

10,143

�

10,034

�

10,089

�

40,991

�

41,031

�

INTEREST EXPENSE:

�

Deposits

�

1,300

�

1,298

�

1,288

�

1,291

�

1,358

�

5,177

�

5,525

�

Long-term debt

�

1,119

�

1,125

�

1,071

�

1,011

�

1,051

�

4,326

�

4,591

�

Short-term borrowings

�

174

�

420

�

174

�

Total interest expense

�

2,593

�

2,509

�

2,442

�

2,379

�

2,482

�

9,923

�

10,290

�

Net interest and dividend income

�

7,878

�

7,834

�

7,701

�

7,655

�

7,607

�

31,068

�

30,741

�

(CREDIT) PROVISION FOR LOAN LOSSES

�

275

�

750

�

450

�

100

�

120

�

1,575

�

(256

)

�

Net interest and dividend income after provision for loan losses

�

7,603

�

7,084

�

7,251

�

7,555

�

7,487

�

29,493

�

30,997

�

NONINTEREST INCOME:

�

Service charges and fees

�

659

�

655

�

632

�

670

�

625

�

2,617

�

2,404

�

Income from bank-owned life insurance

�

374

�

384

�

386

�

379

�

388

�

1,523

�

1,549

�

Gain on bank-owned life insurance death benefit

�

—��

�

—��

�

—��

�

—��

�

—��

�

—��

�

563

�

Loss on prepayment of borrowings

�

—��

�

—��

�

—��

�

—��

�

—��

�

—��

�

(3,370

)

Gain on sales of securities, net

�

226

�

330

�

320

�

3,126

�

Total noninterest income

�

1,077

�

1,265

�

1,039

�

1,078

�

1,343

�

4,460

�

4,272

�

NONINTEREST EXPENSE:

�

Salaries and employees benefits

�

3,643

�

3,623

�

3,665

�

3,778

�

3,774

�

14,709

�

15,458

�

Occupancy

�

821

�

743

�

751

�

761

�

731

�

3,076

�

2,898

�

Data processing

�

616

�

600

�

610

�

515

�

586

�

2,341

�

2,340

�

Professional fees

�

447

�

495

�

483

�

512

�

497

�

1,936

�

2,033

�

FDIC insurance

�

205

�

166

�

177

�

165

�

162

�

713

�

655

�

Other

�

764

�

721

�

845

�

803

�

738

�

3,134

�

3,258

�

Total noninterest expense

�

6,496

�

6,348

�

6,531

�

6,534

�

6,488

�

25,909

�

26,642

�

INCOME BEFORE INCOME TAXES

�

2,184

�

2,001

�

1,759

�

2,099

�

2,342

�

8,044

�

8,627

�

INCOME TAX PROVISION

�

523

�

491

�

417

�

451

�

533

�

1,882

�

1,871

�

NET INCOME

�

1,661

�

1,510

�

1,342

�

1,648

�

1,809

�

6,162

�

6,756

�

Basic earnings per share

�

0.09

�

0.08

�

0.07

�

0.09

�

0.09

�

0.34

�

0.34

�

Weighted average shares outstanding

�

17,718,143

�

17,910,223

�

18,308,828

�

18,812,795

�

19,379,466

�

18,183,739

�

20,079,251

�

Diluted earnings per share

�

0.09

�

0.08

�

0.07

�

0.09

�

0.09

�

0.34

�

0.34

�

Weighted average diluted shares outstanding

�

17,718,143

�

17,910,223

�

18,308,828

�

18,812,795

�

19,379,466

�

18,183,739

�

20,079,265

�

Other Data:

�

Return on average assets (1)

�

0.50

�

0.46

�

0.42

�

0.52

�

0.57

�

0.48

�

0.53

Return on average equity (1)

�

4.57

�

4.12

�

3.64

�

4.38

�

4.61

�

4.18

�

4.04

Efficiency ratio (2)

�

72.90

�

71.54

�

74.91

�

75.07

�

75.27

�

73.59

�

76.79

�

Net interest margin

�

2.56

�

2.58

�

2.61

�

2.63

�

2.57

�

2.60

�

2.58

�

(1)��Three month results have been annualized.

�

(2)��The efficiency ratio represents the ratio of operating expenses divided by the sum of net interest and dividend income and noninterest income, excluding gain and loss on sale of securities, gain on bank-owned life insurance death benefit and loss on prepayment of borrowings.

�

WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

�

December 31,

�

September 30,

�

June 30,

�

March 31,

�

December 31,

�

2014

�

2014

�

2014

�

2013

�

2013

Cash and cash equivalents

�

18,785

�

14,429

�

39,362

�

21,370

�

19,742

�

Securities available for sale, at fair value

�

215,750

�

212,460

�

192,754

�

233,899

�

243,204

�

Securities held to maturity, at cost

�

278,080

�

283,684

�

288,199

�

292,019

�

295,013

�

Federal Home Loan Bank of Boston and other��restricted stock - at cost

�

14,934

�

14,720

�

15,056

�

15,631

�

15,631

�

Loans

�

724,686

�

719,555

�

686,068

�

648,240

�

637,427

�

Allowance for loan losses

�

7,948

�

7,695

�

8,017

�

7,567

�

7,459

�

Net loans

�

716,738

�

711,860

�

678,051

�

640,673

�

629,968

�

Bank-owned life insurance

�

48,703

�

48,329

�

47,945

�

47,558

�

47,179

�

Other assets

�

27,106

�

25,699

�

24,951

�

23,866

�

26,104

�

TOTAL ASSETS

�

1,320,096

�

1,311,181

�

1,286,318

�

1,275,016

�

1,276,841

�

Total deposits

�

834,218

�

828,785

�

818,590

�

806,695

�

817,112

�

Short-term borrowings

�

93,997

�

78,685

�

59,751

�

58,460

�

48,197

�

Long-term debt

�

232,479

�

246,804

�

248,760

�

248,568

�

248,377

�

Securities pending settlement

�

—��

�

137

�

195

�

299

�

Other liabilities

�

16,859

�

12,464

�

12,185

�

9,512

�

8,712

�

TOTAL LIABILITIES

�

1,177,553

�

1,166,875

�

1,139,353

�

1,123,430

�

1,122,697

�

TOTAL SHAREHOLDERS' EQUITY

�

142,543

�

144,306

�

146,965

�

151,586

�

154,144

�

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

�

1,320,096

�

1,311,181

�

1,286,318

�

1,275,016

�

1,276,841

�

Book value per share

�

7.61

�

7.67

�

7.67

�

7.66

�

7.65

�

Other Data:

�

30- 89 day delinquent loans

�

3,821

�

4,254

�

5,539

�

5,382

�

3,459

�

Nonperforming loans

�

8,830

�

8,867

�

3,225

�

3,095

�

2,586

�

Nonperforming loans as a percentage of total loans

�

1.22

�

1.23

�

0.47

�

0.48

�

0.41

Nonperforming assets as a percentage of total assets

�

0.67

�

0.68

�

0.25

�

0.24

�

0.20

Allowance for loan losses as a percentage of nonperforming loans

�

90.01

�

86.78

�

248.59

�

244.49

�

288.44

Allowance for loan losses as a percentage of total loans

�

1.10

�

1.07

�

1.17

�

1.17

�

1.17

��

�

The following tables set forth the information relating to our average balances and net interest income for the three months ended December 31, 2014, September 30, 2014, and December 31, 2013, and the year ended December 31, 2014 and 2013, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

�

Three Months Ended

�

December 31, 2014

�

September 30, 2014

�

December 31, 2013

�

Average

�

Avg Yield/

�

Average

�

Avg Yield/

�

Average

�

Avg Yield/

�

Balance

�

Interest

�

Cost

�

Balance

�

Interest

�

Cost

�

Balance

�

Interest

�

Cost

�

(Dollars in thousands)

ASSETS:

�

Interest-earning assets

�

Loans(1)(2)

�

721,528

�

7,363

�

4.08

�

703,736

�

7,170

�

4.08

�

619,240

�

6,495

�

4.20

Securities(2)

�

494,519

�

3,181

�

2.57

�

492,948

�

3,245

�

2.63

�

541,370

�

3,719

�

2.75

�

Other investments - at cost

�

16,202

�

1.46

�

16,129

�

1.46

�

17,537

�

0.43

�

Short-term investments(3)

�

9,721

�

0.08

�

12,399

�

0.06

�

18,383

�

0.09

�

Total interest-earning assets

�

1,241,970

�

10,605

�

3.42

�

1,225,212

�

10,476

�

3.42

�

1,196,530

�

10,237

�

3.42

�

Total noninterest-earning assets

�

75,286

�

72,984

�

73,528

�

Total assets

�

1,317,256

�

1,298,196

�

1,270,058

�

LIABILITIES AND EQUITY:

�

Interest-bearing liabilities

�

Interest-bearing accounts

�

38,138

�

0.23

�

38,889

�

0.23

�

44,521

�

0.26

�

Savings accounts

�

75,928

�

0.11

�

78,860

�

0.10

�

82,535

�

0.10

�

Money market accounts

�

233,582

�

220

�

0.38

�

227,554

�

225

�

0.40

�

207,801

�

199

�

0.38

�

Time certificates of deposit

�

348,928

�

1,038

�

1.19

�

342,281

�

1,031

�

1.20

�

338,272

�

1,109

�

1.31

�

Total interest-bearing deposits

�

696,576

�

1,300

�

687,584

�

1,298

�

673,129

�

1,358

�

Short-term borrowings and long-term debt

�

324,394

�

1,293

�

1.59

�

318,357

�

1,211

�

1.52

�

304,403

�

1,124

�

1.48

�

Interest-bearing liabilities

�

1,020,970

�

2,593

�

1.02

�

1,005,941

�

2,509

�

1.00

�

977,532

�

2,482

�

1.02

�

Noninterest-bearing deposits

�

138,311

�

133,817

�

125,959

�

Other noninterest-bearing liabilities

�

13,802

�

13,139

�

10,762

�

Total noninterest-bearing liabilities

�

152,113

�

146,956

�

136,721

�

Total liabilities

�

1,173,083

�

1,152,897

�

1,114,253

�

Total equity

�

144,173

�

145,299

�

155,805

�

Total liabilities and equity

�

1,317,256

�

1,298,196

�

1,270,058

�

Less: Tax-equivalent adjustment(2)

�

(134

)

�

(133

)

�

(148

)

�

Net interest and dividend income

�

7,878

�

7,834

�

7,607

�

Net interest rate spread(4)

�

2.40

�

2.42

�

2.40

Net interest margin(5)

�

2.56

�

2.58

�

2.57

Ratio of average interest-earning

�

assets to average interest-bearing ��liabilities

�

121.65

�

121.80

�

122.40

�

Year Ended December 31,

�

2014

�

2013

�

Average

�

Avg Yield/

�

Average

�

Avg Yield/

�

Balance

�

Interest

�

Cost

�

Balance

�

Interest

�

Cost

�

(Dollars in thousands)

ASSETS:

�

Interest-earning assets

�

Loans(1)(2)

�

683,064

�

27,989

�

4.10

�

604,732

�

25,558

�

4.23

Securities(2)

�

504,532

�

13,299

�

2.64

�

584,029

�

16,027

�

2.74

�

Other investments - at cost

�

16,597

�

246

�

1.48

�

17,258

�

0.54

�

Short-term investments(3)

�

13,749

�

0.09

�

9,790

�

0.09

�

Total interest-earning assets

�

1,217,942

�

41,547

�

3.41

�

1,215,809

�

41,687

�

3.43

�

Total noninterest-earning assets

�

73,334

�

69,753

�

Total assets

�

1,291,276

�

1,285,562

�

LIABILITIES AND EQUITY:

�

Interest-bearing liabilities

�

Interest-bearing checking

�

40,412

�

0.24

�

46,982

�

134

�

0.29

�

Savings accounts

�

79,086

�

0.10

�

87,535

�

119

�

0.14

�

Money market accounts

�

221,391

�

846

�

0.38

�

196,265

�

763

�

0.39

�

Time certificates of deposit

�

343,190

�

4,152

�

1.21

�

330,510

�

4,509

�

1.36

�

Total interest-bearing deposits

�

684,079

�

5,177

�

661,292

�

5,525

�

Short-term borrowings and long-term debt

�

315,089

�

4,746

�

1.51

�

327,783

�

4,765

�

1.45

�

Interest-bearing liabilities

�

999,168

�

9,923

�

0.99

�

989,075

�

10,290

�

1.04

�

Noninterest-bearing deposits

�

132,923

�

118,749

�

Other noninterest-bearing liabilities

�

11,692

�

10,373

�

Total noninterest-bearing liabilities

�

144,615

�

129,122

�

Total liabilities

�

1,143,783

�

1,118,197

�

Total equity

�

147,493

�

167,365

�

Total liabilities and equity

�

1,291,276

�

1,285,562

�

Less: Tax-equivalent adjustment(2)

�

(556

)

�

(656

)

�

Net interest and dividend income

�

31,068

�

30,741

�

Net interest rate spread(4)

�

2.42

�

2.39

Net interest margin(5)

�

2.60

�

2.58

Ratio of average interest-earning

�

assets to average interest-bearing liabilities

�

121.90

�

122.92

�

(1)

Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.

(2)

Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.

(3)

Short-term investments include federal funds sold.

(4)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5)

Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.

�

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Form 8-K WESTFIELD FINANCIAL INC For: Jan 30

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