EX-99 2 wesfk6-99.txt EXHIBIT 99.1 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. 1 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 $2.0 million. The Bank is headquartered in Westfield, Massachusetts and operates through 10 banking offices in Agawam, East Longmeadow, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts. The Bank's deposits are insured by the Federal Deposit Insurance Corporation. 2 The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this news release, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future period in any current statements. The Company and the Bank do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 3 WESTFIELD FINANCIAL, INC. and SUBSIDIARIES Selected Consolidated Statement of Operations and Other Data ($ in thousands, except per share data) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------- ------------------------- 2005 2004 2005 2004 ---- ---- ---- ---- 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% Three and nine month results have been annualized.
4 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 ------------- ------------ 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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