8-K

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): July 22, 2009

__________________________________

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

Not Applicable

(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:

[  ]	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 July 22, 2009, Westfield Financial, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2009.  The press release also announced the declaration of a regular cash dividend of $0.05 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 July 22, 2009

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.
Date: July 22, 2009	By:	/s/ Leo R. Sagan, Jr.
		Leo R. Sagan, Jr.
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release, dated July 22, 2009

EX-99

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

For further information contact:
James C. Hagan, President & CEO
Leo R. Sagan, Jr., CFO
413-568-1911

Westfield Financial, Inc. Reports Results for the Quarter and Six Months Ended

June 30, 2009

Westfield, Massachusetts, July 22, 2009: Westfield Financial, Inc. (the “Company”) (NASDAQ:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.1 million, or $0.04 per diluted share, for the quarter ended June 30, 2009, compared to $2.1 million, or $0.07 per diluted share, for the same period in 2008. For the six months ended June 30, 2009, net income was $2.3 million, or $0.08 per diluted share, compared to $4.0 million, or $0.13 per diluted share for the same period in 2008.

The decrease in earnings was mainly the result of an increase in noninterest expense, primarily due to an increase in Federal Deposit Insurance Corporation (“FDIC”) insurance expense and an increase in the provision for loan losses. For the three months ended June 30, 2009, noninterest expense was $7.0 million compared to $5.7 million for the same period in 2008. For the six months ended June 30, 2009, non- interest expense was $13.4 million compared to $11.5 million for the same period in 2008.

The provision for loan losses increased $350,000 to $590,000 for the three months ended June 30, 2009 compared to the same period in 2008. The provision for loan losses increased $1.3 million to $1.7 million for the six months ended June 30, 2009 compared to the same period in 2008.

The FDIC insurance expense increased $667,000 to $691,000 for the three months ended June 30, 2009 from $24,000 for the same period in 2008. The FDIC insurance expense increased $806,000 to $848,000 for the six months ended June 30, 2009 from $42,000 for the same period in 2008. Both the 2009 periods include the accrual for a special assessment that was imposed upon all banks at June 30, 2009, which for Westfield Bank, amounted to $453,000.

Salaries and benefits increased $388,000 to $3.9 million for the three months ended June 30, 2009 from $3.5 million for the same period in 2008. Salaries and benefits increased $887,000 to $8.0 million for the six months ended June 30, 2009 from $7.1 million for the same period in 2008. Expenses related to the defined benefit pension plan increased $178,000 and $356,000 for the three and six months ended June 30, 2009, respectively. The increases were due to a decline in the value of assets held by the pension plan. Expenses related to share-based compensation increased $123,000 and $349,000 for the three and six months ended June 30, 2009, respectively.

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The provision for loan losses was $590,000 for the three months ended June 30, 2009 compared to $240,000 for the same period in 2008. For the six months ended June 30, 2009, the provision for loan losses was $1.7 million compared to $415,000 for the same period in 2008. The factors that influenced the increase in the provision for loan losses primarily include an increase in charge-offs, the continued weakening of the local and national economy, and an increase in the commercial loan portfolio.

Net interest income decreased $147,000 to $7.8 million for the three months ended June 30, 2009 compared to $8.0 million for the same period in 2008. The net interest margin, on a tax equivalent basis, was 3.00% for the three months ended June 30, 2009, compared to 3.23% for the same period in 2008.

For the six months ended June 30, 2009, net interest income increased $165,000 to $15.8 million, compared to $15.7 million for the same period in 2008. The net interest margin, on a tax equivalent basis, was 3.11% and 3.20% for the six months ended June 30, 2009 and 2008, respectively.

The primary reason for the decrease in the margin is that the yield on earning assets decreased more than the cost of paying liabilities. This occurred to a greater extent for the three months ended June 30, 2009.

Balance Sheet Growth

Total assets increased $55.7 million to $1.2 billion at June 30, 2009 from $1.1 billion at December 31, 2008. Investment securities increased $83.7 million to $597.9 million at June 30, 2009 from $514.2 million at December 31, 2008. The increase in investment securities was the result of reinvesting funds from deposits, short-term borrowings and long-term debt as discussed below.

Net loans increased by $4.9 million to $477.0 million at June 30, 2009 from $472.1 million at December 31, 2008. The increase in net loans was primarily the result of an increase in commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans increased $3.4 million to $381.1 million at June 30, 2009 from $377.7 million at December 31, 2008.

Total deposits increased $44.0 million to $632.0 million at June 30, 2009 from $588.0 million at December 31, 2008. Regular savings accounts increased $18.5 million to $86.6 million and checking accounts increased $22.4 million to $157.0 million. The increases in both savings accounts and checking accounts were concentrated in accounts that pay a higher interest rate than comparable products. In addition, time deposits increased $8.0 million to $335.6 million.

Short-term borrowings and long-term debt increased $41.0 million to $264.2 million at June 30, 2009. This was primarily due to $39.5 million in new long-term debt at June 30, 2009, in the form of institutional repurchase agreements and Federal Home Loan Bank borrowings. Current interest rates permit Westfield Financial to earn a more advantageous spread by borrowing funds and reinvesting in loans and securities.

2

Stockholders’ equity at June 30, 2009 and December 31, 2008 was $257.4 million and $259.9 million, respectively, which represented 22.1% of total assets as of June 30, 2009 and 23.4% of total assets as of December 31, 2008. The change in stockholders’ equity is comprised of the repurchase of 456,273 shares for $4.2 million related to the stock repurchase plan and dividends declared amounting to $7.4 million. This was partially offset by a $4.8 million increase in other comprehensive income, net income of $2.3 million and share-based compensation expense of $1.7 million.

Credit Quality

Nonperforming loans decreased $2.3 million to $6.5 million at June 30, 2009 compared to $8.8 million at December 31, 2008. This represented 1.34% of total loans at June 30, 2009 and 1.83%, of total loans, at December 31, 2008. The decrease in nonperforming loans was related to a single commercial manufacturing relationship of $5.5 million. The business was sold in 2009 and resulted in a charge-off of $3.1 million.

The allowance for loan losses was $7.3 million at June 30, 2009 and $8.8 million at December 31, 2008. This represents 1.51% of total loans at June 30, 2009 and 1.83% of total loans at December 31, 2008. At these levels, the allowance for loan losses as a percentage of nonperforming loans was 113% at June 30, 2009 and 100% at December 31, 2008. At December 31, 2008, the allowance for loan losses included a specific valuation allowance of $2.1 million related to a manufacturing commercial loan relationship. This amount was charged off during 2009 and contributed to the decrease in the allowance for loan losses and the allowance for loan losses as a percent of total loans.

Dividend Declaration

James C. Hagan, Chief Executive Officer stated, “On July 21, 2009, the Board of Directors declared a regular cash dividend of $0.05 per share, payable on August 19, 2009 to all shareholders of record on August 5, 2009.”

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 Company’s actual results for future periods may 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 Statements of Income and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2009		2008		2009		2008
INTEREST AND DIVIDEND INCOME:
Investment securities	$	6,511	$	6,781	$	13,151	$	13,597
Loans, including fees		6,460		6,594		12,919		13,332
Interest-bearing deposits and other  short-term investments		4		172		8		387
Total interest and dividend income		12,975		13,547		26,078		27,316
INTEREST EXPENSE:
Deposits		3,290		3,794		6,565		8,135
Short-term borrowings		88		285		194		623
Long-term debt		1,791		1,515		3,493		2,897
Total interest expense		5,169		5,594		10,252		11,655
Net interest and dividend income		7,806		7,953		15,826		15,661
PROVISION FOR LOAN LOSSES		590		240		1,740		415
Net interest and dividend income after  provision for loan losses		7,216		7,713		14,086		15,246
NONINTEREST INCOME:
Income from bank-owned life insurance		363		323		714		643
Service charges and fees		735		609		1,444		1,164
Loss on disposition of premises and  equipment, net		-		-		(8)		-
Loss on prepayment of borrowings		(142)		-		(142)		-
Gain on sales of securities, net		122		19		208		319
Other-than-temporary impairment  of securities		-		-		-		(310)
Total noninterest income		1,078		951		2,216		1,816
NONINTEREST EXPENSE:
Salaries and employees benefits		3,876		3,488		7,983		7,096
Occupancy		667		624		1,316		1,226
Professional fees		518		373		920		847
Computer operations		421		420		857		854
Stationery, supplies and postage		93		124		190		250
FDIC insurance assessment		691		24		848		42
Other		741		680		1,302		1,202
Total noninterest expense		7,007		5,733		13,416		11,517
INCOME BEFORE INCOME TAXES		1,287		2,931		2,886		5,545
INCOME TAXES		214		811		607		1,564
NET INCOME	$	1,073	$	2,120	$	2,279	$	3,981
Basic earnings per share	$	0.04	$	0.07	$	0.08	$	0.14
Average shares outstanding (1)		29,554,551		29,300,122		29,619,760		29,388,895

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Diluted earnings per share	$	0.04	$	0.07	$	0.08	$	0.13
Diluted average shares outstanding (1)		29,815,832		29,698,152		29,892,867		29,845,175
Other Data:
Return on Average Assets (2)		0.38%		0.79%		0.41%		0.75%
Return on Average Equity (2)		1.66%		3.07%		1.77%		2.84%
Net Interest Margin (3)		3.00%		3.23%		3.11%		3.20%

____________________

(1)

Weighted-average shares outstanding for 2008 have been adjusted retrospectively for restricted shares that were determined to be “participating” with Financial Accounting Standards Board Staff Position EITF 03-6-1, “Determining Whether Instrument Granted in Share-Based Payment Transactions Are Participating Securities.”

(2)

Three and six 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 Sheets and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	June 30, 2009		December 31, 2008
Cash and cash equivalents	$	23,450	$	56,533
Securities held to maturity, at cost		308,490		247,635
Securities available for sale, at fair value		280,252		258,143
Federal Home Loan Bank of Boston and other   restricted stock at cost		9,164		8,456
Loans		484,336		480,931
Allowance for loan losses		7,337		8,796
Net loans		476,999		472,135
Bank-owned life insurance		36,814		36,100
Other assets		29,595		30,054
TOTAL ASSETS	$	1,164,764	$	1,109,056
Total deposits	$	631,980	$	588,029
Short-term borrowings		51,329		49,824
Long-term debt		212,831		173,300
Due to broker		-		27,603
Other liabilities		11,214		10,381
TOTAL LIABILITIES		907,354		849,137
TOTAL STOCKHOLDERS’ EQUITY		257,410		259,919
TOAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,164,764	$	1,109,056
Book value per share	$	8.33	$	8.30
Other Data:
Nonperforming loans	$	6,495	$	8,805
Nonperforming loans as a percentage of total assets		0.56%		0.79%
Nonperforming loans as a percentage of total loans		1.34%		1.83%
Allowance for loan losses as a percentage of  nonperforming loans		112.96%		100.00%
Allowance for loan losses as a percentage of total loans		1.51%		1.83%

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