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 21, 2010

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:

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

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

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

o  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 21, 2010, Westfield Financial, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2010.  The press release also announced the declaration of a regular cash dividend of $0.06 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 21, 2010

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, 2010	By:	/s/ Leo R. Sagan, Jr.
		Leo R. Sagan, Jr.
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release, dated July 21, 2010

EX-99.1

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, 2010, and Announces a 20% Increase in Dividend

Westfield, Massachusetts, July 21, 2010:  Westfield Financial, Inc. (the “Company”) (NASDAQ:WFD), the holding company for Westfield Bank (the “Bank”), reported a net loss of $(386,000) or $(0.01) per diluted share, for the quarter ended June 30, 2010, compared to net income of $1.1 million, or $0.04 per diluted share, for the same period in 2009.  For the six months ended June 30, 2010, net income was $1.0 million or $0.03 per diluted share, compared to $2.3 million or $0.08 per diluted share for the same period in 2009.

The decrease in earnings was mainly the result of a $3.5 million increase in the provision for loan losses to $4.1 million for the three months ended June 30, 2010, compared to $590,000 for the same period in 2009.  The provision for loan losses increased $2.9 million to $4.6 million for the six months ended June 30, 2010, compared to $1.7 million in the same period in 2009.  The increase in the provision for loan losses was primarily due to the reserve for and subsequent charge-off of $3.6 million on a single commercial real estate loan.

Net interest income decreased $382,000 to $7.4 million for the three months ended June 30, 2010, compared to $7.8 million for the same period in 2009.  The net interest margin, on a tax-equivalent basis, was 2.70% for the three months ended June 30, 2010, compared to 3.00% for the same period in 2009.  For the six months ended June 30, 2010, net interest income decreased $710,000 to $15.1 million, compared to $15.8 million for the same period in 2009.  The net interest margin, on a tax-equivalent basis, was 2.79% and 3.11% for the six months ended June 30, 2010 and 2009, respectively.  The margin decreased because the yield on interest-earning assets decreased more than the cost of interest-bearing liabilities.  Westfield Financial experienced larger than normal amortization on its investment securities, particularly in the first quarter of 2010, which decreased the yield on securities.

For the three months ended June 30, 2010, noninterest expense decreased $1.1 million to $5.9 million, compared to $7.0 million for the same period in 2009.  For the six months ended June 30, 2010, noninterest expense decreased $1.1 million to $12.3 million, compared to $13.4 million for the same period in 2009.  The decrease in noninterest expense was primarily the result of decreases in FDIC insurance expense and salaries and benefits.

FDIC insurance expense decreased $523,000 to $168,000 for the three months ended June 30, 2010 from $691,000 for the same period in 2009.  The FDIC insurance expense decreased $516,000 to $332,000 for the six months ended June 30, 2010 from $848,000 for the same period in 2009.  Both the 2009 periods included 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 decreased $442,000 to $3.4 million for the three months ended June 30, 2010 from $3.9 million for the same period in 2009.  Salaries and benefits decreased $749,000 to $7.2 million for the six months ended June 30, 2010 from $8.0 million for the same period in 2009.

Noninterest income increased $908,000 to $2.0 million for the three months ended June 30, 2010, compared to $1.1 million for the same period in 2009.  For the six months ended June 30, 2010, noninterest income increased $712,000 to $2.9 million, compared to $2.2 million for the same period in 2009.  The increase was primarily the result of an increase in net gains on the sale of securities of $1.0 million and $1.1 million for the three and six months ended June 30, 2010, respectively.

Balance Sheet Growth

Total assets were $1.2 billion at June 30, 2010, which represents an increase of $43.5 million from December 31, 2009.  Securities increased $57.4 million to $681.9 million at June 30, 2010 from $624.5 million at December 31, 2009.  The increase in investment securities was the result of reinvesting funds from deposits, short-term borrowings and long-term debt as discussed below.

1

Exhibit 99.1

Net loans increased by $919,000 to $470.1 million at June 30, 2010 from $469.1 million at December 31, 2009.  Residential real estate loans increased $11.4 million to $110.5 million at June 30, 2010 from $99.1 million at December 31, 2009.  Commercial real estate loans decreased $9.8 million to $219.3 million at June 30, 2010 from $229.1 at December 31, 2009.

Total deposits increased $22.2 million to $670.2 million at June 30, 2010 from $648.0 million at December 31, 2009.  The increase in deposits was due to increases in savings accounts and checking accounts.  Regular savings accounts increased $16.5 million to $121.2 million, primarily due to an account which pays a higher interest rate than comparable products. Checking accounts increased $8.1 million to $158.6 million.  The increases were primarily in noninterest-bearing checking accounts. These increases were partially offset by a $1.4 million decrease in time deposits which were $341.2 million at June 30, 2010.

Short-term borrowings and long-term debt increased $28.8 million to $317.1 million at June 30, 2010.  This was primarily due to an increase of $32.5 million in 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.

Shareholders’ equity at June 30, 2010 and December 31, 2009 was $239.6 million and $247.3 million, respectively, which represented 19.4% of total assets as of June 30, 2010 and 20.8% of total assets as of December 31, 2009.  The decrease in shareholders’ equity is comprised of the repurchase of 588,848 shares for $4.9 million related to the stock repurchase plan, and dividends amounting to $7.0 million.  This was partially offset by a $1.8 million increase in other comprehensive income, net income of $1.0 million and $1.4 million related to the accrual of share-based compensation.

As previously reported, the Board of Directors voted to authorize the commencement of a repurchase program on January 22, 2008 authorizing the Company to repurchase up to 3,194,000 shares, or ten percent of its outstanding shares of common stock.  This program was completed during the second quarter of 2010.   On May 25, 2010, the Board of Directors voted to authorize the commencement of a second repurchase program, authorizing the repurchase of an additional 2,924,367 shares, or ten percent of its outstanding shares of common stock.  There were no shares purchased under the second repurchase program at June 30, 2010.

Credit Quality

The allowance for loan losses was $7.8 million at June 30, 2010, and $7.6 million at December 31, 2009.  This represents 1.64% of total loans at June 30, 2010, and 1.60% of total loans at December 31, 2009.  At these levels, the allowance for loan losses as a percentage of nonperforming loans was 106% at June 30, 2010 and 140% at December 31, 2009.

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

	Three Months Ended
	June 30,			March 31,			June 30,
	2010			2010			2009
	(In thousands)
Balance, beginning of period	$	7,551		$	7,645		$	7,276
Provision		4,120			500			590
Charge-offs		(3,861	)		(616	)		(540	)
Recoveries		17			22			11
Balance, end of period	$	7,827		$	7,551		$	7,337

2

Exhibit 99.1

Nonperforming loans increased $1.9 million to $7.4 million at June 30, 2010, compared to $5.5 million at December 31, 2009.  This represented 1.55% of total loans at June 30, 2010 and 1.15% of total loans at December 31, 2009.  Nonperforming loans are primarily made up of three commercial relationships totaling $6.7 million.

Charge-offs were $3.9 million for the quarter ended June 30, 2010.  This was primarily due to the charge-off of $3.6 million on a single commercial real estate loan.  The remaining balance on this loan was $3.6 million at June 30, 2010.

Loans delinquent 30 – 89 days increased $16.1 million to $18.1 million at June 30, 2010 from $2.0 million at December 31, 2009.  This was primarily due to a single commercial real estate relationship of $15.0 million in the hotel and lodging industry.  Severe winter storms along the eastern seaboard in the first quarter of 2010 curtailed business travel, and as a result, hotel occupancy was negatively impacted.  Management has assessed the value of the property and found it is sufficient to cover the loan and no impairment has been recorded for this relationship.  Management will continue to closely monitor this relationship.  There are no loans 90 or more days past due and still accruing interest.

Dividend Declaration

James C. Hagan, Chief Executive Officer stated, “On July 20, 2010, the Board of Directors declared a regular cash dividend of $0.06 per share.  This represents a 20% increase in our regular quarterly dividend and is payable on August 18, 2010 to all shareholders of record on August 4, 2010.”

About Westfield Financial, Inc.

Westfield Financial, Inc. is the holding company for Westfield Bank, which is headquartered in Westfield, Massachusetts and operates through 11 banking offices in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts.  The Bank’s deposits are insured by the Federal Deposit Insurance Corporation.

This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Westfield Financial Corporation.  The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  These forward- looking statements involve certain risks and uncertainties.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the risks set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and in subsequent filings with the Securities and Exchange Commission.   The Company does not undertake and specifically declines 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

Exhibit 99.1

WESTFIELD FINANCIAL, INC. and SUBSIDIARIES

Consolidated Statements of Operations and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
INTEREST AND DIVIDEND INCOME:
Loans	$	6,132		$	6,460		$	12,298		$	12,919
Securities		5,461			6,511			11,249			13,151
Federal funds sold, interest-bearing deposits and other short-term investments		2			4			3			8
Total interest and dividend income		11,595			12,975			23,550			26,078
INTEREST EXPENSE:
Deposits		2,495			3,290			5,109			6,565
Long-term debt		1,600			1,791			3,186			3,493
Short-term borrowings		76			88			139			194
Total interest expense		4,171			5,169			8,434			10,252
Net interest and dividend income		7,424			7,806			15,116			15,826
PROVISION FOR LOAN LOSSES		4,120			590			4,620			1,740
Net interest and dividend income after provision for loan losses		3,304			7,216			10,496			14,086
NONINTEREST INCOME:
Total other-than-temporary impairment losses on  securities		-			-			(1,071	)		-
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive loss		-			-			971			-
Net other-than-temporary impairment losses recognized in income		-			-			(100	)		-
Service charges and fees		492			735			984			1,444
Income from bank-owned life insurance		368			363			726			714
Loss on prepayment of borrowings		-			(142	)		-			(142	)
Gain on sales of securities, net		1,132			122			1,317			208
Loss on disposal of premises and equipment, net		-			-			-			(8	)
(Loss) gain on sale of other real estate owned		(6	)		-			1			-
Total noninterest income		1,986			1,078			2,928			2,216
NONINTEREST EXPENSE:
Salaries and employees benefits		3,434			3,876			7,234			7,983
Occupancy		636			667			1,296			1,316
Data processing		497			421			982			857
Professional fees		443			518			867			920
FDIC insurance		168			691			332			848
OREO expense		21			38			264			38
Other		724			796			1,326			1,454
Total noninterest expense		5,923			7,007			12,301			13,416
(LOSS) INCOME BEFORE INCOME TAXES		(633	)		1,287			1,123			2,886
INCOME TAX (BENEFIT) PROVISION		(247	)		214			155			607
NET (LOSS) INCOME	$	(386	)	$	1,073		$	968		$	2,279
Basic (loss) earnings per share	$	(0.01	)	$	0.04		$	0.03		$	0.08
Weighted average shares outstanding		27,970,840			29,554,551			28,078,326			29,619,760
Diluted (loss) earnings per share	$	(0.01	)	$	0.04		$	0.03		$	0.08
Weighted average diluted shares outstanding		27,970,840			29,815,832			28,334,136			29,892,867
Other Data:
Return on average assets (1)		(0.13	)%		0.38	%		0.16	%		0.41	%
Return on average equity (1)		(0.64	)%		1.66	%		0.80	%		1.77	%

(1) Three and six months results have been annualized.

4

Exhibit 99.1

WESTFIELD FINANCIAL, INC. and SUBSIDIARIES

Consolidated Balance Sheets and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	June 30,			December 31,
	2010			2009
Cash and cash equivalents	$	15,995		$	28,719
Securities held to maturity, at cost		299,921			295,011
Securities available for sale, at fair value		369,948			319,121
Federal Home Loan Bank of Boston and other restricted stock - at cost		12,036			10,339
Loans		477,895			476,794
Allowance for loan losses		7,827			7,645
Net loans		470,068			469,149
Bank-owned life insurance		38,606			37,880
Other real estate owned		328			1,662
Other assets		28,046			29,529
TOTAL ASSETS	$	1,234,948		$	1,191,410
Total deposits	$	670,190		$	647,975
Short-term borrowings		90,716			74,499
Long-term debt		226,408			213,845
Other liabilities		7,995			7,792
TOTAL LIABILITIES		995,309			944,111
TOTAL SHAREHOLDERS’ EQUITY		239,639			247,299
TOAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,234,948		$	1,191,410
Book value per share	$	8.19		$	8.29
Other Data:
30 – 89 day delinquent loans	$	18,070		$	2,002
Nonperforming loans		7,419			5,470
Nonperforming loans as a percentage of total loans		1.55	%		1.15	%
Nonperforming assets as a percentage of total assets		0.63	%		0.60	%
Allowance for loan losses as a percentage of nonperforming loans		105.50	%		139.76	%
Allowance for loan losses as a percentage of total loans		1.64	%		1.60	%

5

Exhibit 99.1

The following tables set forth the information relating to our average balance at, and net interest income for, the three and six months ended June 30, 2010 and 2009, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended June 30,
	2010								2009
	Average Balance		Interest			Average Yield/Cost			Average Balance		Interest			Average Yield/Cost
	(Dollars in thousands)
ASSETS:
Interest-earning assets:
Loans(1)(2)	$	471,510	$	6,166			5.23	%	$	475,148	$	6,488			5.46	%
Securities(2)		642,372		5,602			3.49			568,521		6,630			4.66
Short-term investments(3)		14,018		2			0.06			20,760		4			0.08
Total interest-earning assets		1,127,900		11,770			4.17			1,064,429		13,122			4.93
Total noninterest-earning assets		79,236								72,380
Total assets	$	1,207,136							$	1,136,809
LIABILITIES AND EQUITY:
Interest-bearing liabilities:
NOW accounts	$	73,813		227			1.23		$	64,771		326			2.01
Savings accounts		117,805		225			0.76			80,531		235			1.17
Money market deposit accounts		48,494		89			0.73			53,870		127			0.94
Time certificates of deposit		343,344		1,954			2.28			335,403		2,602			3.10
Total interest-bearing deposits		583,456		2,495						534,575		3,290
Short-term borrowings and long-term debt		289,158		1,676			2.32			249,351		1,879			3.01
Interest-bearing liabilities		872,614		4,171			1.91			783,926		5,169			2.64
Noninterest-bearing deposits		83,015								80,865
Other noninterest-bearing liabilities		8,918								12,233
Total noninterest-bearing liabilities		91,933								93,098
Total liabilities		964,547								877,024
Total equity		242,589								259,785
Total liabilities and equity	$	1,207,136							$	1,136,809
Less: Tax-equivalent adjustment(2)				(175	)							(147	)
Net interest and dividend income			$	7,424							$	7,806
Net interest rate spread(4)							2.26	%							2.29	%
Net interest margin(5)							2.70	%							3.00	%
Ratio of average interest-earning
assets to average interest-bearing liabilities							129.3	X							135.8	X

6

Exhibit 99.1

	Six Months Ended June 30,
	2010								2009
	Average Balance		Interest			Average Yield/Cost			Average Balance		Interest			Average Yield/Cost
	(Dollars in thousands)
ASSETS:
Interest-earning assets:
Loans(1)(2)	$	471,320	$	12,365			5.25	%	$	474,910	$	12,962			5.46	%
Securities(2)		631,861		11,530			3.65			551,287		13,385			4.86
Short-term investments(3)		15,518		3			0.04			19,630		8			0.08
Total interest-earning assets		1,118,699		23,898			4.27			1,045,827		26,355			5.04
Total noninterest-earning assets		80,120								71,799
Total assets	$	1,198,819							$	1,117,626
LIABILITIES AND EQUITY:
Interest-bearing liabilities:
NOW accounts	$	72,663		459			1.26		$	60,730		576			1.90
Savings accounts		114,276		455			0.80			76,362		427			1.12
Money market deposit accounts		48,837		179			0.73			54,730		256			0.94
Time certificates of deposit		343,865		4,016			2.34			332,779		5,306			3.19
Total interest-bearing deposits		579,641		5,109						524,601		6,565
Short-term borrowings and long-term debt		284,614		3,325			2.34			242,330		3,687			3.04
Interest-bearing liabilities		864,255		8,434			1.95			766,931		10,252			2.67
Noninterest-bearing deposits		81,440								78,745
Other noninterest-bearing liabilities		8,512								11,603
Total noninterest-bearing liabilities		89,952								90,348
Total liabilities		954,207								857,279
Total equity		244,612								260,347
Total liabilities and equity	$	1,198,819							$	1,117,626
Less: Tax-equivalent adjustment(2)				(348	)							(277	)
Net interest and dividend income			$	15,116							$	15,826
Net interest rate spread(4)							2.32	%							2.37	%
Net interest margin(5)							2.79	%							3.11	%
Ratio of average interest-earning
assets to average interest-bearing liabilities							129.4	X							136.4	X

(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.

7