Massachusetts
|
73-1627673
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
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Large accelerated filer £
|
Accelerated filer S
|
Non-accelerated filer £
|
Smaller reporting company £
|
TABLE OF CONTENTS
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34
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35
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36
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36
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36
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36
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March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 11,585 | $ | 10,953 | ||||
Federal funds sold
|
165 | 131 | ||||||
Interest-bearing deposits and other short-term investments
|
5,454 | 10,021 | ||||||
Cash and cash equivalents
|
17,204 | 21,105 | ||||||
SECURITIES AVAILABLE FOR SALE – AT FAIR VALUE
|
645,913 | 617,537 | ||||||
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST
|
12,243 | 12,438 | ||||||
LOANS - Net of allowance for loan losses of $7,803 at March 31, 2012 and $7,764 at December 31, 2011
|
550,570 | 546,392 | ||||||
PREMISES AND EQUIPMENT, NET
|
11,082 | 10,997 | ||||||
ACCRUED INTEREST RECEIVABLE
|
4,146 | 4,022 | ||||||
BANK-OWNED LIFE INSURANCE
|
44,153 | 44,040 | ||||||
DEFERRED TAX ASSET, NET
|
2,954 | 1,863 | ||||||
OTHER REAL ESTATE OWNED
|
1,130 | 1,130 | ||||||
OTHER ASSETS
|
4,218 | 3,740 | ||||||
TOTAL ASSETS
|
$ | 1,293,613 | $ | 1,263,264 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
LIABILITIES:
|
||||||||
DEPOSITS :
|
||||||||
Noninterest-bearing
|
$ | 103,417 | $ | 100,157 | ||||
Interest-bearing
|
645,213 | 632,801 | ||||||
Total deposits
|
748,630 | 732,958 | ||||||
SHORT-TERM BORROWINGS
|
70,237 | 52,985 | ||||||
LONG-TERM DEBT
|
248,275 | 247,320 | ||||||
SECURITIES PENDING SETTLEMENT
|
- | 363 | ||||||
OTHER LIABILITIES
|
10,960 | 10,650 | ||||||
TOTAL LIABILITIES
|
1,078,102 | 1,044,276 | ||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding at March 31, 2012 and
|
||||||||
December 31, 2011 | - | - | ||||||
Common stock - $.01 par value, 75,000,000 shares authorized, 26,602,101 shares issued and
|
||||||||
outstanding at March 31, 2012; 26,918,250 shares issued and outstanding at December 31, 2011 | 266 | 269 | ||||||
Additional paid-in capital
|
171,532 | 173,615 | ||||||
Unearned compensation - ESOP
|
(8,978 | ) | (9,119 | ) | ||||
Unearned compensation - Equity Incentive Plan
|
(940 | ) | (1,228 | ) | ||||
Retained earnings
|
47,867 | 47,735 | ||||||
Accumulated other comprehensive income
|
5,764 | 7,716 | ||||||
Total shareholders' equity
|
215,511 | 218,988 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 1,293,613 | $ | 1,263,264 | ||||
See accompanying notes to unaudited consolidated financial statements.
|
Three Months
|
||||||||
Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
INTEREST AND DIVIDEND INCOME:
|
||||||||
Debt securities, taxable
|
$ | 3,844 | $ | 4,811 | ||||
Residential and commercial real estate loans
|
5,039 | 4,674 | ||||||
Commercial and industrial loans
|
1,302 | 1,443 | ||||||
Debt securities, tax-exempt
|
423 | 419 | ||||||
Consumer loans
|
40 | 49 | ||||||
Equity securities
|
45 | 47 | ||||||
Other investments - at cost
|
22 | 14 | ||||||
Total interest and dividend income
|
10,715 | 11,457 | ||||||
INTEREST EXPENSE:
|
||||||||
Deposits
|
1,637 | 2,106 | ||||||
Long-term debt
|
1,631 | 1,645 | ||||||
Short-term borrowings
|
30 | 59 | ||||||
Total interest expense
|
3,298 | 3,810 | ||||||
Net interest and dividend income
|
7,417 | 7,647 | ||||||
PROVISION FOR LOAN LOSSES
|
220 | 339 | ||||||
Net interest and dividend income after provision for loan losses
|
7,197 | 7,308 | ||||||
NONINTEREST INCOME (LOSS):
|
||||||||
Total other-than-temporary impairment losses on debt securities
|
- | (345 | ) | |||||
Portion of other-than-temporary impairment losses recognized in accumulated other
|
||||||||
comprehensive loss on debt securities | - | 313 | ||||||
Net other-than-temporary impairment losses recognized in income
|
- | (32 | ) | |||||
Service charges and fees
|
509 | 441 | ||||||
Income from bank-owned life insurance
|
459 | 366 | ||||||
Gain on sales of securities, net
|
1,585 | 31 | ||||||
Total noninterest income
|
2,553 | 806 | ||||||
NONINTEREST EXPENSE:
|
||||||||
Salaries and employees benefits
|
4,277 | 3,953 | ||||||
Occupancy
|
705 | 678 | ||||||
Computer operations
|
527 | 486 | ||||||
Professional fees
|
437 | 439 | ||||||
OREO expense
|
17 | 8 | ||||||
FDIC insurance assessment
|
143 | 208 | ||||||
Other
|
738 | 768 | ||||||
Total noninterest expense
|
6,844 | 6,540 | ||||||
INCOME BEFORE INCOME TAXES
|
2,906 | 1,574 | ||||||
INCOME TAX PROVISION
|
567 | 288 | ||||||
NET INCOME
|
$ | 2,339 | $ | 1,286 | ||||
EARNINGS PER COMMON SHARE:
|
||||||||
Basic earnings per share
|
$ | 0.09 | $ | 0.05 | ||||
Weighted average shares outstanding
|
25,449,759 | 26,746,102 | ||||||
Diluted earnings per share
|
$ | 0.09 | $ | 0.05 | ||||
Weighted average diluted shares outstanding
|
25,502,311 | 26,875,244 | ||||||
See accompanying notes to unaudited consolidated financial statements.
|
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – UNAUDITED
|
||||||||
Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Net income
|
$ | 2,339 | $ | 1,286 | ||||
Other comprehensive income (loss):
|
||||||||
Unrealized gains (losses) on securities:
|
||||||||
Unrealized holding losses on available for sale securities
|
$ | (1,443 | ) | $ | (1,649 | ) | ||
Reclassification adjustment for gains realized in income
|
(1,585 | ) | (31 | ) | ||||
Other-than-temporary impairment losses on available-for-sale securities
|
- | 32 | ||||||
Net unrealized losses
|
(3,028 | ) | (1,648 | ) | ||||
Tax effect
|
1,051 | 570 | ||||||
Net-of-tax amount
|
(1,977 | ) | (1,078 | ) | ||||
Defined benefit plans:
|
||||||||
Reclassification adjustments for items reflected in earnings:
|
||||||||
Actuarial loss
|
39 | 29 | ||||||
Transition asset
|
(2 | ) | (3 | ) | ||||
Net adjustments pertaining to defined benefit plans
|
37 | 26 | ||||||
Tax effect
|
(12 | ) | (9 | ) | ||||
Net-of-tax amount
|
25 | 17 | ||||||
Other comprehensive loss
|
(1,952 | ) | (1,061 | ) | ||||
Comprehensive income
|
$ | 387 | $ | 225 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED
|
||||||||||||||||||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
|
||||||||||||||||||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||||||||||||||
Common Stock
|
Additional Paid-in Capital
|
Unearned Compensation- ESOP
|
Unearned Compensation- Equity Incentive Plan
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
||||||||||||||||||||||||||
Shares
|
Par
Value
|
|||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2010
|
28,166,419 | $ | 282 | $ | 181,842 | $ | (9,701 | ) | $ | (2,158 | ) | $ | 56,496 | $ | (5,516 | ) | $ | 221,245 | ||||||||||||||
Net income
|
- | - | - | - | - | 1,286 | - | 1,286 | ||||||||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | - | - | (1,061 | ) | (1,061 | ) | ||||||||||||||||||||||
Common stock held by ESOP committed to be released (86,586 shares)
|
- | - | 46 | 145 | - | - | - | 191 | ||||||||||||||||||||||||
Share-based compensation - stock options
|
- | - | 200 | - | - | - | - | 200 | ||||||||||||||||||||||||
Share-based compensation - equity incentive plan
|
- | - | - | - | 291 | - | - | 291 | ||||||||||||||||||||||||
Excess tax benefits from equity incentive plan
|
- | - | 5 | - | - | - | - | 5 | ||||||||||||||||||||||||
Common stock repurchased
|
(155,555 | ) | (2 | ) | (1,361 | ) | - | - | - | - | (1,363 | ) | ||||||||||||||||||||
Issuance of common stock in connection with stock option exercises
|
34,646 | - | 294 | - | - | (141 | ) | - | 153 | |||||||||||||||||||||||
Excess tax benefits in connection with stock option exercises
|
- | - | 18 | - | - | - | - | 18 | ||||||||||||||||||||||||
Cash dividends declared ($0.06 per share)
|
- | - | - | - | - | (1,609 | ) | - | (1,609 | ) | ||||||||||||||||||||||
BALANCE, MARCH 31, 2011
|
28,045,510 | $ | 280 | $ | 181,044 | $ | (9,556 | ) | $ | (1,867 | ) | $ | 56,032 | $ | (6,577 | ) | $ | 219,356 | ||||||||||||||
BALANCE, DECEMBER 31, 2011
|
26,918,250 | $ | 269 | $ | 173,615 | $ | (9,119 | ) | $ | (1,228 | ) | $ | 47,735 | $ | 7,716 | $ | 218,988 | |||||||||||||||
Net income
|
- | - | - | - | - | 2,339 | - | 2,339 | ||||||||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | - | - | (1,952 | ) | (1,952 | ) | ||||||||||||||||||||||
Common stock held by ESOP committed to be released (84,261 shares)
|
- | - | 25 | 141 | - | - | - | 166 | ||||||||||||||||||||||||
Share-based compensation - stock options
|
- | - | 196 | - | - | - | - | 196 | ||||||||||||||||||||||||
Share-based compensation - equity incentive plan
|
- | - | - | - | 288 | - | - | 288 | ||||||||||||||||||||||||
Excess tax benefits from equity incentive plan
|
- | - | 3 | - | - | - | - | 3 | ||||||||||||||||||||||||
Common stock repurchased
|
(493,226 | ) | (5 | ) | (3,956 | ) | - | - | - | - | (3,961 | ) | ||||||||||||||||||||
Issuance of common stock in connection with stock option exercises
|
177,077 | 2 | 1,454 | - | - | (678 | ) | - | 778 | |||||||||||||||||||||||
Excess tax benefits in connection with stock option exercises
|
- | - | 195 | - | - | - | - | 195 | ||||||||||||||||||||||||
Cash dividends declared ($0.06 per share)
|
- | - | - | - | - | (1,529 | ) | - | (1,529 | ) | ||||||||||||||||||||||
BALANCE, MARCH 31, 2012
|
26,602,101 | $ | 266 | $ | 171,532 | $ | (8,978 | ) | $ | (940 | ) | $ | 47,867 | $ | 5,764 | $ | 215,511 | |||||||||||||||
See accompanying notes to unaudited consolidated financial statements
|
CONSOLIDATED STATEMENTS OF CASHFLOWS
|
||||||||
(Dollars in thousands)
|
||||||||
Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 2,339 | $ | 1,286 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
220 | 339 | ||||||
Depreciation and amortization of premises and equipment
|
266 | 307 | ||||||
Net amortization of premiums and discounts on securities and mortgage loans
|
952 | 904 | ||||||
Net amortization of premiums on modified debt
|
53 | - | ||||||
Share-based compensation expense
|
484 | 491 | ||||||
Amortization of ESOP expense
|
166 | 191 | ||||||
Excess tax benefits from equity incentive plan
|
(3 | ) | (5 | ) | ||||
Excess tax benefits in connection with stock option exercises
|
(195 | ) | (18 | ) | ||||
Net gains on sales of securities
|
(1,585 | ) | (31 | ) | ||||
Other than temporary impairment losses on securities
|
- | 32 | ||||||
Deferred income tax benefit
|
(52 | ) | (53 | ) | ||||
Income from bank-owned life insurance
|
(459 | ) | (366 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Accrued interest receivable
|
(124 | ) | 22 | |||||
Other assets
|
(132 | ) | 368 | |||||
Other liabilities
|
544 | (378 | ) | |||||
Net cash provided by operating activities
|
2,474 | 3,089 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Securities, available for sale:
|
||||||||
Purchases
|
(152,055 | ) | (65,842 | ) | ||||
Proceeds from sales
|
100,285 | 50,893 | ||||||
Proceeds from calls, maturities, and principal collections
|
21,015 | 23,671 | ||||||
Purchase of residential mortgages
|
(14,696 | ) | (23,888 | ) | ||||
Loan originations and principal payments, net
|
10,272 | 7,580 | ||||||
Purchase of Federal Home Loan Bank of Boston stock
|
- | (72 | ) | |||||
Proceeds from redemption of Federal Home Loan Bank of Boston stock
|
195 | - | ||||||
Purchases of premises and equipment
|
(351 | ) | (72 | ) | ||||
Purchase of bank-owned life insurance
|
- | (2,000 | ) | |||||
Net cash used in investing activities
|
(35,335 | ) | (9,730 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Net increase in deposits
|
15,672 | 7,200 | ||||||
Net change in short-term borrowings
|
17,252 | (7,799 | ) | |||||
Repayment of long-term debt
|
(46,731 | ) | (2,000 | ) | ||||
Proceeds from long-term debt
|
47,633 | 14,032 | ||||||
Cash dividends paid
|
(1,529 | ) | (1,609 | ) | ||||
Common stock repurchased
|
(4,313 | ) | (1,363 | ) | ||||
Issuance of common stock in connection with stock option exercises
|
778 | 153 | ||||||
Excess tax benefits in connection with equity incentive plan
|
3 | 5 | ||||||
Excess tax benefits in connection with stock option exercises
|
195 | 18 | ||||||
Net cash provided by financing activities
|
28,960 | 8,637 | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS:
|
(3,901 | ) | 1,996 | |||||
Beginning of year
|
21,105 | 11,611 | ||||||
End of year
|
$ | 17,204 | $ | 13,607 | ||||
Supplemental cashflow information:
|
||||||||
Interest paid
|
$ | 3,217 | $ | 3,820 | ||||
Taxes paid
|
70 | 51 | ||||||
Settlement of common stock repurchased | 352 | - | ||||||
See the accompanying notes to unaudited consolidated financial statements
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
(In thousands, except per share data)
|
||||||||
Net income applicable to common stock
|
$ | 2,339 | $ | 1,286 | ||||
Average number of common shares outstanding
|
26,743 | 28,152 | ||||||
Less: Average unallocated ESOP Shares
|
(1,286 | ) | (1,371 | ) | ||||
Average ungranted equity incentive plan shares
|
(7 | ) | (35 | ) | ||||
Average number of common shares outstanding used
|
||||||||
to calculate basic earnings per common share | 25,450 | 26,746 | ||||||
Effect of dilutive stock options
|
52 | 129 | ||||||
Average number of common shares outstanding used
|
||||||||
to calculate diluted earnings per common share | 25,502 | 26,875 | ||||||
Basic earnings per share
|
$ | 0.09 | $ | 0.05 | ||||
Diluted earnings per share
|
$ | 0.09 | $ | 0.05 |
March 31,
2012
|
December 31,
2011
|
|||||||
(In thousands)
|
||||||||
Net unrealized gain on securities available for sale
|
$ | 12,696 | $ | 16,225 | ||||
Tax effect
|
(4,352 | ) | (5,573 | ) | ||||
Net-of-tax amount
|
8,344 | 10,652 | ||||||
Noncredit portion of other-than-temporary impairment losses on
|
||||||||
available-for-sale securities | $ | - | $ | (501 | ) | |||
Tax effect
|
- | 170 | ||||||
Net-of-tax amount
|
- | (331 | ) | |||||
Unrecognized transition asset pertaining to defined benefit plans
|
30 | 32 | ||||||
Unrecognized deferred loss pertaining to defined benefit plans
|
(3,939 | ) | (3,978 | ) | ||||
Net adjustments pertaining to defined benefit plans
|
(3,909 | ) | (3,946 | ) | ||||
Tax effect
|
1,329 | 1,341 | ||||||
Net-of-tax amount
|
(2,580 | ) | (2,605 | ) | ||||
$ | 5,764 | $ | 7,716 |
Securities
|
Defined
Benefit
Plans
|
Accumulated Other Comprehensive
Income
|
||||||||||
(In thousands)
|
||||||||||||
Balance at December 31, 2011
|
$ | 10,321 | $ | (2,605 | ) | $ | 7,716 | |||||
Current-period other comprehensive income
|
(1,977 | ) | 25 | (1,952 | ) | |||||||
Balance at March 31, 2012
|
$ | 8,344 | $ | (2,580 | ) | $ | 5,764 |
March 31, 2012
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Government-sponsored residential
|
||||||||||||||||
mortgage-backed securities | $ | 402,421 | $ | 6,933 | $ | (1,015 | ) | $ | 408,339 | |||||||
U.S. government guaranteed residential mortgage-backed securities
|
134,628 | 3,649 | - | 138,277 | ||||||||||||
Corporate bonds
|
13,224 | - | (22 | ) | 13,202 | |||||||||||
State and municipal bonds
|
43,375 | 2,377 | - | 45,752 | ||||||||||||
Government-sponsored enterprise
|
||||||||||||||||
obligations | 32,930 | 888 | (145 | ) | 33,673 | |||||||||||
Mutual funds
|
5,857 | 93 | (60 | ) | 5,890 | |||||||||||
Common and preferred stock
|
782 | 18 | (20 | ) | 780 | |||||||||||
Total
|
$ | 633,217 | $ | 13,958 | $ | (1,262 | ) | $ | 645,913 | |||||||
December 31, 2011
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Government sponsored residential mortgage-backed securities
|
$ | 377,447 | $ | 8,802 | $ | (22 | ) | $ | 386,227 | |||||||
U.S. government guaranteed residential mortgage-backed securities
|
148,938 | 3,937 | - | 152,875 | ||||||||||||
Private-label residential mortgage-backed securities
|
2,068 | - | (501 | ) | 1,567 | |||||||||||
State and municipal bonds
|
43,393 | 2,481 | - | 45,874 | ||||||||||||
Government-sponsored enterprise obligations
|
23,761 | 991 | - | 24,752 | ||||||||||||
Mutual funds
|
5,813 | 99 | (58 | ) | 5,854 | |||||||||||
Common and preferred stock
|
393 | 6 | (11 | ) | 388 | |||||||||||
Total
|
$ | 601,813 | $ | 16,316 | $ | (592 | ) | $ | 617,537 |
Amortized
Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Mortgage-backed securities:
|
||||||||
Due after five years through ten years
|
$ | 18,147 | $ | 18,878 | ||||
Due after ten years
|
518,902 | 527,738 | ||||||
Total
|
$ | 537,049 | $ | 546,616 |
Amortized
Cost |
Fair Value
|
|||||||
(In thousands)
|
||||||||
Debt securities:
|
||||||||
Due in one year or less
|
$ | 575 | $ | 578 | ||||
Due after one year through five years
|
27,885 | 29,041 | ||||||
Due after five years through ten years
|
39,012 | 40,478 | ||||||
Due after ten years
|
22,057 | 22,530 | ||||||
Total
|
$ | 89,529 | $ | 92,627 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Gross gains realized
|
$ | 2,141 | $ | 562 | ||||
Gross losses realized
|
(556 | ) | (531 | ) | ||||
Net gain realized
|
$ | 1,585 | $ | 31 |
March 31, 2012
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
Unrealized
Losses
|
Fair Value
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Government-sponsored residential mortgage-
|
||||||||||||||||
backed securities | $ | (1,015 | ) | $ | 108,392 | $ | - | $ | - | |||||||
Corporate bonds
|
(22 | ) | 13,202 | - | - | |||||||||||
Government-sponsored enterprise obligations
|
(145 | ) | 13,994 | - | - | |||||||||||
Mutual funds
|
- | - | (60 | ) | 1,642 | |||||||||||
Common and preferred stock
|
- | - | (20 | ) | 19 | |||||||||||
Total
|
$ | (1,182 | ) | $ | 135,588 | $ | (80 | ) | $ | 1,661 |
December 31, 2011
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
Unrealized
Losses
|
Fair Value
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Government-sponsored residential mortgage-
|
||||||||||||||||
backed securities | $ | (22 | ) | $ | 14,652 | $ | - | $ | - | |||||||
Private-label residential mortgage-backed
|
||||||||||||||||
securities | - | - | (501 | ) | 1,567 | |||||||||||
Mutual funds
|
- | - | (58 | ) | 1,626 | |||||||||||
Common and preferred stock
|
- | - | (11 | ) | 28 | |||||||||||
Total
|
$ | (22 | ) | $ | 14,652 | $ | (570 | ) | $ | 3,221 |
Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Beginning balance
|
$ | 442 | $ | 425 | ||||
Reductions for securities sold during the period
|
(442 | ) | - | |||||
Additional credit losses for which other-than-temporary
|
||||||||
impairment charge was previously recognized | - | 32 | ||||||
Ending balance
|
$ | - | $ | 457 |
Loans consisted of the following amounts:
|
March 31,
|
December 31,
|
||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Commercial real estate
|
$ | 233,921 | $ | 232,491 | ||||
Residential real estate
|
164,859 | 155,994 | ||||||
Home equity
|
36,350 | 36,464 | ||||||
Commercial and industrial
|
119,979 | 125,739 | ||||||
Consumer
|
2,264 | 2,451 | ||||||
Total Loans
|
557,373 | 553,139 | ||||||
Unearned premiums and deferred loan fees and costs, net
|
1,000 | 1,017 | ||||||
Allowance for loan losses
|
(7,803 | ) | (7,764 | ) | ||||
$ | 550,570 | $ | 546,392 |
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Balance at December 31, 2011
|
$ | 1,531 | $ | 3,504 | $ | 2,712 | $ | 17 | $ | 7,764 | ||||||||||
Provision
|
104 | 20 | 95 | 1 | 220 | |||||||||||||||
Charge-offs
|
- | (195 | ) | - | (4 | ) | (199 | ) | ||||||||||||
Recoveries
|
1 | 14 | 1 | 2 | 18 | |||||||||||||||
Balance at March 31, 2012
|
$ | 1,636 | $ | 3,343 | $ | 2,808 | $ | 16 | $ | 7,803 | ||||||||||
Balance at December 31, 2010
|
$ | 877 | $ | 3,182 | $ | 2,849 | $ | 26 | $ | 6,934 | ||||||||||
Provision
|
127 | (9 | ) | 234 | (13 | ) | 339 | |||||||||||||
Charge-offs
|
- | - | (355 | ) | (4 | ) | (359 | ) | ||||||||||||
Recoveries
|
1 | 4 | 69 | 11 | 85 | |||||||||||||||
Balance at March 31, 2011
|
$ | 1,005 | $ | 3,177 | $ | 2,797 | $ | 20 | $ | 6,999 |
Residential
Real Estate
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||
Allowance for loan and lease losses:
|
||||||||||||||||||||
Individually evaluated for loss potential
|
$ | 110 | $ | 187 | $ | 71 | $ | - | $ | 368 | ||||||||||
Collectively evaluated for loss potential
|
1,526 | 3,156 | 2,737 | 16 | 7,435 | |||||||||||||||
Total
|
$ | 1,636 | $ | 3,343 | $ | 2,808 | $ | 16 | $ | 7,803 | ||||||||||
Loans and leases outstanding:
|
||||||||||||||||||||
Individually evaluated for loss potential
|
$ | 421 | $ | 15,521 | $ | 1,181 | $ | - | $ | 17,123 | ||||||||||
Collectively evaluated for loss potential
|
200,788 | 218,400 | 118,798 | 2,264 | 540,250 | |||||||||||||||
Total
|
$ | 201,209 | $ | 233,921 | $ | 119,979 | $ | 2,264 | $ | 557,373 | ||||||||||
December 31, 2011
|
||||||||||||||||||||
Allowance for loan and lease losses:
|
||||||||||||||||||||
Individually evaluated for loss potential
|
$ | 109 | $ | 449 | $ | 39 | $ | - | $ | 597 | ||||||||||
Collectively evaluated for loss potential
|
1,422 | 3,055 | 2,673 | 17 | 7,167 | |||||||||||||||
Total
|
$ | 1,531 | $ | 3,504 | $ | 2,712 | $ | 17 | $ | 7,764 | ||||||||||
Loans and leases outstanding:
|
||||||||||||||||||||
Individually evaluated for loss potential
|
$ | 422 | $ | 15,739 | $ | 1,145 | $ | - | $ | 17,306 | ||||||||||
Collectively evaluated for loss potential
|
192,036 | 216,752 | 124,594 | 2,451 | 535,833 | |||||||||||||||
Total
|
$ | 192,458 | $ | 232,491 | $ | 125,739 | $ | 2,451 | $ | 553,139 |
30 – 59
Days Past
Due
|
60 – 89
Days
Past
Due
|
Greater than
90 Days Past
Due
|
Total Past
Due
|
Past Due 90
Days or
More and
Still
Accruing
|
Loans
in Non-
Accrual
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$ | 589 | $ | 171 | $ | 189 | $ | 949 | $ | - | $ | 660 | ||||||||||||
Home equity
|
286 | - | 155 | 441 | - | 226 | ||||||||||||||||||
Commercial real estate
|
2,925 | - | 1,062 | 3,987 | - | 1,660 | ||||||||||||||||||
Commercial and industrial
|
69 | 2 | 187 | 258 | - | 189 | ||||||||||||||||||
Consumer
|
3 | - | 22 | 25 | - | 24 | ||||||||||||||||||
Total
|
$ | 3,872 | $ | 173 | $ | 1,615 | $ | 5,660 | $ | - | $ | 2,759 | ||||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$ | 562 | $ | - | $ | 184 | $ | 746 | $ | - | $ | 670 | ||||||||||||
Home equity
|
128 | - | 204 | 332 | - | 230 | ||||||||||||||||||
Commercial real estate
|
840 | - | 740 | 1,580 | - | 1,879 | ||||||||||||||||||
Commercial and industrial
|
111 | 183 | - | 294 | - | 154 | ||||||||||||||||||
Consumer
|
22 | 2 | - | 24 | - | - | ||||||||||||||||||
Total
|
$ | 1,663 | $ | 185 | $ | 1,128 | $ | 2,976 | $ | - | $ | 2,933 |
Three Months Ended
|
||||||||||||||||||||
At March 31, 2012
|
March 31, 2012
|
|||||||||||||||||||
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Residential real estate
|
$ | 120 | $ | 126 | $ | - | $ | 120 | $ | - | ||||||||||
Commercial real estate
|
1,521 | 1,674 | - | 1,532 | - | |||||||||||||||
Total
|
1,641 | 1,800 | - | 1,652 | - | |||||||||||||||
Impaired loans with a valuation allowance:
|
||||||||||||||||||||
Residential real estate
|
186 | 186 | 70 | 187 | - | |||||||||||||||
Home equity
|
115 | 115 | 40 | 115 | - | |||||||||||||||
Commercial real estate
|
14,000 | 14,000 | 187 | 14,097 | 149 | |||||||||||||||
Commercial and industrial
|
1,181 | 1,187 | 71 | 1,163 | 11 | |||||||||||||||
Total
|
15,482 | 15,488 | 368 | 15,562 | 160 | |||||||||||||||
Total impaired loans
|
$ | 17,123 | $ | 17,288 | $ | 368 | $ | 17,214 | $ | 160 |
Three Months Ended
|
||||||||||||||||||||
At December 31, 2011
|
March 31, 2011
|
|||||||||||||||||||
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
Residential real estate
|
$ | 120 | $ | 126 | $ | - | $ | 124 | $ | - | ||||||||||
Commercial real estate
|
1,545 | 1,679 | - | 795 | - | |||||||||||||||
Commercial and industrial
|
- | - | - | 1,765 | - | |||||||||||||||
Total
|
1,665 | 1,805 | - | 2,684 | - | |||||||||||||||
Impaired loans with a valuation allowance:
|
||||||||||||||||||||
Residential real estate
|
187 | 187 | 70 | - | - | |||||||||||||||
Home equity
|
115 | 115 | 39 | - | - | |||||||||||||||
Commercial real estate
|
14,194 | 14,225 | 449 | 6,900 | 195 | |||||||||||||||
Commercial and industrial
|
1,145 | 1,150 | 39 | 622 | 15 | |||||||||||||||
Total
|
15,641 | 15,677 | 597 | 7,522 | 210 | |||||||||||||||
Total impaired loans
|
$ | 17,306 | $ | 17,482 | $ | 597 | $ | 10,206 | $ | 210 |
Number of
Contracts
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Troubled Debt Restructurings
|
||||||||||||
Commercial real estate
|
1 | $ | 14,000 | $ | 14,000 | |||||||
Commercial and industrial
|
1 | 1,000 | 1,000 | |||||||||
Total
|
2 | $ | 15,000 | $ | 15,000 |
Residential 1-4
Family
|
Home
Equity
|
Commercial
Real Estate
|
Commercial
and Industrial
|
Consumer
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||
Loans rated 1 – 3
|
$ | 164,199 | $ | 36,124 | $ | 182,236 | $ | 78,286 | $ | 2,240 | $ | 463,085 | ||||||||||||
Loans rated 4
|
- | - | 22,934 | 15,542 | - | 38,476 | ||||||||||||||||||
Loans rated 5
|
- | - | 5,715 | 7,359 | - | 13,074 | ||||||||||||||||||
Loans rated 6
|
660 | 226 | 23,036 | 18,792 | 24 | 42,738 | ||||||||||||||||||
Loans rated 7
|
- | - | - | - | - | - | ||||||||||||||||||
$ | 164,859 | $ | 36,350 | $ | 233,921 | $ | 119,979 | $ | 2,264 | $ | 557,373 | |||||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Loans rated 1 – 3
|
$ | 155,324 | $ | 36,234 | $ | 182,453 | $ | 87,287 | $ | 2,451 | $ | 463,749 | ||||||||||||
Loans rated 4
|
- | - | 22,855 | 16,129 | - | 38,984 | ||||||||||||||||||
Loans rated 5
|
- | - | 7,104 | 7,678 | - | 14,782 | ||||||||||||||||||
Loans rated 6
|
670 | 230 | 19,885 | 14,645 | - | 35,430 | ||||||||||||||||||
Loans rated 7
|
- | - | 194 | - | - | 194 | ||||||||||||||||||
$ | 155,994 | $ | 36,464 | $ | 232,491 | $ | 125,739 | $ | 2,451 | $ | 553,139 |
Unvested Stock Awards
Outstanding
|
Stock Options Outstanding
|
|||||||||||||||
Shares
|
Weighted
Average
Grant
Date Fair
Value
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Outstanding at December 31, 2011
|
155,206 | $ | 9.54 | 1,907,744 | $ | 9.32 | ||||||||||
Stock options exercised
|
- | - | (177,077 | ) | 4.39 | |||||||||||
Outstanding at March 31, 2012
|
155,206 | $ | 9.54 | 1,730,667 | $ | 9.82 | ||||||||||
Outstanding at December 31, 2010
|
248,612 | $ | 9.92 | 1,911,485 | $ | 9.08 | ||||||||||
Stock options exercised
|
- | - | (34,646 | ) | 4.39 | |||||||||||
Outstanding at March 31, 2011
|
248,612 | $ | 9.92 | 1,876,839 | $ | 9.17 |
Three Months Ended
|
|||||||
March 31,
|
|||||||
2012
|
2011
|
||||||
(In thousands)
|
|||||||
Service cost
|
$ | 256 | $ | 247 | |||
Interest cost
|
200 | 223 | |||||
Expected return on assets
|
(214 | ) | (219 | ) | |||
Transition obligation
|
(2 | ) | (3 | ) | |||
Actuarial loss
|
39 | 29 | |||||
Net periodic pension cost
|
$ | 279 | $ | 277 |
March 31, 2012
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Securities available for sale:
|
(In thousands)
|
|||||||||||||||
Mutual funds
|
$ | 5,890 | $ | - | $ | - | $ | 5,890 | ||||||||
Common and preferred stock
|
780 | - | - | 780 | ||||||||||||
U.S. government and federal agency debt securities
|
- | 33,673 | - | 33,673 | ||||||||||||
Corporate bonds
|
- | 13,202 | - | 13,202 | ||||||||||||
State and municipal bonds
|
- | 45,752 | - | 45,752 | ||||||||||||
Government sponsored mortgage-backed
|
||||||||||||||||
securities | - | 408,339 | - | 408,339 | ||||||||||||
U.S. government guaranteed mortgage-backed securities
|
- | 138,277 | - | 138,277 | ||||||||||||
Total assets
|
$ | 6,670 | $ | 639,243 | $ | - | $ | 645,913 | ||||||||
December 31, 2011
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Securities available for sale:
|
(In thousands)
|
|||||||||||||||
Mutual funds
|
$ | 5,854 | $ | - | $ | - | $ | 5,854 | ||||||||
Common and preferred stock
|
388 | - | - | 388 | ||||||||||||
U.S. government and federal agency debt securities
|
- | 24,752 | - | 24,752 | ||||||||||||
Private label residential mortgage-backed securities
|
- | 1,567 | - | 1,567 | ||||||||||||
State and municipal bonds
|
- | 45,874 | - | 45,874 | ||||||||||||
Government sponsored mortgage-backed
|
||||||||||||||||
securities | - | 386,227 | - | 386,227 | ||||||||||||
U.S. government guaranteed mortgage-backed securities
|
- | 152,875 | - | 152,875 | ||||||||||||
Total assets
|
$ | 6,242 | $ | 611,295 | $ | - | $ | 617,537 |
At
|
Three Months Ended
|
|||||||||||||||
March 31, 2012
|
March 31, 2012
|
|||||||||||||||
Total
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Gains (Losses)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 1,172 | $ | 157 | ||||||||
Total Assets
|
$ | - | $ | - | $ | 1,172 | $ | 157 |
At
|
Three Months Ended
|
|||||||||||||||
March 31, 2011
|
March 31, 2011
|
|||||||||||||||
Total
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Gains (Losses)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Impaired loans
|
$ | - | $ | - | $ | 1,036 | $ | (219 | ) | |||||||
Other real estate owned
|
- | - | 223 | - | ||||||||||||
Total Assets
|
$ | - | $ | - | $ | 1,259 | $ | (219 | ) |
March 31, 2012
|
||||||||||||||||||||
Carrying
Value
|
Fair Value
|
|||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 17,204 | $ | 17,204 | $ | - | $ | - | $ | 17,204 | ||||||||||
Securities available for sale
|
645,913 | 6,670 | 639,243 | - | 645,913 | |||||||||||||||
Federal Home Loan Bank of
|
||||||||||||||||||||
Boston and other restricted stock | 12,243 | - | - | 12,243 | 12,243 | |||||||||||||||
Loans - net
|
550,570 | - | - | 554,301 | 554,301 | |||||||||||||||
Accrued interest receivable
|
4,146 | - | - | 4,146 | 4,146 | |||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
748,630 | - | - | 750,603 | 750,603 | |||||||||||||||
Short-term borrowings
|
70,237 | - | 70,235 | - | 70,235 | |||||||||||||||
Long-term debt
|
248,275 | - | 260,781 | - | 260,781 | |||||||||||||||
Accrued interest payable
|
656 | - | - | 656 | 656 |
December 31, 2011
|
||||||||
Carrying
|
Estimated
|
|||||||
Value
|
Fair Value
|
|||||||
Assets:
|
(In thousands)
|
|||||||
Cash and cash equivalents
|
$ | 21,105 | $ | 21,105 | ||||
Securities available for sale
|
617,537 | 617,537 | ||||||
Federal Home Loan Bank of Boston and
|
||||||||
other restricted stock | 12,438 | 12,438 | ||||||
Loans - net
|
546,392 | 552,422 | ||||||
Accrued interest receivable
|
4,022 | 4,022 | ||||||
Liabilities:
|
||||||||
Deposits
|
732,958 | 731,294 | ||||||
Short-term borrowings
|
52,985 | 52,982 | ||||||
Long-term debt
|
247,320 | 258,470 | ||||||
Accrued interest payable
|
656 | 656 |
·
|
grow our commercial and industrial and commercial real estate loan portfolios by targeting businesses in our primary market area and in northern Connecticut as a means to increase the yield on and diversify our loan portfolio and build transactional deposit account relationships;
|
·
|
focus on expanding our retail banking franchise and increase the number of households served within our market area; and
|
·
|
to supplement the commercial focus, grow the residential loan portfolio to diversify risk and deepen customer relationships. We will maintain our arrangement with a third-party mortgage company which assists in originating and servicing residential real estate loans. By doing this, we reduce the overhead costs associated with these loans.
|
·
|
Net income was $2.3 million, or $0.09 per diluted share, for the quarter ended March 31, 2012, compared to $1.3 million, or $0.05 per diluted share, for the same period in 2011. The increase in earnings for the quarter ended March 31, 2012 was the result of a $1.6 million increase in the net gains on the sales of securities, compared to the same period in 2011. With mortgage rates declining to new lows, we experienced a high level of prepayment activity in its mortgage-backed securities, which negatively affected the yield of the portfolio. In an effort to improve portfolio performance, management sold certain mortgage-backed securities that were prepaying rapidly and expected to continue to prepay. Rather than receive principal payments back at par value, management sold the securities at a net gain, which created greater economic value for us.
|
·
|
The provision for loan losses was $220,000 for the three months ended March 31, 2012, compared to $339,000 for the same period in 2011. The decrease in provision for loan losses was due to a decrease in loan charge-offs and positive trends in the national and local economy.
|
·
|
Net interest income decreased $230,000 to $7.4 million for the three months ended March 31, 2012, compared to $7.6 million for the same period in 2011. The net interest margin, on a tax-equivalent basis, was 2.55% for the three months ended March 31, 2012, compared to 2.72% for the same period in 2011. The decrease in the net interest margin was due to the yield on interest-earning assets decreasing 36 basis points as a result of the low interest rate environment. This was primarily due to rapid prepayments in the mortgage-backed securities portfolio.
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Average
|
Avg Yield/
|
Average
|
Avg Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earning assets
|
||||||||||||||||||||||||
Loans(1)(2)
|
$ | 555,460 | $ | 6,420 | 4.62 | % | $ | 518,397 | $ | 6,206 | 4.79 | % | ||||||||||||
Securities(2)
|
622,854 | 4,497 | 2.89 | 632,678 | 5,453 | 3.45 | ||||||||||||||||||
Other investments - at cost
|
14,298 | 22 | 0.62 | 13,948 | 14 | 0.40 | ||||||||||||||||||
Short-term investments(3)
|
14,040 | - | 0.00 | 6,007 | 1 | 0.07 | ||||||||||||||||||
Total interest-earning assets
|
1,206,652 | 10,939 | 3.63 | 1,171,030 | 11,674 | 3.99 | ||||||||||||||||||
Total noninterest-earning assets
|
64,916 | 72,029 | ||||||||||||||||||||||
Total assets
|
$ | 1,271,568 | $ | 1,243,059 | ||||||||||||||||||||
LIABILITIES AND EQUITY:
|
||||||||||||||||||||||||
Interest-bearing liabilities
|
||||||||||||||||||||||||
NOW accounts
|
$ | 68,230 | 102 | 0.60 | $ | 85,767 | 227 | 1.06 | ||||||||||||||||
Savings accounts
|
97,957 | 65 | 0.27 | 105,345 | 157 | 0.60 | ||||||||||||||||||
Money market accounts
|
157,086 | 228 | 0.58 | 77,815 | 118 | 0.61 | ||||||||||||||||||
Time certificates of deposit
|
315,493 | 1,242 | 1.57 | 348,198 | 1,604 | 1.84 | ||||||||||||||||||
Total interest-bearing deposits
|
638,766 | 1,637 | 617,125 | 2,106 | ||||||||||||||||||||
Short-term borrowings and long-term debt
|
305,014 | 1,661 | 2.18 | 312,153 | 1,704 | 2.18 | ||||||||||||||||||
Interest-bearing liabilities
|
943,780 | 3,298 | 1.40 | 929,278 | 3,810 | 1.64 | ||||||||||||||||||
Noninterest-bearing deposits
|
99,491 | 84,358 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
10,317 | 9,464 | ||||||||||||||||||||||
Total noninterest-bearing liabilities
|
109,808 | 93,822 | ||||||||||||||||||||||
Total liabilities
|
1,053,588 | 1,023,100 | ||||||||||||||||||||||
Total equity
|
217,980 | 219,959 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 1,271,568 | $ | 1,243,059 | ||||||||||||||||||||
Less: Tax-equivalent adjustment(2)
|
(224 | ) | (217 | ) | ||||||||||||||||||||
Net interest and dividend income
|
$ | 7,417 | $ | 7,647 | ||||||||||||||||||||
Net interest rate spread(4)
|
2.23 | % | 2.35 | % | ||||||||||||||||||||
Net interest margin(5)
|
2.55 | % | 2.72 | % | ||||||||||||||||||||
Ratio of average interest-earning
|
||||||||||||||||||||||||
assets to average interest-bearing liabilities
|
127.85 | 126.02 |
(1)
|
Loans, including non-accrual loans, are net of deferred loan origination costs, and unadvanced funds.
|
(2)
|
Securities and loan 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 in 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.
|
|
·
|
interest income changes attributable to changes in volume (changes in volume multiplied by prior rate);
|
|
·
|
interest income changes attributable to changes in rate (changes in rate multiplied by current volume); and
|
|
·
|
the net change.
|
Three Months Ended March 31, 2012 compared to Three
Months Ended March 31, 2011
|
||||||||||||
Increase (Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
Interest-earning assets
|
(Dollars in thousands)
|
|||||||||||
Loans (1)
|
$ | 444 | $ | (230 | ) | $ | 214 | |||||
Securities (1)
|
(85 | ) | (871 | ) | (956 | ) | ||||||
Other investments - at cost
|
- | 8 | 8 | |||||||||
Short-term investments
|
1 | (2 | ) | (1 | ) | |||||||
Total interest-earning assets
|
360 | (1,095 | ) | (735 | ) | |||||||
Interest-bearing liabilities
|
||||||||||||
NOW accounts
|
(46 | ) | (79 | ) | (125 | ) | ||||||
Savings accounts
|
(11 | ) | (81 | ) | (92 | ) | ||||||
Money market accounts
|
120 | (10 | ) | 110 | ||||||||
Time deposits
|
(151 | ) | (211 | ) | (362 | ) | ||||||
Short-term borrowing and long-time debt
|
(39 | ) | (4 | ) | (43 | ) | ||||||
Total interest-bearing liabilities
|
(127 | ) | (385 | ) | (512 | ) | ||||||
Change in net interest and dividend income
|
$ | 487 | $ | (710 | ) | $ | (223 | ) |
(1)
|
Securities, loan income and change in net interest and dividend 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 income.
|
Actual
|
Minimum for Capital
Adequacy Purposes
|
Minimum To Be Well-
Capitalized Under Prompt
Corrective Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
|
(Dollars in thousands) | |||||||||||||||||||||||
March 31, 2012
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$ | 215,742 | 31.79 | % | $ | 54,287 | 8 | % | N/A | - | ||||||||||||||
Bank
|
208,528 | 30.83 | 54,108 | 8 | $ | 67,636 | 10 | % | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
207,939 | 30.64 | 27,144 | 4 | N/A | - | ||||||||||||||||||
Bank
|
200,825 | 29.69 | 27,054 | 4 | 40,581 | 6 | ||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets):
|
||||||||||||||||||||||||
Consolidated
|
207,939 | 16.25 | 51,170 | 4 | N/A | - | ||||||||||||||||||
Bank
|
200,825 | 15.73 | 51,071 | 4 | 63,839 | 5 | ||||||||||||||||||
Tangible Equity (to Tangible Assets):
|
||||||||||||||||||||||||
Consolidated
|
N/A | - | N/A | - | N/A | - | ||||||||||||||||||
Bank
|
200,825 | 15.73 | 19,152 | 1.5 | N/A | - | ||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
$ | 216,363 | 31.6 | % | $ | 54,780 | 8 | % | N/A | - | ||||||||||||||
Bank
|
207,899 | 30.47 | 54,590 | 8 | $ | 68,238 | 10 | % | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets):
|
||||||||||||||||||||||||
Consolidated
|
208,599 | 30.46 | 27,390 | 4 | N/A | - | ||||||||||||||||||
Bank
|
200,673 | 29.41 | 27,295 | 4 | 40,943 | 6 | ||||||||||||||||||
Tier 1 Capital (to Adjusted Total Assets):
|
||||||||||||||||||||||||
Consolidated
|
208,599 | 16.76 | 49,796 | 4 | N/A | - | ||||||||||||||||||
Bank
|
200,673 | 16.17 | 49,639 | 4 | 62,049 | 5 | ||||||||||||||||||
Tangible Equity (to Tangible Assets):
|
||||||||||||||||||||||||
Consolidated
|
N/A | - | N/A | - | N/A | - | ||||||||||||||||||
Bank
|
200,673 | 16.17 | 18,615 | 1.5 | N/A | - |
|
Within 1 Year
|
After 1 Year But Within 3
Years
|
After 3 Year But Within 5
Years
|
After 5 Years
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Lease Obligations
|
||||||||||||||||||||
Operating lease obligations
|
$ | 629 | $ | 1,238 | $ | 1,012 | $ | 9,703 | $ | 12,582 | ||||||||||
Borrowings and Debt
|
||||||||||||||||||||
Federal Home Loan Bank
|
62,436 | 50,991 | 95,159 | 0 | 208,586 | |||||||||||||||
Securities sold under agreements to repurchase
|
33,626 | 37,800 | 0 | 38,500 | 109,926 | |||||||||||||||
Total borrowings and debt
|
96,062 | 88,791 | 95,159 | 38,500 | 318,512 | |||||||||||||||
Credit Commitments
|
||||||||||||||||||||
Available lines of credit
|
63,880 | - | - | 21,763 | 85,643 | |||||||||||||||
Other loan commitments
|
10,674 | 52 | - | - | 10,726 | |||||||||||||||
Letters of credit
|
8,254 | - | - | 253 | 8,507 | |||||||||||||||
Total credit commitments
|
82,808 | 52 | - | 22,016 | 104,876 | |||||||||||||||
Total Obligations
|
$ | 179,499 | $ | 90,081 | $ | 96,171 | $ | 70,219 | $ | 435,970 |
Period
|
Total Number
of Shares
Purchased
|
Average
Price Paid
per Share
($)
|
Total Number of
Shares Purchased as
Part of Publicly
Announced
Programs
|
Maximum Number
of Shares that May
Yet Be Purchased
Under the
Program(1)(2)
|
||||||||||||
January 1 - 31, 2012
|
248,326 | 7.88 | 248,326 | - | ||||||||||||
February 1 - 29, 2012
|
219,206 | 8.21 | 219,206 | 1,114,290 | ||||||||||||
March 1 - 31, 2012
|
25,694 | 7.96 | 25,694 | 1,088,596 | ||||||||||||
Total
|
493,226 | 8.03 | 493,226 | 1,088,596 |
(1)
|
On May 25, 2010, the Board of Directors voted to authorize the commencement of a repurchase program, authorizing the repurchase of 2,924,367 shares, or ten percent of its outstanding shares of common stock.
|
(2)
|
On December 22, 2011, the Board of Directors voted to authorize the commencement of a new repurchase program, authorizing the repurchase of 1,333,496 shares, or five percent of its outstanding shares of common stock. On January 31, 2012, the new repurchase program commenced upon the completion of the previously announced program.
|
Westfield Financial, Inc. | ||
By: |
/s/ James C. Hagan
|
|
James C. Hagan
|
||
President and Chief Executive Officer
|
||
By: |
/s/ Leo R. Sagan, Jr.
|
|
Leo R. Sagan, Jr.
|
||
Vice President and Chief Financial Officer
|
2.1
|
Amended and Restated Plan of Conversion and Stock Issuance of Westfield Mutual Holding Company, Westfield Financial, Inc. and Westfield Bank (incorporated by reference to Exhibit 2.1 of the Registration Statement No. 333-137024 on Form S-1 filed with the Securities and Exchange Commission on August 31, 2006.)
|
3.1
|
Articles of Organization of Westfield Financial, Inc. (incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K filed with the Securities and Exchange Commission on January 5, 2007.)
|
3.2
|
Amended and Restated Bylaws of Westfield Financial, Inc. (incorporated by reference to Exhibit 3.2 of the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2011.)
|
4.1
|
Form of Stock Certificate of Westfield Financial, Inc. (incorporated by reference to Exhibit 4.1 of the Registration Statement No. 333-137024 on Form S-1 filed with the Securities and Exchange Commission on August 31, 2006.)
|
10.1
|
Amended and Restated Employee Stock Ownership Plan of Westfield Financial, Inc. (incorporated by reference to Exhibit 10.1 of the Form 10-Q filed with the Securities and Exchange Commission on November 8, 2011.)
|
31.1*
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2*
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1*
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2*
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101**
|
Financial statements from the quarterly report on Form 10-Q of Westfield Financial, Inc. for the quarter ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Shareholders’ Equity and Comprehensive Income, (iv) the Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements.
|
*
|
Filed herewith.
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Westfield Financial, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 8, 2012
|
/s/ James C. Hagan
|
James C. Hagan
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Westfield Financial, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 8, 2012
|
/s/ Leo R. Sagan, Jr.
|
Leo R. Sagan, Jr.
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
A)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), and
|
|
B)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.
|
May 8, 2012
|
/s/ James C. Hagan
|
|
Dated
|
James C. Hagan
|
|
President and Chief Executive Officer
|
A)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), and
|
|
B)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.
|
May 8, 2012
|
/s/ Leo R. Sagan, Jr.
|
|
Dated
|
Leo R. Sagan, Jr.
|
|
Chief Financial Officer
|
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