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): April 30, 2014

WESTFIELD FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Massachusetts
(State or other jurisdiction of
incorporation or organization) 001-16767
(Commission
File Number) 73-1627673
(I.R.S. Employer
Identification No.)

141 Elm Street

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

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

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

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

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On April 30, 2014, Westfield Financial, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2014.  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 April 30, 2014

SIGNATURES

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

	WESTFIELD FINANCIAL, INC.
	By:	/s/ Leo Sagan, Jr.
		Leo R. Sagan, Jr.
		Chief Financial Officer
Dated:   April 30, 2014

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated April 30, 2014

EX-99.1

Westfield Financial, Inc. 8-K

Exhibit 99.1

For further information contact:

James C. Hagan, President & CEO

Leo R. Sagan, Jr., CFO

Meghan Hibner, VP Investor Relations Officer

413-568-1911

Westfield Financial, Inc. Reports Results for the Quarter Ended March 31, 2014 and Declares Quarterly Dividend

Westfield, Massachusetts, April 30, 2014: Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.6 million, or $0.09 per diluted share, for the quarter ended March 31, 2014, compared to $1.8 million, or $0.08 per diluted share, for the quarter ended March 31, 2013.

The quarter ended March 31, 2014 included a provision for loan losses of $100,000 as a result of growth in the loan portfolio whereas in the comparable 2013 quarter, the Company recorded a credit to the provision for loan losses of $235,000.

Selected financial highlights for first quarter 2014 include:

• Total loans increased $51.9 million, or 8.7%, at March 31, 2014 compared to March 31, 2013. This was primarily due to increases in commercial real estate loans of $30.6 million, commercial and industrial loans of $6.9 million, and residential loans of $14.7 million. On a sequential-quarter basis, total loans increased $10.8 million, or 1.7%, to $648.2 million for the first quarter of 2014. This was primarily due to increases in commercial real estate loans of $9.7 million and residential loans of $4.6 million. Commercial and industrial loans decreased $2.4 million primarily due to the payment in full of $6.8 million on a relationship which had been on the credit watch list.

• Securities declined $89.9 million, or 14.2%, at March 31, 2014, compared to $631.4 million at March 31, 2013. On a sequential-quarter basis, securities declined by $12.3 million, or 2.2%, to $541.5 million at March 31, 2014, compared to $553.8 million at December 31, 2013.

• Net interest and dividend income was $7.7 million for the quarters ended March 31, 2014 and March 31, 2013. On a sequential-quarter basis, net interest and dividend income increased $48,000 for the quarter ended March 31, 2014, as compared to $7.6 million for the quarter ended December 31, 2013.

• The net interest margin for the quarter ended March 31, 2014 increased 4 basis points to 2.63%, as compared to 2.59% for the first quarter of 2013. On a sequential-quarter basis, the net interest margin increased 6 basis points for the quarter ended March 31, 2014, as compared to 2.57% for the quarter ended December 31, 2013.

• Noninterest expense was $6.5 million for the quarter ended March 31, 2014, unchanged as compared to the first quarter of 2013 as well as on a sequential-quarter basis.

President and CEO, James C. Hagan, stated, “We continue to execute our strategy of restructuring the balance sheet by increasing loans and decreasing securities. Our emphasis remains on organic growth, particularly commercial loans, as the primary means of growing our business and improving shareholder value. In addition, we demonstrated our continued efforts to manage and control overhead expense. This has translated into improvements in net interest margin, tangible book value and the efficiency ratio compared to the prior quarter.”

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Income Statement Discussion and Analysis

Net interest and dividend income was relatively unchanged at $7.7 million for the quarters ended March 31, 2014 and 2013. The net interest margin increased 4 basis points to 2.63% for the quarter ended March 31, 2014, compared to 2.59% for the quarter ended March 31, 2013. The cost of average interest-bearing liabilities decreased 11 basis points, driven by lower deposit costs, and was partially offset by a decrease of 4 basis points in the yield on average interest-earning assets.

Net gains on sales of securities were $29,000 for the first quarter 2014, compared to $1.4 million the same period in 2013. The 2013 quarter also included a prepayment expense of $1.4 million associated with the payoff of long-term debt.

Noninterest expense was stable at $6.5 million for both the quarters ended March 31, 2014 and 2013. The efficiency ratio, excluding non-core items, was 75.1% for first quarter 2014, compared to 75.5% for the same period in 2013.

Balance Sheet Discussion

Securities declined by $12.3 million, or 2.2%, to $541.5 million at March 31, 2014, compared to $553.8 million at December 31, 2013. Securities declined $89.9 million, or 14.2%, at March 31, 2014, compared to $631.4 million at March 31, 2013. Cash flow from the securities portfolio was primarily used to fund loan originations, stock repurchases and to pay off borrowings.

Total loans increased $51.9 million, or 8.7%, at March 31, 2014 compared to March 31, 2013. This was primarily due to increases in commercial real estate loans of $30.6 million, commercial and industrial loans of $6.9 million, and residential loans of $14.7 million. On a sequential-quarter basis, total loans increased $10.8 million, or 1.7%, to $648.2 million for the first quarter 2014. This was primarily due to increases in commercial real estate loans of $9.7 million and residential loans of $4.6 million. Commercial and industrial loans decreased $2.4 million primarily due to the payment in full during the first quarter 2014 of $6.8 million on a relationship which had been on the credit watch list.

Total deposits increased $34.5 million, or 4.5%, to $806.7 million at March 31, 2014, compared to $772.2 million at March 31, 2013. This was primarily due to increases in money market accounts of $23.4, term accounts of $12.2 million, and checking accounts of $10.2 million. Total deposits decreased $10.4 million, or 1.3%, at March 31, 2014, compared to $817.1 million at December 31, 2013. This was primarily due to an $18.2 million decrease related to one customer who had a planned use for the funds. The Bank continues to have an ongoing relationship with this customer.

Short-term borrowings increased $10.3 million to $58.5 million at March 31, 2014 compared to $48.2 million at December 31, 2013.   This was due to an increase in short-term customer repurchase agreements of $10.3 million to $44.1 million at March 31, 2014.  Customer repurchase agreements serve as a vehicle whereby commercial customers can sweep money daily into a Bank product and earn an interest rate.  This allows the Bank to reduce its reliance on wholesale funding and build franchise value by deepening its customer relationships. 

Shareholders’ equity was $151.6 million at March 31, 2014 and $154.1 million at December 31, 2013, which represented 11.9% and 12.1% of total assets, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 355,926 shares of common stock for $2.6 million and the payment of a quarterly dividend of $1.1 million. This was partially offset by net income of $1.6 million for the quarter ended March 31, 2014.

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On September 17, 2013, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,037,000 shares, or 5% of its outstanding common stock. As of March 31, 2014, the Company had repurchased 958,972 shares of its common stock at a cost of $7.1 million pursuant to this repurchase program, and the Company subsequently completed this share repurchase program in April 2014.

In addition, on March 13, 2014, the Company announced another repurchase program under which it may repurchase up to 1,970,000 shares, or 10% of its outstanding common stock, which commenced upon the completion of the previous repurchase program.

Credit Quality

The allowance for loan losses was $7.6 million at March 31, 2014, $7.5 million at December 31, 2013 and $7.6 million at March 31, 2013, representing 1.17%, 1.17% and 1.27% of total loans, respectively. This represents 244.5%, 288.4% and 255.8% of nonperforming loans at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.

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

	Three Months Ended
	March 31,			December 31,			March 31,
	2014			2013			2013
	(In thousands)
Balance, beginning of period	$	7,459		$	7,311		$	7,794
Provision (credit)		100			120			(235	)
Charge-offs		(99	)		(5	)		(154	)
Recoveries		107			33			160
Balance, end of period	$	7,567		$	7,459		$	7,565

During the first quarter of 2014, nonperforming loans increased $509,000 to $3.1 million, representing 0.48% of total loans at March 31, 2014. The increase was due primarily to one commercial and industrial loan relationship. Loans delinquent 30 – 89 days were $5.4 million at March 31, 2014 and $3.5 million at December 31, 2013. The increase as of March 31, 2014 was due to one commercial real estate loan of $2.2 million. The delinquent payment on this loan was made in April 2014. There are no loans 90 or more days past due and still accruing interest.

Declaration of Quarterly Dividend

The Board of Directors approved the declaration of a quarterly cash dividend of $0.06 per share. The dividend is payable on May 28, 2014 to all shareholders of record on May 14, 2014.

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About Westfield Financial, Inc.

Westfield Financial, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Westfield Financial and its subsidiaries are headquartered in Westfield, Massachusetts and operate through 11 banking offices located in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts and one banking office in Granby, Connecticut.  To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, and in subsequent filings with the Securities and Exchange Commission. The Company and the Bank do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Statements of Income and Other Data

(Dollars in thousands, except share and per share data)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
INTEREST AND DIVIDEND INCOME:
Loans	$	6,557		$	6,458		$	6,371		$	6,307		$	6,271
Securities		3,406			3,594			3,954			3,917			4,057
Other investments - at cost		65			33			20			21			19
Federal funds sold, interest-bearing deposits and other short-term investments		6			4			3			1			2
Total interest and dividend income		10,034			10,089			10,348			10,246			10,349
INTEREST EXPENSE:
Deposits		1,291			1,358			1,390			1,390			1,387
Long-term debt		1,011			1,051			1,094			1,188			1,258
Short-term borrowings		77			73			36			31			34
Total interest expense		2,379			2,482			2,520			2,609			2,679
Net interest and dividend income		7,655			7,607			7,828			7,637			7,670
PROVISION (CREDIT) FOR LOAN LOSSES		100			120			(71	)		(70	)		(235	)
Net interest and dividend income after provision for loan losses		7,555			7,487			7,899			7,707			7,905
NONINTEREST INCOME:
Service charges and fees		670			625			615			594			572
Income from bank-owned life insurance		379			388			388			387			385
Gain on bank-owned life insurance death benefit		—			—			—			563			—
Loss on prepayment of borrowings		—			—			(540	)		(1,404	)		(1,426	)
Gain on sales of securities, net		29			330			546			823			1,427
Total noninterest income		1,078			1,343			1,009			963			958
NONINTEREST EXPENSE:
Salaries and employees benefits		3,778			3,774			4,059			3,817			3,808
Occupancy		761			731			733			730			705
Data processing		515			586			602			602			526
Professional fees		512			497			499			527			510
OREO expense		—			—			—			—			22
FDIC insurance		165			162			169			163			161
Other		803			738			789			950			783
Total noninterest expense		6,534			6,488			6,851			6,789			6,515
INCOME BEFORE INCOME TAXES		2,099			2,342			2,057			1,881			2,348
INCOME TAX PROVISION		451			533			476			297			566
NET INCOME	$	1,648		$	1,809		$	1,581		$	1,584		$	1,782
Basic earnings per share	$	0.09		$	0.09		$	0.08		$	0.08		$	0.08
Weighted average shares outstanding		18,812,795			19,379,466			19,583,632			20,276,261			21,102,021
Diluted earnings per share	$	0.09		$	0.09		$	0.08		$	0.08		$	0.08
Weighted average diluted shares outstanding		18,812,795			19,379,466			19,583,632			20,276,261			21,102,075
Other Data:
Return on average assets (1)		0.52	%		0.57	%		0.49	%		0.49	%		0.56	%
Return on average equity (1)		4.38	%		4.61	%		3.96	%		3.66	%		3.97	%
Efficiency ratio (2)		75.07			75.27			77.58			78.78			75.52
Net interest margin		2.63	%		2.57	%		2.62	%		2.55	%		2.59	%
(1)      Three month results have been annualized.
(2)      The efficiency ratio represents the ratio of operating expenses divided by the sum of net interest and dividend income and noninterest income, excluding gain and loss on sale of securities, gain on bank-owned life insurance death benefit and loss on prepayment of borrowings.

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WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES

Consolidated Balance Sheets and Other Data

(Dollars in thousands, except per share data)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2014			2013			2013			2013			2013
Cash and cash equivalents	$	21,370		$	19,742		$	28,418		$	15,706		$	19,183
Securities available for sale, at fair value		233,899			243,204			242,957			417,053			616,155
Securities held to maturity, at cost		292,019			295,013			298,988			173,982			—
Federal Home Loan Bank of Boston and other  restricted stock - at cost		15,631			15,631			15,631			15,629			15,242
Loans		648,240			637,427			620,154			606,605			596,264
Allowance for loan losses		7,567			7,459			7,311			7,473			7,565
Net loans		640,673			629,968			612,843			599,132			588,699
Bank-owned life insurance		47,558			47,179			46,791			46,403			46,607
Other assets		23,866			26,104			25,703			25,730			20,967
TOTAL ASSETS	$	1,275,016		$	1,276,841		$	1,271,331		$	1,293,635		$	1,306,853
Total deposits	$	806,695		$	817,112		$	793,510		$	782,682		$	772,196
Short-term borrowings		58,460			48,197			61,784			69,972			55,827
Long-term debt		248,568			248,377			248,184			269,991			289,600
Securities pending settlement		195			299			—			—			288
Other liabilities		9,512			8,712			10,954			10,573			9,962
TOTAL LIABILITIES		1,123,430			1,122,697			1,114,432			1,133,218			1,127,873
TOTAL SHAREHOLDERS' EQUITY		151,586			154,144			156,899			160,417			178,980
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,275,016		$	1,276,841		$	1,271,331		$	1,293,635		$	1,306,853
Book value per share	$	7.66		$	7.65		$	7.57		$	7.73		$	8.17
Other Data:
30- 89 day delinquent loans	$	5,382		$	3,459		$	1,860		$	1,438		$	1,919
Nonperforming loans		3,095			2,586			2,933			3,272			2,957
Nonperforming loans as a percentage of total loans		0.48	%		0.41	%		0.47	%		0.54	%		0.50	%
Nonperforming assets as a percentage of total assets		0.24	%		0.20	%		0.23	%		0.25	%		0.23	%
Allowance for loan losses as a percentage of nonperforming loans		244.49	%		288.44	%		249.27	%		228.39	%		255.83	%
Allowance for loan losses as a percentage of total loans		1.17	%		1.17	%		1.18	%		1.23	%		1.27	%

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

	Three Months Ended
	March 31, 2014								December 31, 2013								March 31, 2013
	Average					Avg Yield/			Average					Avg Yield/			Average					Avg Yield/
	Balance		Interest			Cost			Balance		Interest			Cost			Balance		Interest			Cost
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	640,855	$	6,595			4.12	%	$	619,240	$	6,495			4.20	%	$	590,290	$	6,309			4.28	%
Securities(2)		530,046		3,506			2.65			541,370		3,719			2.75			613,288		4,202			2.74
Other investments - at cost		17,530		65			1.48			17,537		19			0.43			16,671		19			0.46
Short-term investments(3)		13,017		6			0.18			18,383		4			0.09			8,016		2			0.10
Total interest-earning assets		1,201,448		10,172			3.39			1,196,530		10,237			3.42			1,228,265		10,532			3.43
Total noninterest-earning assets		72,994								73,528								65,848
Total assets	$	1,274,442							$	1,270,058							$	1,294,113
LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing accounts	$	42,892		28			0.26		$	44,521		29			0.26		$	50,195		37			0.29
Savings accounts		80,462		20			0.10			82,535		21			0.10			91,770		37			0.16
Money market accounts		210,884		193			0.37			207,801		199			0.38			174,218		165			0.38
Time certificates of deposit		340,428		1,050			1.23			338,272		1,109			1.31			326,384		1,148			1.41
Total interest-bearing deposits		674,666		1,291						673,129		1,358						642,567		1,387
Short-term borrowings and long-term debt		308,642		1,088			1.41			304,403		1,124			1.48			346,382		1,292			1.49
Interest-bearing liabilities		983,308		2,379			0.97			977,532		2,482			1.02			988,949		2,679			1.08
Noninterest-bearing deposits		129,423								125,959								112,947
Other noninterest-bearing liabilities		9,077								10,762								10,050
Total noninterest-bearing liabilities		138,500								136,721								122,997
Total liabilities		1,121,808								1,114,253								1,111,946
Total equity		152,634								155,805								182,167
Total liabilities and equity	$	1,274,442							$	1,270,058							$	1,294,113
Less: Tax-equivalent adjustment(2)				(138	)							(148	)							(183	)
Net interest and dividend income			$	7,655							$	7,607							$	7,670
Net interest rate spread(4)							2.42	%							2.40	%							2.35	%
Net interest margin(5)							2.63	%							2.57	%							2.59	%
Ratio of average interest-earning
assets to average interest-bearing liabilities							122.18								122.40								124.20

(1)	Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.
(2)	Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.
(3)	Short-term investments include federal funds sold.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.

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