WESTERN NEW ENGLAND BANCORP INC 
By WESTFIELD, Mass., Jan. 29, 2014 /PRNewswire/ -- Westfield Financial, Inc. (the "Company") (NasdaqGS:WFD), the holding company for Westfield Bank (the "Bank"), reported net income of $1.8 million, or $0.09 per diluted share, for the quarter ended December 31, 2013, compared to $1.6 million, or $0.07 per diluted share, for the quarter ended December 31, 2012, which represents a 16.4% increase in net income over the fourth quarter 2012.
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For the year ended December 31, 2013, net income was $6.8 million, or $0.34 per diluted share, compared to $6.3 million, or $0.26 per diluted share, for the same period in 2012, which represents an 8.0% increase in net income over the same period in 2012.
Selected financial highlights for the fourth quarter and year ended 2013 include:
-- Total loans increased $42.5 million, or 7.1%, at December 31, 2013
compared to December 31, 2012. This was primarily due to increases in
commercial real estate loans of $18.7 million, commercial and industrial
loans of $9.5 million, and residential loans of $14.4 million. On a
sequential-quarter basis, total loans increased $17.2 million, or 2.8%,
to $637.4 million for the fourth quarter 2013. This was primarily due
to increases in commercial and industrial loans of $9.2 million and
commercial real estate loans of $7.1 million.
-- Net interest and dividend income increased $300,000 to $30.7 million for
the year ended December 31, 2013, as compared to $30.4 million for the
same period in 2012. On a sequential-quarter basis, net interest and
dividend income decreased $221,000 to $7.6 million for the quarter ended
December 31, 2013, as compared to $7.8 million for the quarter ended
September 30, 2013. The decrease in the fourth quarter 2013 was
primarily the result of a decrease in interest-earning assets. In
executing our strategy to improve the balance sheet mix, a timing
difference occurred between decreasing the securities portfolio in the
third quarter 2013 and growing commercial loans, which primarily
occurred at the end of the fourth quarter 2013. As a result, the
average balance of loans was $619.2 million for the fourth quarter 2013,
yet the ending balance was $637.4 million at December 31, 2013.
-- The net interest margin for the quarter ended December 31, 2013
increased 10 basis points to 2.57%, as compared to 2.47% for the fourth
quarter of 2012. On a sequential-quarter basis, the net interest margin
decreased 5 basis points to 2.57% for the quarter ended December 31,
2013, as compared to 2.62% for the quarter ended September 30, 2013
primarily as a result of lower average interest-earning assets as
described above.
-- Noninterest expense decreased $581,000 to $26.6 million for the year
ended December 31, 2013, compared to $27.2 million for the same period
in 2012. On a sequential-quarter basis, noninterest expense decreased
$363,000 to $6.5 million for the quarter ended December 31, 2013, as
compared to $6.9 million for the quarter ended September 30, 2013.
President and CEO, James C. Hagan, stated, "I am pleased with our performance for both the quarter and the year ended 2013. This demonstrates our on-going commitment to prudently managing our noninterest expense and accentuates our strategy to grow commercial loans organically in our existing footprint. As previously announced, we also hired a seasoned commercial lender in the fourth quarter, which will help deepen our presence in the northern Connecticut market. We are also very excited about our newest initiative, the introduction of wealth management services, which is a new source of fee income."
Income Statement Discussion and Analysis
Net interest and dividend income was relatively unchanged at $7.6 million for both the quarters ended December 31, 2013 and 2012. The net interest margin increased 10 basis points to 2.57% for the quarter ended December 31, 2013, compared to 2.47% for the quarter ended December 31, 2012. The cost of average interest-bearing liabilities decreased 20 basis points, driven by the prepayment of long term debt, and was partially offset by a slight decrease of 3 basis points in the yield on average interest-earning assets.
Net interest and dividend income increased $300,000 to $30.7 million for the year ended December 31, 2013, as compared to $30.4 million for the same period in 2012. The net interest margin for the year ended December 31, 2013 increased 5 basis points to 2.58%, as compared to 2.53% for the same period in 2012. The increase in net interest income was primarily due to a 26 basis point decrease in the cost of average interest-bearing liabilities, driven by the prepayment of long term debt, and was partially offset by a 12 basis point decrease in the yield on average interest-earning assets.
Net gains on sales of securities were $330,000 for the fourth quarter 2013, compared to $1.1 million for the same period in 2012. The objective of the sales in the fourth quarter 2013 was to reduce the overall duration of the securities portfolio. The quarter ended December 31, 2012 also included a prepayment expense of $1.0 million associated with the payoff of long term debt, compared to none in the same period in 2013.
Noninterest expense decreased $258,000 for the quarter ended December 31, 2013 to $6.5 million, compared to the same period in 2012. This was primarily due to a decrease in salaries and benefits of $164,000 primarily due to the completion of vesting of certain stock-based compensation in the fourth quarter 2012. The efficiency ratio, excluding non-core items, was 75.3% for the fourth quarter 2013, compared to 75.7% for the same period in 2012.
Noninterest expense decreased $581,000 to $26.6 million for the year ended December 31, 2013, compared to $27.2 million for the same period in 2012. Salaries and benefits decreased $1.1 million to $15.5 million for the year ended December 31, 2013, primarily due to the completion of vesting of certain stock-based compensation in the fourth quarter 2012. This was partially offset by an increase in data processing expense of $234,000 due to increased use of technology in customer delivery channels and general bank operations. The efficiency ratio, excluding non-core items, improved to 76.8% for year ended December 31, 2013, compared to 78.8% for the same period in 2012.
Balance Sheet Growth
Securities decreased by $3.8 million, or 0.7%, to $553.8 million at December 31, 2013, compared to $557.6 million at September 30, 2013. Securities decreased $82.0 million, or 12.9%, at December 31, 2013, compared to $635.8 million at December 31, 2012. Cash flow from the securities portfolio was primarily used to fund loan originations, stock repurchases and to pay off borrowings.
Total loans increased $17.2 million, or 2.8%, to $637.4 million compared to September 30, 2013. This was primarily due to an increase in commercial and industrial loans of $9.2 million to $135.6 million and an increase in commercial real estate loans of $7.1 million to $264.5 million. Total loans increased $42.5 million, or 7.1%, at December 31, 2013 compared to December 31, 2012. This was primarily due to increases in commercial real estate loans of $18.7 million, commercial and industrial loans of $9.5 million and residential loans of $14.4 million.
Total deposits increased $23.6 million, or 3.0%, to $817.1 million at December 31, 2013, compared to $793.5 million at September 30, 2013. This was primarily due to increases in checking accounts of $20.8 million and term accounts of $6.2 million. This was partially offset by decreases in savings and money market accounts of $3.4 million. Total deposits increased $63.7 million, or 8.5%, at December 31, 2013, compared to $753.4 million at December 31, 2012, primarily due to increases of $36.3 million in money market accounts, $22.6 million in checking accounts and $15.4 million in term accounts.
Shareholders' equity was $154.1 million at December 31, 2013 and $156.9 million at September 30, 2013, which represented 12.1% and 12.3% of total assets, respectively. The decrease in shareholders' equity during the quarter reflects the repurchase of 595,477 shares of common stock for $4.4 million and the payment of a quarterly dividend of $1.2 million. This was partially offset by net income of $1.8 million for the quarter ended December 31, 2013.
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 December 31, 2013, the Company had repurchased 603,046 shares of its common stock at a cost of $4.5 million pursuant to this repurchase program.
Credit Quality
The allowance for loan losses was $7.5 million at December 31, 2013, $7.3 million at September 30, 2013 and $7.8 million at December 31, 2012, representing 1.17%, 1.18% and 1.31% of total loans, respectively. This represents 288.4%, 249.3% and 259.0% of nonperforming loans at December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
Three Months Ended
------------------
December 31, September 30, December 31,
2013 2013 2012
---- ---- ----
(In thousands)
Balance,
beginning
of
period $7,311 $7,473 $8,176
Provision
(credit) 120 (71) -
Charge-
offs (5) (116) (399)
Recoveries 33 25 17
--- --- ---
Balance,
end
of
period $7,459 $7,311 $7,794
====== ====== ======
During the fourth quarter of 2013, nonperforming loans decreased $347,000 to $2.6 million, representing 0.41% of total loans at December 31, 2013. Loans delinquent 30 - 89 days were $3.5 million at December 31, 2013, and $1.9 million September 30, 2013. 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 February 20, 2014, to all shareholders of record on February 6, 2014.
About Westfield Financial, Inc.
Westfield Financial, Inc., with total assets of $1.3 billion at December 31, 2013, 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, 2012, 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.
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 Year Ended
December 31, December 31,
2013 2012 2013 2012
---- ---- ---- ----
INTEREST AND DIVIDEND INCOME:
Loans $6,458 $6,369 $25,408 $25,603
Securities 3,594 4,228 15,521 17,399
Other investments - at cost 33 23 93 94
Federal funds sold, interest-bearing 4 6 9 8
deposits and other short-term
investments
Total interest and dividend income 10,089 10,626 41,031 43,104
------ ------ ------ ------
INTEREST EXPENSE:
Deposits 1,358 1,478 5,525 6,142
Long-term debt 1,051 1,534 4,591 6,406
Short-term borrowings 73 20 174 115
--- --- --- ---
Total interest expense 2,482 3,032 10,290 12,663
----- ----- ------ ------
Net interest and dividend income 7,607 7,594 30,741 30,441
PROVISION (CREDIT) FOR LOAN LOSSES 120 - (256) 698
--- --- ---- ---
Net interest and dividend income after 7,487 7,594 30,997 29,743
provision for loan losses
NONINTEREST INCOME:
Service charges and fees 625 933 2,404 2,581
Income from bank-owned life 388 387 1,549 1,519
insurance
Gain on bank-owned life insurance - - 563 -
death benefit
Loss on prepayment of borrowings - (1,017) (3,370) (1,017)
Gain on sales of securities, net 330 1,051 3,126 2,907
--- ----- ----- -----
Total noninterest income 1,343 1,354 4,272 5,990
----- ----- ----- -----
NONINTEREST EXPENSE:
Salaries and employees benefits 3,774 3,938 15,458 16,530
Occupancy 731 703 2,898 2,775
Data processing 586 511 2,340 2,106
Professional fees 497 470 2,033 1,872
OREO expense - 189 22 237
FDIC insurance 162 161 655 611
Other 738 774 3,236 3,092
--- --- ----- -----
Total noninterest expense 6,488 6,746 26,642 27,223
----- ----- ------ ------
INCOME BEFORE INCOME TAXES 2,342 2,202 8,627 8,510
INCOME TAX PROVISION 533 648 1,871 2,256
--- --- ----- -----
NET INCOME $1,809 $1,554 $6,756 $6,254
====== ====== ====== ======
Basic earnings per share $0.09 $0.07 $0.34 $0.26
Weighted average shares outstanding 19,379,466 23,041,733 20,079,251 24,501,951
Diluted earnings per share $0.09 $0.07 $0.34 $0.26
Weighted average diluted shares outstanding 19,379,466 23,041,733 20,079,265 24,519,515
Other Data:
Return on average assets (1) 0.57% 0.47% 0.53% 0.48%
Return on average equity (1) 4.61% 3.09% 4.04% 2.97%
Efficiency ratio (2) 75.27% 75.68% 76.79% 78.81%
Net interest margin 2.57% 2.47% 2.58% 2.53%
-------------------
(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.
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Other Data
(Dollars in thousands, except share and per share data)
(Unaudited)
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
INTEREST AND DIVIDEND INCOME:
Loans $6,458 $6,371 $6,307 $6,271 $6,369
Securities 3,594 3,954 3,917 4,057 4,228
Other investments - at cost 33 20 21 19 23
Federal funds sold, interest-bearing deposits 4 3 1 2 6
and other short-term investments
Total interest and dividend income 10,089 10,348 10,246 10,349 10,626
------ ------ ------ ------ ------
INTEREST EXPENSE:
Deposits 1,358 1,390 1,390 1,387 1,478
Long-term debt 1,051 1,094 1,188 1,258 1,534
Short-term borrowings 73 36 31 34 20
--- --- ---
Total interest expense 2,482 2,520 2,609 2,679 3,032
----- ----- ----- ----- -----
Net interest and dividend income 7,607 7,828 7,637 7,670 7,594
PROVISION (CREDIT) FOR LOAN LOSSES 120 (71) (70) (235) -
--- --- --- ---- ---
Net interest and dividend income after 7,487 7,899 7,707 7,905 7,594
provision for loan losses
NONINTEREST INCOME:
Service charges and fees 625 615 594 572 933
Income from bank-owned life insurance 388 388 387 385 387
Gain on bank-owned life insurance death benefit - - 563 - -
Loss on prepayment of borrowings - (540) (1,404) (1,426) (1,017)
Gain on sales of securities, net 330 546 823 1,427 1,051
--- --- -----
Total noninterest income 1,343 1,009 963 958 1,354
----- ----- --- --- -----
NONINTEREST EXPENSE:
Salaries and employees benefits 3,774 4,059 3,817 3,808 3,938
Occupancy 731 733 730 705 703
Data processing 586 602 602 526 511
Professional fees 497 499 527 510 470
OREO expense - - - 22 189
FDIC insurance 162 169 163 161 161
Other 738 789 950 783 774
--- --- ---
Total noninterest expense 6,488 6,851 6,789 6,515 6,746
----- ----- ----- ----- -----
INCOME BEFORE INCOME TAXES 2,342 2,057 1,881 2,348 2,202
INCOME TAX PROVISION 533 476 297 566 648
--- --- ---
NET INCOME $1,809 $1,581 $1,584 $1,782 $1,554
====== ====== ====== ====== ======
Basic earnings per share $0.09 $0.08 $0 .08 $0.08 $0.07
Weighted average shares outstanding 19,379,466 19,583,632 20,276,261 21,102,021 23,041,733
Diluted earnings per share $0.09 $0.08 $0.08 $0.08 $0.07
Weighted average diluted shares outstanding 19,379,466 19,583,632 20,276,261 21,102,075 23,041,733
Other Data:
Return on average assets (1) 0.57% 0.49% 0.49% 0.56% 0.47%
Return on average equity (1) 4.61% 3.96% 3.66% 3.97% 3.09%
Efficiency Ratio (2) 75.27 77.58 78.78 75.52 75.68
Net interest margin 2.57% 2.62% 2.55% 2.59% 2.47%
(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.
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets and Other Data
(Dollars in thousands, except per share data)
(Unaudited)
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
Cash and cash equivalents $19,742 $28,418 $15,706 $19,183 $11,761
Securities available for sale, at fair value 243,204 242,957 417,053 616,155 621,507
Securities held to maturity, at cost 295,013 298,988 173,982 - -
Federal Home Loan Bank of Boston 15,631 15,631 15,629 15,242 14,269
and other restricted stock - at cost
Loans 637,427 620,154 606,605 596,264 594,918
Allowance for loan losses 7,459 7,311 7,473 7,565 7,794
----- ----- ----- ----- -----
Net loans 629,968 612,843 599,132 588,699 587,124
Bank-owned life insurance 47,179 46,791 46,403 46,607 46,222
Other real estate owned - - - - 964
Other assets 26,104 25,703 25,730 20,967 19,615
------ ------ ------ ------ ------
TOTAL ASSETS $1,276,841 $1,271,331 $1,293,635 $1,306,853 $1,301,462
========== ========== ========== ========== ==========
Total deposits $817,112 $793,510 $782,682 $772,196 $753,413
Short-term borrowings 48,197 61,784 69,972 55,827 69,934
Long-term debt 248,377 248,184 269,991 289,600 278,861
Securities pending settlement 299 - - - -
Other liabilities 8,712 10,954 10,573 10,250 10,067
----- ------ ------ ------ ------
TOTAL LIABILITIES 1,122,697 1,114,432 1,133,218 1,127,873 1,112,275
TOTAL SHAREHOLDERS' EQUITY 154,144 156,899 160,417 178,980 189,187
------- ------- ------- ------- -------
TOTAL LIABILITIES AND $1,276,841 $1,271,331 $1,293,635 $1,306,853 $1,301,462
SHAREHOLDERS' EQUITY
Book value per share $7.65 $7.57 $7.73 $8.17 $8.28
Other Data:
30- 89 day delinquent loans $3,459 $1,860 $1,438 $1,919 $1,162
Nonperforming loans 2,586 2,933 3,272 2,957 3,009
Nonperforming loans as a 0.41% 0.47% 0.54% 0.50% 0.51%
percentage of total loans
Nonperforming assets as a 0.20% 0.23% 0.25% 0.23% 0.31%
percentage of total assets
Allowance for loan losses as a 288.44% 249.27% 228.39% 255.83% 259.02%
percentage of nonperforming
loans
Allowance for loan losses as a 1.17% 1.18% 1.23% 1.27% 1.31%
percentage of total loans
The following tables set forth the information relating to our average balances and net interest income for the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, and the year ended December 31, 2013 and 2012, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
Three Months Ended
------------------
December 31, 2013 September 30, 2013 December 31, 2012
----------------- ------------------ -----------------
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) $619,240 $6,495 4.20% $609,876 $6,409 4.20% $585,026 $6,408 4.38%
Securities(2) 541,370 3,719 2.75 573,955 4,077 2.84 642,554 4,396 2.74
Other investments - at cost 17,537 19 0.43 17,537 20 0.46 15,929 23 0.58
Short-term investments(3) 18,383 4 0.09 9,373 3 0.13 13,330 6 0.19
------ --- ----- --- ------ ---
Total interest-earning assets 1,196,530 10,237 3.42 1,210,741 10,509 3.47 1,256,839 10,833 3.45
Total noninterest-earning assets 73,528 73,123 62,744
------ ------ ------
Total assets $1,270,058 $1,283,864 $1,319,583
========== ========== ==========
LIABILITIES AND EQUITY:
Interest-bearing liabilities
NOW accounts $44,521 29 0.26 $45,756 34 0.30 $56,089 46 0.33
Savings accounts 82,535 21 0.10 85,960 26 0.12 92,432 38 0.16
Money market accounts 207,801 199 0.38 206,674 206 0.40 177,358 189 0.43
Time certificates of deposit 338,272 1,109 1.31 330,222 1,124 1.36 323,952 1,205 1.49
------- ----- ------- ----- ------- -----
Total interest-bearing deposits 673,129 1,358 668,612 1,390 649,831 1,478
Short-term borrowings and long-term debt 304,403 1,124 1.48 326,785 1,130 1.38 345,033 1,554 1.80
Interest-bearing liabilities 977,532 2,482 1.02 995,397 2,520 1.01 994,864 3,032 1.22
------- ----- ------- ----- ------- -----
Noninterest-bearing deposits 125,959 119,462 112,139
Other noninterest-bearing liabilities 10,762 10,676 12,732
------ ------ ------
Total noninterest-bearing liabilities 136,721 130,138 124,871
------- ------- -------
Total liabilities 1,114,253 1,125,535 1,119,735
Total equity 155,805 158,329 199,848
------- ------- -------
Total liabilities and equity $1,270,058 $1,283,864 $1,319,583
========== ========== ==========
Less: Tax-equivalent adjustment(2) (148) (161) (207)
---- ---- ----
Net interest and dividend income $7,607 $7,828 $7,594
====== ====== ======
Net interest rate spread(4) 2.40% 2.46% 2.23%
Net interest margin(5) 2.57% 2.62% 2.47%
Ratio of average interest-earning
assets to average interest-bearing liabilities 122.40 121.63 126.33
(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.
Year Ended December 31,
-----------------------
2013 2012
---- ----
Average Avg Yield/ Average Avg Yield/
Balance Interest Cost Balance Interest Cost
------- -------- ---- ------- -------- ----
(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2) $604,732 $25,558 4.23% $573,642 $25,762 4.49%
Securities(2) 584,029 16,027 2.74 638,467 18,110 2.84
Other investments - at cost 17,258 93 0.54 15,287 94 0.61
Short-term investments(3) 9,790 9 0.09 11,074 8 0.07
----- --- ------ ---
Total interest-earning assets 1,215,809 41,687 3.43 1,238,470 43,974 3.55
Total noninterest-earning assets 69,753 64,629
------ ------
Total assets $1,285,562 $1,303,099
========== ==========
LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking $46,982 134 0.29 $61,277 266 0.43
Savings accounts 87,535 119 0.14 95,129 186 0.20
Money market accounts 196,265 763 0.39 170,171 807 0.47
Time certificates of deposit 330,510 4,509 1.36 318,000 4,883 1.54
------- ----- ------- -----
Total interest-bearing deposits 661,292 5,525 644,577 6,142
Short-term borrowings and long-term debt 327,783 4,765 1.45 332,129 6,521 1.96
Interest-bearing liabilities 989,075 10,290 1.04 976,706 12,663 1.30
------- ------ ------- ------
Noninterest-bearing deposits 118,749 104,454
Other noninterest-bearing liabilities 10,373 11,179
------ ------
Total noninterest-bearing liabilities 129,122 115,633
------- -------
Total liabilities 1,118,197 1,092,339
Total equity 167,365 210,760
------- -------
Total liabilities and equity $1,285,562 $1,303,099
========== ==========
Less: Tax-equivalent adjustment(2) (656) (870)
---- ----
Net interest and dividend income $30,741 $30,441
======= =======
Net interest rate spread(4) 2.39% 2.24%
Net interest margin(5) 2.58% 2.53%
Ratio of average interest-earning
assets to average interest-bearing liabilities 122.92 126.80
(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.
SOURCE Westfield Financial, Inc.
