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| Massachusetts | 73-1627673 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| Common Stock, $.01 par value per share | The NASDAQ Global Select Market |
| (Title of each class) | (Name of each exchange on which registered) |
|
WESTFIELD FINANCIAL, INC.
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2011
TABLE OF CONTENTS
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52
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●
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changes in the real estate market or local economy;
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●
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changes in interest rates;
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●
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changes in laws and regulations to which we are subject; and
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●
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competition in our primary market area.
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BUSINESS
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At December 31,
|
||||||||||||||||||||||||||||||||||||||||
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2011
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2010
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||||
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Percent of
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Percent of
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Percent of
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Percent of
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Percent of
|
||||||||||||||||||||||||||||||||||||
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Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
Amount
|
Total
|
|||||||||||||||||||||||||||||||
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(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
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Real estate loans:
|
||||||||||||||||||||||||||||||||||||||||
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Commercial
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$ | 232,491 | 42.04 | % | $ | 221,578 | 43.57 | % | $ | 229,061 | 48.08 | % | $ | 223,857 | 46.61 | % | $ | 189,964 | 45.22 | % | ||||||||||||||||||||
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Residential
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155,994 | 28.20 | 112,680 | 22.17 | 64,299 | 13.50 | 62,810 | 13.08 | 72,170 | 17.18 | ||||||||||||||||||||||||||||||
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Home equity
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36,464 | 6.59 | 36,116 | 7.09 | 34,755 | 7.29 | 35,562 | 7.40 | 35,940 | 8.56 | ||||||||||||||||||||||||||||||
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Total real estate loans
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424,949 | 76.83 | 370,374 | 72.83 | 328,115 | 68.87 | 322,229 | 67.09 | 298,074 | 70.96 | ||||||||||||||||||||||||||||||
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Other loans
|
||||||||||||||||||||||||||||||||||||||||
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Commercial and industrial
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125,739 | 22.73 | 135,250 | 26.59 | 145,012 | 30.44 | 153,861 | 32.03 | 116,514 | 27.74 | ||||||||||||||||||||||||||||||
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Consumer, other
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2,451 | 0.44 | 2,960 | 0.58 | 3,307 | 0.69 | 4,248 | 0.88 | 5,479 | 1.30 | ||||||||||||||||||||||||||||||
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Total other loans
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128,190 | 23.17 | 138,210 | 27.17 | 148,319 | 31.13 | 158,109 | 32.91 | 121,993 | 29.04 | ||||||||||||||||||||||||||||||
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Total loans
|
553,139 | 100.00 | % | 508,584 | 100.00 | % | 476,434 | 100.00 | % | 480,338 | 100.00 | % | 420,067 | 100.00 | % | |||||||||||||||||||||||||
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Unearned premiums and net deferred
|
||||||||||||||||||||||||||||||||||||||||
|
loan fees and costs, net
|
1,017 | 742 | 360 | 593 | 561 | |||||||||||||||||||||||||||||||||||
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Allowance for loan losses
|
(7,764 | ) | (6,934 | ) | (7,645 | ) | (8,796 | ) | (5,726 | ) | ||||||||||||||||||||||||||||||
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Total loans, net
|
$ | 546,392 | $ | 502,392 | $ | 469,149 | $ | 472,135 | $ | 414,902 | ||||||||||||||||||||||||||||||
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At December 31, 2011
|
||||||||||||||||||||||||
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Commercial
|
||||||||||||||||||||||||
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Residential
Real Estate
|
Home Equity
|
Commercia
Real Estate
|
and
Industrial
|
Consumer
|
||||||||||||||||||||
|
Loans
|
Loans
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Loans
|
Loans
|
Loans
|
Totals
|
|||||||||||||||||||
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(In thousands)
|
||||||||||||||||||||||||
|
Amount due:
|
||||||||||||||||||||||||
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Within one year
|
$ | 12,729 | $ | 18,081 | $ | 24,456 | $ | 70,610 | $ | 606 | $ | 126,482 | ||||||||||||
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After one year:
|
||||||||||||||||||||||||
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One to three years
|
2,286 | 422 | 87,091 | 24,355 | 717 | 114,871 | ||||||||||||||||||
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Three to five years
|
1,577 | 1,430 | 92,326 | 23,029 | 806 | 119,168 | ||||||||||||||||||
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Five to ten years
|
10,033 | 7,785 | 18,305 | 3,539 | - | 39,662 | ||||||||||||||||||
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Ten to twenty years
|
47,088 | 7,749 | 8,663 | - | - | 63,500 | ||||||||||||||||||
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Over twenty years
|
82,281 | 997 | 1,650 | 4,206 | 322 | 89,456 | ||||||||||||||||||
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Total due after one year
|
143,265 | 18,383 | 208,035 | 55,129 | 1,845 | 426,657 | ||||||||||||||||||
|
Total amount due:
|
155,994 | 36,464 | 232,491 | 125,739 | 2,451 | 553,139 | ||||||||||||||||||
| Net deferred loan origination | ||||||||||||||||||||||||
| fees and costs and | ||||||||||||||||||||||||
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unearned premiums
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548 | 284 | (119 | ) | 294 | 10 | 1,017 | |||||||||||||||||
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Allowance for loan losses
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(1,222 | ) | (309 | ) | (3,504 | ) | (2,712 | ) | (17 | ) | (7,764 | ) | ||||||||||||
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Loans, net
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$ | 155,320 | $ | 36,439 | $ | 228,868 | $ | 123,321 | $ | 2,444 | $ | 546,392 | ||||||||||||
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Due After December 31, 2012
|
||||||||||||
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Fixed
|
Adjustable
|
Total
|
||||||||||
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(In thousands)
|
||||||||||||
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Real estate loans
|
||||||||||||
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Residential
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$ | 137,651 | $ | 5,614 | $ | 143,265 | ||||||
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Home equity
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18,383 | - | 18,383 | |||||||||
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Commercial real estate
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36,592 | 171,443 | 208,035 | |||||||||
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Total real estate loans
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192,626 | 177,057 | 369,683 | |||||||||
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Other loans
|
||||||||||||
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Commercial and industrial
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47,797 | 7,332 | 55,129 | |||||||||
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Consumer
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1,845 | - | 1,845 | |||||||||
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Total other loans
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49,642 | 7,332 | 56,974 | |||||||||
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Total loans
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$ | 242,268 | $ | 184,389 | $ | 426,657 | ||||||
|
For the Years Ended December 31,
|
||||||||||||
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2011
|
2010
|
2009
|
||||||||||
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(In thousands)
|
||||||||||||
|
Loans:
|
||||||||||||
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Balance outstanding at beginning of year
|
$ | 508,584 | $ | 476,434 | $ | 480,338 | ||||||
|
Originations:
|
||||||||||||
|
Real estate loans:
|
||||||||||||
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Residential
|
814 | 1,830 | 1,378 | |||||||||
|
Home equity
|
11,451 | 13,167 | 16,601 | |||||||||
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Commercial
|
32,644 | 19,174 | 39,805 | |||||||||
|
Total mortgage originations
|
44,909 | 34,171 | 57,784 | |||||||||
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Commercial and industrial loans
|
49,159 | 41,029 | 47,492 | |||||||||
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Consumer loans
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1,351 | 1,550 | 1,299 | |||||||||
|
Total originations
|
95,419 | 76,750 | 106,575 | |||||||||
|
Purchase of one-to-four family mortgage loans
|
58,241 | 61,880 | 16,381 | |||||||||
| 153,660 | 138,630 | 122,956 | ||||||||||
|
Less:
|
||||||||||||
|
Principal repayments, unadvanced funds and other, net
|
108,729 | 96,846 | 121,809 | |||||||||
|
Loan charge-offs, net
|
376 | 9,634 | 5,051 | |||||||||
|
Total deductions
|
109,105 | 106,480 | 126,860 | |||||||||
|
Ending balance
|
$ | 553,139 | $ | 508,584 | $ | 476,434 | ||||||
|
At December 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
|
Nonaccrual real estate loans:
|
||||||||||||||||||||
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Residential
|
$ | 670 | $ | 629 | $ | 784 | $ | 905 | $ | 820 | ||||||||||
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Home equity
|
230 | 144 | 225 | 239 | 175 | |||||||||||||||
|
Commercial real estate
|
1,879 | 1,892 | 782 | 1,460 | 177 | |||||||||||||||
|
Total nonaccrual real estate loans
|
2,779 | 2,665 | 1,791 | 2,604 | 1,172 | |||||||||||||||
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Other loans:
|
||||||||||||||||||||
|
Commercial and industrial
|
154 | 539 | 3,675 | 6,195 | 19 | |||||||||||||||
|
Consumer
|
- | - | 4 | 6 | 11 | |||||||||||||||
|
Total nonaccrual other loans
|
154 | 539 | 3,679 | 6,201 | 30 | |||||||||||||||
|
Total nonperforming loans
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2,933 | 3,204 | 5,470 | 8,805 | 1,202 | |||||||||||||||
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Other real estate owned
|
1,130 | 223 | 1,662 | - | - | |||||||||||||||
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Total nonperforming assets
|
$ | 4,063 | $ | 3,427 | $ | 7,132 | $ | 8,805 | $ | 1,202 | ||||||||||
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Nonperforming loans to total loans
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0.53 | % | 0.63 | % | 1.15 | % | 1.83 | % | 0.29 | % | ||||||||||
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Nonperforming assets to total assets
|
0.32 | 0.28 | 0.60 | 0.79 | 0.12 | |||||||||||||||
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At or for Years Ended December 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
|
Balance at beginning of year
|
$ | 6,934 | $ | 7,645 | $ | 8,796 | $ | 5,726 | $ | 5,437 | ||||||||||
|
Charge-offs:
|
||||||||||||||||||||
|
Residential
|
(2 | ) | (36 | ) | - | (131 | ) | - | ||||||||||||
|
Commercial real estate
|
(175 | ) | (7,536 | ) | (50 | ) | - | - | ||||||||||||
|
Home equity loans
|
- | - | (117 | ) | - | - | ||||||||||||||
|
Commercial and industrial
|
(442 | ) | (2,129 | ) | (4,910 | ) | (284 | ) | (255 | ) | ||||||||||
|
Consumer
|
(21 | ) | (16 | ) | (22 | ) | (34 | ) | (62 | ) | ||||||||||
|
Total charge-offs
|
(640 | ) | (9,717 | ) | (5,099 | ) | (449 | ) | (317 | ) | ||||||||||
|
Recoveries:
|
||||||||||||||||||||
|
Residential
|
6 | 7 | - | - | - | |||||||||||||||
|
Commercial real estate
|
140 | 8 | - | - | - | |||||||||||||||
|
Home equity loans
|
3 | 4 | 6 | 4 | 3 | |||||||||||||||
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Commercial and industrial
|
90 | 21 | 2 | 4 | 54 | |||||||||||||||
|
Consumer
|
25 | 43 | 40 | 58 | 149 | |||||||||||||||
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Total recoveries
|
264 | 83 | 48 | 66 | 206 | |||||||||||||||
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Net charge-offs
|
(376 | ) | (9,634 | ) | (5,051 | ) | (383 | ) | (111 | ) | ||||||||||
|
Provision for loan losses
|
1,206 | 8,923 | 3,900 | 3,453 | 400 | |||||||||||||||
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Balance at end of year
|
$ | 7,764 | $ | 6,934 | $ | 7,645 | $ | 8,796 | $ | 5,726 | ||||||||||
|
Total loans receivable (1)
|
$ | 553,139 | $ | 508,584 | $ | 476,434 | $ | 480,338 | $ | 420,067 | ||||||||||
|
Average loans outstanding
|
$ | 536,084 | $ | 482,215 | $ | 476,214 | $ | 444,492 | $ | 398,281 | ||||||||||
|
Allowance for loan losses as a
|
||||||||||||||||||||
|
percent of total loans receivable
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1.40 | % | 1.36 | % | 1.60 | % | 1.83 | % | 1.36 | % | ||||||||||
|
Net loans charged-off as a percent
|
||||||||||||||||||||
|
of average loans outstanding
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0.07 | 2.00 | 1.06 | 0.09 | 0.03 | |||||||||||||||
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_________________________
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||||||||||||||||||||
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(1) Does not include unearned premiums, deferred costs and fees, or allowance for loan losses.
|
||||||||||||||||||||
|
December 31, 2011
|
December 31, 2010
|
December 31, 2009
|
||||||||||||||||||||||||||||||||||
|
Specific
|
General
|
Total
|
Specific
|
General
|
Total
|
Specific
|
General
|
Total
|
||||||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||
|
Real estate mortgage:
|
||||||||||||||||||||||||||||||||||||
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Residential and home equity
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$ | 109 | $ | 1,422 | $ | 1,531 | $ | - | $ | 877 | $ | 877 | $ | - | $ | 487 | $ | 487 | ||||||||||||||||||
|
Commercial
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449 | 3,055 | 3,504 | - | 3,182 | 3,182 | - | 2,371 | 2,371 | |||||||||||||||||||||||||||
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Commercial and industrial
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39 | 2,673 | 2,712 | 19 | 2,830 | 2,849 | 875 | 3,873 | 4,748 | |||||||||||||||||||||||||||
|
Consumer
|
- | 17 | 17 | - | 26 | 26 | - | 39 | 39 | |||||||||||||||||||||||||||
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Total
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$ | 597 | $ | 7,167 | $ | 7,764 | $ | 19 | $ | 6,915 | $ | 6,934 | $ | 875 | $ | 6,770 | $ | 7,645 | ||||||||||||||||||
|
December 31, 2008
|
December 31, 2007
|
|||||||||||||||||||||||||||||||||||
|
Specific
|
General
|
Total
|
Specific
|
General
|
Total
|
|||||||||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||
|
Real estate mortgage:
|
||||||||||||||||||||||||||||||||||||
|
Residential and home equity
|
$ | - | $ | 462 | $ | 462 | $ | - | $ | 456 | $ | 456 | ||||||||||||||||||||||||
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Commercial
|
- | 2,216 | 2,216 | - | 1,756 | 1,756 | ||||||||||||||||||||||||||||||
|
Commercial and industrial
|
2,286 | 3,776 | 6,062 | - | 3,436 | 3,436 | ||||||||||||||||||||||||||||||
|
Consumer
|
- | 56 | 56 | - | 78 | 78 | ||||||||||||||||||||||||||||||
|
Total
|
$ | 2,286 | $ | 6,510 | $ | 8,796 | $ | - | $ | 5,726 | $ | 5,726 | ||||||||||||||||||||||||
|
December 31, 2011
|
December 31, 2010
|
December 31, 2009
|
||||||||||||||||||||||||||||||||||
|
Loan Category
|
Amount of
Loan Loss
|
Loan
Balances by Category
|
Percent of
Loans in
Each
Category to
Total Loans
|
Amount of
Loan Loss
|
Loan
Balances by Category
|
Percent of
Loans in
Each
Category to
Total Loans
|
Amount of
Loan Loss
|
Loan
Balances by Category
|
Percent of
Loans in
Each
Category to
Total Loans
|
|||||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||
|
Real estate mortgage:
|
||||||||||||||||||||||||||||||||||||
|
Residential and home equity
|
$ | 1,531 | $ | 192,458 | 34.79 | % | $ | 877 | $ | 148,796 | 29.26 | % | $ | 487 | $ | 99,054 | 20.79 | % | ||||||||||||||||||
|
Commercial
|
3,504 | 232,491 | 42.03 | 3,182 | 221,578 | 43.57 | 2,371 | 229,061 | 48.08 | |||||||||||||||||||||||||||
|
Commercial loans
|
2,712 | 125,739 | 22.73 | 2,849 | 135,250 | 26.59 | 4,748 | 145,012 | 30.44 | |||||||||||||||||||||||||||
|
Consumer loans
|
17 | 2,451 | 0.44 | 26 | 2,960 | 0.58 | 39 | 3,307 | 0.69 | |||||||||||||||||||||||||||
|
Total allowances for loan losses
|
$ | 7,764 | $ | 553,139 | 100.00 | % | $ | 6,934 | $ | 508,584 | 100.00 | % | $ | 7,645 | $ | 476,434 | 100.00 | % | ||||||||||||||||||
|
December 31, 2008
|
December 31, 2007
|
|||||||||||||||||||||||||||||||||||
|
Amount of
Loan Loss
|
Loan
Balances by Category
|
Percent of Loans in
Each
Category to Total Loans
|
Amount of Loan Loss
|
Loan
Balances by Category
|
Percent of Loans in
Each
Category to Total Loans
|
|||||||||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||
|
Real estate mortgage:
|
||||||||||||||||||||||||||||||||||||
|
Residential and home equity
|
$ | 462 | $ | 98,372 | 20.48 | % | $ | 456 | $ | 108,110 | 25.74 | % | ||||||||||||||||||||||||
|
Commercial
|
2,216 | 223,857 | 46.61 | 1,756 | 189,964 | 45.22 | ||||||||||||||||||||||||||||||
|
Commercial loans
|
6,062 | 153,861 | 32.03 | 3,436 | 116,514 | 27.74 | ||||||||||||||||||||||||||||||
|
Consumer loans
|
56 | 4,248 | 0.88 | 78 | 5,479 | 1.30 | ||||||||||||||||||||||||||||||
|
Total allowances for loan losses
|
$ | 8,796 | $ | 480,338 | 100.00 | % | $ | 5,726 | $ | 420,067 | 100.00 | % | ||||||||||||||||||||||||
|
At December 31,
|
||||||||||||||||||||||||
|
2011
|
2010
|
2009
|
||||||||||||||||||||||
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||||||||
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
|
Debt securities:
|
||||||||||||||||||||||||
|
Government-sponsored enterprises
|
$ | 23,761 | $ | 24,752 | $ | 18,447 | $ | 17,864 | $ | 45,884 | $ | 47,358 | ||||||||||||
|
Municipal bonds
|
43,393 | 45,874 | 42,119 | 43,077 | 36,316 | 37,774 | ||||||||||||||||||
|
Total debt securities
|
67,154 | 70,626 | 60,566 | 60,941 | 82,200 | 85,132 | ||||||||||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||||||||||
|
Government-sponsored residential mortgage-backed
|
377,447 | 386,227 | 381,436 | 380,984 | 494,324 | 500,659 | ||||||||||||||||||
|
U.S. government guaranteed residential mortgage-backed
|
148,938 | 152,875 | 192,609 | 187,676 | 17,364 | 17,333 | ||||||||||||||||||
|
Private-label residential mortgage-backed
|
2,068 | 1,567 | 8,251 | 7,578 | 15,317 | 13,068 | ||||||||||||||||||
|
Total mortgage-backed securities
|
528,453 | 540,669 | 582,296 | 576,238 | 527,005 | 531,060 | ||||||||||||||||||
|
Marketable equity securities:
|
||||||||||||||||||||||||
|
Mutual funds
|
5,813 | 5,854 | 5,308 | 5,272 | 6,561 | 6,489 | ||||||||||||||||||
|
Common and preferred stock
|
393 | 388 | 39 | 16 | 70 | 59 | ||||||||||||||||||
|
Total marketable equity securities
|
6,206 | 6,242 | 5,347 | 5,288 | 6,631 | 6,548 | ||||||||||||||||||
|
Total securities
|
$ | 601,813 | $ | 617,537 | $ | 648,209 | $ | 642,467 | $ | 615,836 | $ | 622,740 | ||||||||||||
|
At December 31,
|
||||||||||||||||||||||||||||||||||||
|
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
|
Amortized
Cost
|
Percent of
Total
|
Fair
Value
|
Amortized
Cost
|
Percent of
Total
|
Fair
Value
|
Amortized
Cost
|
Percent of
Total
|
Fair
Value
|
||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
|
Available for sale:
|
||||||||||||||||||||||||||||||||||||
|
Government-sponsored residential
|
$ | 377,447 | 71.43 | % | $ | 386,227 | $ | 381,436 | 65.50 | % | $ | 380,984 | $ | 289,840 | 55.00 | % | $ | 290,248 | ||||||||||||||||||
|
U.S. government guaranteed residential
|
148,938 | 28.18 | 152,875 | 192,609 | 33.08 | 187,676 | 1,030 | 0.19 | 1,047 | |||||||||||||||||||||||||||
|
Private-label residential
|
2,068 | 0.39 | 1,567 | 8,251 | 1.42 | 7,578 | 10,368 | 1.97 | 8,510 | |||||||||||||||||||||||||||
|
Total available for sale
|
528,543 | 100.00 | 540,669 | 582,296 | 100.00 | 576,238 | 301,238 | 57.16 | 299,805 | |||||||||||||||||||||||||||
|
Held to maturity:
|
||||||||||||||||||||||||||||||||||||
|
Government-sponsored residential
|
- | - | - | - | - | - | 204,484 | 38.80 | 210,411 | |||||||||||||||||||||||||||
|
U.S. government guaranteed residential
|
- | - | - | - | - | - | 16,334 | 3.10 | 16,286 | |||||||||||||||||||||||||||
|
Private-label residential
|
- | - | - | - | - | - | 4,949 | 0.94 | 4,558 | |||||||||||||||||||||||||||
|
Total held to maturity
|
- | - | - | - | - | - | 225,767 | 42.84 | 231,255 | |||||||||||||||||||||||||||
|
Total mortgage-backed securities
|
$ | 528,453 | 100.00 | % | $ | 540,669 | $ | 582,296 | 100.00 | % | $ | 576,238 | $ | 527,005 | 100.00 | % | $ | 531,060 | ||||||||||||||||||
|
One Year or Less
|
More than One Year
through Five Years
|
More than Five Years
through Ten Years
|
More than Ten Years |
Total Securities
|
|||||||||||||||||||||||||||||||||||
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost
|
Weighted Average Yield
|
Amortized Cost |
Weighted Average Yield
|
Amortized Cost
|
Fair
Value
|
Weighted Average Yield
|
|||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||||
|
Debt securities:
|
|||||||||||||||||||||||||||||||||||||||
|
Government-sponsored enterprises
|
$ | - | - | % | $ | 1,998 | 4.55 | % | $ | 11,810 | 2.50 | % | $ | 9,953 | 3.24 | % | $ | 23,761 | $ | 24,752 | 2.98 | % | |||||||||||||||||
|
Municipal bonds
|
575 | 3.40 | 15,203 | 3.71 | 20,511 | 3.93 | 7,104 | 4.26 | 43,393 | 45,874 | 3.90 | ||||||||||||||||||||||||||||
|
Total debt securities
|
575 | 3.40 | 17,201 | 3.81 | 32,321 | 3.41 | 17,057 | 3.67 | 67,154 | 70,626 | 3.58 | ||||||||||||||||||||||||||||
|
Mortgage-backed securities:
|
|||||||||||||||||||||||||||||||||||||||
|
Government-sponsored
residential
mortgage-backed
|
- | - | - | - | 13,520 | 3.89 | 363,927 | 2.85 | 377,447 | 386,227 | 2.89 | ||||||||||||||||||||||||||||
|
U.S. government guaranteed
residential
mortgage-backed
|
- | - | - | - | - | - | 148,938 | 2.86 | 148,938 | 152,875 | 2.86 | ||||||||||||||||||||||||||||
| Private-label residential mortgage- | |||||||||||||||||||||||||||||||||||||||
|
backed
|
- | - | - | - | - | - | 2,068 | 5.32 | 2,068 | 1,567 | 5.32 | ||||||||||||||||||||||||||||
|
Total mortgage-backed securities
|
- | - | - | - | 13,520 | 3.89 | 514,933 | 2.86 | 528,453 | 540,669 | 2.89 | ||||||||||||||||||||||||||||
|
Total
|
$ | 575 | 3.40 | % | $ | 17,201 | 3.81 | % | $ | 45,841 | 3.55 | % | $ | 531,990 | 2.89 | % | $ | 595,607 | $ | 611,295 | 2.97 | % | |||||||||||||||||
|
At December, 31
|
|||||||||||||||||||||||||||||||||
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||
|
Amount
|
Percent
|
Weighted Average
Rates
|
Amount
|
Percent
|
Weighted Average
Rates
|
Amount
|
Percent
|
Weighted Average
Rates
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
|
Demand deposits
|
$ | 100,157 | 13.66 | % | 0.00 | % | $ | 85,217 | 12.17 | % | - | % | $ | 80,110 | 12.36 | % | - | % | |||||||||||||||
|
Now accounts
|
71,470 | 9.75 | 0.66 | 83,621 | 11.94 | 1.08 | 70,462 | 10.87 | 1.42 | ||||||||||||||||||||||||
|
Regular accounts
|
98,628 | 13.46 | 0.31 | 101,333 | 14.47 | 0.62 | 104,650 | 16.15 | 0.88 | ||||||||||||||||||||||||
|
Money market accounts
|
146,935 | 20.05 | 0.61 | 76,184 | 10.88 | 0.57 | 50,120 | 7.74 | 0.74 | ||||||||||||||||||||||||
|
Total non-certificated accounts
|
417,190 | 56.92 | 0.40 | 346,355 | 49.46 | 0.57 | 305,342 | 47.12 | 0.75 | ||||||||||||||||||||||||
|
Time certificates of deposit:
|
|||||||||||||||||||||||||||||||||
|
Due within the year
|
150,397 | 20.52 | 1.05 | 236,926 | 33.83 | 1.79 | 242,318 | 37.40 | 2.41 | ||||||||||||||||||||||||
|
Over 1 year through 3 years
|
132,444 | 18.07 | 2.12 | 72,582 | 10.36 | 2.22 | 85,867 | 13.25 | 2.65 | ||||||||||||||||||||||||
|
Over 3 years
|
32,927 | 4.49 | 2.07 | 44,472 | 6.35 | 2.62 | 14,448 | 2.23 | 2.02 | ||||||||||||||||||||||||
|
Total certificated accounts
|
315,768 | 43.08 | 1.60 | 353,980 | 50.54 | 1.98 | 342,633 | 52.88 | 2.45 | ||||||||||||||||||||||||
|
Total
|
$ | 732,958 | 100.00 | % | 0.92 | % | $ | 700,335 | 100.00 | % | 1.28 | % | $ | 647,975 | 100.00 | % | 1.65 | % | |||||||||||||||
|
Maturity Period
|
Amount
|
Weighted
Average Rate
|
||||||
|
(In thousands)
|
||||||||
|
3 months or less
|
$ | 11,969 | 1.08 | % | ||||
|
Over 3 months through 6 months
|
9,438 | 1.22 | ||||||
|
Over 6 months through 12 months
|
17,896 | 0.95 | ||||||
|
Over 12 months
|
62,630 | 2.14 | ||||||
|
Total
|
$ | 101,933 | 1.72 | % | ||||
|
At December 31, 2011
|
||||||||||||||||||||||||
|
Period to Maturity
|
||||||||||||||||||||||||
|
Less than
One Year
|
One to Two
Years |
Two to
Three Years
|
More than
Three Years
|
Total
|
Percent of
Total
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
2.00% and under
|
$ | 136,074 | $ | 42,874 | $ | 21,394 | $ | 14,071 | $ | 214,413 | 67.90 | % | ||||||||||||
|
2.01% to 3.00%
|
12,200 | 24,139 | 43,581 | 18,724 | 98,644 | 31.24 | ||||||||||||||||||
|
3.01% to 4.00%
|
1,802 | 46 | 11 | 132 | 1,991 | 0.63 | ||||||||||||||||||
|
4.01% to 5.00%
|
321 | 399 | - | - | 720 | 0.23 | ||||||||||||||||||
|
Total
|
$ | 150,397 | $ | 67,458 | $ | 64,986 | $ | 32,927 | $ | 315,768 | 100.00 | % | ||||||||||||
|
(1)
|
a tangible capital ratio requirement of 1.5% of adjusted total assets, as adjusted under OTS regulations;
|
|
|
(2)
|
a leverage ratio requirement of 3% of core capital to adjusted total assets, if a savings association has been assigned the highest composite rating of 1 under the Uniform Financial Institutions Rating System; otherwise, the minimum leverage ratio requirement for any other savings association that does not have a composite rating of 1 will be 4% of core capital to adjusted total assets, unless a higher leverage ratio is warranted by the particular circumstances or risk profile of the savings association;
|
|
|
(3)
|
a Tier 1 risk-based capital ratio of 4.0%; and
|
|
|
(4)
|
a risk-based capital ratio requirement of 8% of the Bank’s risk-weighted assets, provided that the amount of supplementary capital used to satisfy this requirement may not exceed 100% of the Bank’s core capital.
|
|
●
|
a lending test, to evaluate the institution’s record of making loans in its assessment areas;
|
|
|
●
|
an investment test, to evaluate the institution’s record of investing in community development projects, affordable housing, and programs benefiting low or moderate income individuals and businesses in its assessment area or a broader area that includes its assessment area; and
|
|
|
●
|
a service test, to evaluate the institution’s delivery of services through its retail banking channels and the extent and innovativeness of its community development services.
|
|
RISK FACTORS
|
|
●
|
Commercial Real Estate Loans.
Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.
|
|
|
●
|
Commercial and Industrial Loans.
Repayment is generally dependent upon the successful operation of the borrower’s business.
|
|
|
●
|
Consumer Loans.
Consumer loans are collateralized, if at all, with assets that may not provide an adequate source of payment of the loan due to depreciation, damage or loss.
|
|
Location
|
Ownership
|
Year Opened
|
Year of Lease
or License
Expiration
|
|
Main Office:
|
|||
|
141 Elm St.
|
Owned
|
1964
|
N/A
|
|
Westfield, MA
|
|||
|
Loan Center:
|
|||
|
136 Elm St.
|
Leased
|
2011
|
2015
|
|
Westfield, MA
|
|||
|
Branch Offices:
|
|||
|
206 Park St.
|
Owned
|
1957
|
N/A
|
|
West Springfield, MA
|
|||
|
655 Main St.
|
Owned
|
1968
|
N/A
|
|
Agawam, MA
|
|||
|
26 Arnold St.
|
Owned
|
1976
|
N/A
|
|
Westfield, MA
|
|||
|
300 Southampton Rd.
|
Owned
|
1987
|
N/A
|
|
Westfield, MA
|
|||
|
462 College Highway
|
Owned
|
1990
|
N/A
|
|
Southwick, MA
|
|||
|
382 North Main St.
|
Leased
|
1997
|
2012
|
|
E. Longmeadow, MA
|
|||
|
1500 Main St.
|
Leased
|
2006
|
2016
|
|
Springfield, MA
|
|||
|
1642 Northampton St.
|
Owned
|
2001
|
N/A
|
|
Holyoke, MA
|
|||
|
560 East Main St.
|
Leased
|
2007
|
2046
|
|
Westfield, MA
|
|||
|
241 South Westfield St.
|
Leased
|
2009
|
2038
|
|
Feeding Hill, MA
|
|
ATMs:
|
|||
|
337 N. Westfield St.
|
Leased
|
1988
|
2013
|
|
Feeding Hills, MA
|
|||
|
98 Lower Westfield Road
|
Leased
|
2010
|
2020
|
|
Holyoke, MA
|
|||
|
516 Carew St.
|
Tenant at will
|
2002
|
N/A
|
|
Springfield, MA
|
|||
|
1000 State St.
|
Tenant at will
|
2003
|
N/A
|
|
Springfield, MA
|
|||
|
214 College Highway
|
Leased
|
2010
|
2015
|
|
Southwick, MA
|
|||
|
1342 Liberty St.
|
Owned
|
2001
|
N/A
|
|
Springfield, MA
|
|||
|
788 Memorial Ave.
|
Leased
|
2006
|
2016
|
|
West Springfield, MA
|
|||
|
2620 Westfield St.
|
Leased
|
2006
|
2020
|
|
West Springfield, MA
|
|||
|
98 Southwick Rd.
|
Leased
|
2006
|
2021
|
|
Westfield, MA
|
|||
|
115 West Silver St.
|
Tenant at will
|
2005
|
N/A
|
|
Westfield, MA
|
|||
|
Westfield State University
|
|||
|
577 Western Avenue
|
|||
|
Westfield, MA
|
|||
|
Woodward Center
|
Leased
|
2010
|
2015
|
|
Wilson Hall
|
Leased
|
2010
|
2015
|
|
Ely Hall
|
Leased
|
2010
|
2015
|
|
LEGAL PROCEEDINGS
|
|
MINE SAFETY DISCLOSURES
|
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
Price Per Share
|
Cash
Dividends
Declared
|
|||||||||||
|
2011
|
High ($)
|
Low ($)
|
($)
|
|||||||||
|
Fourth Quarter ended December 31, 2011
|
7.43 | 6.34 | 0.21 | * | ||||||||
|
Third Quarter ended September 30, 2011
|
8.69 | 6.37 | 0.06 | |||||||||
|
Second Quarter ended June 30, 2011
|
9.20 | 7.78 | 0.21 | * | ||||||||
|
First Quarter ended March 31, 2011
|
9.20 | 8.40 | 0.06 | |||||||||
|
Price Per Share
|
Cash
Dividends
Declared
|
|||||||||||
|
2010
|
High ($)
|
Low ($)
|
($)
|
|||||||||
|
Fourth Quarter ended December 31, 2010
|
9.37 | 7.70 | 0.21 | * | ||||||||
|
Third Quarter ended September 30, 2010
|
8.84 | 7.33 | 0.06 | |||||||||
|
Second Quarter ended June 30, 2010
|
10.12 | 7.95 | 0.20 | * | ||||||||
|
First Quarter ended March 31, 2010
|
9.25 | 7.98 | 0.05 | |||||||||
|
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)
|
|||||||||||||
|
October 1 - 31, 2011
|
27,666 | (2) | 6.62 | - | 998,288 | ||||||||||||
|
November 1 - 30, 2011
|
346,845 | 7.15 | 346,845 | 651,443 | |||||||||||||
|
December 1 - 31, 2011
|
403,117 | 7.32 | 403,117 | 248,326 | |||||||||||||
|
Total
|
777,628 | 7.22 | 749,962 | 248,326 | |||||||||||||
|
(1)
|
On May 25, 2010, the Board of Directors approved a repurchase program authorizing the repurchase of 2,924,367 shares, or ten percent of our outstanding shares of common stock. On December 22, 2011, the Board of Directors approved a second repurchase program authorizing the repurchase of 1,333,496, or five percent of our outstanding shares of common stock. The second repurchase program began on January 31, 2012, the completion of the previous program.
|
|
(2)
|
In October 2011, we repurchased 27,666 shares from certain executives as repayment of their tax obligations for shares of restricted stock that vested on October 20, 2011 under our 2007 Recognition and Retention Plan. These repurchases were reported by each reporting person on October 24, 2011.
|
| Period Ending | ||||||||||||||||||||||||
|
Index
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
12/31/10
|
12/31/11
|
||||||||||||||||||
|
Westfield Financial, Inc.
|
100.00 | 95.77 | 108.18 | 91.51 | 109.12 | 92.99 | ||||||||||||||||||
|
Russell 2000
|
100.00 | 98.43 | 65.18 | 82.89 | 105.14 | 100.75 | ||||||||||||||||||
|
NASDAQ Bank
|
100.00 | 80.09 | 62.84 | 52.60 | 60.04 | 53.74 | ||||||||||||||||||
|
SELECTED FINANCIAL DATA
|
|
At December 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||
|
Selected Financial Condition Data:
|
||||||||||||||||||||
|
Total assets
|
$ | 1,263,264 | $ | 1,239,489 | $ | 1,191,410 | $ | 1,109,056 | $ | 1,039,784 | ||||||||||
|
Loans, net (1)
|
546,392 | 502,392 | 469,149 | 472,135 | 414,902 | |||||||||||||||
|
Securities available for sale
|
617,537 | 642,467 | 317,638 | 256,780 | 242,866 | |||||||||||||||
|
Securities held to maturity (2)
|
- | - | 295,011 | 247,635 | 278,619 | |||||||||||||||
|
Deposits
|
732,958 | 700,335 | 647,975 | 588,029 | 602,676 | |||||||||||||||
|
Short-term borrowings
|
52,985 | 62,937 | 74,499 | 49,824 | 32,268 | |||||||||||||||
|
Long-term debt
|
247,320 | 238,151 | 213,845 | 173,300 | 105,000 | |||||||||||||||
|
Total shareholders’ equity
|
218,988 | 221,245 | 247,299 | 259,919 | 286,532 | |||||||||||||||
|
Allowance for loan losses
|
7,764 | 6,934 | 7,645 | 8,796 | 5,726 | |||||||||||||||
|
Nonperforming loans
|
2,933 | 3,204 | 5,470 | 8,805 | 1,202 | |||||||||||||||
|
For the Years Ended December 31,
|
||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||||
|
Selected Operating Data:
|
||||||||||||||||||||
|
Interest and dividend income
|
$ | 45,005 | $ | 46,147 | $ | 52,530 | $ | 54,056 | $ | 53,584 | ||||||||||
|
Interest expense
|
14,467 | 16,765 | 20,022 | 22,304 | 23,408 | |||||||||||||||
|
Net interest and dividend income
|
30,538 | 29,382 | 32,508 | 31,752 | 30,176 | |||||||||||||||
|
Provision for loan losses
|
1,206 | 8,923 | 3,900 | 3,453 | 400 | |||||||||||||||
|
Net interest and dividend income after provision for loan losses
|
29,332 | 20,459 | 28,608 | 28,299 | 29,776 | |||||||||||||||
|
Total noninterest income
|
3,806 | 7,390 | 3,218 | 3,579 | 4,609 | |||||||||||||||
|
Total noninterest expense
|
25,958 | 24,809 | 25,100 | 23,392 | 21,873 | |||||||||||||||
|
Income before income taxes
|
7,180 | 3,040 | 6,726 | 8,486 | 12,512 | |||||||||||||||
|
Income taxes
|
1,306 | 34 | 1,267 | 1,795 | 3,812 | |||||||||||||||
|
Net income
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | $ | 6,691 | $ | 8,700 | ||||||||||
|
Basic earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.19 | $ | 0.22 | $ | 0.29 | ||||||||||
|
Diluted earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.18 | $ | 0.22 | $ | 0.28 | ||||||||||
|
Dividends per share paid
|
$ | 0.54 | $ | 0.52 | $ | 0.50 | $ | 0.60 | $ | 0.40 | ||||||||||
|
_________________________________
|
||||||||||||||||||||
|
(1) Loans are shown net of deferred loan fees and costs, unearned premiums, allowance for loan losses and unadvanced loan funds.
|
||||||||||||||||||||
|
(2) In August 2010, we transferred all of our held-to-maturity securities to the available-for-sale category. We determined that we no longer had the positive intent to hold our securities classified as held-to-maturity for an indefinite period of time because of our desire to have more flexibility in managing the investment portfolio. The securities transferred had a total amortized cost of $287.1 million, fair value of $299.7 million and a net unrealized gain of $12.6 million which was recorded as other comprehensive income at the time of transfer.
|
||||||||||||||||||||
|
At or for the Years Ended December 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
|
Selected Financial Ratios and
|
||||||||||||||||||||
|
Other Data
(1)
|
||||||||||||||||||||
|
Performance Ratios:
|
||||||||||||||||||||
|
Return on average assets
|
0.47 | % | 0.25 | % | 0.47 | % | 0.63 | % | 0.86 | % | ||||||||||
|
Return on average equity
|
2.65 | 1.25 | 2.12 | 2.43 | 3.00 | |||||||||||||||
|
Average equity to average assets
|
17.79 | 19.63 | 22.16 | 25.75 | 28.74 | |||||||||||||||
|
Equity to total assets at end of year
|
17.34 | 17.85 | 20.76 | 23.44 | 27.56 | |||||||||||||||
|
Average interest rate spread
|
2.34 | 2.22 | 2.41 | 2.44 | 2.23 | |||||||||||||||
|
Net interest margin (2)
|
2.67 | 2.64 | 3.04 | 3.23 | 3.25 | |||||||||||||||
|
Average interest-earning assets to average interest-earning liabilities
|
127.30 | 128.51 | 134.62 | 135.36 | 141.05 | |||||||||||||||
|
Total noninterest expense to average assets
|
2.08 | 2.03 | 2.16 | 2.18 | 2.16 | |||||||||||||||
|
Efficiency ratio (3)
|
76.22 | 75.53 | 68.49 | 65.83 | 64.55 | |||||||||||||||
|
Dividend payout ratio
|
2.45 | 4.73 | 2.63 | 2.73 | 1.38 | |||||||||||||||
|
Regulatory Capital Ratios:
|
||||||||||||||||||||
|
Total risk-based capital
|
31.60 | 34.05 | 38.07 | 42.56 | 50.29 | |||||||||||||||
|
Tier 1 risk-based capital
|
30.46 | 33.03 | 36.94 | 41.31 | 49.30 | |||||||||||||||
|
Tier 1 leverage capital
|
16.76 | 18.07 | 20.92 | 23.97 | 27.48 | |||||||||||||||
|
Asset Quality Ratios:
|
||||||||||||||||||||
|
Nonperforming loans to total loans
|
0.53 | 0.63 | 1.15 | 1.83 | 0.29 | |||||||||||||||
|
Nonperforming assets to total assets
|
0.32 | 0.28 | 0.60 | 0.79 | 0.12 | |||||||||||||||
|
Allowance for loan losses to total loans
|
1.40 | 1.36 | 1.60 | 1.83 | 1.36 | |||||||||||||||
|
Allowance for loan losses to nonperforming assets
|
1.91 | 2.02 | 1.07 | 1.00 | 4.76 | |||||||||||||||
|
Number of:
|
||||||||||||||||||||
|
Banking offices
|
12 | 11 | 11 | 11 | 11 | |||||||||||||||
|
Full-time equivalent employees
|
180 | 180 | 168 | 180 | 177 | |||||||||||||||
|
_________________________________
|
||||||||||||||||||||
|
(1) Asset Quality Ratios and Regulatory Capital Ratios are end of period ratios.
|
||||||||||||||||||||
|
(2) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest earning assets.
|
||||||||||||||||||||
|
(3) 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 and losses on other-than-temporary impairment of securities and gain or loss on sale of premises and equipment.
|
||||||||||||||||||||
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
●
|
grow our commercial and industrial and commercial real estate loan portfolio 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 $5.9 million, or $0.22 per diluted share, for the year ended December 31, 2011, compared to $3.0 million, or $0.11 per diluted share for the same period in 2010. The results for the year ended December 31, 2011 showed a decrease in the provision for loan losses compared to the same period in 2010; however, this was partially offset by a decrease in noninterest income and an increase in noninterest expense.
|
|
| ● |
We provided $1.2 million for loan losses for the year ended December 31, 2011, compared to $8.9 million for the same period in 2010. The decrease in the provision for loan losses occurred because the 2010 period included the reserve for and subsequent charge-off of $7.2 million on a single commercial real estate loan. The allowance was $7.8 million, or 1.40% of total loans at December 31, 2011 and $6.9 million, or 1.36% of total loans at December 31, 2010. In 2011, total loans increased $44.0 million, with the increase primarily in residential real estate loans which contain less credit risk and market risk than both commercial real estate and commercial and industrial loans.
|
|
| ● |
Noninterest income decreased $3.6 million to $3.8 million for the year ended December 31, 2011, compared to $7.4 million for the same period in 2010. The decrease was primarily the result of a decrease in net gains on the sale of securities of $3.6 million for the year ended December 31, 2011.
|
|
| ● |
Noninterest expense increased $1.2 million to $26.0 million at December 31, 2011, compared to $24.8 million at December 31, 2010. The increase in noninterest expense for the year ended December 31, 2011 was due to an increase in salaries and benefits of $845,000 related to regular annual adjustments as well as salaries and benefits related to the hiring of additional personnel.
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||||||||||
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||
|
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)
|
$ | 536,084 | $ | 25,485 | 4.75 | % | $ | 482,215 | $ | 24,887 | 5.16 | % | $ | 476,214 | $ | 25,834 | 5.42 | % | |||||||||||||||
|
Securities(2)
|
619,704 | 20,376 | 3.29 | 634,531 | 22,055 | 3.48 | 587,007 | 27,264 | 4.64 | ||||||||||||||||||||||||
|
Other investments - at cost
|
14,034 | 61 | 0.43 | 12,900 | 24 | 0.19 | 10,773 | 22 | 0.20 | ||||||||||||||||||||||||
|
Short-term investments(3)
|
7,503 | 1 | 0.01 | 13,948 | 8 | 0.06 | 15,051 | 11 | 0.07 | ||||||||||||||||||||||||
|
Total interest-earning assets
|
1,177,325 | 45,923 | 3.90 | 1,143,594 | 46,974 | 4.11 | 1,089,045 | 53,131 | 4.88 | ||||||||||||||||||||||||
|
Total noninterest-earning assets
|
70,133 | 78,842 | 72,298 | ||||||||||||||||||||||||||||||
|
Total assets
|
$ | 1,247,458 | $ | 1,222,436 | $ | 1,161,343 | |||||||||||||||||||||||||||
|
LIABILITIES AND EQUITY:
|
|||||||||||||||||||||||||||||||||
|
Interest-bearing liabilities
|
|||||||||||||||||||||||||||||||||
|
NOW accounts
|
$ | 85,094 | 762 | 0.90 | $ | 76,954 | 933 | 1.21 | $ | 68,967 | 1,238 | 1.80 | |||||||||||||||||||||
|
Savings accounts
|
104,112 | 515 | 0.49 | 112,546 | 824 | 0.73 | 89,185 | 955 | 1.07 | ||||||||||||||||||||||||
|
Money market accounts
|
99,319 | 619 | 0.62 | 56,082 | 358 | 0.64 | 53,100 | 467 | 0.88 | ||||||||||||||||||||||||
|
Time certificates of deposit
|
332,327 | 5,693 | 1.71 | 347,590 | 7,735 | 2.23 | 337,692 | 10,034 | 2.97 | ||||||||||||||||||||||||
|
Total interest-bearing deposits
|
620,852 | 7,589 | 593,172 | 9,850 | 548,944 | 12,694 | |||||||||||||||||||||||||||
|
Short-term borrowings and long-term debt
|
303,909 | 6,878 | 2.26 | 296,752 | 6,915 | 2.33 | 260,083 | 7,328 | 2.82 | ||||||||||||||||||||||||
|
Interest-bearing liabilities
|
924,761 | 14,467 | 1.56 | 889,924 | 16,765 | 1.88 | 809,027 | 20,022 | 2.47 | ||||||||||||||||||||||||
|
Noninterest-bearing deposits
|
91,024 | 83,077 | 80,186 | ||||||||||||||||||||||||||||||
|
Other noninterest-bearing liabilities
|
9,754 | 9,513 | 14,789 | ||||||||||||||||||||||||||||||
|
Total noninterest-bearing liabilities
|
100,778 | 92,590 | 94,975 | ||||||||||||||||||||||||||||||
|
Total liabilities
|
1,025,539 | 982,514 | 904,002 | ||||||||||||||||||||||||||||||
|
Total equity
|
221,919 | 239,922 | 257,341 | ||||||||||||||||||||||||||||||
|
Total liabilities and equity
|
$ | 1,247,458 | $ | 1,222,436 | $ | 1,161,343 | |||||||||||||||||||||||||||
|
Less: Tax-equivalent adjustment(2)
|
(918 | ) | (827 | ) | (601 | ) | |||||||||||||||||||||||||||
|
Net interest and dividend income
|
$ | 30,538 | $ | 29,382 | $ | 32,508 | |||||||||||||||||||||||||||
|
Net interest rate spread(4)
|
2.34 | % | 2.22 | % | 2.41 | % | |||||||||||||||||||||||||||
|
Net interest margin(5)
|
2.67 | % | 2.64 | % | 3.04 | % | |||||||||||||||||||||||||||
|
Average interest-earning assets
|
|||||||||||||||||||||||||||||||||
|
to average interest-bearing liabilities
|
127.30 | % | 128.50 | % | 134.62 | % | |||||||||||||||||||||||||||
|
(1)
|
Loans, including non-accrual loans, are net of deferred loan origination costs, and unadvanced funds.
|
|
|
(2)
|
Securities income, 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 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.
|
|
Year Ended December 31, 2011 Compared to Year
Ended December 31, 2010
|
Year Ended December 31, 2010 Compared to Year
Ended December 31, 2009
|
|||||||||||||||||||||||
|
Increase (Decrease) Due to
|
Increase (Decrease) Due to
|
|||||||||||||||||||||||
|
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
|||||||||||||||||||
|
Interest-earning assets
|
(In thousands)
|
|||||||||||||||||||||||
|
Loans (1)
|
$ | 2,780 | $ | (2,182 | ) | $ | 598 | $ | 326 | $ | (1,273 | ) | $ | (947 | ) | |||||||||
|
Securities (1)
|
(515 | ) | (1,164 | ) | (1,679 | ) | 2,207 | (7,416 | ) | (5,209 | ) | |||||||||||||
|
Other investments - at cost
|
2 | 35 | 37 | 4 | (2 | ) | 2 | |||||||||||||||||
|
Short-term investments
|
(4 | ) | (3 | ) | (7 | ) | (1 | ) | (2 | ) | (3 | ) | ||||||||||||
|
Total interest-earning assets
|
2,263 | (3,314 | ) | (1,051 | ) | 2,536 | (8,693 | ) | (6,157 | ) | ||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
NOW accounts
|
99 | (270 | ) | (171 | ) | 143 | (448 | ) | (305 | ) | ||||||||||||||
|
Savings accounts
|
(62 | ) | (247 | ) | (309 | ) | 250 | (381 | ) | (131 | ) | |||||||||||||
|
Money market accounts
|
276 | (15 | ) | 261 | 26 | (135 | ) | (109 | ) | |||||||||||||||
|
Time deposits
|
(340 | ) | (1,702 | ) | (2,042 | ) | 294 | (2,593 | ) | (2,299 | ) | |||||||||||||
|
Short-term borrowing and long-time debt
|
167 | (204 | ) | (37 | ) | 1,033 | (1,446 | ) | (413 | ) | ||||||||||||||
|
Total interest-bearing liabilities
|
140 | (2,438 | ) | (2,298 | ) | 1,746 | (5,003 | ) | (3,257 | ) | ||||||||||||||
|
Change in net interest and dividend income
|
$ | 2,123 | $ | (876 | ) | $ | 1,247 | $ | 790 | $ | (3,690 | ) | $ | (2,900 | ) | |||||||||
|
(1)
|
Securities and 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 income to agree to the amount reported in the statements of income.
|
|
|
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
|
$ | 612 | $ | 1,217 | $ | 1,038 | $ | 9,801 | $ | 12,668 | ||||||||||
|
Borrowings and Debt
|
||||||||||||||||||||
|
Federal Home Loan Bank
|
48,980 | 56,569 | 91,117 | - | 196,666 | |||||||||||||||
|
Securities sold under agreements to repurchase
|
22,340 | 42,800 | - | 38,500 | 103,640 | |||||||||||||||
|
Total borrowings and debt
|
71,320 | 99,369 | 91,117 | 38,500 | 300,306 | |||||||||||||||
|
Credit Commitments
|
||||||||||||||||||||
|
Available lines of credit
|
61,660 | - | - | 21,680 | 83,340 | |||||||||||||||
|
Other loan commitments
|
8,579 | 67 | - | - | 8,646 | |||||||||||||||
|
Letters of credit
|
10,989 | - | - | 253 | 11,242 | |||||||||||||||
|
Total credit commitments
|
81,228 | 67 | - | 21,933 | 103,228 | |||||||||||||||
|
Total
|
$ | 153,160 | $ | 100,653 | $ | 92,155 | $ | 70,234 | $ | 416,202 | ||||||||||
|
●
|
maintaining the diversity of our existing loan portfolio through the origination of commercial loans and commercial real estate loans which typically have variable rates and shorter terms than residential mortgages; and
|
|
|
●
|
emphasizing investments with an expected average duration of five years or less.
|
|
For the Year Ending December 31, 2012
|
|||||||
|
Changes in
Interest Rates
(Basis Points)
|
Net Interest and
Dividend
Income
|
% Change
|
|||||
|
(Dollars in thousands)
|
|||||||
| 400 | 32,763 | 12.3 | % | ||||
| 300 | 32,240 | 10.5 | % | ||||
| 200 | 31,622 | 8.4 | % | ||||
| 100 | 30,783 | 5.5 | % | ||||
| 0 | 29,173 | 0.0 | % | ||||
| -100 | 27,898 | -4.4 | % | ||||
| -200 | 26,290 | -9.9 | % | ||||
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
|
|
CONTROLS AND PROCEDURES
|
|
●
|
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system is a process designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.
|
|
|
●
|
Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
|
|
|
●
|
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
|
|
|
●
|
Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2011. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in
Internal Control-Integrated Framework
. Based on our assessment we believe that, as of December 31, 2011, our internal control over financial reporting is effective based on those criteria.
|
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
|
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
|
(a)(1)
|
Financial Statements
|
|
(a)(2)
|
Financial Statement Schedules
|
|
(a)(3)
|
Exhibits
|
|
Westfield Financial, Inc.
|
||
|
By:
|
/s/ James C. Hagan
|
|
|
James C. Hagan
|
||
|
Chief Executive Officer and President
|
||
|
(Principal Executive Officer)
|
||
|
By:
|
/s/ Leo R. Sagan, Jr.
|
|
|
Leo R. Sagan, Jr.
|
||
|
Chief Financial Officer and Treasurer
|
||
|
(Principal Financial Officer and Principal
|
||
|
Accounting Officer)
|
||
|
Name
|
Title
|
|
|
/s/ James C. Hagan
|
Chief Executive Officer, President and Director
|
|
|
James C. Hagan
|
(Principal Executive Officer)
|
|
|
/s/ Donald A. Williams
|
Chairman of the Board
|
|
|
Donald A. Williams
|
||
|
/s/ Victor J. Carra
|
Director
|
|
|
Victor J. Carra
|
||
|
/s/ David C. Colton, Jr.
|
Director
|
|
|
David C. Colton, Jr.
|
||
|
/s/ Robert T. Crowley, Jr.
|
Director
|
|
|
Robert T. Crowley, Jr.
|
||
|
/s/ Donna J. Damon
|
Director
|
|
|
Donna J. Damon
|
||
|
/s/ Richard C. Placek
|
Director
|
|
|
Richard C. Placek
|
||
|
/s/ Paul R. Pohl
|
Director
|
|
|
Paul R. Pohl
|
||
|
/s/ Steven G. Richter
|
Director
|
|
|
Steven G. Richter
|
||
|
/s/ Philip R. Smith
|
Director
|
|
|
Philip R. Smith
|
||
|
/s/ Charles E. Sullivan
|
Director
|
|
|
Charles E. Sullivan
|
||
|
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
|
||||||||
|
|
||||||||
|
(Dollars in thousands, except share data)
|
||||||||
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
ASSETS
|
||||||||
|
Cash and due from banks
|
$ | 10,953 | $ | 9,247 | ||||
|
Federal funds sold
|
131 | 13 | ||||||
|
Interest-bearing deposits and other short-term investments
|
10,021 | 2,351 | ||||||
|
Cash and cash equivalents
|
21,105 | 11,611 | ||||||
|
SECURITIES AVAILABLE FOR SALE - AT FAIR VALUE
|
617,537 | 642,467 | ||||||
|
FEDERAL HOME LOAN BANK OF BOSTON AND OTHER RESTRICTED STOCK - AT COST
|
12,438 | 12,282 | ||||||
|
LOANS - Net of allowance for loan losses of $7,764 at December 31, 2011 and $6,934 at
December 31, 2010
|
546,392 | 502,392 | ||||||
|
PREMISES AND EQUIPMENT, Net
|
10,997 | 11,603 | ||||||
|
ACCRUED INTEREST RECEIVABLE
|
4,022 | 4,279 | ||||||
|
BANK-OWNED LIFE INSURANCE
|
44,040 | 40,494 | ||||||
|
DEFERRED TAX ASSET, Net
|
1,863 | 8,811 | ||||||
|
OTHER REAL ESTATE OWNED
|
1,130 | 223 | ||||||
|
OTHER ASSETS
|
3,740 | 5,327 | ||||||
|
TOTAL ASSETS
|
$ | 1,263,264 | $ | 1,239,489 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
LIABILITIES:
|
||||||||
|
DEPOSITS :
|
||||||||
|
Noninterest-bearing
|
$ | 100,157 | $ | 85,217 | ||||
|
Interest-bearing
|
632,801 | 615,118 | ||||||
|
Total deposits
|
732,958 | 700,335 | ||||||
|
SHORT-TERM BORROWINGS
|
52,985 | 62,937 | ||||||
|
LONG-TERM DEBT
|
247,320 | 238,151 | ||||||
|
SECURITIES PENDING SETTLEMENT
|
363 | 7,791 | ||||||
|
OTHER LIABILITIES
|
10,650 | 9,030 | ||||||
|
TOTAL LIABILITIES
|
1,044,276 | 1,018,244 | ||||||
|
COMMITMENTS AND CONTINGENCIES (Note 13)
|
||||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||
|
Preferred stock - $.01 par value, 5,000,000 shares authorized, none outstanding at December 31, 2011 and December 31, 2010
|
- | - | ||||||
|
Common stock - $.01 par value, 75,000,000 shares authorized; 26,918,250 and 28,166,419 shares issued and outstanding at December 31, 2011 and December 31, 2010, respectively
|
269 | 282 | ||||||
|
Additional paid-in capital
|
173,615 | 181,842 | ||||||
|
Unearned compensation - ESOP
|
(9,119 | ) | (9,701 | ) | ||||
|
Unearned compensation - Equity Incentive Plan
|
(1,228 | ) | (2,158 | ) | ||||
|
Retained earnings
|
47,735 | 56,496 | ||||||
|
Accumulated other comprehensive income (loss)
|
7,716 | (5,516 | ) | |||||
|
Total shareholders' equity
|
218,988 | 221,245 | ||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 1,263,264 | $ | 1,239,489 | ||||
|
See accompanying notes to consolidated financial statements.
|
||||||||
|
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
|
||
|
|
||
|
(Dollars in thousands, except share data)
|
||
|
Years Ended December 31,
|
||
|
2011
|
2010
|
2009
|
||||||||||
|
INTEREST AND DIVIDEND INCOME:
|
||||||||||||
|
Debt securities, taxable
|
$ | 17,739 | $ | 19,648 | $ | 25,090 | ||||||
|
Residential and commercial real estate loans
|
19,500 | 18,023 | 18,312 | |||||||||
|
Commercial and industrial loans
|
5,630 | 6,496 | 7,150 | |||||||||
|
Debt securities, tax-exempt
|
1,680 | 1,533 | 1,470 | |||||||||
|
Consumer loans
|
188 | 213 | 263 | |||||||||
|
Equity securities
|
205 | 202 | 210 | |||||||||
|
Other investments – at cost
|
62 | 24 | 24 | |||||||||
|
Federal funds sold, interest-bearing deposits and other short-term investments
|
1 | 8 | 11 | |||||||||
|
Total interest and dividend income
|
45,005 | 46,147 | 52,530 | |||||||||
|
INTEREST EXPENSE:
|
||||||||||||
|
Deposits
|
7,589 | 9,850 | 12,694 | |||||||||
|
Long-term debt
|
6,731 | 6,538 | 6,984 | |||||||||
|
Short-term borrowings
|
147 | 377 | 344 | |||||||||
|
Total interest expense
|
14,467 | 16,765 | 20,022 | |||||||||
|
Net interest and dividend income
|
30,538 | 29,382 | 32,508 | |||||||||
|
PROVISION FOR LOAN LOSSES
|
1,206 | 8,923 | 3,900 | |||||||||
|
Net interest and dividend income after provision for loan losses
|
29,332 | 20,459 | 28,608 | |||||||||
|
NONINTEREST INCOME (LOSS):
|
||||||||||||
|
Total other-than-temporary impairment losses on debt securities
|
(603 | ) | (590 | ) | (1,754 | ) | ||||||
|
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income (loss)
|
501 | 443 | 1,476 | |||||||||
|
Net other-than-temporary impairment losses recognized in income
|
(102 | ) | (147 | ) | (278 | ) | ||||||
|
Service charges and fees
|
1,973 | 1,940 | 2,616 | |||||||||
|
Income from bank-owned life insurance
|
1,546 | 1,524 | 1,523 | |||||||||
|
Loss on sale of premises and equipment, net
|
- | - | (8 | ) | ||||||||
|
Loss on prepayment of borrowings
|
- | - | (142 | ) | ||||||||
|
Gain (loss) on sales of securities, net
|
414 | 4,072 | (383 | ) | ||||||||
|
(Loss) gain on sale of OREO
|
(25 | ) | 1 | (110 | ) | |||||||
|
Total noninterest income
|
3,806 | 7,390 | 3,218 | |||||||||
|
NONINTEREST EXPENSE:
|
||||||||||||
|
Salaries and employees benefits
|
15,557 | 14,712 | 15,018 | |||||||||
|
Occupancy
|
2,671 | 2,620 | 2,583 | |||||||||
|
Computer operations
|
1,917 | 1,940 | 1,760 | |||||||||
|
Professional fees
|
2,033 | 1,671 | 1,705 | |||||||||
|
OREO expense
|
70 | 374 | 47 | |||||||||
|
FDIC insurance assessment
|
683 | 751 | 1,134 | |||||||||
|
Other
|
3,027 | 2,741 | 2,853 | |||||||||
|
Total noninterest expense
|
25,958 | 24,809 | 25,100 | |||||||||
|
INCOME BEFORE INCOME TAXES
|
7,180 | 3,040 | 6,726 | |||||||||
|
INCOME TAX PROVISION
|
1,306 | 34 | 1,267 | |||||||||
|
NET INCOME
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | ||||||
|
EARNINGS PER COMMON SHARE:
|
||||||||||||
|
Basic earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.19 | ||||||
|
Weighted average shares outstanding
|
26,482,064 | 27,595,014 | 29,308,996 | |||||||||
|
Diluted earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.18 | ||||||
|
Weighted average diluted shares outstanding
|
26,589,510 | 27,793,409 | 29,577,622 | |||||||||
|
See accompanying notes to consolidated financial statements.
|
||||||||||||
|
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||
|
(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 AT DECEMBER 31, 2008
|
31,307,881 | $ | 313 | $ | 204,866 | $ | (10,913 | ) | $ | (4,337 | ) | $ | 78,898 | $ | (8,908 | ) | $ | 259,919 | ||||||||||||||
|
Comprehensive income:
|
||||||||||||||||||||||||||||||||
|
Net income
|
- | - | - | - | - | 5,459 | - | 5,459 | ||||||||||||||||||||||||
| Noncredit portion of other-than- | ||||||||||||||||||||||||||||||||
| temporary impairment losses on | ||||||||||||||||||||||||||||||||
| available-for-sale securities net of | ||||||||||||||||||||||||||||||||
|
reclassifications and tax effects
|
- | - | - | - | - | - | (872 | ) | (872 | ) | ||||||||||||||||||||||
| Net unrealized gains on securities | ||||||||||||||||||||||||||||||||
| available for sale arising during the | ||||||||||||||||||||||||||||||||
| period, net of reclassification | ||||||||||||||||||||||||||||||||
|
adjustment and tax effects
|
- | - | - | - | - | - | 6,791 | 6,791 | ||||||||||||||||||||||||
| Change in pension gains or losses and | ||||||||||||||||||||||||||||||||
|
transition assets, net of tax
|
- | - | - | - | - | - | 675 | 675 | ||||||||||||||||||||||||
|
Total comprehensive income
|
12,053 | |||||||||||||||||||||||||||||||
|
Common stock held by ESOP committed to be released (91,493 shares)
|
- | - | 210 | 614 | - | - | - | 824 | ||||||||||||||||||||||||
|
Share-based compensation - stock options
|
- | - | 899 | - | - | - | - | 899 | ||||||||||||||||||||||||
|
Share-based compensation - equity incentive plan
|
- | - | - | - | 1,285 | - | - | 1,285 | ||||||||||||||||||||||||
|
Excess tax benefits from equity incentive plan
|
- | - | 5 | - | - | - | - | 5 | ||||||||||||||||||||||||
|
Common stock repurchased
|
(1,591,733 | ) | (16 | ) | (13,674 | ) | - | - | - | - | (13,690 | ) | ||||||||||||||||||||
|
Issuance of common stock in connection with stock option exercises
|
102,378 | 1 | 957 | - | - | (509 | ) | - | 449 | |||||||||||||||||||||||
|
Issuance of common stock in connection with equity incentive plan
|
- | - | 205 | - | (205 | ) | - | - | - | |||||||||||||||||||||||
|
Forfeiture of common stock in connection with equity incentive plan
|
- | - | (9 | ) | - | 9 | - | - | - | |||||||||||||||||||||||
|
Excess tax benefits in connection with stock option exercises
|
- | - | 150 | - | - | - | - | 150 | ||||||||||||||||||||||||
|
Cash dividends declared ($0.50 per share)
|
- | - | - | - | - | (14,595 | ) | - | (14,595 | ) | ||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2009
|
29,818,526 | 298 | 193,609 | (10,299 | ) | (3,248 | ) | 69,253 | (2,314 | ) | 247,299 | |||||||||||||||||||||
|
Comprehensive loss:
|
||||||||||||||||||||||||||||||||
|
Net income
|
- | - | - | - | - | 3,006 | - | 3,006 | ||||||||||||||||||||||||
| Net unrealized losses on securities | ||||||||||||||||||||||||||||||||
| available for sale arising during the | ||||||||||||||||||||||||||||||||
| period, net of reclassifications | ||||||||||||||||||||||||||||||||
|
and tax effects
|
- | - | - | - | - | - | (11,163 | ) | (11,163 | ) | ||||||||||||||||||||||
| Net unrealized gains on securities | ||||||||||||||||||||||||||||||||
| resulting from transfer from held-to- | ||||||||||||||||||||||||||||||||
| maturity to available-for-sale, | ||||||||||||||||||||||||||||||||
|
net of tax effects
|
- | - | - | - | - | - | 8,351 | 8,351 | ||||||||||||||||||||||||
| Change in pension gains or losses and | ||||||||||||||||||||||||||||||||
|
transition assets, net of tax
|
- | - | - | - | - | - | (390 | ) | (390 | ) | ||||||||||||||||||||||
|
Total comprehensive loss
|
(196 | ) | ||||||||||||||||||||||||||||||
|
Common stock held by ESOP committed to be released (89,039 shares)
|
- | - | 149 | 598 | - | - | - | 747 | ||||||||||||||||||||||||
|
Share-based compensation - stock options
|
- | - | 798 | - | - | - | - | 798 | ||||||||||||||||||||||||
|
Share-based compensation - equity incentive plan
|
- | - | - | - | 1,159 | - | - | 1,159 | ||||||||||||||||||||||||
|
Excess tax shortfalls from equity incentive plan
|
- | - | (18 | ) | - | - | - | - | (18 | ) | ||||||||||||||||||||||
|
Common stock repurchased
|
(1,988,634 | ) | (19 | ) | (16,108 | ) | - | - | - | - | (16,127 | ) | ||||||||||||||||||||
|
Issuance of common stock in connection with stock option exercises
|
336,527 | 3 | 2,942 | - | - | (1,468 | ) | - | 1,477 | |||||||||||||||||||||||
|
Issuance of common stock in connection with equity incentive plan
|
- | - | 69 | - | (69 | ) | - | - | - | |||||||||||||||||||||||
|
Forfeiture of common stock in connection with equity incentive plan
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Excess tax benefits in connection with stock option exercises
|
- | - | 401 | - | - | - | - | 401 | ||||||||||||||||||||||||
|
Cash dividends declared ($0.52 per share)
|
- | - | - | - | - | (14,295 | ) | - | (14,295 | ) | ||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2010
|
28,166,419 | 282 | 181,842 | (9,701 | ) | (2,158 | ) | 56,496 | (5,516 | ) | 221,245 | |||||||||||||||||||||
|
Comprehensive income:
|
||||||||||||||||||||||||||||||||
|
Net income
|
- | - | - | - | - | 5,874 | - | 5,874 | ||||||||||||||||||||||||
| Net unrealized gains on securities | ||||||||||||||||||||||||||||||||
| available for sale arising during | ||||||||||||||||||||||||||||||||
| t he period, net of reclassifications | ||||||||||||||||||||||||||||||||
|
and tax effects
|
- | - | - | - | - | - | 14,095 | 14,095 | ||||||||||||||||||||||||
|
Change in pension gains or losses
|
||||||||||||||||||||||||||||||||
|
and transition assets, net of tax
|
- | - | - | - | - | - | (863 | ) | (863 | ) | ||||||||||||||||||||||
|
Total comprehensive income
|
19,106 | |||||||||||||||||||||||||||||||
|
Common stock held by ESOP committed to be released (86,720 shares)
|
- | - | 112 | 582 | - | - | - | 694 | ||||||||||||||||||||||||
|
Share-based compensation - stock options
|
- | - | 792 | - | - | - | - | 792 | ||||||||||||||||||||||||
|
Share-based compensation - equity incentive plan
|
- | - | - | - | 1,157 | - | - | 1,157 | ||||||||||||||||||||||||
|
Excess tax shortfalls from equity incentive plan
|
- | - | (93 | ) | - | - | - | - | (93 | ) | ||||||||||||||||||||||
|
Issuance of common stock to ESOP
|
1,946 | - | 15 | - | - | - | - | 15 | ||||||||||||||||||||||||
|
Common stock repurchased
|
(1,331,856 | ) | (14 | ) | (10,057 | ) | - | - | - | - | (10,071 | ) | ||||||||||||||||||||
|
Issuance of common stock in connection with stock option exercises
|
81,741 | 1 | 688 | - | - | (330 | ) | - | 359 | |||||||||||||||||||||||
|
Issuance of common stock in connection with equity incentive plan
|
- | - | 227 | - | (227 | ) | - | - | - | |||||||||||||||||||||||
|
Excess tax benefits in connection with stock option exercises
|
- | - | 89 | - | - | - | - | 89 | ||||||||||||||||||||||||
|
Cash dividends declared ($0.54 per share)
|
- | - | - | - | - | (14,305 | ) | - | (14,305 | ) | ||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2011
|
26,918,250 | $ | 269 | $ | 173,615 | $ | (9,119 | ) | $ | (1,228 | ) | $ | 47,735 | $ | 7,716 | $ | 218,988 | |||||||||||||||
|
See accompanying notes to consolidated financial statements
|
||||||||||||||||||||||||||||||||
|
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
|
||||||||||||
|
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
OPERATING ACTIVITIES:
|
||||||||||||
|
Net income
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | ||||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
|
Provision for loan losses
|
1,206 | 8,923 | 3,900 | |||||||||
|
Depreciation and amortization of premises and equipment
|
1,120 | 1,261 | 1,252 | |||||||||
|
Net amortization of premiums and discounts on securities and mortgage loans
|
3,424 | 6,053 | 1,909 | |||||||||
|
Net amortization of premiums on modified debt
|
187 | - | - | |||||||||
|
Share-based compensation expense
|
1,949 | 1,957 | 2,184 | |||||||||
|
Amortization of ESOP expense
|
694 | 747 | 824 | |||||||||
|
Excess tax shortfall (benefit) from equity incentive plan
|
93 | 18 | (5 | ) | ||||||||
|
Excess tax benefit in connection with stock option exercises
|
(89 | ) | (401 | ) | (150 | ) | ||||||
|
Net (gain) loss on sales of securities
|
(414 | ) | (4,072 | ) | 383 | |||||||
|
Other-than-temporary impairment losses on securities
|
102 | 147 | 278 | |||||||||
|
Write-downs of OREO
|
- | 285 | 17 | |||||||||
|
Loss (gain) on sale of OREO
|
25 | (1 | ) | 110 | ||||||||
|
Loss on sale of premises and equipment, net
|
- | - | 8 | |||||||||
|
Loss on prepayment of borrowings
|
- | - | 142 | |||||||||
|
Deferred income tax provision (benefit)
|
21 | (389 | ) | (112 | ) | |||||||
|
Income from bank-owned life insurance
|
(1,546 | ) | (1,524 | ) | (1,523 | ) | ||||||
|
Changes in assets and liabilities:
|
||||||||||||
|
Accrued interest receivable
|
248 | 928 | 37 | |||||||||
|
Other assets
|
1,587 | 358 | (2,863 | ) | ||||||||
|
Other liabilities
|
309 | 1,059 | (1,411 | ) | ||||||||
|
Net cash provided by operating activities
|
14,790 | 18,355 | 10,439 | |||||||||
|
INVESTING ACTIVITIES:
|
||||||||||||
|
Securities held to maturity:
|
||||||||||||
|
Purchases
|
- | (62,111 | ) | (128,489 | ) | |||||||
|
Proceeds from calls, maturities, and principal collections
|
- | 69,075 | 80,215 | |||||||||
|
Securities available for sale:
|
||||||||||||
|
Purchases
|
(257,289 | ) | (654,889 | ) | (297,683 | ) | ||||||
|
Proceeds from sales
|
203,665 | 496,990 | 149,809 | |||||||||
|
Proceeds from calls, maturities, and principal collections
|
89,183 | 122,598 | 66,911 | |||||||||
|
Purchase of residential mortgages
|
(58,241 | ) | (61,880 | ) | (16,381 | ) | ||||||
|
Loan principal payments, net of originations
|
11,848 | 19,122 | 13,473 | |||||||||
|
Purchase of Federal Home Loan Bank of Boston stock
|
(156 | ) | (1,912 | ) | (1,883 | ) | ||||||
|
Proceeds from sale of OREO
|
198 | 1,693 | 148 | |||||||||
|
Purchases of premises and equipment
|
(514 | ) | (662 | ) | (1,396 | ) | ||||||
|
Purchase of bank-owned life insurance
|
(2,000 | ) | - | (320 | ) | |||||||
|
Net cash used in investing activities
|
(13,306 | ) | (71,976 | ) | (135,596 | ) | ||||||
|
FINANCING ACTIVITIES:
|
||||||||||||
|
Net increase in deposits
|
32,623 | 52,360 | 59,946 | |||||||||
|
Net change in short-term borrowings
|
(9,952 | ) | (11,562 | ) | 24,675 | |||||||
|
Repayment of long-term debt
|
(5,150 | ) | (20,852 | ) | (80,142 | ) | ||||||
|
Proceeds from long-term debt
|
14,132 | 45,129 | 120,545 | |||||||||
|
Cash dividends paid
|
(14,305 | ) | (14,295 | ) | (14,595 | ) | ||||||
|
Common stock repurchased
|
(9,708 | ) | (16,127 | ) | (13,690 | ) | ||||||
|
Issuance of common stock in connection with stock option exercises
|
359 | 1,477 | 449 | |||||||||
|
Excess tax (shortfall) benefit in connection with equity incentive plan
|
(93 | ) | (18 | ) | 5 | |||||||
|
Excess tax benefit in connection with stock option exercises
|
89 | 401 | 150 | |||||||||
|
Issuance of common stock to ESOP
|
15 | - | - | |||||||||
|
Net cash provided by financing activities
|
8,010 | 36,513 | 97,343 | |||||||||
|
NET CHANGE IN CASH AND CASH EQUIVALENTS:
|
9,494 | (17,108 | ) | (27,814 | ) | |||||||
|
Beginning of year
|
11,611 | 28,719 | 56,533 | |||||||||
|
End of year
|
$ | 21,105 | $ | 11,611 | $ | 28,719 | ||||||
|
Supplemental cash flow information:
|
||||||||||||
|
Transfer of loans to other real estate owned
|
$ | 1,130 | $ | 538 | $ | 1,937 | ||||||
|
Net cash due to (from) broker for purchase of securities
|
- | 7,791 | (27,603 | ) | ||||||||
| Net cash due to broker for common stock repurchased | 363 | - | - | |||||||||
|
Securities reclassified from available-for-sale to held-to-maturity
|
- | 287,074 | - | |||||||||
|
See the accompanying notes to consolidated financial statements
|
||||||||||||
|
Years
|
||
|
Buildings
|
39
|
|
|
Leasehold Improvements
|
5-20
|
|
|
Furniture and Equipment
|
3-7
|
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands, except per share data)
|
||||||||||||
|
Net income applicable to common stock
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | ||||||
|
Average number of common shares issued
|
27,839 | 29,063 | 30,873 | |||||||||
|
Less: Average unallocated ESOP Shares
|
(1,339 | ) | (1,426 | ) | (1,513 | ) | ||||||
|
Average ungranted equity incentive plan shares
|
(18 | ) | (42 | ) | (51 | ) | ||||||
|
Average number of common shares outstanding used
|
||||||||||||
|
to calculate basic earnings per common share
|
26,482 | 27,595 | 29,309 | |||||||||
|
Effect of dilutive stock options
|
107 | 198 | 269 | |||||||||
|
Average number of common shares outstanding used
|
||||||||||||
|
to calculate diluted earnings per common share
|
26,589 | 27,793 | 29,578 | |||||||||
|
Basic earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.19 | ||||||
|
Diluted earnings per share
|
$ | 0.22 | $ | 0.11 | $ | 0.18 | ||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Unrealized holding gains (losses) on available for sale securities
|
$ | 21,778 | $ | (12,766 | ) | $ | 8,548 | |||||
|
Reclassification adjustment for securities transferred from held-to-maturity to available-for-sale
|
- | 12,653 | - | |||||||||
|
Reclassification adjustment for (gains) losses realized in income
|
(414 | ) | (4,072 | ) | 383 | |||||||
|
Other-than-temporary impairment losses on available-for-sale securities
|
102 | 147 | 278 | |||||||||
|
Net unrealized gains (losses) on available for sale securities
|
21,466 | (4,038 | ) | 9,209 | ||||||||
|
Tax effect
|
(7,371 | ) | 1,226 | (3,290 | ) | |||||||
|
Net-of-tax amount
|
14,095 | (2,812 | ) | 5,919 | ||||||||
|
Gains and losses arising during the year pertaining to defined benefit plans
|
(1,412 | ) | (670 | ) | 898 | |||||||
|
Reclassification adjustments for items reflected in earnings:
|
||||||||||||
|
Actuarial loss
|
116 | 91 | 137 | |||||||||
|
Transition asset
|
(12 | ) | (12 | ) | (12 | ) | ||||||
|
Net adjustments pertaining to defined benefit plans
|
(1,308 | ) | (591 | ) | 1,023 | |||||||
|
Tax effect
|
445 | 201 | (348 | ) | ||||||||
|
Net-of-tax amount
|
(863 | ) | (390 | ) | 675 | |||||||
|
Net other comprehensive income (loss)
|
$ | 13,232 | $ | (3,202 | ) | $ | 6,594 | |||||
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Net unrealized gain (loss) on securities available for sale
|
$ | 16,225 | $ | (5,299 | ) | |||
|
Tax effect
|
(5,573 | ) | 1,817 | |||||
|
Net-of-tax amount
|
10,652 | (3,482 | ) | |||||
|
Noncredit portion of other-than-temporary impairment losses on available for sale securities
|
(501 | ) | (443 | ) | ||||
|
Tax effect
|
170 | 151 | ||||||
|
Net-of-tax amount
|
(331 | ) | (292 | ) | ||||
|
Unrecognized transition assets pertaining to defined benefit plans
|
32 | 44 | ||||||
|
Unrecognized deferred loss pertaining to defined benefit plans
|
(3,978 | ) | (2,682 | ) | ||||
|
Net accumulated other comprehensive loss pertaining to defined benefit plans
|
(3,946 | ) | (2,638 | ) | ||||
|
Tax effect
|
1,341 | 896 | ||||||
|
Net-of-tax amount
|
(2,605 | ) | (1,742 | ) | ||||
|
Net accumulated other comprehensive income (loss)
|
$ | 7,716 | $ | (5,516 | ) | |||
|
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 | |||||||
|
December 31, 2010
|
||||||||||||||||
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||||||
|
|
(In thousands)
|
|||||||||||||||
|
Government-sponsored residential mortgage-backed securities
|
$ | 381,436 | $ | 4,967 | $ | (5,419 | ) | $ | 380,984 | |||||||
|
U.S. government guaranteed residential mortgage-backed securities
|
192,609 | 396 | (5,329 | ) | 187,676 | |||||||||||
|
Private-label residential mortgage-backed securities
|
8,251 | - | (673 | ) | 7,578 | |||||||||||
|
State and municipal bonds
|
42,119 | 1,298 | (340 | ) | 43,077 | |||||||||||
|
Government-sponsored enterprise obligations
|
18,447 | 193 | (776 | ) | 17,864 | |||||||||||
|
Mutual funds
|
5,308 | 25 | (61 | ) | 5,272 | |||||||||||
|
Common and preferred stock
|
39 | - | (23 | ) | 16 | |||||||||||
|
Total
|
$ | 648,209 | $ | 6,879 | $ | (12,621 | ) | $ | 642,467 | |||||||
|
Amortized
Cost
|
Fair Value
|
|||||||
|
(In thousands)
|
||||||||
|
Mortgage-backed securities:
|
||||||||
|
Due after five years through ten years
|
$ | 13,520 | $ | 4,291 | ||||
|
Due after ten years
|
514,933 | 526,378 | ||||||
|
Total
|
$ | 528,453 | $ | 540,669 | ||||
|
Amortized
Cost
|
Fair Value
|
|||||||
|
(In thousands)
|
||||||||
|
Debt securities:
|
||||||||
|
Due in one year or less
|
$ | 575 | $ | 582 | ||||
|
Due after one year through five years
|
17,201 | 18,035 | ||||||
|
Due after five years through ten years
|
32,321 | 34,417 | ||||||
|
Due after ten years
|
17,057 | 17,592 | ||||||
|
Total
|
$ | 67,154 | $ | 70,626 | ||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Gross gains realized
|
$ | 1,901 | $ | 6,346 | $ | 2,033 | ||||||
|
Gross losses realized
|
(1,487 | ) | (2,274 | ) | (2,416 | ) | ||||||
|
Net gain (loss) realized
|
$ | 414 | $ | 4,072 | $ | (383 | ) | |||||
|
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 | ||||||
|
December 31, 2010
|
|||||||
|
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
|
$ | (5,419 | ) | $ | 225,105 | $ | - | $ | - | |||||||
|
U.S. government guaranteed residential mortgage-backed securities
|
(5,329 | ) | 145,430 | - | - | |||||||||||
|
Private-label residential mortgage-backed securities
|
- | - | (673 | ) | 7,578 | |||||||||||
| State and municipal bonds | (340 | ) | 8,856 | - | - | |||||||||||
|
Government-sponsored enterprise obligations
|
(776 | ) | 15,674 | - | - | |||||||||||
|
Mutual funds
|
- | - | (61 | ) | 1,548 | |||||||||||
|
Common and preferred stock
|
- | - | (23 | ) | 16 | |||||||||||
|
Total
|
$ | (11,864 | ) | $ | 395,065 | $ | (757 | ) | $ | 9,142 | ||||||
|
Years Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Balance at beginning of year
|
$ | 425 | $ | 278 | ||||
|
Reductions for securities sold during the period
|
(85 | ) | - | |||||
|
Additional credit losses for which other-than-temporary impairment charge was previously recorded
|
102 | 147 | ||||||
|
Balance at end of year
|
$ | 442 | $ | 425 | ||||
|
Loans consisted of the following amounts:
|
December 31,
|
|||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Commercial real estate
|
$ | 232,491 | $ | 221,578 | ||||
|
Residential real estate
|
155,994 | 112,680 | ||||||
|
Home equity
|
36,464 | 36,116 | ||||||
|
Commercial and industrial
|
125,739 | 135,250 | ||||||
|
Consumer
|
2,451 | 2,960 | ||||||
|
Total Loans
|
553,139 | 508,584 | ||||||
|
Unearned premiums and deferred loan fees and costs, net
|
1,017 | 742 | ||||||
|
Allowance for loan losses
|
(7,764 | ) | (6,934 | ) | ||||
| $ | 546,392 | $ | 502,392 | |||||
|
Residential
Real
Estate
|
Commercial
Real Estate
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||
|
Balance at December 31, 2010
|
$ | 877 | $ | 3,182 | $ | 2,849 | $ | 26 | $ | 6,934 | ||||||||||
|
Provision
|
647 | 357 | 215 | (13 | ) | 1,206 | ||||||||||||||
|
Charge-offs
|
(2 | ) | (175 | ) | (442 | ) | (21 | ) | (640 | ) | ||||||||||
|
Recoveries
|
9 | 140 | 90 | 25 | 264 | |||||||||||||||
|
Balance at December 31, 2011
|
$ | 1,531 | $ | 3,504 | $ | 2,712 | $ | 17 | $ | 7,764 | ||||||||||
|
Balance at December 31, 2009
|
$ | 487 | $ | 2,371 | $ | 4,748 | $ | 39 | $ | 7,645 | ||||||||||
|
Provision
|
415 | 8,339 | 209 | (40 | ) | 8,923 | ||||||||||||||
|
Charge-offs
|
(36 | ) | (7,536 | ) | (2,129 | ) | (16 | ) | (9,717 | ) | ||||||||||
|
Recoveries
|
11 | 8 | 21 | 43 | 83 | |||||||||||||||
|
Balance at December 31, 2010
|
$ | 877 | $ | 3,182 | $ | 2,849 | $ | 26 | $ | 6,934 | ||||||||||
|
Balance at December 31, 2008
|
$ | 462 | $ | 2,216 | $ | 6,062 | $ | 56 | $ | 8,796 | ||||||||||
|
Provision
|
136 | 205 | 3,594 | (35 | ) | 3,900 | ||||||||||||||
|
Charge-offs
|
(117 | ) | (50 | ) | (4,910 | ) | (22 | ) | (5,099 | ) | ||||||||||
|
Recoveries
|
6 | - | 2 | 40 | 48 | |||||||||||||||
|
Balance at December 31, 2009
|
$ | 487 | $ | 2,371 | $ | 4,748 | $ | 39 | $ | 7,645 |
|
Residential
Real
Estate
|
Commercial
Real Estate
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||
|
December 31, 2011
|
||||||||||||||||||||
|
Allowance for loan 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 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 | ||||||||||
|
December 31, 2010
|
||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||
|
Individually evaluated for loss potential
|
$ | - | $ | - | $ | 19 | $ | - | $ | 19 | ||||||||||
|
Collectively evaluated for loss potential
|
877 | 3,182 | 2,830 | 26 | 6,915 | |||||||||||||||
|
Total
|
$ | 877 | $ | 3,182 | $ | 2,849 | $ | 26 | $ | 6,934 | ||||||||||
|
Loans outstanding:
|
||||||||||||||||||||
|
Individually evaluated for loss potential
|
$ | 125 | $ | 1,891 | $ | 539 | $ | - | $ | 2,555 | ||||||||||
|
Collectively evaluated for loss potential
|
148,671 | 219,687 | 134,711 | 2,960 | 506,029 | |||||||||||||||
|
Total
|
$ | 148,796 | $ | 221,578 | $ | 135,250 | $ | 2,960 | $ | 508,584 | ||||||||||
|
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)
|
||||||||||||||||||||||||
|
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 | - | 1879 | ||||||||||||||||||
|
Commercial and industrial
|
111 | 183 | - | 294 | - | 154 | ||||||||||||||||||
|
Consumer
|
22 | 2 | - | 24 | - | - | ||||||||||||||||||
|
Total
|
$ | 1,663 | $ | 185 | $ | 1,128 | $ | 2,976 | $ | - | $ | 2,933 | ||||||||||||
|
December 31, 2010
|
||||||||||||||||||||||||
|
Residential real estate:
|
||||||||||||||||||||||||
|
Residential 1-4 family
|
$ | 196 | $ | 459 | $ | 172 | $ | 827 | $ | - | $ | 629 | ||||||||||||
|
Home equity
|
121 | - | 138 | 259 | - | 144 | ||||||||||||||||||
|
Commercial real estate
|
14,797 | - | 919 | 15,716 | - | 1,891 | ||||||||||||||||||
|
Commercial and industrial
|
204 | 1,000 | 150 | 1,354 | - | 539 | ||||||||||||||||||
|
Consumer
|
7 | - | - | 7 | - | 1 | ||||||||||||||||||
|
Total
|
$ | 15,325 | $ | 1,459 | $ | 1,379 | $ | 18,163 | $ | - | $ | 3,204 | ||||||||||||
|
Year Ended
|
||||||||||||||||||||
|
At December 31, 2011
|
December 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 | $ | - | $ | 122 | $ | - | ||||||||||
|
Commercial real estate
|
1,545 | 1,679 | - | 1,635 | - | |||||||||||||||
|
Commercial and industrial
|
- | - | - | 349 | - | |||||||||||||||
|
Total
|
1,665 | 1,805 | - | 2,106 | - | |||||||||||||||
|
Impaired loans with a valuation allowance:
|
||||||||||||||||||||
|
Residential real estate
|
187 | 187 | 70 | 23 | - | |||||||||||||||
|
Home equity
|
115 | 115 | 39 | 115 | - | |||||||||||||||
|
Commercial real estate
|
14,194 | 14,225 | 449 | 12,431 | 691 | |||||||||||||||
|
Commercial and industrial
|
1,145 | 1,150 | 39 | 1,023 | 54 | |||||||||||||||
|
Total
|
15,641 | 15,677 | 597 | 13,592 | 745 | |||||||||||||||
|
Total impaired loans
|
$ | 17,306 | $ | 17,482 | $ | 597 | $ | 15,698 | $ | 745 | ||||||||||
|
Year Ended
|
||||||||||||||||||||
|
At December 31, 2010
|
December 31, 2010
|
|||||||||||||||||||
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||
|
Impaired loans without a valuation allowance:
|
||||||||||||||||||||
|
Residential real estate
|
$ | 125 | $ | 127 | $ | - | $ | 40 | $ | - | ||||||||||
|
Commercial real estate
|
1,891 | 1,939 | - | 1,932 | - | |||||||||||||||
|
Commercial and industrial
|
389 | 1,374 | - | 292 | - | |||||||||||||||
|
Total
|
2,405 | 3,440 | - | 2,264 | - | |||||||||||||||
|
Impaired loans with a valuation allowance:
|
||||||||||||||||||||
|
Commercial real estate
|
- | - | - | 171 | - | |||||||||||||||
|
Commercial and industrial
|
150 | 150 | 19 | 1,862 | - | |||||||||||||||
|
Total
|
150 | 150 | 19 | 2,033 | - | |||||||||||||||
|
Total impaired loans
|
$ | 2,555 | $ | 3,590 | $ | 19 | $ | 4,297 | $ | - | ||||||||||
|
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)
|
||||||||||||||||||||||||
|
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 | |||||||||||||
|
December 31, 2010
|
||||||||||||||||||||||||
|
Loans rated 1 – 3
|
$ | 112,053 | $ | 35,972 | $ | 174,137 | $ | 83,650 | $ | 2,960 | $ | 408,772 | ||||||||||||
|
Loans rated 4
|
- | - | 24,149 | 32,723 | - | 56,872 | ||||||||||||||||||
|
Loans rated 5
|
- | - | 3,164 | 7,424 | - | 10,588 | ||||||||||||||||||
|
Loans rated 6
|
627 | 144 | 20,128 | 11,453 | - | 32,352 | ||||||||||||||||||
|
Loans rated 7
|
- | - | - | - | - | - | ||||||||||||||||||
| $ | 112,680 | $ | 36,116 | $ | 221,578 | $ | 135,250 | $ | 2,960 | $ | 508,584 | |||||||||||||
|
4.
|
PREMISES AND EQUIPMENT
|
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Land
|
$ | 1,826 | $ | 1,826 | ||||
|
Buildings
|
12,685 | 12,572 | ||||||
|
Leasehold improvements
|
1,467 | 1,435 | ||||||
|
Furniture and equipment
|
9,268 | 8,947 | ||||||
|
Total
|
25,246 | 24,780 | ||||||
|
Accumulated depreciation and amortization
|
(14,249 | ) | (13,177 | ) | ||||
|
Premises and equipment, net
|
$ | 10,997 | $ | 11,603 | ||||
|
December 31,
|
||||||||||||||||
|
2011
|
2010
|
|||||||||||||||
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
Demand and NOW:
|
||||||||||||||||
|
NOW accounts
|
$ | 71,470 | 0.66 | % | $ | 83,621 | 1.08 | % | ||||||||
|
Demand deposits
|
100,157 | - | 85,217 | - | ||||||||||||
|
Savings:
|
||||||||||||||||
|
Regular accounts
|
98,628 | 0.31 | 101,333 | 0.62 | ||||||||||||
|
Money market accounts
|
146,935 | 0.61 | 76,184 | 0.57 | ||||||||||||
|
Time certificates of deposit
|
315,768 | 1.60 | 353,980 | 1.98 | ||||||||||||
|
Total deposits
|
$ | 732,958 | 0.92 | % | $ | 700,335 | 1.28 | % | ||||||||
|
Year Ending
December 31,
|
Amount
|
|||
|
(In thousands)
|
||||
|
2012
|
$ | 150,397 | ||
|
2013
|
67,458 | |||
|
2014
|
64,986 | |||
|
2015
|
32,164 | |||
|
2016
|
763 | |||
| $ | 315,768 | |||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Savings
|
$ | 515 | $ | 823 | $ | 955 | ||||||
|
Money market
|
620 | 358 | 467 | |||||||||
|
Time
|
5,693 | 7,735 | 10,034 | |||||||||
|
Other interest-bearing
|
761 | 934 | 1,238 | |||||||||
| $ | 7,589 | $ | 9,850 | $ | 12,694 | |||||||
|
Years Ended
|
||||||||
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(Dollars in thousands)
|
||||||||
|
Balance outstanding at end of year
|
$ | 16,985 | $ | 12,336 | ||||
|
Maximum amount outstanding at any month end during year
|
24,695 | 20,321 | ||||||
|
Average amount outstanding during year
|
16,838 | 14,459 | ||||||
|
Weighted average interest rate at end of year
|
0.23 | % | 0.40 | % | ||||
|
Amortized cost of collateral pledged at end of year (1)
|
39,000 | 30,787 | ||||||
|
Fair value of collateral pledged at end of year (1)
|
41,055 | 32,086 | ||||||
|
(1)Includes collateral pledged toward $5.4 million in long-term customer repurchase agreements.
|
||||||||
|
Our repurchase agreements are collateralized by government-sponsored enterprises and certain mortgage-backed securities. The weighted average interest rate on the pledged collateral was 3.40% and 4.60% at December 31, 2011 and 2010, respectively.
|
|
Amount
|
Weighted Average Rate
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Fixed-rate advances maturing:
|
||||||||||||||||
|
2011
|
$ | - | $ | 5,150 | - | % | 1.7 | % | ||||||||
|
2012
|
12,979 | 34,605 | 1.3 | 2.0 | ||||||||||||
|
2013
|
12,500 | 31,650 | 1.5 | 2.5 | ||||||||||||
|
2014
|
44,069 | 29,887 | 2.1 | 3.0 | ||||||||||||
|
2015
|
42,650 | 27,000 | 3.1 | 3.6 | ||||||||||||
|
2016
|
29,000 | 14,000 | 2.9 | 2.7 | ||||||||||||
| 141,198 | 142,292 | 2.4 | 2.7 | |||||||||||||
|
Variable-rate advances maturing:
|
||||||||||||||||
|
2015
|
9,467 | 9,336 | 1.0 | 2.4 | ||||||||||||
|
2016
|
10,000 | - | 1.7 | |||||||||||||
| 19,467 | 1.4 | |||||||||||||||
|
Total advances
|
$ | 160,665 | $ | 151,628 | 2.3 | % | 2.7 | % | ||||||||
|
Amount
|
Weighted Average Rate
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Fixed-rate repos maturing:
|
||||||||||||||||
|
2013
|
$ | 14,800 | $ | 14,800 | 2.5 | % | 2.5 | % | ||||||||
|
2014
|
28,000 | 28,000 | 3.1 | 3.1 | ||||||||||||
|
2018
|
29,500 | 29,500 | 2.9 | 2.9 | ||||||||||||
| 72,300 | 72,300 | 2.9 | 2.9 | |||||||||||||
|
Variable-rate repos maturing:
|
||||||||||||||||
|
2018
|
9,000 | 9,000 | 3.8 | 3.8 | ||||||||||||
|
Total
|
$ | 81,300 | $ | 81,300 | 3.0 | % | 3.0 | % | ||||||||
|
At December 31, 2011 and 2010, the years in which securities sold under agreements to repurchase are callable are as follows:
|
|
Weighted Average
|
||||||||||||||||
|
Amount
|
Rate
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||
|
2011
|
$ | - | $ | 38,300 | - | % | 2.9 | % | ||||||||
|
2012
|
48,300 | 10,000 | 3.0 | 3.1 | ||||||||||||
| $ | 48,300 | $ | 48,300 | 3.0 | % | 2.9 | % | |||||||||
|
Stock Options -
Under our 2002 Stock Option Plan and 2007 Stock Option Plan, we may grant options to our directors, officers, and employees for up to 1,631,682 and 1,560,101, respectively, shares of common stock, of which 1,631,682 and 1,503,869, respectively, have been granted. At December 31, 2011, 56,232 were available for future grants under these plans. Both incentive stock options and non-statutory stock options may be granted under the plan. The exercise price of each option equals the market price of our stock on the date of grant with a maximum term of ten years. All options currently outstanding vest at 20% per year.
|
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
Expected dividend yield
|
6.64 | % | 7.04 | % | 6.35 | % | ||||||
|
Expected volatility
|
34.19 | % | 35.83 | % | 36.09 | % | ||||||
|
Risk-free interest rate
|
3.12 | % | 2.48 | % | 2.78 | % | ||||||
|
Expected life
|
10 years
|
10 years
|
10 years
|
|||||||||
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining Contractual
Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
|
(In years)
|
(In thousands)
|
|||||||||||||||
|
Outstanding at December 31, 2010
|
1,911,485 | $ | 9.08 | |||||||||||||
|
Granted
|
78,000 | 10.04 | ||||||||||||||
|
Exercised
|
(81,741 | ) | 4.39 | |||||||||||||
|
Outstanding at December 31, 2011
|
1,907,744 | 9.32 | 5.22 | $ | 705 | |||||||||||
|
Exercisable at December 31, 2011
|
1,503,268 | $ | 9.12 | 4.84 | $ | 705 | ||||||||||
|
Shares
|
Weighted Average
Grant Date Fair
Value
|
|||||||
|
Balance at December 31, 2010
|
248,612 | $ | 9.92 | |||||
|
Shares granted
|
28,000 | 8.13 | ||||||
|
Shares vested
|
(121,406 | ) | 9.98 | |||||
|
Balance at December 31, 2011
|
155,206 | $ | 9.54 | |||||
|
Year Ending
|
||||
|
December 31,
|
Amount
|
|||
|
2012
|
$ | 446,782 | ||
|
2013
|
446,782 | |||
|
2014
|
446,782 | |||
|
2015
|
446,782 | |||
|
2016
|
446,782 | |||
|
Thereafter
|
7,928,394 | |||
| $ | 10,162,304 | |||
|
2011
|
2010
|
|||||||
|
Allocated
|
568,174 | 504,462 | ||||||
|
Committed to be allocated
|
86,720 | 89,039 | ||||||
|
Unallocated
|
1,286,160 | 1,370,934 | ||||||
| 1,941,054 | 1,964,435 | |||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Change in benefit obligation:
|
||||||||||||
|
Benefit obligation at beginning of year
|
$ | 16,191 | $ | 14,057 | $ | 12,698 | ||||||
|
Service cost
|
989 | 930 | 862 | |||||||||
|
Interest
|
890 | 773 | 730 | |||||||||
|
Actuarial loss
|
401 | 1,079 | 26 | |||||||||
|
Benefits paid
|
(145 | ) | (648 | ) | (259 | ) | ||||||
|
Benefit obligation at end of year
|
18,326 | 16,191 | 14,057 | |||||||||
|
Change in plan assets:
|
||||||||||||
|
Fair value of plan assets at beginning of year
|
10,950 | 9,793 | 8,445 | |||||||||
|
Actual (loss) return on plan assets
|
(28 | ) | 1,205 | 1,607 | ||||||||
|
Employer contribution
|
600 | 600 | - | |||||||||
|
Benefits paid
|
(145 | ) | (648 | ) | (259 | ) | ||||||
|
Fair value of plan assets at end of year
|
11,377 | 10,950 | 9,793 | |||||||||
|
Funded status and accrued benefit at end of year
|
$ | 6,949 | $ | 5,241 | $ | 4,264 | ||||||
|
Accumulated benefit obligation at end of year
|
$ | 11,964 | $ | 9,842 | $ | 7,579 | ||||||
| December 31, | |||||
|
2011
|
2010
|
||||
|
Discount rate
|
4.50
|
%
|
5.50
|
%
|
|
|
Rate of compensation increase
|
4.00
|
5.00
|
|||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Service cost
|
$ | 989 | $ | 930 | $ | 862 | ||||||
|
Interest cost
|
890 | 773 | 730 | |||||||||
|
Expected return on assets
|
(876 | ) | (783 | ) | (676 | ) | ||||||
|
Actuarial loss
|
116 | 91 | 137 | |||||||||
|
Transition asset amortization
|
(12 | ) | (12 | ) | (12 | ) | ||||||
|
Net periodic pension cost
|
$ | 1,107 | $ | 999 | $ | 1,041 | ||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
Discount rate
|
5.50 | % | 5.50 | % | 5.75 | % | ||||||
|
Expected return on plan assets
|
8.00 | 8.00 | 8.00 | |||||||||
|
Rate of compensation increase
|
5.00 | 5.00 | 5.00 | |||||||||
|
December 31, 2011
|
||||||||||||||||
|
Plan Assets
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Collective funds
|
$ | 3,691 | $ | 2,126 | $ | - | $ | 5,817 | ||||||||
|
Equity securities
|
2,736 | - | - | 2,736 | ||||||||||||
|
Mutual funds
|
1,618 | - | - | 1,618 | ||||||||||||
|
Hedge funds
|
- | - | 844 | 844 | ||||||||||||
|
Short-term investments
|
- | 362 | - | 362 | ||||||||||||
| $ | 8,045 | $ | 2,488 | $ | 844 | $ | 11,377 | |||||||||
|
December 31, 2010
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Collective funds
|
$ | 3,004 | $ | 2,043 | $ | - | $ | 5,047 | ||||||||
|
Equity securities
|
3,038 | - | - | 3,038 | ||||||||||||
|
Mutual funds
|
1,608 | - | - | 1,608 | ||||||||||||
|
Hedge funds
|
- | - | 786 | 786 | ||||||||||||
|
Short-term investments
|
- | 471 | - | 471 | ||||||||||||
| $ | 7,650 | $ | 2,514 | $ | 786 | $ | 10,950 | |||||||||
|
Year Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Balance at beginning of year
|
$ | 786 | $ | 756 | ||||
|
Unrealized appreciation
|
58 | 30 | ||||||
|
Balance at end of year
|
$ | 844 | $ | 786 | ||||
|
Year
|
Benefit Payments to Participants
|
|||
|
(In thousands)
|
||||
|
2012
|
$ |
1,096
|
||
|
2013
|
355
|
|||
|
2014
|
821
|
|||
|
2015
|
578
|
|||
|
2016
|
1,504
|
|||
|
In aggregate for 2017 – 2020
|
2,136
|
|||
| $ |
6,490
|
|||
|
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) | ||||||||||||||||||||||||
|
December 31, 2011
|
||||||||||||||||||||||||
|
Total Capital
(to Risk Weighted Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
$ | 216,363 | 31.60 | % | $ | 54,780 | 8.00 | % | N/A | - | ||||||||||||||
|
Bank
|
207,899 | 30.47 | 54,590 | 8.00 | $ | 68,238 | 10.00 |
%
|
||||||||||||||||
|
Tier 1 Capital (
to Risk Weighted Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
208,599 | 30.46 | 27,390 | 4.00 | N/A | - | ||||||||||||||||||
|
Bank
|
200,673 | 29.41 | 27,295 | 4.00 | 40,943 | 6.00 | ||||||||||||||||||
|
Tier 1 Capital (
to Adjusted Total Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
208,599 | 16.76 | 49,796 | 4.00 | N/A | - | ||||||||||||||||||
|
Bank
|
200,673 | 16.17 | 49,639 | 4.00 | 62,049 | 5.00 | ||||||||||||||||||
|
Tangible Equity (
to Tangible Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
N/A | - | N/A | - | N/A | - | ||||||||||||||||||
|
Bank
|
200,673 | 16.17 | 18,615 | 1.50 | N/A | - | ||||||||||||||||||
|
December 31, 2010
|
||||||||||||||||||||||||
|
Total Capital
(to Risk Weighted Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
$ | 231,272 | 34.05 | % | $ | 54,339 | 8.00 | % | N/A | - | ||||||||||||||
|
Bank
|
221,643 | 32.69 | 54,238 | 8.00 | $ | 67,797 | 10.00 |
%
|
||||||||||||||||
|
Tier 1 Capital (
to Risk Weighted Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
224,338 | 33.03 | 27,169 | 4.00 | N/A | - | ||||||||||||||||||
|
Bank
|
214,668 | 31.66 | 27,119 | 4.00 | 40,678 | 6.00 | ||||||||||||||||||
|
Tier 1 Capital (
to Adjusted Total Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
224,338 | 18.07 | 49,662 | 4.00 | N/A | - | ||||||||||||||||||
|
Bank
|
214,668 | 17.37 | 49,434 | 4.00 | 61,793 | 5.00 | ||||||||||||||||||
|
Tangible Equity (
to Tangible Assets
):
|
||||||||||||||||||||||||
|
Consolidated
|
N/A | - | N/A | - | N/A | - | ||||||||||||||||||
|
Bank
|
214,668 | 17.37 | 18,538 | 1.50 | N/A | - | ||||||||||||||||||
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Consolidated GAAP capital
|
$ | 218,988 | $ | 221,245 | ||||
|
Unrealized (gains) losses on certain available for sale
|
||||||||
|
securities, net of tax
|
(10,321 | ) | 3,774 | |||||
|
Unrealized losses on defined benefit pension plan
|
2,605 | 1,742 | ||||||
|
Disallowed deferred tax asset
|
(2,673 | ) | (2,423 | ) | ||||
|
Tier 1 capital
|
208,599 | 224,338 | ||||||
|
Allowance for loan losses
|
7,764 | 6,934 | ||||||
|
Total regulatory capital
|
$ | 216,363 | $ | 231,272 | ||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Current tax provision:
|
||||||||||||
|
Federal
|
$ | 1,179 | $ | 302 | $ | 1,213 | ||||||
|
State
|
106 | 121 | 166 | |||||||||
|
Total
|
1,285 | 423 | 1,379 | |||||||||
|
Deferred tax provision (benefit):
|
||||||||||||
|
Federal
|
21 | (387 | ) | (108 | ) | |||||||
|
State
|
- | (2 | ) | (4 | ) | |||||||
|
Total
|
21 | (389 | ) | (112 | ) | |||||||
|
Total
|
$ | 1,306 | $ | 34 | $ | 1,267 | ||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
Statutory federal income tax rate
|
34.0 | % | 34.0 | % | 34.0 | % | ||||||
|
Increase (decrease) resulting from:
|
||||||||||||
|
State taxes, net of federal tax benefit
|
1.0 | 2.6 | 1.6 | |||||||||
|
Tax exempt income
|
(9.3 | ) | (17.0 | ) | (7.1 | ) | ||||||
|
Bank-owned life insurance
|
(7.1 | ) | (17.0 | ) | (7.7 | ) | ||||||
|
Other, net
|
(0.4 | ) | (1.5 | ) | (2.0 | ) | ||||||
|
Effective tax rate
|
18.2 | % | 1.1 | % | 18.8 | % | ||||||
|
December 31,
|
||||||||
| 2011 | 2010 | |||||||
|
(In thousands)
|
||||||||
|
Deferred tax assets:
|
||||||||
|
Defined benefit plan
|
$ | 1,341 | $ | 896 | ||||
|
Allowance for loan losses
|
2,640 | 2,357 | ||||||
|
Employee benefit and share-based compensation plans
|
2,949 | 2,327 | ||||||
|
Net unrealized loss on securities available for sale
|
- | 1,968 | ||||||
|
Other-than-temporary impairment write-down
|
495 | 581 | ||||||
|
Depreciation and amortization
|
128 | 43 | ||||||
|
Other
|
143 | 894 | ||||||
| 7,696 | 9,066 | |||||||
|
Deferred tax liabilities:
|
||||||||
|
Net unrealized gain on securities available for sale
|
(5,403 | ) | - | |||||
|
Deferred loan fees
|
(198 | ) | (119 | ) | ||||
|
Other
|
(232 | ) | (136 | ) | ||||
| (5,833 | ) | (255 | ) | |||||
|
Net deferred tax asset
|
$ | 1,863 | $ | 8,811 | ||||
|
Our income tax returns are subject to review and examination by federal and state tax authorities. We are currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2008 through 2011. The years open to examination by state taxing authorities vary by jurisdiction; however, no years prior to 2008 are open.
|
|
We have had, and expect to have in the future, loans with our directors and executive officers. Such loans, in our opinion, do not include more than the normal risk of collectability or other unfavorable features. Following is a summary of activity for such loans:
|
|
Years Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Balance at beginning of year
|
$ | 15,310 | $ | 17,626 | ||||
|
Principal distributions
|
8,319 | 187 | ||||||
|
Repayments of principal
|
(7,337 | ) | (2,503 | ) | ||||
|
Change in related party status
|
3,226 | - | ||||||
|
Balance at end of year
|
$ | 19,518 | $ | 15,310 | ||||
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
Commitments to extend credit:
|
||||||||
|
Unused lines of credit
|
$ | 83,340 | $ | 80,378 | ||||
|
Loan commitments
|
7,297 | 6,637 | ||||||
|
Existing construction loan agreements
|
1,349 | 217 | ||||||
|
Standby letters of credit
|
11,242 | 3,032 | ||||||
|
Year Ending
December 31,
|
Amount
|
|||
|
(In thousands)
|
||||
|
2012
|
$ | 612 | ||
|
2013
|
610 | |||
|
2014
|
607 | |||
|
2015
|
579 | |||
|
2016
|
459 | |||
|
Thereafter
|
9,801 | |||
| $ | 12,668 | |||
|
Methods and assumptions for valuing our financial instruments are set forth below. Estimated fair values are calculated based on the value without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications or estimated transaction cost.
|
|
Cash and cash equivalents -
T
he carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets.
|
|
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 | ||||||||||||
|
Government-sponsored enterprise obligations
|
- | 24,752 | - | 24,752 | ||||||||||||
|
State and municipal bonds
|
- | 45,874 | - | 45,874 | ||||||||||||
|
Government-sponsored residential mortgage-backed securities
|
- | 386,227 | - | 386,227 | ||||||||||||
|
U.S. government guaranteed residential mortgage-backed securities
|
- | 152,875 | - | 152,875 | ||||||||||||
|
Private-label residential mortgage-backed securities
|
- | 1,567 | - | 1,567 | ||||||||||||
|
Total assets
|
$ | 6,242 | $ | 611,295 | $ | - | $ | 617,537 | ||||||||
|
December 31, 2010
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Securities available for sale:
|
(In thousands)
|
|||||||||||||||
|
Mutual funds
|
$ | 5,272 | $ | - | $ | - | $ | 5,272 | ||||||||
|
Common and preferred stock
|
16 | - | - | 16 | ||||||||||||
|
Government-sponsored enterprise obligations
|
- | 17,864 | - | 17,864 | ||||||||||||
|
State and municipal bonds
|
- | 43,077 | - | 43,077 | ||||||||||||
|
Government-sponsored residential mortgage-backed securities
|
- | 380,984 | - | 380,984 | ||||||||||||
|
U.S. government guaranteed residential mortgage-backed securities
|
- | 187,676 | - | 187,676 | ||||||||||||
|
Private-label residential mortgage-backed securities
|
- | 7,578 | - | 7,578 | ||||||||||||
|
Total assets
|
$ | 5,288 | $ | 637,179 | $ | - | $ | 642,467 | ||||||||
|
At
|
Year Ended
|
|||||||||||||||
|
December 31, 2011
|
December 31, 2011
|
|||||||||||||||
|
Total
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Losses
|
|||||||||||||
|
(In thousands)
|
(In thousands) | |||||||||||||||
|
Impaired loans
|
$ | - | $ | - | $ | 1,181 | $ | 303 | ||||||||
|
Other real estate owned
|
1,130 | 170 | ||||||||||||||
|
Total assets
|
$ | - | $ | - | $ | 2,311 | $ | 473 | ||||||||
|
At
|
Year Ended
|
|||||||||||||||
|
December 31, 2010
|
December 31, 2010
|
|||||||||||||||
|
Total
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Losses
|
|||||||||||||
|
(In thousands)
|
(In thousands) | |||||||||||||||
|
Impaired loans
|
$ | - | $ | - | $ | 1,661 | $ | 714 | ||||||||
|
Other real estate owned
|
- | - | 223 | 157 | ||||||||||||
|
Total assets
|
$ | - | $ | - | $ | 1,884 | $ | 871 | ||||||||
|
2011
|
2010
|
|||||||||||||||
|
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
|
Value
|
Fair Value
|
Value
|
Fair Value
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||
|
Assets:
|
||||||||||||||||
|
Cash and cash equivalents
|
$ | 21,105 | $ | 21,105 | $ | 11,611 | $ | 11,611 | ||||||||
|
Securities available for sale
|
617,537 | 617,537 | 642,467 | 642,467 | ||||||||||||
|
Federal Home Loan Bank of Boston
|
||||||||||||||||
|
and other restricted stock
|
12,438 | 12,438 | 12,282 | 12,282 | ||||||||||||
|
Loans - net
|
546,392 | 552,422 | 502,392 | 505,791 | ||||||||||||
|
Accrued interest receivable
|
4,022 | 4,022 | 4,279 | 4,279 | ||||||||||||
|
Liabilities:
|
||||||||||||||||
|
Deposits
|
732,958 | 731,294 | 700,335 | 697,815 | ||||||||||||
|
Short-term borrowings
|
52,985 | 52,982 | 62,937 | 62,936 | ||||||||||||
|
Long-term debt
|
247,320 | 258,470 | 238,151 | 243,800 | ||||||||||||
|
Accrued interest payable
|
656 | 656 | 720 | 720 | ||||||||||||
|
16.
|
SEGMENT INFORMATION
|
|
December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
(In thousands)
|
||||||||
|
ASSETS:
|
||||||||
|
Due from banks
|
$ | 766 | $ | 1,236 | ||||
|
Federal funds sold
|
25 | 3 | ||||||
|
Securities available for sale
|
2,308 | 4,544 | ||||||
|
Investment in subsidiaries
|
210,989 | 210,886 | ||||||
|
Other assets
|
5,310 | 4,633 | ||||||
|
TOTAL ASSETS
|
$ | 219,398 | $ | 221,302 | ||||
|
LIABILITIES AND EQUITY:
|
||||||||
|
Liabilities
|
$ | 410 | $ | 57 | ||||
|
Equity
|
218,988 | 221,245 | ||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 219,398 | $ | 221,302 | ||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
INCOME:
|
||||||||||||
|
Dividends from subsidiaries
|
$ | 21,661 | $ | 19,500 | $ | 9,157 | ||||||
|
Interest income from securities
|
98 | 247 | 1,499 | |||||||||
|
Interest income from federal funds sold
|
- | - | 4 | |||||||||
|
Gain (loss) on sale of securities, net
|
134 | (22 | ) | (2,079 | ) | |||||||
|
Other income
|
1 | 2 | 6 | |||||||||
|
Total income
|
21,894 | 19,727 | 8,587 | |||||||||
|
OPERATING EXPENSE:
|
||||||||||||
|
Salaries and employee benefits
|
2,670 | 2,710 | 3,100 | |||||||||
|
Other
|
762 | 426 | 470 | |||||||||
|
Total operating expense
|
3,432 | 3,136 | 3,570 | |||||||||
|
INCOME BEFORE EQUITY IN UNDISTRIBUTED
|
||||||||||||
|
INCOME OF SUBSIDIARIES AND INCOME TAXES
|
18,462 | 16,591 | 5,017 | |||||||||
|
DIVIDENDS IN EXCESS OF EARNINGS OF SUBSIDIARIES
|
(13,237 | ) | (13,600 | ) | (846 | ) | ||||||
|
NET INCOME BEFORE TAXES
|
5,225 | 2,991 | 4,171 | |||||||||
|
INCOME TAX BENEFIT
|
(649 | ) | (15 | ) | (1,288 | ) | ||||||
|
NET INCOME
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | ||||||
|
Years Ended December 31,
|
||||||||||||
|
2011
|
2010
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||
|
OPERATING ACTIVITIES:
|
||||||||||||
|
Net income
|
$ | 5,874 | $ | 3,006 | $ | 5,459 | ||||||
|
Dividends in excess of earnings of subsidiaries
|
13,237 | 13,600 | 846 | |||||||||
|
Net amortization of premiums and discounts on securities
|
1 | 14 | 39 | |||||||||
|
Net realized securities (gains) losses
|
(134 | ) | 22 | 2,079 | ||||||||
|
Change in other liabilities
|
353 | 21 | (92 | ) | ||||||||
|
Change in other assets
|
(417 | ) | 367 | (789 | ) | |||||||
|
Other, net
|
2,439 | 2,110 | 2,531 | |||||||||
|
Net cash provided by operating activities
|
21,353 | 19,140 | 10,073 | |||||||||
|
INVESTING ACTIVITIES:
|
||||||||||||
|
Purchase of securities
|
(354 | ) | - | (5,276 | ) | |||||||
|
Proceeds from principal collections
|
1 | 1,160 | 10,509 | |||||||||
|
Sale of securities
|
2,558 | 4,264 | 4,394 | |||||||||
|
Net cash provided by investing activities
|
2,205 | 5,424 | 9,627 | |||||||||
|
FINANCING ACTIVITIES:
|
||||||||||||
|
Cash dividends paid
|
(14,305 | ) | (14,295 | ) | (14,595 | ) | ||||||
|
Common stock repurchased
|
(10,071 | ) | (16,127 | ) | (13,690 | ) | ||||||
|
Excess tax (shortfall) benefit from share-based compensation
|
(4 | ) | 383 | 155 | ||||||||
|
Issuance of common stock to ESOP
|
15 | - | - | |||||||||
|
Issuance of common stock in connection with stock
|
||||||||||||
|
option exercises
|
359 | 1,477 | 449 | |||||||||
|
Net cash used in financing activities
|
(24,006 | ) | (28,562 | ) | (27,681 | ) | ||||||
|
NET DECREASE IN CASH AND
|
||||||||||||
|
CASH EQUIVALENTS:
|
(448 | ) | (3,998 | ) | (7,981 | ) | ||||||
|
CASH AND CASH EQUIVALENTS:
|
||||||||||||
|
Beginning of year
|
1,239 | 5,237 | 13,218 | |||||||||
|
End of year
|
$ | 791 | $ | 1,239 | $ | 5,237 | ||||||
|
19.
|
OTHER NONINTEREST EXPENSE
|
|
20.
|
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
|
|
2011
|
|||||||
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||
|
(Dollars in thousands, except per share amounts)
|
|||||||
|
Interest and dividend income
|
$ | 11,457 | $ | 11,449 | $ | 11,174 | $ | 10,926 | ||||||||
|
Interest expense
|
3,810 | 3,720 | 3,555 | 3,382 | ||||||||||||
|
Net interest and dividend income
|
7,647 | 7,729 | 7,619 | 7,544 | ||||||||||||
|
Provision for loan losses
|
339 | 175 | 15 | 677 | ||||||||||||
|
Other noninterest income
|
806 | 909 | 899 | 904 | ||||||||||||
|
Total other-than-temporary impairment losses in securities
|
(345 | ) | (433 | ) | (536 | ) | - | |||||||||
|
Portion of impairment losses recognized in accumulated other comprehensive income (loss)
|
313 | 425 | 474 | - | ||||||||||||
|
Net impairment losses recognized in income
|
(32 | ) | (8 | ) | (62 | ) | - | |||||||||
|
Loss on sale of OREO
|
- | - | (25 | ) | - | |||||||||||
|
Gain on sales of securities, net
|
31 | 46 | 131 | 206 | ||||||||||||
|
Noninterest expense
|
6,540 | 6,433 | 6,639 | 6,346 | ||||||||||||
|
Income before income taxes
|
1,574 | 2,068 | 1,908 | 1,631 | ||||||||||||
|
Income tax provision
|
288 | 503 | 414 | 102 | ||||||||||||
|
Net income
|
$ | 1,286 | $ | 1,565 | $ | 1,494 | $ | 1,529 | ||||||||
|
Basic earnings per share
|
$ | 0.05 | $ | 0.06 | $ | 0.06 | $ | 0.06 | ||||||||
|
Diluted earnings per share
|
$ | 0.05 | $ | 0.06 | $ | 0.06 | $ | 0.06 | ||||||||
|
2010
|
|||||||
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
||||
|
(Dollars in thousands, except per share amounts)
|
|||||||
|
Interest and dividend income
|
$ | 11,955 | $ | 11,595 | $ | 11,550 | $ | 11,047 | ||||||||
|
Interest expense
|
4,264 | 4,171 | 4,201 | 4,129 | ||||||||||||
|
Net interest and dividend income
|
7,691 | 7,424 | 7,349 | 6,918 | ||||||||||||
|
Provision for loan losses
|
500 | 4,120 | 3,928 | 375 | ||||||||||||
|
Other noninterest income
|
867 | 878 | 836 | 883 | ||||||||||||
|
Total other-than-temporary impairment losses in securities
|
(1,071 | ) | - | - | (490 | ) | ||||||||||
|
Portion of impairment losses recognized in accumulated other comprehensive income (loss)
|
971 | - | - | 443 | ||||||||||||
|
Net impairment losses recognized in income
|
(100 | ) | - | - | (47 | ) | ||||||||||
|
Loss on sale of OREO
|
7 | (6 | ) | - | - | |||||||||||
|
Gain on sales of securities, net
|
186 | 1,132 | 2,609 | 145 | ||||||||||||
|
Noninterest expense
|
6,395 | 5,941 | 6,184 | 6,289 | ||||||||||||
|
Income (loss) before income taxes
|
1,756 | (633 | ) | 682 | 1,235 | |||||||||||
|
Income taxes
|
402 | (247 | ) | (17 | ) | (104 | ) | |||||||||
|
Net income (loss)
|
$ | 1,354 | $ | (386 | ) | $ | 699 | $ | 1,339 | |||||||
|
Basic earnings per share
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.03 | $ | 0.05 | |||||||
|
Diluted earnings per share
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.03 | $ | 0.05 |
|
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 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 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*
|
Form of 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).
|
|
10.2*
|
Form of Director’s Deferred Compensation Plan (incorporated by reference to Exhibit 10.7 of the Form 8-K filed with the Securities and Exchange Commission on December 22, 2005).
|
|
10.3*
|
The 401(k) Plan adopted by Westfield Bank (incorporated herein by reference to Exhibit 4.1 of the Post-Effective Amendment No. 1 to the Registration Statement No. 333-73132 on Form S-8 filed with the Securities and Exchange Commission on April 28, 2006).
|
|
10.4*
|
Amendment to the 401(k) Plan adopted by Westfield Bank (incorporated by reference to Exhibit 10.11 of the Form 8-K filed with the Securities and Exchange Commission on July 13, 2006).
|
|
10.5*
|
Amended and Restated Benefit Restoration Plan of Westfield Financial, Inc. (incorporated by reference to Exhibit 10.5 of the Form 8-K filed with the Securities and Exchange Commission on October 29, 2007).
|
|
10.6*
|
Form of Amended and Restated Deferred Compensation Agreement with Donald A. Williams (incorporated by reference to Exhibit 10.10 of the Form 8-K filed with the Securities and Exchange Commission on December 22, 2005).
|
|
10.7*
|
Amended and Restated Employment Agreement between James C. Hagan and Westfield Bank (incorporated by reference to Exhibit 10.9 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.8*
|
Amended and Restated Employment Agreement between James C. Hagan and Westfield Financial, Inc. (incorporated by reference to Exhibit 10.12 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.9
|
Agreement between Westfield Bank and Village Mortgage Company (incorporated by reference to Exhibit 10.17 of Amendment No. 1 of the Registration Statement No. 333-137024 on Form S-1 filed with the Securities and Exchange Commission on August 31, 2006).
|
|
10.10*
|
Employment Agreement between Leo R. Sagan, Jr. and Westfield Bank (incorporated by reference to Exhibit 10.15 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.11*
|
Employment Agreement between Leo R. Sagan, Jr. and Westfield Financial, Inc (incorporated by reference to Exhibit 10.16 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.12*
|
Employment Agreement between Gerald P. Ciejka and Westfield Bank (incorporated by reference to Exhibit 10.17 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.13*
|
Employment Agreement between Gerald P. Ciejka and Westfield Financial, Inc. (incorporated by reference to Exhibit 10.18 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.14*
|
Employment Agreement between Allen J. Miles, III and Westfield Bank (incorporated by reference to Exhibit 10.19 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.15*
|
Employment Agreement between Allen J. Miles, III and Westfield Financial, Inc. (incorporated by reference to Exhibit 10.20 of the Form 8-K filed with the Securities and Exchange Commission on January 5, 2009).
|
|
10.16*
|
2002 Stock Option Plan (incorporated by reference to Appendix B of the Schedule 14A filed with the Securities and Exchange Commission on May 24, 2002).
|
|
10.17*
|
Amendment to the 2002 Stock Option Plan (incorporated by reference to Appendix A of the Schedule 14A filed with the Securities and Exchange Commission on April 25, 2003).
|
|
10.18*
|
2002 Recognition and Retention Plan (incorporated by reference to Appendix C of the Schedule 14A filed with the Securities and Exchange Commission on May 24, 2002).
|
|
10.19*
|
Amendment to the 2002 Recognition and Retention Plan (incorporated by reference to Appendix B of the Schedule 14A filed with the Securities and Exchange Commission on April 25, 2003).
|
|
10.20*
|
2007 Stock Option Plan (incorporated by reference to Appendix A of the Schedule 14A filed with the Securities and Exchange Commission on June 18, 2007).
|
|
10.21*
|
Amendment to the 2007 Stock Option Plan (incorporated by reference to Appendix B of the Schedule 14A filed with the Securities and Exchange Commission on April 14, 2008).
|
|
10.22*
|
2007 Recognition and Retention Plan (incorporated by reference to Appendix B of the Schedule 14A filed with the Securities and Exchange Commission on June 18, 2007).
|
|
10.23*
|
Amendment to the 2007 Recognition and Retention Plan (incorporated by reference to Appendix C of the Schedule 14A filed with the Securities and Exchange Commission on April 14, 2008).
|
|
21.1†
|
Subsidiaries of Westfield Financial
|
|
23.1†
|
Consent of Wolf & Company, P.C.
|
|
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 annual report on Form 10-K of Westfield Financial, Inc. for the year ended December 31, 2011, 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. |
| * | Management contract or compensatory plan or arrangement. |
| ** | 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. |
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|