Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.6 million, or $0.09 per diluted share, for the quarter ended March 31, 2014, compared to $1.8 million, or $0.08 per diluted share, for the quarter ended March 31, 2013.
The quarter ended March 31, 2014 included a provision for loan losses of $100,000 as a result of growth in the loan portfolio whereas in the comparable 2013 quarter, the Company recorded a credit to the provision for loan losses of $235,000.
Selected financial highlights for first quarter 2014 include:
- Total loans increased $51.9 million, or 8.7%, at March 31, 2014 compared to March 31, 2013. This was primarily due to increases in commercial real estate loans of $30.6 million, commercial and industrial loans of $6.9 million, and residential loans of $14.7 million. On a sequential-quarter basis, total loans increased $10.8 million, or 1.7%, to $648.2 million for the first quarter of 2014. This was primarily due to increases in commercial real estate loans of $9.7 million and residential loans of $4.6 million. Commercial and industrial loans decreased $2.4 million primarily due to the payment in full of $6.8 million on a relationship which had been on the credit watch list.
- Securities declined $89.9 million, or 14.2%, at March 31, 2014, compared to $631.4 million at March 31, 2013. On a sequential-quarter basis, securities declined by $12.3 million, or 2.2%, to $541.5 million at March 31, 2014, compared to $553.8 million at December 31, 2013.
- Net interest and dividend income was $7.7 million for the quarters ended March 31, 2014 and March 31, 2013. On a sequential-quarter basis, net interest and dividend income increased $48,000 for the quarter ended March 31, 2014, as compared to $7.6 million for the quarter ended December 31, 2013.
- The net interest margin for the quarter ended March 31, 2014 increased 4 basis points to 2.63%, as compared to 2.59% for the first quarter of 2013. On a sequential-quarter basis, the net interest margin increased 6 basis points for the quarter ended March 31, 2014, as compared to 2.57% for the quarter ended December 31, 2013.
- Noninterest expense was $6.5 million for the quarter ended March 31, 2014, unchanged as compared to the first quarter of 2013 as well as on a sequential-quarter basis.
President and CEO, James C. Hagan, stated, “We continue to execute our strategy of restructuring the balance sheet by increasing loans and decreasing securities. Our emphasis remains on organic growth, particularly commercial loans, as the primary means of growing our business and improving shareholder value. In addition, we demonstrated our continued efforts to manage and control overhead expense. This has translated into improvements in net interest margin, tangible book value and the efficiency ratio compared to the prior quarter.”
Income Statement Discussion and Analysis
Net interest and dividend income was relatively unchanged at $7.7 million for the quarters ended March 31, 2014 and 2013. The net interest margin increased 4 basis points to 2.63% for the quarter ended March 31, 2014, compared to 2.59% for the quarter ended March 31, 2013. The cost of average interest-bearing liabilities decreased 11 basis points, driven by lower deposit costs, and was partially offset by a decrease of 4 basis points in the yield on average interest-earning assets.
Net gains on sales of securities were $29,000 for the first quarter 2014, compared to $1.4 million the same period in 2013. The 2013 quarter also included a prepayment expense of $1.4 million associated with the payoff of long-term debt.
Noninterest expense was stable at $6.5 million for both the quarters ended March 31, 2014 and 2013. The efficiency ratio, excluding non-core items, was 75.1% for first quarter 2014, compared to 75.5% for the same period in 2013.
Balance Sheet Discussion
Securities declined by $12.3 million, or 2.2%, to $541.5 million at March 31, 2014, compared to $553.8 million at December 31, 2013. Securities declined $89.9 million, or 14.2%, at March 31, 2014, compared to $631.4 million at March 31, 2013. Cash flow from the securities portfolio was primarily used to fund loan originations, stock repurchases and to pay off borrowings.
Total loans increased $51.9 million, or 8.7%, at March 31, 2014 compared to March 31, 2013. This was primarily due to increases in commercial real estate loans of $30.6 million, commercial and industrial loans of $6.9 million, and residential loans of $14.7 million. On a sequential-quarter basis, total loans increased $10.8 million, or 1.7%, to $648.2 million for the first quarter 2014. This was primarily due to increases in commercial real estate loans of $9.7 million and residential loans of $4.6 million. Commercial and industrial loans decreased $2.4 million primarily due to the payment in full during the first quarter 2014 of $6.8 million on a relationship which had been on the credit watch list.
Total deposits increased $34.5 million, or 4.5%, to $806.7 million at March 31, 2014, compared to $772.2 million at March 31, 2013. This was primarily due to increases in money market accounts of $23.4, term accounts of $12.2 million, and checking accounts of $10.2 million. Total deposits decreased $10.4 million, or 1.3%, at March 31, 2014, compared to $817.1 million at December 31, 2013. This was primarily due to an $18.2 million decrease related to one customer who had a planned use for the funds. The Bank continues to have an ongoing relationship with this customer.
Short-term borrowings increased $10.3 million to $58.5 million at March 31, 2014 compared to $48.2 million at December 31, 2013. This was due to an increase in short-term customer repurchase agreements of $10.3 million to $44.1 million at March 31, 2014. Customer repurchase agreements serve as a vehicle whereby commercial customers can sweep money daily into a Bank product and earn an interest rate. This allows the Bank to reduce its reliance on wholesale funding and build franchise value by deepening its customer relationships.
Shareholders’ equity was $151.6 million at March 31, 2014 and $154.1 million at December 31, 2013, which represented 11.9% and 12.1% of total assets, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 355,926 shares of common stock for $2.6 million and the payment of a quarterly dividend of $1.1 million. This was partially offset by net income of $1.6 million for the quarter ended March 31, 2014.
On September 17, 2013, the Board of Directors authorized a stock repurchase program under which the Company may purchase up to 1,037,000 shares, or 5% of its outstanding common stock. As of March 31, 2014, the Company had repurchased 958,972 shares of its common stock at a cost of $7.1 million pursuant to this repurchase program, and the Company subsequently completed this share repurchase program in April 2014.
In addition, on March 13, 2014, the Company announced another repurchase program under which it may repurchase up to 1,970,000 shares, or 10% of its outstanding common stock, which commenced upon the completion of the previous repurchase program.
Credit Quality
The allowance for loan losses was $7.6 million at March 31, 2014, $7.5 million at December 31, 2013 and $7.6 million at March 31, 2013, representing 1.17%, 1.17% and 1.27% of total loans, respectively. This represents 244.5%, 288.4% and 255.8% of nonperforming loans at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
| Three Months Ended | |||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||
| 2014 | 2013 | 2013 | |||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Balance, beginning of period | $ | 7,459 | $ | 7,311 | $ | 7,794 | |||||||||||||
| Provision (credit) | 100 | 120 | (235 | ) | |||||||||||||||
| Charge-offs | (99 | ) | (5 | ) | (154 | ) | |||||||||||||
| Recoveries | 107 | 33 | 160 | ||||||||||||||||
| Balance, end of period | $ | 7,567 | $ | 7,459 | $ | 7,565 | |||||||||||||
During the first quarter of 2014, nonperforming loans increased $509,000 to $3.1 million, representing 0.48% of total loans at March 31, 2014. The increase was due primarily to one commercial and industrial loan relationship. Loans delinquent 30 – 89 days were $5.4 million at March 31, 2014 and $3.5 million at December 31, 2013. The increase as of March 31, 2014 was due to one commercial real estate loan of $2.2 million. The delinquent payment on this loan was made in April 2014. There are no loans 90 or more days past due and still accruing interest.
Declaration of Quarterly Dividend
The Board of Directors approved the declaration of a quarterly cash dividend of $0.06 per share. The dividend is payable on May 28, 2014 to all shareholders of record on May 14, 2014.
About Westfield Financial, Inc.
Westfield Financial, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Westfield Financial and its subsidiaries are headquartered in Westfield, Massachusetts and operate through 11 banking offices located in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts and one banking office in Granby, Connecticut. To learn more, visit our website at www.westfieldbank.com.
Forward-Looking Statements
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, and in subsequent filings with the Securities and Exchange Commission. The Company and the Bank do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Income and Other Data (Dollars in thousands, except share and per share data) (Unaudited) | |||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||
| 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||||||||||||
| Loans | $ | 6,557 | $ | 6,458 | $ | 6,371 | $ | 6,307 | $ | 6,271 | |||||||||||||||||||||
| Securities | 3,406 | 3,594 | 3,954 | 3,917 | 4,057 | ||||||||||||||||||||||||||
| Other investments - at cost | 65 | 33 | 20 | 21 | 19 | ||||||||||||||||||||||||||
| Federal funds sold, interest-bearing deposits and other short-term investments | 6 | 4 | 3 | 1 | 2 | ||||||||||||||||||||||||||
| Total interest and dividend income | 10,034 | 10,089 | 10,348 | 10,246 | 10,349 | ||||||||||||||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||||||||||||
| Deposits | 1,291 | 1,358 | 1,390 | 1,390 | 1,387 | ||||||||||||||||||||||||||
| Long-term debt | 1,011 | 1,051 | 1,094 | 1,188 | 1,258 | ||||||||||||||||||||||||||
| Short-term borrowings | 77 | 73 | 36 | 31 | 34 | ||||||||||||||||||||||||||
| Total interest expense | 2,379 | 2,482 | 2,520 | 2,609 | 2,679 | ||||||||||||||||||||||||||
| Net interest and dividend income | 7,655 | 7,607 | 7,828 | 7,637 | 7,670 | ||||||||||||||||||||||||||
| PROVISION (CREDIT) FOR LOAN LOSSES | 100 | 120 | (71 | ) | (70 | ) | (235 | ) | |||||||||||||||||||||||
| Net interest and dividend income after provision for loan losses | 7,555 | 7,487 | 7,899 | 7,707 | 7,905 | ||||||||||||||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||||||||||||||
| Service charges and fees | 670 | 625 | 615 | 594 | 572 | ||||||||||||||||||||||||||
| Income from bank-owned life insurance | 379 | 388 | 388 | 387 | 385 | ||||||||||||||||||||||||||
| Gain on bank-owned life insurance death benefit | - | - | - | 563 | - | ||||||||||||||||||||||||||
| Loss on prepayment of borrowings | - | - | (540 | ) | (1,404 | ) | (1,426 | ) | |||||||||||||||||||||||
| Gain on sales of securities, net | 29 | 330 | 546 | 823 | 1,427 | ||||||||||||||||||||||||||
| Total noninterest income | 1,078 | 1,343 | 1,009 | 963 | 958 | ||||||||||||||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||||||||||||||
| Salaries and employees benefits | 3,778 | 3,774 | 4,059 | 3,817 | 3,808 | ||||||||||||||||||||||||||
| Occupancy | 761 | 731 | 733 | 730 | 705 | ||||||||||||||||||||||||||
| Data processing | 515 | 586 | 602 | 602 | 526 | ||||||||||||||||||||||||||
| Professional fees | 512 | 497 | 499 | 527 | 510 | ||||||||||||||||||||||||||
| OREO expense | - | - | - | - | 22 | ||||||||||||||||||||||||||
| FDIC insurance | 165 | 162 | 169 | 163 | 161 | ||||||||||||||||||||||||||
| Other | 803 | 738 | 789 | 950 | 783 | ||||||||||||||||||||||||||
| Total noninterest expense | 6,534 | 6,488 | 6,851 | 6,789 | 6,515 | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 2,099 | 2,342 | 2,057 | 1,881 | 2,348 | ||||||||||||||||||||||||||
| INCOME TAX PROVISION | 451 | 533 | 476 | 297 | 566 | ||||||||||||||||||||||||||
| NET INCOME | $ | 1,648 | $ | 1,809 | $ | 1,581 | $ | 1,584 | $ | 1,782 | |||||||||||||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.08 | |||||||||||||||||||||
| Weighted average shares outstanding | 18,812,795 | 19,379,466 | 19,583,632 | 20,276,261 | 21,102,021 | ||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.08 | |||||||||||||||||||||
| Weighted average diluted shares outstanding | 18,812,795 | 19,379,466 | 19,583,632 | 20,276,261 | 21,102,075 | ||||||||||||||||||||||||||
| Other Data: | |||||||||||||||||||||||||||||||
| Return on average assets (1) | 0.52 | % | 0.57 | % | 0.49 | % | 0.49 | % | 0.56 | % | |||||||||||||||||||||
| Return on average equity (1) | 4.38 | % | 4.61 | % | 3.96 | % | 3.66 | % | 3.97 | % | |||||||||||||||||||||
| Efficiency ratio (2) | 75.07 | 75.27 | 77.58 | 78.78 | 75.52 | ||||||||||||||||||||||||||
| Net interest margin | 2.63 | % | 2.57 | % | 2.62 | % | 2.55 | % | 2.59 | % | |||||||||||||||||||||
(1) Three month results have been annualized.
(2) The efficiency ratio represents the ratio of operating expenses divided by the sum of net interest and dividend income and noninterest income, excluding gain and loss on sale of securities, gain on bank-owned life insurance death benefit and loss on prepayment of borrowings.
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets and Other Data (Dollars in thousands, except per share data) (Unaudited) | |||||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||
| 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 21,370 | $ | 19,742 | $ | 28,418 | $ | 15,706 | $ | 19,183 | |||||||||||||||||||||
| Securities available for sale, at fair value | 233,899 | 243,204 | 242,957 | 417,053 | 616,155 | ||||||||||||||||||||||||||
| Securities held to maturity, at cost | 292,019 | 295,013 | 298,988 | 173,982 | - | ||||||||||||||||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 15,631 | 15,631 | 15,631 | 15,629 | 15,242 | ||||||||||||||||||||||||||
| Loans | 648,240 | 637,427 | 620,154 | 606,605 | 596,264 | ||||||||||||||||||||||||||
| Allowance for loan losses | 7,567 | 7,459 | 7,311 | 7,473 | 7,565 | ||||||||||||||||||||||||||
| Net loans | 640,673 | 629,968 | 612,843 | 599,132 | 588,699 | ||||||||||||||||||||||||||
| Bank-owned life insurance | 47,558 | 47,179 | 46,791 | 46,403 | 46,607 | ||||||||||||||||||||||||||
| Other assets | 23,866 | 26,104 | 25,703 | 25,730 | 20,967 | ||||||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,275,016 | $ | 1,276,841 | $ | 1,271,331 | $ | 1,293,635 | $ | 1,306,853 | |||||||||||||||||||||
| Total deposits | $ | 806,695 | $ | 817,112 | $ | 793,510 | $ | 782,682 | $ | 772,196 | |||||||||||||||||||||
| Short-term borrowings | 58,460 | 48,197 | 61,784 | 69,972 | 55,827 | ||||||||||||||||||||||||||
| Long-term debt | 248,568 | 248,377 | 248,184 | 269,991 | 289,600 | ||||||||||||||||||||||||||
| Securities pending settlement | 195 | 299 | - | - | 288 | ||||||||||||||||||||||||||
| Other liabilities | 9,512 | 8,712 | 10,954 | 10,573 | 9,962 | ||||||||||||||||||||||||||
| TOTAL LIABILITIES | 1,123,430 | 1,122,697 | 1,114,432 | 1,133,218 | 1,127,873 | ||||||||||||||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 151,586 | 154,144 | 156,899 | 160,417 | 178,980 | ||||||||||||||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,275,016 | $ | 1,276,841 | $ | 1,271,331 | $ | 1,293,635 | $ | 1,306,853 | |||||||||||||||||||||
| Book value per share | $ | 7.66 | $ | 7.65 | $ | 7.57 | $ | 7.73 | $ | 8.17 | |||||||||||||||||||||
| Other Data: | |||||||||||||||||||||||||||||||
| 30- 89 day delinquent loans | $ | 5,382 | $ | 3,459 | $ | 1,860 | $ | 1,438 | $ | 1,919 | |||||||||||||||||||||
| Nonperforming loans | 3,095 | 2,586 | 2,933 | 3,272 | 2,957 | ||||||||||||||||||||||||||
| Nonperforming loans as a percentage of total loans | 0.48 | % | 0.41 | % | 0.47 | % | 0.54 | % | 0.50 | % | |||||||||||||||||||||
| Nonperforming assets as a percentage of total assets | 0.24 | % | 0.20 | % | 0.23 | % | 0.25 | % | 0.23 | % | |||||||||||||||||||||
| Allowance for loan losses as a percentage of nonperforming loans | 244.49 | % | 288.44 | % | 249.27 | % | 228.39 | % | 255.83 | % | |||||||||||||||||||||
| Allowance for loan losses as a percentage of total loans | 1.17 | % | 1.17 | % | 1.18 | % | 1.23 | % | 1.27 | % | |||||||||||||||||||||
The following tables set forth the information relating to our average balances and net interest income for the three months ended March 31, 2014, December 31, 2013, and March 31, 2013, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
| Average | Avg Yield/ | Average | Avg Yield/ | Average | Avg Yield/ | ||||||||||||||||||||||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||
| ASSETS: | |||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||||||||||||||||||||||
| Loans(1)(2) | $ | 640,855 | $ | 6,595 | 4.12 | % | $ | 619,240 | $ | 6,495 | 4.20 | % | $ | 590,290 | $ | 6,309 | 4.28 | % | |||||||||||||||||||||||||
| Securities(2) | 530,046 | 3,506 | 2.65 | 541,370 | 3,719 | 2.75 | 613,288 | 4,202 | 2.74 | ||||||||||||||||||||||||||||||||||
| Other investments - at cost | 17,530 | 65 | 1.48 | 17,537 | 19 | 0.43 | 16,671 | 19 | 0.46 | ||||||||||||||||||||||||||||||||||
| Short-term investments(3) | 13,017 | 6 | 0.18 | 18,383 | 4 | 0.09 | 8,016 | 2 | 0.10 | ||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 1,201,448 | 10,172 | 3.39 | 1,196,530 | 10,237 | 3.42 | 1,228,265 | 10,532 | 3.43 | ||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 72,994 | 73,528 | 65,848 | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,274,442 | $ | 1,270,058 | $ | 1,294,113 | |||||||||||||||||||||||||||||||||||||
| LIABILITIES AND EQUITY: | |||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing accounts | $ | 42,892 | 28 | 0.26 | $ | 44,521 | 29 | 0.26 | $ | 50,195 | 37 | 0.29 | |||||||||||||||||||||||||||||||
| Savings accounts | 80,462 | 20 | 0.10 | 82,535 | 21 | 0.10 | 91,770 | 37 | 0.16 | ||||||||||||||||||||||||||||||||||
| Money market accounts | 210,884 | 193 | 0.37 | 207,801 | 199 | 0.38 | 174,218 | 165 | 0.38 | ||||||||||||||||||||||||||||||||||
| Time certificates of deposit | 340,428 | 1,050 | 1.23 | 338,272 | 1,109 | 1.31 | 326,384 | 1,148 | 1.41 | ||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 674,666 | 1,291 | 673,129 | 1,358 | 642,567 | 1,387 | |||||||||||||||||||||||||||||||||||||
| Short-term borrowings and long-term debt | 308,642 | 1,088 | 1.41 | 304,403 | 1,124 | 1.48 | 346,382 | 1,292 | 1.49 | ||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | 983,308 | 2,379 | 0.97 | 977,532 | 2,482 | 1.02 | 988,949 | 2,679 | 1.08 | ||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 129,423 | 125,959 | 112,947 | ||||||||||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 9,077 | 10,762 | 10,050 | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 138,500 | 136,721 | 122,997 | ||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 1,121,808 | 1,114,253 | 1,111,946 | ||||||||||||||||||||||||||||||||||||||||
| Total equity | 152,634 | 155,805 | 182,167 | ||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 1,274,442 | $ | 1,270,058 | $ | 1,294,113 | |||||||||||||||||||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (138 | ) | (148 | ) | (183 | ) | |||||||||||||||||||||||||||||||||||||
| Net interest and dividend income | $ | 7,655 | $ | 7,607 | $ | 7,670 | |||||||||||||||||||||||||||||||||||||
| Net interest rate spread(4) | 2.42 | % | 2.40 | % | 2.35 | % | |||||||||||||||||||||||||||||||||||||
| Net interest margin(5) | 2.63 | % | 2.57 | % | 2.59 | % | |||||||||||||||||||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||
| 122.18 | 122.40 | 124.20 | |||||||||||||||||||||||||||||||||||||||||
(1) Loans, including non-accrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Securities, loan income and net interest income are presented on a tax-equivalent basis using a tax rate of 34%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the statements of income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
Contacts:
James C. Hagan, President & CEO
or
Leo
R. Sagan, Jr., CFO
or
Meghan Hibner, VP Investor
Relations Officer
413-568-1911
