WESTFIELD, Mass.--(BUSINESS WIRE)--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 September 30, 2015, compared to $1.5 million, or $0.08 per diluted share, for the quarter ended September 30, 2014. For the nine months ended September 30, 2015, net income was $4.3 million, or $0.25 per diluted share, compared to $4.5 million, or $0.25 per diluted share, for the same period in 2014.
Selected financial highlights for third quarter 2015 include:
- Total loans increased $87.3 million, or 12.1%, to $806.9 million at September 30, 2015 compared to $719.6 million at September 30, 2014. This was primarily due to increases in residential loans of $69.7 million, commercial real estate loans of $8.6 million and commercial and industrial loans of $6.3 million. On a sequential-quarter basis, total loans increased $47.5 million, or 6.3%, during the third quarter of 2015. This was due to an increase in residential loans of $36.9 million, commercial real estate loans of $7.7 million and commercial and industrial loans of $644,000.
- Securities decreased $55.0 million, or 10.8%, to $455.9 million at September 30, 2015, compared to $510.9 million at September 30, 2014. On a sequential-quarter basis, securities decreased $60.8 million, or 11.8% at September 30, 2015, compared to $516.7 million at June 30, 2015.
- Net interest and dividend income increased $326,000 to $8.2 million for the quarter ended September 30, 2015 compared to $7.8 million for the comparable 2014 period. On a sequential-quarter basis, net interest and dividend income increased $381,000 for the quarter ended September 30, 2015, compared to the quarter ended June 30, 2015. On a sequential quarter basis, the net interest margin increase 3 basis points to 2.53%, compared to 2.50% for the quarter ended June 30, 2015.
- The Bank prepaid $19.0 million in Federal Home Loan Bank borrowings with a weighted average rate of 2.93% and incurred a prepayment expense of $429,000 in the third quarter of 2015 in order to eliminate a higher-cost liability. Because the transaction was completed at the end of the third quarter 2015, it did not have an impact on the Bank’s cost of funds in this quarter.
- Noninterest expense increased $519,000 to $6.9 million for the quarter ended September 30, 2015 compared to the third quarter of 2014. On a sequential-quarter basis, noninterest expense was stable at $6.9 million for the quarters ended September 30, 2015 and June 30, 2015, respectively. The efficiency ratio, excluding non-core items, was 73.7% for the third quarter of 2015, compared to 76.1% for the quarter ended June 30, 2015.
President and CEO, James C. Hagan stated, “One of our strategic objectives has been the improvement of our asset mix through reducing securities and growing our loan portfolio. The results through September 30, 2015 demonstrate that we continue to execute on this strategy, and in doing so, we have improved our net interest income. We remain committed to growing our core customer franchise and our shareholder value.”
Additional Income Statement Discussion
Net interest and dividend income increased $339,000 to $23.5 million for the nine months ended September 30, 2015, as compared to $23.2 million for the nine months ended September 30, 2014. The net interest margin for the nine months ended September 30, 2015 decreased 9 basis points to 2.52%, as compared to 2.61% for the same period in 2014. This was a result of a decrease of 5 basis points in the yield on average interest-earning assets along with a 5 basis point increase in the cost of average interest-bearing liabilities.
Non-interest income decreased $97,000 to $1.1 million for the quarter ended September 30, 2015, compared to $1.2 million for the quarter ended June 30, 2015. The June 30, 2015 period included a $130,000 one-time payment pertaining to a vendor contract renegotiation.
Non-interest expense increased $1.0 million to $20.4 million from $19.4 million for the nine months ended September 30, 2015, compared to the same period in 2014. Salaries and benefits increased $522,000 and occupancy expense increased $188,000. This was driven, in part, by the addition of the Enfield branch, which opened in November 2014, as well as annual increases in benefits expense. The efficiency ratio, excluding non-core items, was 75.9% and 73.8% for the nine months ended September 30, 2015 and 2014, respectively.
Additional Balance Sheet Discussion
Total deposits increased $80.2 million, or 9.7%, to $909.0 million at September 30, 2015, compared to $828.8 million at September 30, 2014. This was primarily due to increases in term accounts of $64.8 million, money market accounts of $13.7 million and checking accounts of $3.9 million, partially offset by a decrease in savings accounts of $2.1 million. The increase in term accounts from September 30, 2014 includes $40.2 million in brokered and listing service deposits, which provide a diversified, low cost funding source. Total deposits increased $11.3 million, or 1.3%, to $909.0 million at September 30, 2015, compared to $897.7 million at June 30, 2015. In addition, short-term borrowings and long term debt decreased $19.4 million to $287.6 million at September 30, 2015, compared to $307.0 million at June 30, 2015.
Shareholders’ equity was $139.6 million at September 30, 2015 and $139.8 million at June 30, 2015, which represented 10.3% of total assets at September 30 and June 30, 2015, respectively. The decrease in shareholders’ equity during the quarter reflects a decrease in accumulated other comprehensive income of $744,000, the repurchase of 97,579 shares of common stock for $740,000 (an average price of $7.58 per share) and the payment of a quarterly dividend of $523,000. This was offset by net income of $1.6 million for the quarter ended September 30, 2015.
On March 13, 2014, the Company announced a repurchase program under which it may repurchase up to 1,970,000 shares, or 10% of its outstanding common stock. At September 30, 2015, there were 614,154 shares remaining under this repurchase program.
Credit Quality
The allowance for loan losses was $8.4 million, $8.3 million and $7.7 million at September 30, 2015, June 30, 2015 and September 30, 2014, representing 1.04%, 1.09% and 1.07% of total loans, respectively. This represents 114.0%, 103.5% and 86.8% of nonperforming loans, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
Three Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||
2015 | 2015 | 2014 | ||||||||||||
(In thousands) | ||||||||||||||
Balance, beginning of period | $ | 8,295 | $ | 8,035 | $ | 8,017 | ||||||||
Provision | 150 | 350 | 750 | |||||||||||
Charge-offs | (85 | ) | (101 | ) | (1,076 | ) | ||||||||
Recoveries | 12 | 11 | 4 | |||||||||||
Balance, end of period | $ | 8,372 | $ | 8,295 | $ | 7,695 |
Nonperforming loans were $7.3 million and $8.0 million, representing 0.91% and 1.06% of total loans at September 30, 2015 and June 30, 2015, respectively. Loans delinquent 30 – 89 days increased $4.2 million to $5.9 million at September 30, 2015 from $1.7 million at June 30, 2015 primarily due to one commercial and industrial loan relationship of $3.3 million. 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 $0.03 per share. The dividend is payable on November 25, 2015 to all shareholders of record on November 11, 2015.
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 13 banking offices located in Agawam, East Longmeadow, Feeding Hills, Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts, and Granby and Enfield, 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, 2014, 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 | Nine Months Ended | ||||||||||||||||||||||||
September 30, |
June 30, | March 31, | December 31, | September 30, | September 30, | ||||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | |||||||||||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||||||
Loans | $ | 7,849 | $ | 7,371 | $ | 7,229 | $ | 7,331 | $ | 7,135 | $ | 22,449 | $ | 20,513 | |||||||||||
Securities | 2,997 | 3,049 | 2,885 | 3,079 | 3,147 | 8,931 | 9,808 | ||||||||||||||||||
Other investments - at cost | 126 | 69 | 68 | 59 | 59 | 263 | 187 | ||||||||||||||||||
Federal funds sold, interest-bearing deposits and other short-term investments | 2 | 5 | 6 | 2 | 2 | 13 | 11 | ||||||||||||||||||
Total interest and dividend income | 10,974 | 10,494 | 10,188 | 10,471 | 10,343 | 31,656 | 30,519 | ||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||||
Deposits | 1,414 | 1,380 | 1,341 | 1,300 | 1,298 | 4,135 | 3,877 | ||||||||||||||||||
Long-term debt | 1,083 | 1,092 | 1,070 | 1,119 | 1,125 | 3,244 | 3,207 | ||||||||||||||||||
Short-term borrowings | 317 | 243 | 187 | 174 | 86 | 748 | 245 | ||||||||||||||||||
Total interest expense | 2,814 | 2,715 | 2,598 | 2,593 | 2,509 | 8,127 | 7,329 | ||||||||||||||||||
Net interest and dividend income | 8,160 | 7,779 | 7,590 | 7,878 | 7,834 | 23,529 | 23,190 | ||||||||||||||||||
PROVISION FOR LOAN LOSSES | 150 | 350 | 300 | 275 | 750 | 800 | 1,300 | ||||||||||||||||||
Net interest and dividend income after provision for loan losses | 8,010 | 7,429 | 7,290 | 7,603 | 7,084 | 22,729 | 21,890 | ||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||||
Service charges and fees | 789 | 840 | 638 | 659 | 655 | 2,266 | 1,958 | ||||||||||||||||||
Income from bank-owned life insurance | 374 | 407 | 367 | 374 | 384 | 1,149 | 1,150 | ||||||||||||||||||
Loss on prepayment of borrowings | (429) | (278) | (593) | - | - | (1,300) | - | ||||||||||||||||||
Gain on sales of securities, net | 414 | 276 | 817 | 44 | 226 | 1,507 | 276 | ||||||||||||||||||
Total noninterest income | 1,148 | 1,245 | 1,229 | 1,077 | 1,265 | 3,622 | 3,384 | ||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||||
Salaries and employees benefits | 3,903 | 3,863 | 3,821 | 3,643 | 3,623 | 11,588 | 11,066 | ||||||||||||||||||
Occupancy | 784 | 818 | 840 | 821 | 743 | 2,443 | 2,255 | ||||||||||||||||||
Data processing | 636 | 559 | 585 | 616 | 600 | 1,779 | 1,725 | ||||||||||||||||||
Professional fees | 596 | 488 | 472 | 447 | 495 | 1,555 | 1,489 | ||||||||||||||||||
FDIC insurance | 212 | 188 | 193 | 205 | 166 | 592 | 508 | ||||||||||||||||||
Other | 736 | 949 | 800 | 764 | 721 | 2,486 | 2,370 | ||||||||||||||||||
Total noninterest expense | 6,867 | 6,865 | 6,711 | 6,496 | 6,348 | 20,443 | 19,413 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 2,291 | 1,809 | 1,808 | 2,184 | 2,001 | 5,908 | 5,861 | ||||||||||||||||||
INCOME TAX PROVISION | 680 | 445 | 470 | 523 | 491 | 1,595 | 1,360 | ||||||||||||||||||
NET INCOME | $ | 1,611 | $ | 1,364 | $ | 1,338 | $ | 1,661 | $ | 1,510 | $ | 4,313 | $ | 4,501 | |||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.08 | $ | 0.25 | $ | 0.25 | |||||||||||
Weighted average shares outstanding |
17,461,472 | 17,519,562 | 17,684,498 | 17,718,143 | 17,910,223 | 17,554,361 | 18,340,642 | ||||||||||||||||||
Diluted earnings per share | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.08 | $ | 0.25 | $ | 0.25 | |||||||||||
Weighted average diluted shares outstanding |
17,461,472 | 17,519,562 | 17,684,498 | 17,718,143 | 17,910,223 | 17,554,361 | 18,340,642 | ||||||||||||||||||
Other Data: | |||||||||||||||||||||||||
Return on average assets (1) | 0.47% | 0.41% | 0.41% | 0.50% | 0.46% | 0.43% | 0.47% | ||||||||||||||||||
Return on average equity (1) | 4.69% | 3.89% | 3.82% | 4.57% | 4.12% | 4.13% | 4.05% | ||||||||||||||||||
Efficiency ratio (2) | 73.66% | 76.06% | 78.08% | 72.90% | 71.54% | 75.87% | 73.82% | ||||||||||||||||||
Net interest margin | 2.53% | 2.50% | 2.52% | 2.56% | 2.58% | 2.52% | 2.61% | ||||||||||||||||||
(1) 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) | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Cash and cash equivalents | $ | 21,980 | $ | 13,694 | $ | 12,719 | $ | 18,785 | $ | 14,429 | |||||
Securities available for sale, at fair value | 191,324 | 245,004 | 233,591 | 215,750 | 212,460 | ||||||||||
Securities held to maturity, at cost | 248,757 | 256,303 | 266,718 | 278,080 | 283,684 | ||||||||||
Federal Home Loan Bank of Boston and other restricted stock - at cost | 15,839 | 15,372 | 14,934 | 14,934 | 14,720 | ||||||||||
Loans | 806,893 | 759,382 | 730,354 | 724,686 | 719,555 | ||||||||||
Allowance for loan losses | 8,372 | 8,295 | 8,035 | 7,948 | 7,695 | ||||||||||
Net loans | 798,521 | 751,087 | 722,319 | 716,738 | 711,860 | ||||||||||
Bank-owned life insurance | 49,852 | 49,477 | 49,070 | 48,703 | 48,329 | ||||||||||
Other assets | 30,942 | 30,749 | 29,660 | 27,106 | 25,699 | ||||||||||
TOTAL ASSETS | $ | 1,357,215 | $ | 1,361,686 | $ | 1,329,011 | $ | 1,320,096 | $ | 1,311,181 | |||||
Total deposits | $ | 909,041 | $ | 897,714 | $ | 873,303 | $ | 834,218 | $ | 828,785 | |||||
Short-term borrowings | 121,222 | 111,251 | 82,625 | 93,997 | 78,685 | ||||||||||
Long-term debt | 166,407 | 195,772 | 212,637 | 232,479 | 246,804 | ||||||||||
Securities pending settlement | - | - | - | - | 137 | ||||||||||
Other liabilities | 20,937 | 17,124 | 20,156 | 16,859 | 12,464 | ||||||||||
TOTAL LIABILITIES | 1,217,607 | 1,221,861 | 1,188,721 | 1,177,553 | 1,166,875 | ||||||||||
TOTAL SHAREHOLDERS' EQUITY | 139,608 | 139,825 | 140,290 | 142,543 | 144,306 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,357,215 | $ | 1,361,686 | $ | 1,329,011 | $ | 1,320,096 | $ | 1,311,181 | |||||
Book value per share | $ | 7.59 | $ | 7.56 | $ | 7.56 | $ | 7.61 | $ | 7.67 | |||||
Other Data: | |||||||||||||||
30- 89 day delinquent loans | $ | 5,882 | $ | 1,744 | $ | 1,973 | $ | 3,821 | $ | 4,254 | |||||
Nonperforming loans | 7,347 | 8,013 | 8,340 | 8,830 | 8,867 | ||||||||||
Nonperforming loans as a percentage of total loans | 0.91% | 1.06% | 1.14% | 1.22% | 1.23% | ||||||||||
Nonperforming assets as a percentage of total assets | 0.54% | 0.59% | 0.63% | 0.67% | 0.68% | ||||||||||
Allowance for loan losses as a percentage of nonperforming loans | 113.95% | 103.52% | 96.34% | 90.01% | 86.78% | ||||||||||
Allowance for loan losses as a percentage of total loans | 1.04% | 1.09% | 1.10% | 1.10% | 1.07% |
The following tables set forth the information relating to our average balances and net interest income for the three months ended September 30, 2015, June 30, 2015, and September 30, 2014, and the nine months ended September 30, 2015 and 2014, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||||||||
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) | $ | 788,637 | $ | 7,879 | 4.00 | % | $ | 742,475 | $ | 7,401 | 3.99 | % | $ | 703,736 | $ | 7,170 | 4.08 | % | |||||||||||||||||
Securities(2) | 481,360 | 3,068 | 2.55 | 498,093 | 3,135 | 2.52 | 492,948 | 3,245 | 2.63 | ||||||||||||||||||||||||||
Other investments - at cost | 16,963 | 126 | 2.97 | 16,460 | 69 | 1.68 | 16,129 | 59 | 1.46 | ||||||||||||||||||||||||||
Short-term investments(3) | 7,704 | 2 | 0.10 | 11,231 | 5 | 0.18 | 12,399 | 2 | 0.06 | ||||||||||||||||||||||||||
Total interest-earning assets | 1,294,664 | 11,075 | 3.42 | 1,268,259 | 10,610 | 3.35 | 1,225,212 | 10,476 | 3.42 | ||||||||||||||||||||||||||
Total noninterest-earning assets | 76,614 | 80,303 | 72,984 | ||||||||||||||||||||||||||||||||
Total assets | $ | 1,371,278 | $ | 1,348,562 | $ | 1,298,196 | |||||||||||||||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
Interest-bearing accounts | $ | 34,725 | 20 | 0.23 | $ | 35,954 | 20 | 0.22 | $ | 38,889 | 22 | 0.23 | |||||||||||||||||||||||
Savings accounts | 75,943 | 20 | 0.11 | 75,669 | 20 | 0.11 | 78,860 | 20 | 0.10 | ||||||||||||||||||||||||||
Money market accounts | 239,112 | 198 | 0.33 | 236,322 | 208 | 0.35 | 227,554 | 225 | 0.40 | ||||||||||||||||||||||||||
Time certificates of deposit | 398,238 | 1,176 | 1.18 | 390,616 | 1,132 | 1.16 | 342,281 | 1,031 | 1.20 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 748,018 | 1,414 | 738,561 | 1,380 | 687,584 | 1,298 | |||||||||||||||||||||||||||||
Short-term borrowings and long-term debt | 320,712 | 1,400 | 1.75 | 307,892 | 1,335 | 1.73 | 318,357 | 1,211 | 1.52 | ||||||||||||||||||||||||||
Interest-bearing liabilities | 1,068,730 | 2,814 | 1.05 | 1,046,453 | 2,715 | 1.04 | 1,005,941 | 2,509 | 1.00 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 149,626 | 143,323 | 133,817 | ||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 16,755 | 18,302 | 13,139 | ||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 166,381 | 161,625 | 146,956 | ||||||||||||||||||||||||||||||||
Total liabilities | 1,235,111 | 1,208,078 | 1,152,897 | ||||||||||||||||||||||||||||||||
Total equity | 136,167 | 140,484 | 145,299 | ||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,371,278 | $ | 1,348,562 | $ | 1,298,196 | |||||||||||||||||||||||||||||
Less: Tax-equivalent adjustment(2) | (101) | (116) | (133) | ||||||||||||||||||||||||||||||||
Net interest and dividend income | $ | 8,160 | $ | 7,779 | $ | 7,834 | |||||||||||||||||||||||||||||
Net interest rate spread(4) | 2.37 | % | 2.31 | % | 2.42 | % | |||||||||||||||||||||||||||||
Net interest margin(5) | 2.53 | % | 2.50 | % | 2.58 | % | |||||||||||||||||||||||||||||
Ratio of average interest-earning | |||||||||||||||||||||||||||||||||||
assets to average interest-bearing liabilities | 121.14 | 121.20 | 121.80 |
Nine Months Ended September 30, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Average Balance |
Interest |
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Avg Yield/ |
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Average |
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Interest |
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Avg Yield/ |
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(Dollars in thousands) | |||||||||||||||||||||
ASSETS: | |||||||||||||||||||||
Interest-earning assets | |||||||||||||||||||||
Loans(1)(2) | $ | 753,077 | $ | 22,542 | 3.99 | % | $ | 670,102 | $ | 20,622 | 4.1 | % | |||||||||
Securities(2) | 487,122 | 9,177 | 2.51 | 507,906 | 10,107 | 2.65 | |||||||||||||||
Other investments - at cost | 16,555 | 263 | 2.12 | 16,730 | 187 | 1.49 | |||||||||||||||
Short-term investments(3) | 11,531 | 13 | 0.15 | 15,107 | 11 | 0.1 | |||||||||||||||
Total interest-earning assets | 1,268,285 | 31,995 | 3.36 | 1,209,845 | 30,927 | 3.41 | |||||||||||||||
Total noninterest-earning assets | 78,288 | 72,676 | |||||||||||||||||||
Total assets | $ | 1,346,573 | $ | 1,282,521 | |||||||||||||||||
LIABILITIES AND EQUITY: | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Interest-bearing checking | $ | 36,240 | 61 | 0.22 | $ | 41,178 | 77 | 0.25 | |||||||||||||
Savings accounts | 75,780 | 59 | 0.1 | 80,150 | 61 | 0.1 | |||||||||||||||
Money market accounts | 236,305 | 627 | 0.35 | 217,283 | 625 | 0.38 | |||||||||||||||
Time certificates of deposit | 385,881 | 3,388 | 1.17 | 341,256 | 3,114 | 1.22 | |||||||||||||||
Total interest-bearing deposits | 734,206 | 4,135 | 679,867 | 3,877 | |||||||||||||||||
Short-term borrowings and long-term debt | 312,373 | 3,992 | 1.7 | 311,954 | 3,452 | 1.48 | |||||||||||||||
Interest-bearing liabilities | 1,046,579 | 8,127 | 1.04 | 991,821 | 7,329 | 0.99 | |||||||||||||||
Noninterest-bearing deposits | 142,671 | 131,107 | |||||||||||||||||||
Other noninterest-bearing liabilities | 17,797 | 10,981 | |||||||||||||||||||
Total noninterest-bearing liabilities | 160,468 | 142,088 | |||||||||||||||||||
Total liabilities | 1,207,047 | 1,133,909 | |||||||||||||||||||
Total equity | 139,526 | 148,612 | |||||||||||||||||||
Total liabilities and equity | $ | 1,346,573 | $ | 1,282,521 | |||||||||||||||||
Less: Tax-equivalent adjustment(2) |
339 |
408 |
|||||||||||||||||||
Net interest and dividend income | $ | 23,529 | $ | 23,190 | |||||||||||||||||
Net interest rate spread(4) | 2.32 | % | 2.42 | % | |||||||||||||||||
Net interest margin(5) | 2.52 | % | 2.61 | % | |||||||||||||||||
Ratio of average interest-earning | |||||||||||||||||||||
assets to average interest-bearing liabilities | 121.18 | 121.98 |
(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.