WESTFIELD,Mass--(BUSINESS WIRE)--Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.4 million, or $0.08 per basic and diluted share, for the quarter ended December 31, 2015, compared to $1.7 million, or $0.09 per basic and diluted share, for the quarter ended December 31, 2014. For the year ended December 31, 2015, net income was $5.7 million, or $0.33 per basic and diluted share, compared to $6.2 million, or $0.34 per basic and diluted share, for the same period in 2014.
Selected financial highlights for fourth quarter 2015 include:
- Total loans increased $93.5 million, or 12.9%, to $818.2 million at December 31, 2015 compared to $724.7 million at December 31, 2014. This was primarily due to increases in residential loans of $63.8 million, commercial real estate loans of $24.6 million and commercial and industrial loans of $2.5 million. On a sequential-quarter basis, total loans increased $11.3 million, or 1.4%, during the fourth quarter of 2015. This was due to an increase in residential loans of $7.4 million and commercial real estate loans of $7.3 million. Commercial and industrial loans decreased $3.4 million primarily due to a decrease in the line of credit utilization during the fourth quarter 2015.
- Securities decreased $72.9 million, or 14.3%, to $435.9 million at December 31, 2015, compared to $508.8 million at December 31, 2014. On a sequential-quarter basis, securities decreased $20.0 million, or 4.4% at December 31, 2015, compared to $455.9 million at September 30, 2015. The decreases in securities during both periods were due to the sales of securities to fund loan growth.
- Net interest and dividend income increased $275,000 to $8.2 million for the quarter ended December 31, 2015 compared to $7.9 million for the comparable 2014 period. On a sequential-quarter basis, net interest and dividend income decreased $7,000 for the quarter ended December 31, 2015, compared to the quarter ended September 30, 2015. On a sequential quarter basis, the net interest margin increased 5 basis points to 2.58%, compared to 2.53% for the quarter ended September 30, 2015.
- Noninterest expense increased $494,000 to $7.0 million for the quarter ended December 31, 2015 compared to the fourth quarter of 2014. On a sequential-quarter basis, noninterest expense increased $123,000 from $6.9 million for the third quarter 2015. The efficiency ratio, excluding non-core items, was 74.4% for the fourth quarter of 2015, compared to 73.7% for the quarter ended September 30, 2015.
President and CEO, James C. Hagan stated, “The financial results for 2015 demonstrate a number of positive trends resulting from our continued focus on executing on our strategic initiatives. With strong annual loan and deposit growth of 12.9% and 7.9%, respectively, we continue to grow our core customer franchise and our shareholder value. As we grow, we remain just as committed to our strong credit culture, as evidenced by our consistently low levels of nonperforming assets and charge-offs. At the same time, we have actively worked to restructure our balance sheet, reducing securities 14.3% for the year 2015. This strategy has resulted in positive trends in net interest income for the full year 2015.”
Hagan continued, “We have had positive customer reception to our brand of banking in the Connecticut market. Our Enfield branch, which opened in November 2014, and Granby branch, which opened in 2013, have combined deposits of over $45.0 million. With our strategic expansion into Connecticut, our objective is to continue developing loan and deposit relationships. We have an experienced, disciplined, regional leadership team prepared to take advantage of continued opportunities for organic growth and expansion into demographically attractive markets.”
Additional Income Statement Discussion
Net interest and dividend income increased $614,000 to $31.7 million for the year ended December 31, 2015, as compared to $31.1 million for the year ended December 31, 2014. The net interest margin for the year ended December 31, 2015 decreased 7 basis points to 2.53%, as compared to 2.60% for the same period in 2014. This was a result of a decrease of 3 basis points in the yield on average interest-earning assets along with a 4 basis point increase in the cost of average interest-bearing liabilities.
Non-interest income increased $165,000 to $1.2 million for the quarter ended December 31, 2015, compared to $1.1 million for the quarter ended December 31, 2014. For the year ended December 31, 2015, non-interest income increased $405,000 to $4.9 million, compared to $4.5 million for the same period in 2014. For the year ended December 31, 2015, non-interest income included a $130,000 one-time credit pertaining to a vendor contract renegotiation.
Non-interest expense increased $1.5 million to $27.4 million from $25.9 million for the year ended December 31, 2015, compared to the same period in 2014. Salaries and benefits increased $701,000 and occupancy expense increased $163,000. This was driven, in part, by annual increases in benefits expenses and the addition of the Enfield branch, which opened in November 2014. The efficiency ratio, excluding non-core items, was 75.5% and 73.6% for the years ended December 31, 2015 and 2014, respectively.
Additional Balance Sheet Discussion
Total deposits increased $66.2 million, or 7.9%, to $900.4 million at December 31, 2015, compared to $834.2 million at December 31, 2014. This was primarily due to increases in term accounts of $38.0 million, money market accounts of $15.3 million, checking accounts of $12.7 million and savings accounts of $254,000. The increase in term accounts from December 31, 2014 includes $17.5 million in brokered and listing service deposits, which provide a diversified, low cost funding source. Total deposits decreased $8.6 million, or 1.0%, to $900.4 million at December 31, 2015, compared to $909.0 million at September 30, 2015. In addition, short-term borrowings and long term debt decreased $44.7 million, or 13.7%, to $281.8 at December 31, 2015 from $326.5 million at December 31, 2014. On a sequential-quarter basis, short-term borrowings and long term debt decreased $5.8 million, or 2.0%, to $281.8 million at December 31, 2015, compared to $287.6 million at September 30, 2015.
Shareholders’ equity was $139.5 million at December 31, 2015 and $139.6 million at September 30, 2015, which represented 10.4% and 10.3% of total assets at December 31 and September 30, 2015, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 130,298 shares of common stock for $1.0 million (an average price of $7.84 per share), a decrease in accumulated other comprehensive income of $192,000, and the payment of a quarterly dividend of $518,000. This was offset by net income of $1.4 million for the quarter ended December 31, 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 December 31, 2015, there were 484,668 shares remaining under this repurchase program.
Credit Quality
The allowance for loan losses was $8.8 million, $8.4 million and $7.9 million at December 31, 2015, September 30, 2015 and December 31, 2014, representing 1.08%, 1.04% and 1.10% of total loans, respectively. This represents 109.4%, 114.0% and 90.0% of nonperforming loans, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
Three Months Ended | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
2015 | 2015 | 2014 | |||||||||||
(In thousands) | |||||||||||||
Balance, beginning of period | $ | 8,372 | $ | 8,295 | $ | 7,695 | |||||||
Provision | 475 | 150 | 275 | ||||||||||
Charge-offs | (65 | ) | (85 | ) | (35 | ) | |||||||
Recoveries | 58 | 12 | 13 | ||||||||||
Balance, end of period | $ | 8,840 | $ | 8,372 | $ | 7,948 |
Provision for loan losses expense was $475,000 for the fourth quarter 2015, compared to $275,000 for the comparable 2014 period. Although still performing, two commercial loan relationships were downgraded to a higher risk profile for allowance purposes, which resulted in an increase of $230,000 in the provision during the fourth quarter 2015.
Nonperforming loans were $8.1 million and $7.3 million, representing 0.99% and 0.91% of total loans at December 31, 2015 and September 30, 2015, respectively. Loans delinquent 30 – 89 days decreased $3.0 million to $2.9 million at December 31, 2015 from $5.9 million at September 30, 2015. 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 February 24, 2016 to all shareholders of record on February 10, 2016.
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 | Year Ended | ||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||||||||||||||||||||
Loans | $ | 8,072 | $ | 7,849 | $ | 7,371 | $ | 7,229 | $ | 7,331 | $ | 30,521 | $ | 27,843 | |||||||||||||||
Securities | 2,609 | 2,997 | 3,049 | 2,885 | 3,079 | 11,541 | 12,889 | ||||||||||||||||||||||
Other investments - at cost | 133 | 126 | 69 | 68 | 59 | 396 | 246 | ||||||||||||||||||||||
Federal funds sold, interest-bearing deposits |
6 | 2 | 5 | 6 |
2 |
18 | 13 | ||||||||||||||||||||||
Total interest and dividend income | 10,820 | 10,974 | 10,494 | 10,188 | 10,471 | 42,476 | 40,991 | ||||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||||||||
Deposits | 1,436 | 1,414 | 1,380 | 1,341 | 1,300 | 5,571 | 5,177 | ||||||||||||||||||||||
Long-term debt | 889 | 1,083 | 1,092 | 1,070 | 1,119 | 4,133 | 4,326 | ||||||||||||||||||||||
Short-term borrowings | 342 | 317 | 243 | 187 | 174 | 1,090 | 420 | ||||||||||||||||||||||
Total interest expense | 2,667 | 2,814 | 2,715 | 2,598 | 2,593 | 10,794 | 9,923 | ||||||||||||||||||||||
Net interest and dividend income | 8,153 | 8,160 | 7,779 | 7,590 | 7,878 | 31,682 | 31,068 | ||||||||||||||||||||||
PROVISION FOR LOAN LOSSES | 475 | 150 | 350 | 300 | 275 | 1,275 | 1,575 | ||||||||||||||||||||||
Net interest and dividend income after |
7,678 | 8,010 | 7,429 | 7,290 | 7,603 | 30,407 | 29,493 | ||||||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||||||||
Service charges and fees | 865 | 789 | 840 | 638 | 659 | 3,132 | 2,617 | ||||||||||||||||||||||
Income from bank-owned life insurance | 378 | 374 | 407 | 367 | 374 | 1,527 | 1,523 | ||||||||||||||||||||||
Loss on prepayment of borrowings | - | (429 | ) | (278 | ) | (593 | ) | - | (1,300 | ) | - | ||||||||||||||||||
Gain on sales of securities, net | (1 | ) | 414 | 276 | 817 | 44 | 1,506 | 320 | |||||||||||||||||||||
Total noninterest income | 1,242 | 1,148 | 1,245 | 1,229 | 1,077 | 4,865 | 4,460 | ||||||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||||||||
Salaries and employees benefits | 3,822 | 3,903 | 3,863 | 3,821 | 3,643 | 15,410 | 14,709 | ||||||||||||||||||||||
Occupancy | 795 | 784 | 818 | 840 | 821 | 3,239 | 3,076 | ||||||||||||||||||||||
Data processing | 582 | 636 | 559 | 585 | 616 | 2,361 | 2,341 | ||||||||||||||||||||||
Professional fees | 623 | 596 | 488 | 472 | 447 | 2,178 | 1,936 | ||||||||||||||||||||||
FDIC insurance | 208 | 212 | 188 | 193 | 205 | 800 | 713 | ||||||||||||||||||||||
Other | 960 | 736 | 949 | 800 | 764 | 3,445 | 3,134 | ||||||||||||||||||||||
Total noninterest expense | 6,990 | 6,867 | 6,865 | 6,711 | 6,496 | 27,433 | 25,909 | ||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 1,930 | 2,291 | 1,809 | 1,808 | 2,184 | 7,839 | 8,044 | ||||||||||||||||||||||
INCOME TAX PROVISION | 529 | 680 | 445 | 470 | 523 | 2,124 | 1,882 | ||||||||||||||||||||||
NET INCOME | $ | 1,401 | $ | 1,611 | $ | 1,364 | $ | 1,338 | $ | 1,661 | $ | 5,715 | $ | 6,162 | |||||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.33 | $ | 0.34 | |||||||||||||||
Weighted average shares outstanding | 17,329,248 | 17,461,472 | 17,519,562 | 17,684,498 | 17,718,143 | 17,497,620 | 18,183,739 | ||||||||||||||||||||||
Diluted earnings per share | $ | 0.08 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.33 | $ | 0.34 | |||||||||||||||
Weighted average diluted shares outstanding | 17,329,248 | 17,461,472 | 17,519,562 | 17,684,498 | 17,718,143 | 17,497,620 | 18,183,739 | ||||||||||||||||||||||
Other Data: | |||||||||||||||||||||||||||||
Return on average assets (1) | 0.41 | % | 0.47 | % | 0.41 | % | 0.41 | % | 0.50 | % | 0.42 | % | 0.48 | % | |||||||||||||||
Return on average equity (1) | 3.99 | % | 4.69 | % | 3.89 | % | 3.82 | % | 4.57 | % | 4.10 | % | 4.18 | % | |||||||||||||||
Efficiency ratio (2) | 74.39 | % | 73.66 | % | 76.06 | % | 78.08 | % | 72.90 | % | 75.49 | % | 73.59 | % | |||||||||||||||
Net interest margin | 2.58 | % | 2.53 | % | 2.50 | % | 2.52 | % | 2.56 | % | 2.53 | % | 2.60 | % | |||||||||||||||
(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 |
|||||||||||||||||||||||||||||
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES Consolidated Balance Sheets and Other Data (Dollars in thousands, except per share data) (Unaudited) |
|||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
Cash and cash equivalents | $ | 13,703 | $ | 21,980 | $ | 13,694 | $ | 12,719 | $ | 18,785 | |||||||||
Securities available for sale, at fair value | 182,590 | 191,324 | 245,004 | 233,591 | 215,750 | ||||||||||||||
Securities held to maturity, at cost | 238,219 | 248,757 | 256,303 | 266,718 | 278,080 | ||||||||||||||
Federal Home Loan Bank of Boston and other |
15,074 | 15,839 | 15,372 | 14,934 | 14,934 | ||||||||||||||
Loans | 818,213 | 806,893 | 759,382 | 730,354 | 724,686 | ||||||||||||||
Allowance for loan losses | 8,840 | 8,372 | 8,295 | 8,035 | 7,948 | ||||||||||||||
Net loans | 809,373 | 798,521 | 751,087 | 722,319 | 716,738 | ||||||||||||||
Bank-owned life insurance | 50,230 | 49,852 | 49,477 | 49,070 | 48,703 | ||||||||||||||
Other assets | 30,741 | 30,942 | 30,749 | 29,660 | 27,106 | ||||||||||||||
TOTAL ASSETS | $ | 1,339,930 | $ | 1,357,215 | $ | 1,361,686 | $ | 1,329,011 | $ | 1,320,096 | |||||||||
Total deposits | $ | 900,363 | $ | 909,041 | $ | 897,714 | $ | 873,303 | $ | 834,218 | |||||||||
Short-term borrowings | 128,407 | 121,222 | 111,251 | 82,625 | 93,997 | ||||||||||||||
Long-term debt | 153,358 | 166,407 | 195,772 | 212,637 | 232,479 | ||||||||||||||
Other liabilities | 18,336 | 20,937 | 17,124 | 20,156 | 16,859 | ||||||||||||||
TOTAL LIABILITIES | 1,200,464 | 1,217,607 | 1,221,861 | 1,188,721 | 1,177,553 | ||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 139,466 | 139,608 | 139,825 | 140,290 | 142,543 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,339,930 | $ | 1,357,215 | $ | 1,361,686 | $ | 1,329,011 | $ | 1,320,096 | |||||||||
Book value per share | $ | 7.63 | $ | 7.59 | $ | 7.56 | $ | 7.56 | $ | 7.61 | |||||||||
Other Data: | |||||||||||||||||||
30- 89 day delinquent loans | $ | 2,876 | $ | 5,882 | $ | 1,744 | $ | 1,973 | $ | 3,821 | |||||||||
Nonperforming loans | 8,080 | 7,347 | 8,013 | 8,340 | 8,830 | ||||||||||||||
Nonperforming loans as a percentage of total |
0.99 | % | 0.91 | % | 1.06 | % | 1.14 | % | 1.22 | % | |||||||||
Nonperforming assets as a percentage of total |
0.60 | % | 0.54 | % | 0.59 | % | 0.63 | % | 0.67 | % | |||||||||
Allowance for loan losses as a percentage of |
109.41 | % | 113.95 | % | 103.52 | % | 96.34 | % | 90.01 | % | |||||||||
Allowance for loan losses as a percentage of total |
1.08 | % | 1.04 | % | 1.09 | % | 1.10 | % | 1.10 | % | |||||||||
The following tables set forth the information relating to our average balances and net interest income for the three months ended December 31, 2015, September 30, 2015, and December 31, 2014, and the years ended December 31, 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 | ||||||||||||||||||||||||||||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 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) | $ | 806,519 | $ | 8,102 | 4.02 | % | $ | 788,637 | $ | 7,879 | 4.00 | % | $ | 721,528 | $ | 7,363 | 4.08 | % | ||||||||||||||||||||
Securities(2) | 429,571 | 2,654 | 2.47 | 481,360 | 3,068 | 2.55 | 494,519 | 3,181 | 2.57 | |||||||||||||||||||||||||||||
Other investments - at cost | 16,374 | 133 | 3.25 | 16,963 | 126 | 2.97 | 16,202 | 59 | 1.46 | |||||||||||||||||||||||||||||
Short-term investments(3) | 13,660 | 6 | 0.18 | 7,704 | 2 | 0.10 | 9,721 | 2 | 0.08 | |||||||||||||||||||||||||||||
Total interest-earning assets | 1,266,124 | 10,895 | 3.44 | 1,294,664 | 11,075 | 3.42 | 1,241,970 | 10,605 | 3.42 | |||||||||||||||||||||||||||||
Total noninterest-earning assets | 80,868 | 76,614 | 75,286 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 1,346,992 | $ | 1,371,278 | $ | 1,317,256 | ||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Interest-bearing accounts | $ | 28,745 | 17 | 0.24 | $ | 34,725 | 20 | 0.23 | $ | 38,138 | 22 | 0.23 | ||||||||||||||||||||||||||
Savings accounts | 75,426 | 20 | 0.11 | 75,943 | 20 | 0.11 | 75,928 | 20 | 0.11 | |||||||||||||||||||||||||||||
Money market accounts | 242,165 | 204 | 0.34 | 239,112 | 198 | 0.33 | 233,582 | 220 | 0.38 | |||||||||||||||||||||||||||||
Time certificates of deposit | 402,837 | 1,195 | 1.19 | 398,238 | 1,176 | 1.18 | 348,928 | 1,038 | 1.19 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 749,173 | 1,436 | 748,018 | 1,414 | 696,576 | 1,300 | ||||||||||||||||||||||||||||||||
Short-term borrowings and long-term debt | 285,687 | 1,231 | 1.72 | 320,712 | 1,400 | 1.75 | 324,394 | 1,293 | 1.59 | |||||||||||||||||||||||||||||
Interest-bearing liabilities | 1,034,860 | 2,667 | 1.03 | 1,068,730 | 2,814 | 1.05 | 1,020,970 | 2,593 | 1.02 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 153,969 | 149,626 | 138,311 | |||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities |
18,992 | 16,755 | 13,802 | |||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 172,961 | 166,381 | 152,113 | |||||||||||||||||||||||||||||||||||
Total liabilities | 1,207,821 | 1,235,111 | 1,173,083 | |||||||||||||||||||||||||||||||||||
Total equity | 139,171 | 136,167 | 144,173 | |||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,346,992 | $ | 1,371,278 | $ | 1,317,256 | ||||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustment(2) | (75 | ) | (101 | ) | (134 | ) | ||||||||||||||||||||||||||||||||
Net interest and dividend income | $ | 8,153 | $ | 8,160 | $ | 7,878 | ||||||||||||||||||||||||||||||||
Net interest rate spread(4) | 2.41 | % | 2.37 | % | 2.40 | % | ||||||||||||||||||||||||||||||||
Net interest margin(5) | 2.58 | % | 2.53 | % | 2.56 | % | ||||||||||||||||||||||||||||||||
Ratio of average interest-earning |
||||||||||||||||||||||||||||||||||||||
122.35 | 121.14 | 121.65 | ||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Average | Avg Yield/ | Average | Avg Yield/ | ||||||||||
Balance | Interest | Cost | Balance | Interest | Cost | ||||||||
(Dollars in thousands) | |||||||||||||
ASSETS: | |||||||||||||
Interest-earning assets | |||||||||||||
Loans(1)(2) | $ 766,548 | $ 30,646 | 4.00 | % | $ 683,064 | $ 27,989 | 4.10 | % | |||||
Securities(2) | 472,616 | 11,832 | 2.50 | 504,532 | 13,299 | 2.64 | |||||||
Other investments - at cost | 16,509 | 396 | 2.40 | 16,597 | 246 | 1.48 | |||||||
Short-term investments(3) | 12,067 | 18 | 0.15 | 13,749 | 13 | 0.09 | |||||||
Total interest-earning assets | 1,267,740 | 42,892 | 3.38 | 1,217,942 | 41,547 | 3.41 | |||||||
Total noninterest-earning assets | 78,938 | 73,334 | |||||||||||
Total assets | $ 1,346,678 | $ 1,291,276 | |||||||||||
LIABILITIES AND EQUITY: | |||||||||||||
Interest-bearing liabilities | |||||||||||||
Interest-bearing checking | $ 34,351 | 79 | 0.23 | $ 40,412 | 99 | 0.24 | |||||||
Savings accounts | 75,691 | 79 | 0.10 | 79,086 | 80 | 0.10 | |||||||
Money market accounts | 237,782 | 830 | 0.35 | 221,391 | 846 | 0.38 | |||||||
Time certificates of deposit | 390,155 | 4,583 | 1.17 | 343,190 | 4,152 | 1.21 | |||||||
Total interest-bearing deposits | 737,979 | 5,571 | 684,079 | 5,177 | |||||||||
Short-term borrowings and long-term debt | 305,646 | 5,223 | 1.71 | 315,089 | 4,746 | 1.51 | |||||||
Interest-bearing liabilities | 1,043,625 | 10,794 | 1.03 | 999,168 | 9,923 | 0.99 | |||||||
Noninterest-bearing deposits | 145,519 | 132,923 | |||||||||||
Other noninterest-bearing liabilities | 18,098 | 11,692 | |||||||||||
Total noninterest-bearing liabilities | 163,617 | 144,615 | |||||||||||
Total liabilities | 1,207,242 | 1,143,783 | |||||||||||
Total equity | 139,436 | 147,493 | |||||||||||
Total liabilities and equity | $ 1,346,678 | $ 1,291,276 | |||||||||||
Less: Tax-equivalent adjustment(2) | (416) | (556) | |||||||||||
Net interest and dividend income | $ 31,682 | $ 31,068 | |||||||||||
Net interest rate spread(4) | 2.34 | % | 2.42 | % | |||||||||
Net interest margin(5) | 2.53 | % | 2.60 | % | |||||||||
Ratio of average interest-earning |
|||||||||||||
121.47 |
121.90 | ||||||||||||
(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- |
|||||||||||||
(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 |
|||||||||||||
(5) Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. |
|||||||||||||