Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Western New England Bancorp, Inc. | wfd-8k_072314.htm |
Exhibit 99.1
For further information contact: James C. Hagan, President & CEO Leo R. Sagan, Jr., CFO Meghan Hibner, VP Investor Relations Officer 413-568-1911 |
WESTFIELD FINANCIAL, INC. REPORTS RESULTS FOR THE QUARTER ENDED JUNE 30, 2014 AND DECLARES QUARTERLY DIVIDEND
Loan growth continues to be strong at 13.1% year-over-year
Westfield, Massachusetts, July 23, 2014: Westfield Financial, Inc. (the “Company”) (NasdaqGS:WFD), the holding company for Westfield Bank (the “Bank”), reported net income of $1.3 million, or $0.07 per diluted share, for the quarter ended June 30, 2014, compared to $1.6 million, or $0.08 per diluted share, for the quarter ended June 30, 2013. For the six months ended June 30, 2014, net income was $3.0 million, or $0.16 per diluted share, compared to $3.4 million, or $0.16 per diluted share, for the same period in 2013.
Both the three and six months ended June 30, 2014 included an expense for the provision for loan losses as a result of loan growth, whereas the comparable 2013 periods contained a credit to the provision for loan losses. The three months ended June 30, 2014 included a provision for loan losses of $450,000 compared to a credit to the provision for loan losses of $70,000 in the comparable 2013 period. For the six months ended June 30, 2014 the provision for loan losses was $550,000, compared to a credit of $305,000 in the comparable 2013 period.
Selected financial highlights for second quarter 2014 include:
| · | Total loans increased $79.5 million, or 13.1%, to $686.1 million at June 30, 2014 compared to $606.6 million at June 30, 2013. This was primarily due to increases in commercial real estate loans of $42.3 million, commercial and industrial loans of $19.2 million, and residential loans of $18.0 million. On a sequential-quarter basis, total loans increased $37.8 million, or 5.8%, to $686.1 million for the second quarter of 2014. This was primarily due to increases in commercial and industrial loans of $14.5 million, commercial real estate loans of $11.9 million, and residential loans of $11.3 million. | |
| · | Securities declined $110.7 million, or 18.2%, to $496.0 million at June 30, 2014, compared to $606.7 million at June 30, 2013. On a sequential-quarter basis, securities declined by $45.5 million, or 8.4%, at June 30, 2014, compared to $541.5 million at March 31, 2014. | |
| · | Net interest and dividend income increased $64,000 to $7.7 million for the quarter ended June 30, 2014 compared to $7.6 million for the quarter ended June 30, 2013. On a sequential-quarter basis, net interest and dividend income increased $46,000 for the quarter ended June 30, 2014, compared to the quarter ended March 31, 2014. | |
| · | The net interest margin for the quarter ended June 30, 2014 increased 6 basis points to 2.61%, as compared to 2.55% for the second quarter of 2013. On a sequential-quarter basis, the net interest margin decreased 2 basis points for the quarter ended June 30, 2014 compared to the quarter ended March 31, 2014. In the second quarter, we reduced our securities portfolio earlier in the quarter and ultimately closed on a substantial portion of the loan growth later in the quarter. This timing difference was a primary cause of the reduction in net interest margin. | |
| · | Noninterest expense decreased $258,000 to $6.5 million for the quarter ended June 30, 2014, compared to $6.8 million for the quarter ended June 30, 2013. On a sequential-quarter basis, noninterest expense remained stable at $6.5 million. | |
President and CEO, James C. Hagan stated, “Our loan growth initiatives continue to be successful and I’m pleased with what we have achieved over the past four quarters. Through our continuous calling efforts, we have been able to capitalize on opportunities using our commercial lending expertise along with providing a personalized customer experience with local decision making. To build upon this momentum, as previously announced, our middle market commercial lending group will be moving to downtown Springfield, Massachusetts. This will give us better access to the borrowers and centers of influence in the greater-Springfield area as well as northern Connecticut.”
Additional Income Statement Discussion
Net interest and dividend income increased $64,000 to $7.7 million for the quarter ended June 30, 2014 compared to the same period in 2013. The net interest margin increased 6 basis points to 2.61% for the quarter ended June 30, 2014, compared to 2.55% for the quarter ended June 30, 2013. The cost of average interest-bearing liabilities decreased 6 basis points, driven by lower deposit costs, along with an increase of 3 basis points in the yield on average interest-earning assets, resulting from the shift in interest-earning assets through growing loans and reducing securities.
Net interest and dividend income increased $49,000 to $15.4 million for the six months ended June 30, 2014, as compared to $15.3 million for the same period in 2013. The net interest margin increased 5 basis points to 2.62% for the six months ended June 30, 2014, compared to 2.57% for the six months ended June 30, 2013. The cost of average interest-bearing liabilities decreased 9 basis points, partially offset by a decrease of 1 basis point in the yield on average interest-earning assets.
Noninterest income increased $76,000 to $1.0 million for the quarter ended June 30, 2014, compared to $963,000 for the same period in 2013. The second quarter of 2013 included a loss on prepayment of borrowings of $1.4 million which was substantially offset by securities gains of $823,000 and a gain on bank-owned life insurance death benefit of $563,000.
Noninterest expense decreased $258,000 to $6.5 million for the quarter ended June 30, 2014 compared to $6.8 million for the same period in 2013. This was primarily due to a decrease in salaries and benefits of $152,000 along with a decrease in other expenses of $105,000, driven by a reduction in advertising expense of $40,000. Noninterest expense decreased $237,000 to $13.1 million from $13.3 million for the six months ended June 30, 2014 compared to the same period in 2013, primarily driven by a $170,000 reduction in employee benefits costs. The efficiency ratio, excluding non-core items, was 74.9% for the second quarter of 2014, compared to 78.8% for the same period in 2013 and 75.0% and 77.1% for the six months ended June 30, 2014 and 2013, respectively.
Additional Balance Sheet Discussion
Total deposits increased $35.9 million, or 4.6%, to $818.6 million at June 30, 2014, compared to $782.7 million at June 30, 2013. This was primarily due to increases in money market accounts of $16.6 million, term accounts of $16.2 million, and checking accounts of $9.8 million, partially offset by a decrease in regular savings accounts of $6.6 million. Total deposits increased $11.9 million, or 1.5%, to $818.6 million at June 30, 2014, compared to $806.7 million at March 31, 2014. This was primarily due to increases in money market accounts of $9.5 million and checking accounts of $4.0 million. In addition, short-term borrowings and long term debt decreased $31.5 million to $308.5 million at June 30, 2014 compared to $340.0 million at June 30, 2013. This was primarily due to a decrease in borrowings from the Federal Home Loan Bank.
Shareholders’ equity was $147.0 million at June 30, 2014 and $151.6 million at March 31, 2014, which represented 11.4% and 11.9% of total assets, respectively. The decrease in shareholders’ equity during the quarter reflects the repurchase of 614,548 shares of common stock for $4.4 million (an average price of $7.23 per share) and the payment of a quarterly dividend of $1.1 million. This was partially offset by net income of $1.3 million for the quarter ended June 30, 2014.
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 June 30, 2014, there were 1,433,480 shares remaining under this repurchase program.
| 2 |
Credit Quality
The allowance for loan losses was $8.0 million at June 30, 2014, $7.6 million at March 31, 2014 and $7.5 million at June 30, 2013, representing 1.17%, 1.17% and 1.23% of total loans, respectively. This represents 248.6%, 244.5% and 228.4% of nonperforming loans at June 30, 2014, March 31, 2014 and June 30, 2013, respectively.
An analysis of the changes in the allowance for loan losses is as follows:
| Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2014 | 2014 | 2013 | ||||||||||
| (In thousands) | ||||||||||||
| Balance, beginning of period | $ | 7,567 | $ | 7,459 | $ | 7,565 | ||||||
| Provision (credit) | 450 | 100 | (70 | ) | ||||||||
| Charge-offs | (13 | ) | (99 | ) | (66 | ) | ||||||
| Recoveries | 13 | 107 | 44 | |||||||||
| Balance, end of period | $ | 8,017 | $ | 7,567 | $ | 7,473 | ||||||
During the second quarter of 2014, nonperforming loans increased $130,000 to $3.2 million from March 31, 2014, representing 0.47% of total loans at June 30, 2014. The increase was due primarily to one commercial and industrial loan relationship. Loans delinquent 30 – 89 days were $5.5 million at June 30, 2014 and $5.4 million at March 31, 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 August 20, 2014 to all shareholders of record on August 6, 2014.
| 3 |
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.
| 4 |
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 | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | |||||||||||||||||||||||
| 2014 | 2014 | 2013 | 2013 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME: | ||||||||||||||||||||||||||||
| Loans | $ | 6,821 | $ | 6,557 | $ | 6,458 | $ | 6,371 | $ | 6,307 | $ | 13,378 | $ | 12,578 | ||||||||||||||
| Securities | 3,256 | 3,406 | 3,594 | 3,954 | 3,917 | 6,662 | 7,974 | |||||||||||||||||||||
| Other investments - at cost | 63 | 65 | 33 | 20 | 21 | 128 | 40 | |||||||||||||||||||||
| Federal funds sold, interest-bearing deposits and other short-term investments | 3 | 6 | 4 | 3 | 1 | 9 | 3 | |||||||||||||||||||||
| Total interest and dividend income | 10,143 | 10,034 | 10,089 | 10,348 | 10,246 | 20,177 | 20,595 | |||||||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||||||||||
| Deposits | 1,288 | 1,291 | 1,358 | 1,390 | 1,390 | 2,580 | 2,777 | |||||||||||||||||||||
| Long-term debt | 1,071 | 1,011 | 1,051 | 1,094 | 1,188 | 2,081 | 2,446 | |||||||||||||||||||||
| Short-term borrowings | 83 | 77 | 73 | 36 | 31 | 160 | 65 | |||||||||||||||||||||
| Total interest expense | 2,442 | 2,379 | 2,482 | 2,520 | 2,609 | 4,821 | 5,288 | |||||||||||||||||||||
| Net interest and dividend income | 7,701 | 7,655 | 7,607 | 7,828 | 7,637 | 15,356 | 15,307 | |||||||||||||||||||||
| PROVISION (CREDIT) FOR LOAN LOSSES | 450 | 100 | 120 | (71 | ) | (70 | ) | 550 | (305 | ) | ||||||||||||||||||
| Net interest and dividend income after provision for loan losses | 7,251 | 7,555 | 7,487 | 7,899 | 7,707 | 14,806 | 15,612 | |||||||||||||||||||||
| NONINTEREST INCOME: | ||||||||||||||||||||||||||||
| Service charges and fees | 632 | 670 | 625 | 615 | 594 | 1,303 | 1,164 | |||||||||||||||||||||
| Income from bank-owned life insurance | 386 | 379 | 388 | 388 | 387 | 765 | 773 | |||||||||||||||||||||
| Gain on bank-owned life insurance death benefit | — | — | — | — | 563 | — | 563 | |||||||||||||||||||||
| Loss on prepayment of borrowings | — | — | — | (540 | ) | (1,404 | ) | — | (2,830 | ) | ||||||||||||||||||
| Gain on sales of securities, net | 21 | 29 | 330 | 546 | 823 | 50 | 2,250 | |||||||||||||||||||||
| Total noninterest income | 1,039 | 1,078 | 1,343 | 1,009 | 963 | 2,118 | 1,920 | |||||||||||||||||||||
| NONINTEREST EXPENSE: | ||||||||||||||||||||||||||||
| Salaries and employees benefits | 3,665 | 3,778 | 3,774 | 4,059 | 3,817 | 7,444 | 7,625 | |||||||||||||||||||||
| Occupancy | 751 | 761 | 731 | 733 | 730 | 1,512 | 1,434 | |||||||||||||||||||||
| Data processing | 610 | 515 | 586 | 602 | 602 | 1,125 | 1,152 | |||||||||||||||||||||
| Professional fees | 483 | 512 | 497 | 499 | 527 | 994 | 1,037 | |||||||||||||||||||||
| OREO expense | — | — | — | — | — | — | 22 | |||||||||||||||||||||
| FDIC insurance | 177 | 165 | 162 | 169 | 163 | 342 | 324 | |||||||||||||||||||||
| Other | 845 | 803 | 738 | 789 | 950 | 1,649 | 1,709 | |||||||||||||||||||||
| Total noninterest expense | 6,531 | 6,534 | 6,488 | 6,851 | 6,789 | 13,066 | 13,303 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 1,759 | 2,099 | 2,342 | 2,057 | 1,881 | 3,858 | 4,229 | |||||||||||||||||||||
| INCOME TAX PROVISION | 417 | 451 | 533 | 476 | 297 | 868 | 863 | |||||||||||||||||||||
| NET INCOME | $ | 1,342 | $ | 1,648 | $ | 1,809 | $ | 1,581 | $ | 1,584 | $ | 2,990 | $ | 3,366 | ||||||||||||||
| Basic earnings per share | $ | 0.07 | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||||||||
| Weighted average shares outstanding | 18,308,828 | 18,812,795 | 19,379,466 | 19,583,632 | 20,276,261 | 18,559,419 | 20,686,860 | |||||||||||||||||||||
| Diluted earnings per share | $ | 0.07 | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||||||||
| Weighted average diluted shares outstanding | 18,308,828 | 18,812,795 | 19,379,466 | 19,583,632 | 20,276,261 | 18,559,419 | 20,686,887 | |||||||||||||||||||||
| Other Data: | ||||||||||||||||||||||||||||
| Return on average assets (1) | 0.42 | % | 0.52 | % | 0.57 | % | 0.49 | % | 0.49 | % | 0.47 | % | 0.52 | % | ||||||||||||||
| Return on average equity (1) | 3.64 | % | 4.38 | % | 4.61 | % | 3.96 | % | 3.66 | % | 4.01 | % | 3.82 | % | ||||||||||||||
| Efficiency ratio (2) | 74.91 | 75.07 | 75.27 | 77.58 | 78.78 | 74.99 | 77.15 | |||||||||||||||||||||
| Net interest margin | 2.61 | % | 2.63 | % | 2.57 | % | 2.62 | % | 2.55 | % | 2.62 | % | 2.57 | % | ||||||||||||||
| (1) | Three and six 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. |
| 5 |
WESTFIELD FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets and Other Data
(Dollars in thousands, except per share data)
(Unaudited)
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||||||||
| Cash and cash equivalents | $ | 39,362 | $ | 21,370 | $ | 19,742 | $ | 28,418 | $ | 15,706 | ||||||||||
| Securities available for sale, at fair value | 192,754 | 233,899 | 243,204 | 242,957 | 417,053 | |||||||||||||||
| Securities held to maturity, at cost | 288,199 | 292,019 | 295,013 | 298,988 | 173,982 | |||||||||||||||
| Federal Home Loan Bank of Boston and other restricted stock - at cost | 15,056 | 15,631 | 15,631 | 15,631 | 15,629 | |||||||||||||||
| Loans | 686,068 | 648,240 | 637,427 | 620,154 | 606,605 | |||||||||||||||
| Allowance for loan losses | 8,017 | 7,567 | 7,459 | 7,311 | 7,473 | |||||||||||||||
| Net loans | 678,051 | 640,673 | 629,968 | 612,843 | 599,132 | |||||||||||||||
| Bank-owned life insurance | 47,945 | 47,558 | 47,179 | 46,791 | 46,403 | |||||||||||||||
| Other assets | 24,951 | 23,866 | 26,104 | 25,703 | 25,730 | |||||||||||||||
| TOTAL ASSETS | $ | 1,286,318 | $ | 1,275,016 | $ | 1,276,841 | $ | 1,271,331 | $ | 1,293,635 | ||||||||||
| Total deposits | $ | 818,590 | $ | 806,695 | $ | 817,112 | $ | 793,510 | $ | 782,682 | ||||||||||
| Short-term borrowings | 59,751 | 58,460 | 48,197 | 61,784 | 69,972 | |||||||||||||||
| Long-term debt | 248,760 | 248,568 | 248,377 | 248,184 | 269,991 | |||||||||||||||
| Securities pending settlement | 67 | 195 | 299 | — | — | |||||||||||||||
| Other liabilities | 12,185 | 9,512 | 8,712 | 10,954 | 10,573 | |||||||||||||||
| TOTAL LIABILITIES | 1,139,353 | 1,123,430 | 1,122,697 | 1,114,432 | 1,133,218 | |||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 146,965 | 151,586 | 154,144 | 156,899 | 160,417 | |||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,286,318 | $ | 1,275,016 | $ | 1,276,841 | $ | 1,271,331 | $ | 1,293,635 | ||||||||||
| Book value per share | $ | 7.67 | $ | 7.66 | $ | 7.65 | $ | 7.57 | $ | 7.73 | ||||||||||
| Other Data: | ||||||||||||||||||||
| 30- 89 day delinquent loans | $ | 5,539 | $ | 5,382 | $ | 3,459 | $ | 1,860 | $ | 1,438 | ||||||||||
| Nonperforming loans | 3,225 | 3,095 | 2,586 | 2,933 | 3,272 | |||||||||||||||
| Nonperforming loans as a percentage of total loans | 0.47 | % | 0.48 | % | 0.41 | % | 0.47 | % | 0.54 | % | ||||||||||
| Nonperforming assets as a percentage of total assets | 0.25 | % | 0.24 | % | 0.20 | % | 0.23 | % | 0.25 | % | ||||||||||
| Allowance for loan losses as a percentage of nonperforming loans | 248.59 | % | 244.49 | % | 288.44 | % | 249.27 | % | 228.39 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans | 1.17 | % | 1.17 | % | 1.17 | % | 1.18 | % | 1.23 | % | ||||||||||
| 6 |
The following tables set forth the information relating to our average balances and net interest income for the three months ended June 30, 2014, March 31, 2014, and June 30, 2013, and the six months ended June 30, 2014 and 2013, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2014 | March 31, 2014 | June 30, 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) | $ | 665,024 | $ | 6,857 | 4.12 | % | $ | 640,855 | $ | 6,595 | 4.12 | % | $ | 599,149 | $ | 6,345 | 4.24 | % | ||||||||||||||||||
| Securities(2) | 501,132 | 3,357 | 2.68 | 530,046 | 3,506 | 2.65 | 608,404 | 4,045 | 2.66 | |||||||||||||||||||||||||||
| Other investments - at cost | 16,546 | 63 | 1.52 | 17,530 | 65 | 1.48 | 17,276 | 21 | 0.49 | |||||||||||||||||||||||||||
| Short-term investments(3) | 19,912 | 3 | 0.06 | 13,017 | 6 | 0.18 | 3,280 | 1 | 0.12 | |||||||||||||||||||||||||||
| Total interest-earning assets | 1,202,614 | 10,280 | 3.42 | 1,201,448 | 10,172 | 3.39 | 1,228,109 | 10,412 | 3.39 | |||||||||||||||||||||||||||
| Total noninterest-earning assets | 72,051 | 72,994 | 66,393 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 1,274,665 | $ | 1,274,442 | $ | 1,294,502 | ||||||||||||||||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Interest-bearing accounts | $ | 41,797 | 26 | 0.25 | $ | 42,892 | 28 | 0.26 | $ | 47,533 | 35 | 0.29 | ||||||||||||||||||||||||
| Savings accounts | 81,144 | 21 | 0.10 | 80,462 | 20 | 0.10 | 89,994 | 35 | 0.16 | |||||||||||||||||||||||||||
| Money market accounts | 213,227 | 208 | 0.39 | 210,884 | 193 | 0.37 | 195,885 | 193 | 0.39 | |||||||||||||||||||||||||||
| Time certificates of deposit | 341,041 | 1,033 | 1.21 | 340,428 | 1,050 | 1.23 | 327,036 | 1,127 | 1.38 | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 677,209 | 1,288 | 674,666 | 1,291 | 660,448 | 1,390 | ||||||||||||||||||||||||||||||
| Short-term borrowings and long-term debt | 308,757 | 1,154 | 1.50 | 308,642 | 1,088 | 1.41 | 334,035 | 1,219 | 1.46 | |||||||||||||||||||||||||||
| Interest-bearing liabilities | 985,966 | 2,442 | 0.99 | 983,308 | 2,379 | 0.97 | 994,483 | 2,609 | 1.05 | |||||||||||||||||||||||||||
| Noninterest-bearing deposits | 130,033 | 129,423 | 116,479 | |||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 10,679 | 9,077 | 9,992 | |||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 140,712 | 138,500 | 126,471 | |||||||||||||||||||||||||||||||||
| Total liabilities | 1,126,678 | 1,121,808 | 1,120,954 | |||||||||||||||||||||||||||||||||
| Total equity | 147,987 | 152,634 | 173,548 | |||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 1,274,665 | $ | 1,274,442 | $ | 1,294,502 | ||||||||||||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (137 | ) | (138 | ) | (166 | ) | ||||||||||||||||||||||||||||||
| Net interest and dividend income | $ | 7,701 | $ | 7,655 | $ | 7,637 | ||||||||||||||||||||||||||||||
| Net interest rate spread(4) | 2.43 | % | 2.42 | % | 2.34 | % | ||||||||||||||||||||||||||||||
| Net interest margin(5) | 2.61 | % | 2.63 | % | 2.55 | % | ||||||||||||||||||||||||||||||
| Ratio of average interest-earning | ||||||||||||||||||||||||||||||||||||
| assets to average interest-bearing liabilities | 121.97 | 122.18 | 123.49 | |||||||||||||||||||||||||||||||||
| 7 |
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| Average | Avg Yield/ | Average | Avg Yield/ | |||||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||
| Loans(1)(2) | $ | 653,007 | $ | 13,452 | 4.12 | % | $ | 594,745 | $ | 12,656 | 4.26 | % | ||||||||||||
| Securities(2) | 515,509 | 6,861 | 2.66 | 610,832 | 8,246 | 2.70 | ||||||||||||||||||
| Other investments - at cost | 17,035 | 128 | 1.50 | 16,975 | 40 | 0.47 | ||||||||||||||||||
| Short-term investments(3) | 16,483 | 9 | 0.11 | 5,635 | 3 | 0.11 | ||||||||||||||||||
| Total interest-earning assets | 1,202,034 | 20,450 | 3.40 | 1,228,187 | 20,945 | 3.41 | ||||||||||||||||||
| Total noninterest-earning assets | 72,520 | 66,122 | ||||||||||||||||||||||
| Total assets | $ | 1,274,554 | $ | 1,294,309 | ||||||||||||||||||||
| LIABILITIES AND EQUITY: | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||
| Interest-bearing checking | $ | 42,342 | 55 | 0.26 | $ | 48,857 | 72 | 0.29 | ||||||||||||||||
| Savings accounts | 80,805 | 41 | 0.10 | 90,877 | 72 | 0.16 | ||||||||||||||||||
| Money market accounts | 212,062 | 401 | 0.38 | 185,111 | 358 | 0.39 | ||||||||||||||||||
| Time certificates of deposit | 340,736 | 2,083 | 1.22 | 326,712 | 2,275 | 1.39 | ||||||||||||||||||
| Total interest-bearing deposits | 675,945 | 2,580 | 651,557 | 2,777 | ||||||||||||||||||||
| Short-term borrowings and long-term debt | 308,700 | 2,241 | 1.45 | 340,174 | 2,511 | 1.48 | ||||||||||||||||||
| Interest-bearing liabilities | 984,645 | 4,821 | 0.98 | 991,731 | 5,288 | 1.07 | ||||||||||||||||||
| Noninterest-bearing deposits | 129,730 | 114,723 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities | 9,883 | 10,021 | ||||||||||||||||||||||
| Total noninterest-bearing liabilities | 139,613 | 124,744 | ||||||||||||||||||||||
| Total liabilities | 1,124,258 | 1,116,475 | ||||||||||||||||||||||
| Total equity | 150,296 | 177,834 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,274,554 | $ | 1,294,309 | ||||||||||||||||||||
| Less: Tax-equivalent adjustment(2) | (273 | ) | (350 | ) | ||||||||||||||||||||
| Net interest and dividend income | $ | 15,356 | $ | 15,307 | ||||||||||||||||||||
| Net interest rate spread(4) | 2.42 | % | 2.34 | % | ||||||||||||||||||||
| Net interest margin(5) | 2.62 | % | 2.57 | % | ||||||||||||||||||||
| Ratio of average interest-earning | ||||||||||||||||||||||||
| assets to average interest-bearing liabilities | 122.08 | 123.84 | ||||||||||||||||||||||
| (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. |
| 8 |