Westfield Financial, the holding company for Westfield Bank, posted a year-over-year decline in net income for the quarter ended March 31, recording $1.6 million in net income compared with $1.8 million in the same period last year.
The first quarter this year included a provision for loan losses of $100,000 as a result of growth in the loan portfolio whereas in the comparable quarter last year, the company recorded a credit to the provision for loan losses of $235,000.
"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," President and CEO James C. Hagan said in a statement.
Total loans increased $51.9 million, or 8.7 percent, year-over-year, boosted largely by 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.
Net interest and dividend income remained relatively flat at $7.7 million for the quarters ended March 31, 2013 and 2014. The net interest margin increased 4 basis points to 2.63 percent compared with 2.59 percent last year.
Total deposits increased $34.5 million, or 4.5 percent, to $806.7 million at March 31, 2014, compared with $772.2 million in the same period last year.
The allowance for loan losses totaled $7.6 million at March 31 and $7.6 million in the first quarter last year, representing 1.17 percent and 1.27 percent of total loans, respectively. This represents 244.5 percent and 255.8 percent of nonperforming loans at March 31 of this year and last year, respectively.
On Sept. 17, 2013, the board of directors authorized a stock repurchase program under which the company may purchase up to 1.04 million shares, or 5 percent of its outstanding common stock. By the first quarter’s end, 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.
On March 13, the company announced another repurchase program under which it may repurchase up to 1.97 million shares, or 10 percent of its outstanding common stock, which commenced upon the completion of the previous repurchase program.
