Update to Previous Announcement

On January 28, 2009, Westfield Financial, Inc. (the "Company") issued an earnings release reporting its fourth quarter and year to date 2008 financial results. Subsequently, a manufacturing commercial loan relationship of $5.5 million was classified as impaired. The commercial loan relationship consists of $913,000 which is collateralized by real estate and $3.5 million which is collateralized by all other business assets including equipment, inventory and accounts receivable. The remaining $1.1 million consists of two 75% Small Business Administration ("SBA") guaranteed notes and one 50% SBA guaranteed note that are secured by specific purchase orders and a third mortgage position on a personal residence. Additionally, all debt is cross-collateralized and guaranteed with the exception of the SBA loans.

The borrower's business involves precision machining and rapid prototype manufacturing of metal parts for sale to commercial customers throughout the United States. In February 2009, the Company learned that the borrower's financial condition had deteriorated and ordered appraisals on all real estate and business assets. Based upon the appraisals, which were received on March 2, 2009, the Company has doubts on the collectability of the loan relationship according to its terms. The Company estimates a loss of $2.1 million and has provided an additional $1.9 million to the allowance for loan losses based on the above evaluation.

Although this information became available subsequent to December 31, 2008, the Company determined it should reflect the accounting impact of this change in estimate in its 2008 financial statements. As a result, the Company revised its fourth quarter and year to date 2008 financial results to include the additional $1.9 million that was provided to the allowance for loan loss as mentioned above. This adjustment, net of tax, reduced net income by $1.3 million for the quarter and year ended December 31, 2008, respectively. The Company's financial statements for the year ended December 31, 2008 that were filed in its Annual Report on Form 10-K on March 13, 2009 include the accounting impact of the above-described event.

The following table presents summary information for the previously announced and as filed financial results for the quarter and year ended December 31, 2008.

                                  Three Months Ended                    Year Ended
                                  December 31, 2008                 December 31, 2008
                               Previously                    Previously
                               Announced       As Filed       Announced      As Filed
                                  (Dollars in thousands, except per share amounts)