EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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July 17, 2003
FOR MORE INFORMATION CONTACT:
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John M. Lilly, Treasurer and Chief Financial Officer - (413) 747-1465
Nasdaq Symbol - WBKC
WESTBANK CORPORATION REPORTS SECOND QUARTER EARNINGS OF $1.5 MILLION
West Springfield, Massachusetts - Westbank Corporation (Nasdaq: WBKC) today
reported net income of $1,502,000 for the quarter ended June 30, 2003,
representing $.33 per share (diluted). Included in the results of the quarter
were gains on the sale of mortgages totaling $266,000.
Earnings for the second quarter of 2002 totaled $1,940,000 or $.45 per share
(diluted), which included non-taxable life insurance proceeds of $579,000.
Excluding life insurance proceeds for the quarter ended June 30, 2002, earnings
would have been $1,361,000 or $.31 per share (diluted).
For the six months ended June 30, 2003, the Corporation's earnings totaled
$3,008,000 or $.67 per share (diluted).
Donald R. Chase, President and Chief Executive Officer, said, "Historically low
interest rates continue to drive loan demand. At the end of June, the
Corporation's loan commitments totaled $76,000,000, while loan originations for
the first six months of 2003 totaled over $100,000,000." During this same
period, the Corporation securitized $26,000,000 in residential real estate loans
and sold another $6,500,000 of real estate loans in the secondary mortgage
market.
As of June 30, 2003, assets totaled $650,000,000, loans were at $451,000,000 and
deposits totaled $537,000,000. For the quarter and six months ended June 30,
2003, net interest income totaled $5,349,000 and $10,865,000 respectively, while
the net interest margin for the quarter and six-month periods was 3.56%.
At the end of the second quarter, non-performing assets totaled $1,461,000,
representing .22% of total assets. During the quarter, the Corporation's
provision for loan losses was $-0- and the allowance for loan losses totaled
$5.1 million, representing 1.12% of total loans.
Operating expenses for the three- and six-month periods ended June 30, 2003
totaled $4.2 million and $8.4 million respectively, and compared favorably to
similar levels during the same 2002 periods.
Stockholders' equity at June 30, 2003 totaled $44,207,000, representing a book
value of $10.08, compared to $40,683,000 on June 30, 2002. The results of the
quarter ended June 30, 2003 represented a return on average equity of .94%,
while return on average assets totaled 13.90%.
Westbank Corporation is the holding company for Westbank, a Massachusetts
commercial bank and trust company headquartered in West Springfield,
Massachusetts, operating 17 banking offices in Massachusetts and Connecticut.
CONDENSED CONSOLIDATED BALANCE SHEETS
Westbank Corporation and Subsidiaries
June 30, (Unaudited)
(Dollar amounts in thousands) 2003 2002
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ASSETS
Cash and due from banks
Non-interest bearing $ 20,036 $ 18,120
Interest bearing 83 863
Federal funds sold 24,922 18,787
Securities held to maturity 317 564
Securities available for sale 122,254 131,967
Loans $ 456,593 $ 466,573
(Less) Allowance for loan losses 5,122 4,683
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Net Loans 451,471 461,890
Bank premises and equipment 6,351 6,163
Other real estate owned - net 0 0
Intangible assets 8,837 8,837
Other assets 15,567 14,351
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TOTAL ASSETS $ 649,838 $ 661,542
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Liabilities and Equity
Deposits
Non-interest bearing $ 72,688 $ 76,107
Interest bearing 464,595 461,522
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Total Deposits 537,283 537,629
Funds borrowed 46,403 61,001
Other liabilities 4,945 5,229
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Total Liabilities 588,631 603,859
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Mandatory redeemable preferred stock 17,000 17,000
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Stockholders' Equity
Common stock 9,047 8,632
Additional paid in capital 14,516 11,759
Retained earnings 20,731 20,211
Treasury stock (1,917) (1,737)
Accumulated other comprehensive
income (loss) 1,830 1,818
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Total Stockholders' Equity 44,207 40,683
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TOTAL LIABILITIES AND EQUITY $ 649,838 $ 661,542
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Westbank Corporation and Subsidiaries
June 30, (Unaudited) Quarter Ended Six Months Ended
(Dollar amounts in thousands, except per share data) 2003 2002 * 2003 2002 *
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Income:
Interest and fees on loans $ 7,281 $ 7,988 $ 14,914 $ 16,057
Interest on securities 1,598 2,189 3,267 4,560
Interest on federal funds sold 54 29 116 32
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Total interest income 8,933 10,206 18,297 20,649
Interest expense 3,584 4,449 7,432 8,993
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Net interest income 5,349 5,757 10,865 11,656
Provision for loan losses 0 433 0 733
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Net interest income after provision 5,349 5,324 10,865 10,923
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Gain/(loss) on sale of securities
available for sale 4 0 263 (277)
Gain/(loss) on sale of loans 266 (54) 266 73
Other non-interest income 744 1,391 1,478 2,274
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Total non-interest income 1,014 1,337 2,007 2,070
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Operating Expenses:
Salaries and benefits 2,443 2,277 4,813 4,521
Other operating expenses 1,441 1,493 2,788 3,065
Occupancy - net 365 396 810 770
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Total operating expenses 4,249 4,166 8,411 8,356
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Income before income taxes 2,114 2,495 4,461 4,637
Income taxes 612 555 1,453 1,279
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Net Income $ 1,502 $ 1,940 $ 3,008 $ 3,358
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Earnings per share
- Basic $ 0.34 $ 0.46 $ 0.69 $ 0.79
- Diluted $ 0.33 $ 0.45 $ 0.67 $ 0.78
Weighted average shares outstanding
- Basic 4,381,490 4,205,618 4,363,070 4,234,669
- Diluted 4,537,056 4,328,437 4,514,585 4,334,465
* Net income for the quarter and six months ended June 30, 2002 has been
restated to include the adoption of SFAS No. 147, "Acquisition of Certain
Financial Institutions."