EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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October 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 THIRD QUARTER EARNINGS OF $1.4 MILLION
AND ANNOUNCES NEW STOCK REPURCHASE PLAN
West Springfield, Massachusetts - Westbank Corporation (Nasdaq: WBKC) today
reported net income of $1,421,000 for the quarter ended September 30, 2003,
representing $0.31 per share (diluted), an increase of $87,000 or 7% compared to
earnings of $1,334,000 or $.31 per share (diluted) for the quarter ended
September 30, 2002.
For the nine-month period ended September 30, 2003, the Corporation's earnings
totaled $4,429,000 or $0.97 per share (diluted) versus $4,692,000 or $1.09 per
share (diluted) for the same period during 2002, which included $800,000 in
non-taxable life insurance proceeds.
Included in the earnings for the current quarter were gains on securities
totaling $ 301,000, gains on sale of mortgages of $171,000 and the reversal of
$354,000 in the provision for loan losses. For the quarter ended September 30,
2002, the Corporation also recorded security gains of $59,000, gains on the sale
of loans totaling $45,000 and recognized in non-interest income non-taxable life
insurance proceeds totaling $225,000.
Donald R. Chase, President and Chief Executive Officer, said, "Continued low
interest rates have been the force behind record loan demand through the first
nine months of this year." As of September 30, 2003, loan originations totaled
$178,000,000. During the same period, the Corporation has securitized
$26,000,000 in residential real estate loans and sold another $22,000,000 of
residential real estate loans in the secondary market.
We are pleased to announce that our new Webster, Massachusetts, office opened on
September 15, 2003. Grand opening events are scheduled throughout the month of
October. "We anticipate this new office to be a very productive addition to our
branch system," according to Chase.
As of September 30, 2003, assets totaled $651,689,000, loans were at
$445,533,000 and deposits totaled $543,653,000. For the quarter and nine months
ended September 30, 2003, net interest income totaled $5,171,000 and $16,036,000
respectively, while the net interest margin for the quarter and nine-month
periods was 3.45% and 3.52% respectively.
At the end of the third quarter, non-performing assets totaled $3,518,000,
representing 0.54% of total assets. At September 30, 2003, the allowance for
loan losses totaled $4.7 million, representing 1.05% of total loans.
Stockholders' equity at September 30, 2003 totaled $44,704,000, representing a
book value of $10.12, compared to $41,739,000 on September 30, 2002. The
operating results for the nine months ended September 30, 2003 represented a
return on average equity of 13.74%, while return on average assets totaled
0.91%.
Chase also announced the completion of Westbank's most recent stock repurchase
plan and said, "The Corporation will initiate a new repurchase plan of 5% of the
Corporation's stock." Chase commented, "The repurchase plan is being continued
because the Board of Directors believes it is a wise and valuable long-term
investment. The repurchase plan will add to shareholder value through improved
earnings per share and by providing an additional source of liquidity." Based on
the current stock price, the repurchase plan is valued at approximately $3.8
million.
Westbank Corporation is the holding company for Westbank, a Massachusetts
commercial bank and trust company headquartered in West Springfield,
Massachusetts, operating 18 banking offices in Massachusetts and Connecticut.
CONDENSED CONSOLIDATED BALANCE SHEETS
WESTBANK CORPORATION AND SUBSIDIARIES
September 30, (Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)
2003 2002
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ASSETS
Cash and due from banks
Non-interest bearing $ 17,001 $ 21,679
Interest bearing 26 314
Federal funds sold 1,975 46,085
Investment securities held to maturity 276 485
Investment securities available for sale 154,982 134,948
Loans $ 450,247 $ 471,246
(Less) Allowance for loan loss 4,714 4,932
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Net Loans 445,533 466,314
Bank premises and equipment 6,707 6,018
Goodwill 8,837 8,837
Other assets 16,352 13,745
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TOTAL ASSETS $ 651,689 $ 698,425
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LIABILITIES AND EQUITY
Deposits
Non-interest bearing $ 80,342 $ 82,253
Interest bearing 463,311 493,294
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Total Deposits 543,653 575,547
Funds borrowed 41,305 58,943
Other Liabilities 5,027 5,196
Mandatorily redeemable preferred stock 17,000 17,000
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Total Liabilities 606,985 656,686
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Stockholders' Equity
Common stock 9,047 8,632
Additional paid in capital 14,483 11,690
Retained earnings 21,626 21,086
Treasury stock (1,990) (2,192)
Accumulated other
comprehensive income 1,538 2,523
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Total Stockholders' Equity 44,704 41,739
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TOTAL LIABILITIES AND EQUITY $ 651,689 $ 698,425
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
WESTBANK CORPORATION AND SUBSIDIARIES
September 30, (Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
QUARTER ENDED NINE MONTHS ENDED
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2003 2002 2003 2002
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Income:
Interest and fees on loans $ 6,962 $ 7,952 $ 21,876 $ 24,009
Interest on federal funds sold 48 153 164 185
Interest on securities 1,454 1,932 4,721 6,492
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8,464 10,037 26,761 30,686
Interest expense 3,293 4,642 10,725 13,635
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Net interest income 5,171 5,395 16,036 17,051
Provision for loan losses (354) 400 (354) 1,133
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Net interest income after provision 5,525 4,995 16,390 15,918
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Gain/(Loss) on sale of
securities available for sale 301 59 564 (218)
Gain on sale of loans 171 45 417 118
Other non-interest income 824 862 2,302 3,136
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Total non-interest income 1,296 966 3,283 3,036
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Operating Expenses:
Salaries and benefits 2,502 2,220 7,315 6,741
Other operating expenses 1,663 1,380 4,431 4,445
Occupancy - net 379 356 1,189 1,126
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Total operating expenses 4,544 3,956 12,935 12,312
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Income before income taxes 2,277 2,005 6,738 6,642
Income taxes 856 671 2,309 1,950
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Net Income $ 1,421 $ 1,334 $ 4,429 $ 4,692
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Earnings per share
- Basic $ 0.32 $ 0.32 $ 1.01 $ 1.12
- Diluted $ 0.31 $ 0.31 $ 0.97 $ 1.09
Weighted average shares outstanding
- Basic 4,385,014 4,161,319 4,370,465 4,210,219
- Diluted 4,618,149 4,282,744 4,551,515 4,309,644
* Net income for the nine months ended September 30, 2002 includes the adoption
of FASB No. 147, reversing the amortization of goodwill as of January 1,
2002.