EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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February 3, 2004
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 4TH QUARTER EARNINGS INCREASE OF 23%
WEST SPRINGFIELD, MASSACHUSETTS - Westbank Corporation (Nasdaq: WBKC) today
reported net income of $1,625,000 or $.35 per diluted share for the quarter
ended December 31, 2003, an increase of $308,000 or 23% versus the same quarter
of 2002 when earnings totaled $1,317,000 or $.29 per diluted share.
For the year ended December 31, 2003, net income totaled a record $6,054,000 or
$1.32 per diluted share compared to $6,009,000 for the year ended December 31,
2002 when earnings included $800,000 in life insurance proceeds. Excluding the
life insurance proceeds, earnings for 2003 increased 16% over the prior year.
"We are very pleased with our achievements this past year," said Donald R.
Chase, President and Chief Executive Officer. Chase continued, "We experienced
record loan originations this past year, spurred on by record low interest
rates, and expanded our branch franchise into the Worcester County market in
Massachusetts. We are also very satisfied that our shareholders have been able
to participate in the Corporation's success this past year. For the second year
in a row, the Corporation's stock value has increased by more than 40% and the
Board of Directors recently announced a 16% increase in the cash dividend."
As of December 31, 2003, assets totaled $724.1 million compared to $682.9
million at December 31, 2002, an increase of $41.2 million or 6%. Investments
totaled $242.1 million, a $109.3 million, or 82%, increase over year-end 2002.
As of year-end 2003, loans totaled $435.5 million and deposits were at $536.5
million, while borrowings grew to $122.2 million.
Net interest income for the year and quarter ended December 31, 2003 totaled
$21,767,000 and $5,731,000, while the Corporation's net interest margin stood at
3.53% versus 3.63% for the previous year. For the quarter ended December 31,
2003 versus the quarter ended December 31, 2002, the net interest margin
increased to 3.56% from 3.41%.
At year-end, the allowance for loan losses totaled $4,428,000, representing
1.01% of total loans. As of December 31, 2003, non-performing loans totaled
$3,308,000 and the Corporation held no property in foreclosure. Total
non-performing assets at the end of 2003 represented .46% of total assets.
Stockholders' equity at December 31, 2003 totaled $45,275,000 compared to
$42,612,000 at December 31, 2002, representing a book value of $10.24 and a
tangible book value of $8.24. The results for the year ended December 31, 2003
represented a return on average equity of 14% and a return on average assets of
..92%.
Westbank Corporation is the parent company of Westbank, a Massachusetts
state-chartered commercial bank and trust company operating 18 banking offices
in Massachusetts and Connecticut.
CONDENSED CONSOLIDATED BALANCE SHEETS
WESTBANK CORPORATION AND SUBSIDIARIES
December 31 (Unaudited)
(Dollar amounts in thousands)
2003 2002
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Assets
Cash and due from banks
Non-interest bearing $ 14,599 $ 18,967
Interest bearing 40 98
Federal funds sold 39 28,185
Securities held to maturity 250 436
Securities available for sale 241,812 132,296
Loans $ 439,911 $ 478,832
(Less) allowance for loan loss 4,428 5,111
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Net Loans 435,483 473,721
Bank premises and equipment 6,749 6,586
Other real estate owned - net
Intangible assets 8,837 8,837
Other assets 16,251 13,737
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Total Assets $ 724,060 $ 682,863
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Liabilities and Equity
Deposits
Non-interest bearing $ 76,015 $ 74,505
Interest bearing 460,439 487,242
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Total Deposits 536,454 561,747
Funds borrowed 122,204 56,392
Other liabilities 3,127 5,112
Mandatorily redeemable preferred stock 17,000 17,000
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Total Liabilities 678,785 640,251
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Stockholders' Equity
Common stock 9,047 8,632
Additional paid in capital 14,524 11,745
Retained earnings 22,724 21,947
Treasury stock (1,692) (2,091)
Accumulated other comprehensive income 672 2,379
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Total Stockholders' Equity 45,275 42,612
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Total Liabilities and Equity $ 724,060 $ 682,863
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
WESTBANK CORPORATION AND SUBSIDIARIES
December 31 (Unaudited)
(Dollar amounts in thousands, except per share data)
Quarter Ended Year Ended
2003 2002 2003 2002
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Income:
Interest and fees on loans $ 6,653 $ 7,896 $ 28,529 $ 31,905
Interest on federal funds sold 5 138 169 323
Interest on securities 2,433 1,856 7,154 8,348
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9,091 9,890 35,852 40,576
Interest expense 3,360 4,420 14,085 18,055
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Net interest income 5,731 5,470 21,767 22,521
Provision for (recovery of) loan losses 200 (354) 1,333
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Net interest income after provision 5,731 5,270 22,121 21,188
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Gain/(loss) on sales of securities 574 1,138 (218)
Gain/(loss) on sale of loans (84) 333 118
Other non-interest income 763 1,054 3,065 4,190
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Total non-interest income 1,253 1,054 4,536 4,090
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Operating Expenses:
Salaries and benefits 2,426 2,343 9,741 9,084
Other operating expenses 1,676 1,384 6,107 5,829
Occupancy - net 402 373 1,591 1,499
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Total operating expenses 4,504 4,100 17,439 16,412
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Income before income taxes 2,480 2,224 9,218 8,866
Income taxes 855 907 3,164 2,857
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Net Income $ 1,625 $ 1,317 $ 6,054 $ 6,009
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Earnings per share *
- Basic $ 0.37 $ 0.30 $ 1.38 $ 1.36
- Diluted $ 0.35 $ 0.29 $ 1.32 $ 1.33
Weighted average shares outstanding *
- Basic 4,404,249 4,364,143 4,378,981 4,406,583
- Diluted 4,643,570 4,484,542 4,570,149 4,509,965
* Earnings per share and weighted average shares outstanding restated for
5% stock dividend declared January 2, 2003 and paid January 14, 2003