EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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April 21, 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 INCREASED FIRST QUARTER EARNINGS
West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported net
income of $1,585,000 for the quarter ended March 31, 2004, representing $.34 per
share (diluted). This is an increase of $79,000 or 5% over last year's first
quarter earnings of $1,506,000 or $.33 per share (diluted).
The Corporation has seen significant growth in deposits and investments.
Deposits have increased by $34 million and total $570 million, while investments
increased by $128 million versus March 31, 2003. During the same period, loans
declined to $425 million, the result of the Corporation's decision to sell and
securitize a significant portion of its fixed rate residential real estate
portfolio.
Donald A. Chase, President and Chief Executive Officer, said, "Although
residential refinancing has slowed significantly during the first quarter, we
have begun to see signs of an upturn in commercial loan volume." As of March 31,
2004, commercial loans and commercial mortgages increased $22 million or 14%
compared to March 31, 2003.
As of March 31, 2004, assets increased to $732 million compared to $654 million
at March 31, 2003, an increased of $78 million or 12%. Net interest income for
the quarter ended March 31, 2004 was $5,531,000 versus $5,516,000 for the same
period last year. The Corporation's net interest margin stood at 3.31% for the
quarter ended March 31, 2004. Non-interest income total $1,316,000 for the
quarter ended March 31, 2004 versus $993,000 for the quarter ended March 31,
2003. Included in the results for the quarter was income from life insurance
proceeds totaling $180,000 and gains from the sale of securities and loans
totaling $62,000 and $380,000 respectively, compared to gains on securities
during 2003 of $259,000.
Operating expenses for the three months ended March 31, 2004 totaled $4,586,000
versus $4,162,000 for the same period of 2003.
Stockholders' equity at March 31, 2004 totaled $47,354,000, representing a book
value of $10.62, compared to $42,942,000 on March 31, 2003. The results of the
quarter ended March 31, 2004 represent a return on average equity of 13.9%,
while return on average assets totaled .88%.
Westbank Corporation is the holding company for Westbank of West Springfield,
Massachusetts, a commercial bank and trust company operating 18 banking offices
in Massachusetts and Connecticut.
CONDENSED CONSOLIDATED BALANCE SHEETS
Westbank Corporation and Subsidiaries
March 31 (Unaudited)
(Dollar amounts in thousands) 2004 2003
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ASSETS
Cash and due from banks
Non-interest bearing $ 14,095 $ 15,583
Interest bearing 60 94
Federal funds sold 6,501 38,468
Securities held to maturity 40,963 377
Securities available for sale 214,827 95,866
Loans $ 425,373 $ 479,264
Less allowance for loan losses 4,294 5,182
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Net loans 421,079 474,082
Bank premises and equipment 6,618 6,434
Other real estate owned - net 705
Intangible assets 8,837 8,837
Investment in unconsolidated investee 526 526
Other assets 17,672 13,678
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Total Assets $ 731,883 $ 653,945
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Liabilities and Equity
Deposits
Non-interest bearing $ 75,221 $ 73,489
Interest bearing 495,187 463,221
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Total deposits 570,408 536,710
Funds borrowed 91,877 52,276
Payable to Westbank Capital Trust 1 17,526 17,526
Other liabilities 4,718 4,491
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Total Liabilities 684,529 611,003
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Stockholders' equity
Common stock 9,047 9,047
Additional paid in capital 14,277 14,492
Retained earnings 23,688 19,755
Treasury stock (1,167) (2,057)
Accumulated other comprehensive income 1,509 1,705
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Total stockholders' equity 47,354 42,942
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Total Liabilities and Stockholders' Equity $ 731,883 $ 653,945
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Westbank Corporation and Subsidiaries
Quarter and
March 31 (Unaudited) Three Months Ended
(Dollar amounts in thousands, except per share data) 2004 2003
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Income:
Interest and fees on loans $ 6,189 $ 7,633
Interest on securities 2,864 1,669
Interest on federal funds sold 7 62
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Total interest income 9,060 9,364
Interest expense 3,529 3,848
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Net interest income 5,531 5,516
Provision for loan losses
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Net interest income after provision for loan losses 5,531 5,516
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Gain/(loss) on sale of securities available for sale 62 259
Gain on sale of loans 380
Other non-interest income 874 734
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Total non-interest income 1,316 993
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Operating expenses:
Salaries and benefits 2,596 2,370
Other operating expenses 1,529 1,347
Occupancy - net 461 445
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Total operating expenses 4,586 4,162
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Income before income taxes 2,261 2,347
Income taxes 676 841
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Net income $ 1,585 $ 1,506
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Earnings per share
- Basic $ 0.36 $ 0.35
- Diluted $ 0.34 $ 0.33
Weighted average shares outstanding
- Basic 4,429,208 4,344,446
- Diluted 4,704,123 4,508,958
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