EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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July 28, 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 ANNOUNCES QUARTERLY EARNINGS
West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported
quarterly net income of $1,444,000, representing $0.30 per share (diluted),
while earnings for the six-month period ended June 30, 2004 totaled $3,029,000
or $0.63 per share (diluted). Earnings for the second quarter of 2003 totaled
$1,502,000 or $0.32 per share (diluted) and $3,008,000 or $0.63 per share
(diluted) for the first six months of 2003.
Net interest income improved to $5,611,000 for the quarter, an increase of
$262,000, the result of earning asset growth, while the corporation's net
interest margin for the quarter and year to date was 3.22% and 3.25%
respectively.
Non-interest income for the three-month period ended June 30, 2004 increased to
$1,017,000 versus $994,000 for the same quarter during 2003. Included in the
most recent quarter were gains on sales of securities and loans of $165,000 and
$47,000 respectively versus gains on sales of securities and loans totaling
$4,000 and $246,000 respectively during the second quarter of 2003. Operating
expenses for the period totaled $4,503,000 versus $4,229,000 for the second
quarter of 2003. The increase in operating expenses is a result of the overall
growth of the Corporation.
As of June 30, 2004, assets totaled $766.1 million, an increase of $115.7
million or 18%. Investments increased by $163.6 million and total $286.2
million, while loans totaled $427.9 million at the end of June 2004. Deposits
also showed significant growth, totaling $583.9 million versus $537.3 million at
June 30, 2003.
Asset quality remains strong, with non-performing assets totaling $1,866,000 and
representing just 0.24% of total assets. During the quarter, the Corporation's
provision for loan losses was $-0- and the allowance for loan losses to total
loans was 0.99%.
Stockholders' equity for the period ended June 30, 2004 totaled $44,486,000,
representing a book value of $9.48. The results of the six months ended June
30,2004 represent a return on assets of 0.83% and a return on equity of 13.3%.
"We continue to be pleased with the results of the Corporation," according to
Donald R. Chase, President and Chief Executive Officer. "Although residential
real estate volume has slowed, the Corporation has seen a significant pick-up in
commercial loans and commercial real estate volume. Going into the third
quarter, commercial loan and mortgage commitments are in excess of $43 million."
Chase continued, "We are also very pleased to have been recognized by U.S.
BANKERS MAGAZINE as one of the top 200 publicly traded community banks in the
United States. Westbank Corporation ranked 77th based on three years' return on
equity and was the only western Massachusetts bank recognized in the top 200."
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
June 30, (Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS) 2004 2003
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ASSETS
Cash and due from banks
Non-interest bearing $ 19,499 $ 20,036
Interest bearing 7 83
Federal funds sold 529 24,922
Securities held to maturity 71,974 317
Securities available for sale 214,181 122,254
Loans $ 427,899 $ 456,593
(Less) allowance for loan losses 4,227 5,122
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Net loans 423,672 451,471
Bank premises and equipment 6,636 6,351
Other real estate owned - net 706
Goodwill 8,837 8,837
Intangible assets 929
Investment in unconsolidated investee 526 526
Other assets 18,588 15,567
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TOTAL ASSETS $ 766,084 $ 650,364
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LIABILITIES AND EQUITY
Deposits
Non-interest bearing $ 82,443 $ 72,493
Interest bearing 501,505 464,790
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Total Deposits 583,948 537,283
Funds borrowed 116,287 46,403
Payable to Westbank Capital Trust 1 17,526 17,526
Other liabilities 3,837 4,945
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Total Liabilities 721,598 606,157
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Stockholders' Equity
Common stock 9,493 9,047
Unearned compensation -
restricted stock award (1,764)
Additional paid in capital 20,443 14,516
Retained earnings 19,692 20,731
Treasury stock (1,108) (1,917)
Accumulated other comprehensive
income (loss) (2,270) 1,830
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Total Stockholders' Equity 44,486 44,207
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 766,084 $ 650,364
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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) 2004 2003 (1) 2004 2003 (1)
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Income:
Interest and fees on loans $ 5,997 $ 7,281 $ 12,186 $ 14,914
Interest on securities 3,240 1,598 6,104 3,267
Interest on federal funds sold 2 54 9 116
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Total interest income 9,239 8,933 18,299 18,297
Interest expense 3,628 3,584 7,157 7,432
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Net interest income 5,611 5,349 11,142 10,865
Provision for loan losses
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Net interest income after provision 5,611 5,349 11,142 10,865
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Gain/(loss) on sale of securities
available for sale 165 4 227 263
Gain/(loss) on sale of loans 47 246 427 246
Other non-interest income 805 744 1,679 1,478
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Total non-interest income 1,017 994 2,333 1,987
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Operating Expenses:
Salaries and benefits 2,567 2,443 5,163 4,813
Other operating expenses 1,551 1,421 3,080 2,768
Occupancy - net 385 365 846 810
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Total operating expenses 4,503 4,229 9,089 8,391
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Income before income taxes 2,125 2,114 4,386 4,461
Income taxes 681 612 1,357 1,453
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Net Income $ 1,444 $ 1,502 $ 3,029 $ 3,008
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Earnings per share
- Basic $ 0.32 $ 0.33 $ 0.67 $ 0.66
- Diluted $ 0.30 $ 0.32 $ 0.63 $ 0.63
Weighted average shares outstanding
- Basic 4,573,803 4,600,565 4,511,505 4,581,224
- Diluted 4,839,609 4,763,909 4,782,541 4,740,314
(1) Share amounts and earnings per share are adjusted for the 5% stock dividend
and distribution in May 2004.