EXHIBIT 99.1
FOR IMMEDIATE RELEASE
April 22, 2005
FOR MORE INFORMATION, CONTACT:
John M. Lilly, Treasurer and Chief Financial Officer (413) 747-1465
Nasdaq Symbol - WBKC
WESTBANK CORPORATION REPORTS FIRST QUARTER EARNINGS
AND 2005 GROWTH PLANS
West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported net
income of $1,411,000 for the quarter ended March 31, 2005, representing $.29 per
share (diluted) versus $1,585,000 or $.32 per share (diluted) for the quarter
ended March 31, 2004.
For the quarter ended March 31, 2005, net interest income increased to
$5,697,000 compared to $5,531,000 at the end of the first quarter of 2004. The
Corporation's net interest margin totaled 3.16% for the period ended March 31,
2005.
At the end of March 2005, the allowance for loan losses was $4.5 million or
1.01% of total loans and the provision for loan losses totaled $140,000 for the
first quarter of 2005. As of March 31, 2005, non-performing loans totaled
$4,757,000, representing 1.07% of total loans, while the Corporation held other
real estate owned totaling $630,000.
Non-interest income totaled $1,217,000 for the quarter ended March 31, 2005
versus $1,316,000 for the same period of 2004. Included in non-interest income
for 2005 were $96,000 and $16,000, representing gains on the sale of securities
and loans respectively, as well as life insurance proceeds of $430,000. For the
same quarter of 2004, non-interest income included gains on sale of securities
and loans totaling $62,000 and $380,000 respectively, and life insurance
proceeds totaling $180,000.
Non-interest expense for the quarter ended March 31, 2005 totaled $4,922,000
versus $4,586,000 for the same period of 2004.
As of March 31, 2005, investments totaled $266 million, while net loans grew to
$439 million and deposits were at $582 million. At the end of March 2005, assets
totaled $760 million versus $756 million at year-end 2004.
Shareholder equity at March 31, 2005 totaled $47,374,000, representing a book
value of $10.01 and a return on average assets of 0.74%, while return on average
equity was 11.92%.
Donald R. Chase, President and Chief Executive Officer, said, "While residential
real estate lending has slowed significantly, we are very pleased with the
increase in commercial, commercial mortgages and commercial leasing activity.
Commercial activity has increased by $26.9 million from March 31, 2004 to March
31, 2005, an increase of more than 15%. For the most recent quarter, commercial
activity also increased by $6.5 million, an annualized increase of more than
13%."
"We are also very pleased to announce our newest full-service branch office in
Southwick, Massachusetts," Chase continued. "This new office will be a
3,000-square-foot facility with two drive-up windows and a drive-up ATM. The
office will replace our much smaller Southwick office and will be located at 664
College Highway in the town of Southwick. We expect the office to open for
business during the fall of this year."
Chase also commented that, "The Corporation has recently formed an alliance with
Infinex Financial Services. The financial services division will offer
investment and insurance services to customers and will be an excellent
compliment to our Trust Department's `Wealth Management' Division. The
Corporation will employ two financial services representatives as part of this
new line of business."
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.
Statements contained in this news release, which are not historical facts,
contain forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risk and uncertainties that could cause actual results to differ
materially from those currently anticipated due to a number of factors that
include, but are not limited to, factors discussed in documents filed by the
Corporation with the Securities and Exchange Commission from time to time. The
Corporation does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by it or on its behalf.
CONDENSED CONSOLIDATED BALANCE SHEETS
Westbank Corporation and Subsidiaries
(Unaudited)
March 31, December 31,
(Dollar amounts in thousands) 2005 2004
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ASSETS
Cash and due from banks
Non-interest bearing $ 13,533 $ 12,451
Interest bearing 18 34
Federal funds sold 46 669
Securities held to maturity 115,934 112,424
Securities available for sale 150,556 155,405
Loans $ 443,626 $ 438,475
Less allowance for loan losses 4,481 4,356
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Net loans 439,145 434,119
Investment in Federal Home Loan Bank stock 6,450 6,450
Bank premises and equipment 6,897 6,885
Other real estate owned - net 630 630
Goodwill 8,837 8,837
Bank-owned life insurance 9,041 9,204
Intangible assets 862 862
Investment in unconsolidated investees 526 526
Other assets 7,858 7,051
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Total Assets $ 760,333 $ 755,547
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LIABILITIES AND EQUITY
Deposits
Non-interest bearing $ 80,543 $ 83,864
Interest bearing 501,090 505,274
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Total deposits 581,633 589,138
Funds borrowed 109,684 97,354
Payable to Westbank Capital Trust II 8,763 8,763
Payable to Westbank Capital Trust III 8,763 8,763
Other liabilities 4,116 4,067
- --------------------------------------------------------------------------------------------------------------------------
Total Liabilities 712,959 708,085
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Stockholders' equity
Common stock 9,493 9,493
Unearned compensation -
restricted stock award (1,597) (1,652)
Additional paid in capital 20,236 20,377
Retained earnings 20,708 19,958
Treasury stock (218) (606)
Accumulated other comprehensive income (1,248) (108)
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Total stockholders' equity 47,374 47,462
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Total Liabilities and Stockholders' Equity $ 760,333 $ 755,547
==========================================================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Westbank Corporation and Subsidiaries
Quarter and
Three Months Ended
March 31 (Unaudited) -----------------------------
(Dollar amounts in thousands, except per share data) 2005 2004
- ---------------------------------------------------------------------------------------
Income:
Interest and fees on loans $ 6,246 $ 6,189
Interest on securities 3,147 2,864
Interest on federal funds sold 3 7
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Total interest income 9,396 9,060
Interest expense 3,699 3,529
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Net interest income 5,697 5,531
Provision for loan losses 140
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Net interest income after provision for loan losses 5,557 5,531
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Gain/(loss) on sale of securities available for sale 96 62
Gain on sale of loans 16 380
Other non-interest income 1,105 874
- ---------------------------------------------------------------------------------------
Total non-interest income 1,217 1,316
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Operating expenses:
Salaries and benefits 2,697 2,596
Other operating expenses 1,726 1,529
Occupancy - net 499 461
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Total operating expenses 4,922 4,586
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Income before income taxes 1,852 2,261
Income taxes 441 676
- ---------------------------------------------------------------------------------------
Net income $ 1,411 $ 1,585
=======================================================================================
Earnings per share
- Basic $ 0.30 $ 0.34*
- Diluted $ 0.29 $ 0.32*
Weighted average shares outstanding
- Basic 4,728,089 4,671,668
- Diluted 4,848,469 4,939,329
* Earnings-per-share data has been adjusted for the 5% stock dividend declared
and distributed in May 2004.