Exhibit 99.1
FOR IMMEDIATE RELEASE
- --------------------------------------------------------------------------------
July 29, 2005
FOR MORE INFORMATION, CONTACT:
- --------------------------------------------------------------------------------
John M. Lilly, Treasurer and Chief Financial Officer (413) 747-1465
Nasdaq Symbol - WBKC
WESTBANK CORPORATION REPORTS SECOND QUARTER EARNINGS OF $1,248,000
West Springfield, MA - Westbank Corporation (Nasdaq: WBKC) today reported net
income of $1,248,000 for the quarter ended June 30, 2005, representing $.25 per
share (diluted) versus $1,444,000 or $.30 per share (diluted) for the quarter
ended June 30, 2004.
For the six-month period ended June 30, 2005, net income totaled $2,659,000 or
$.54 per share (diluted) versus $3,029,000 or $.63 per share (diluted) for the
same period ended June 30, 2004.
For the quarter and six-month period ended June 30, 2005, net interest income
improved to $5,763,000 and $11,460,000 respectively compared to $5,611,000 and
$11,142,000 for the same periods during 2004.
The allowance for loan losses was $4,462,000 or 1.04% of total loans at June 30,
2005 as compared to $4,356,000 or 0.99% of total loans at December 31, 2004.
Non-performing loans totaled $2,975,000 or 0.69% of total loans and the
Corporation held other real estate owned totaling $630,000 at June 30, 2005.
Non-interest income was $902,000 for the quarter ended June 30, 2005 versus
$1,017,000 for the quarter ended June 30, 2004. Included in non-interest income
for the second quarter of 2005 was $149,000 representing a gain on sale of loans
compared to gains on sales of securities of $165,000 and gains on sale of loans
of $47,000 for the quarter ended June 30, 2004.
Non-interest expense for the quarter ended June 30, 2005 was $4,820,000 versus
$4,503,000 for the quarter ended June 30, 2004.
As of June 30, 2005, investments totaled $265,981,000, while net loans totaled
$426,087,000 as of June 30, 2005. Total assets increased to $768,336,000 as of
June 30, 2005 versus $755,547,000 at the end of 2004. Deposits grew by
$6,733,000 for the first six months of 2005 and totaled $595,871,000 as of
June 30, 2005.
Stockholders' equity at June 30, 2005 was $48,502,000, representing a book value
of $10.30 per share. For the six-month period ended June 30, 2005, the return on
average assets was 0.70%, while the return on average equity was 11.19%. The
Corporation's net interest margin for the quarter and six-month period ended
June 30, 2005 improved to 3.22% and 3.20% respectively.
Donald R. Chase, President and Chief Executive Officer, said, "This past quarter
was significant in terms of structuring the Corporation for continued growth."
The Corporation opened its new Financial Services Division, offering investment,
insurance and financial planning services to its customers. "This new service
has been very well received and we expect it to help increase non-interest
income levels over the next twelve months," according to Chase.
Chase also stated that, "The Corporation is implementing a restructuring of its
residential real estate loan portfolio in anticipation of additional increases
in interest rates." The Corporation sold $22.7 million of long-term, fixed rate
mortgages during the quarter and committed to the sale of approximately
$22 million of similar mortgage loans that will close during the third quarter.
"We continue to be very pleased with our commercial loan activity, which has
increased by more than $31.6 million or 17% as of June 30, 2005 versus June 30,
2004," Chase said.
Westbank Corporation is the parent company of Westbank, a West Springfield,
Massachusetts, commercial bank and trust company operating 18 banking offices in
Massachusetts and Connecticut, with $768 million of total assets as of June 30,
2005.
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
(In thousands) JUNE 30, 2005 December 31, 2004
==============================================================================================================
(Unaudited)
ASSETS
Cash and due from banks
Non-interest bearing $ 13,463 $ 12,451
Interest bearing 34 34
Federal funds sold 7 669
- --------------------------------------------------------------------------------------------------------------
Total cash and cash equivalents 13,504 13,154
Securities held to maturity 115,457 112,424
Securities available for sale 150,524 155,405
Loans held for sale 21,954
Loans $ 430,549 $ 438,475
Less allowance for loan losses 4,462 4,356
- --------------------------------------------------------------------------------------------------------------
Net loans 426,087 434,119
Investment in Federal Home Loan Bank stock 6,450 6,450
Bank premises and equipment 7,038 6,885
Other real estate owned - net 630 630
Goodwill 8,837 8,837
Bank-owned life insurance 8,995 9,204
Other intangible assets 862 862
Investment in unconsolidated investees 526 526
Other assets 7,472 7,051
- --------------------------------------------------------------------------------------------------------------
Total Assets $ 768,336 $ 755,547
==============================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 83,341 $ 83,864
Interest bearing 512,530 505,274
- --------------------------------------------------------------------------------------------------------------
Total deposits 595,871 589,138
Funds borrowed 102,137 97,354
Payable to Westbank Capital Trust II 8,763 8,763
Payable to Westbank Capital Trust III 8,763 8,763
Other liabilities 4,300 4,067
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 719,834 708,085
- --------------------------------------------------------------------------------------------------------------
Stockholders' equity
Common stock 9,518 9,493
Unearned compensation -
restricted stock (1,535) (1,652)
Additional paid in capital 19,519 20,377
Retained earnings 21,293 19,958
Treasury stock (141) (606)
Accumulated other comprehensive income (152) (108)
- --------------------------------------------------------------------------------------------------------------
Total stockholders' equity 48,502 47,462
- --------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 768,336 $ 755,547
==============================================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Westbank Corporation and Subsidiaries
Quarter Ended June 30, Six Months Ended June 30,
(Dollar amounts in thousands, ----------------------- -------------------------
except per share data) 2004 2005 2004 2005
=========================================================================================
(Unaudited)
Income:
Interest and fees on loans $ 6,541 $ 5,997 $ 12,787 $ 12,186
Interest on securities 3,083 3,240 6,230 6,104
Interest on federal funds sold 2 2 5 9
- -----------------------------------------------------------------------------------------
Total interest income 9,626 9,239 19,022 18,299
Interest expense 3,863 3,628 7,562 7,157
- -----------------------------------------------------------------------------------------
Net interest income 5,763 5,611 11,460 11,142
Provision for loan losses 140
- -----------------------------------------------------------------------------------------
Net interest income after
provision for loan losses 5,763 5,611 11,320 11,142
- -----------------------------------------------------------------------------------------
Gain on sale of securities
available for sale 165 96 227
Gain on sale of loans 149 47 165 427
Other non-interest income 753 805 1,858 1,679
- -----------------------------------------------------------------------------------------
Total non-interest income 902 1,017 2,119 2,333
- -----------------------------------------------------------------------------------------
Operating Expenses:
Salaries and benefits 2,820 2,567 5,517 5,163
Occupancy - net 405 385 904 846
Other operating expenses 1,595 1,551 3,321 3,080
- -----------------------------------------------------------------------------------------
Total operating expenses 4,820 4,503 9,742 9,089
- -----------------------------------------------------------------------------------------
Income before income taxes 1,845 2,125 3,697 4,386
Income taxes 597 681 1,038 1,357
- -----------------------------------------------------------------------------------------
Net Income $ 1,248 $ 1,444 $ 2,659 $ 3,029
=========================================================================================
Earnings per share
- Basic $ 0.26 $ 0.32 $ 0.56 $ 0.67
- Diluted $ 0.25 $ 0.30 $ 0.54 $ 0.63
Weighted average shares outstanding
- Basic 4,730,604 4,573,803 4,729,354 4,511,505
- Diluted 4,905,358 4,839,609 4,924,683 4,782,541