Exhibit 99.1
WESTBANK CORPORATION REPORTS INCREASED EARNINGS
WEST SPRINGFIELD, Mass., Oct. 27 /PRNewswire-FirstCall/ -- Westbank
Corporation (Nasdaq: WBKC) today reported net income increased by
$746,000 and totaled $1,198,000 for the quarter ended September 30,
2005, representing $.25 per share (diluted) versus $452,000 or $.09 per
share (diluted) for the quarter ended September 30, 2004.
For the nine-month period ended September 30, 2005, net income totaled
$3,857,000 or $.79 per share (diluted) versus $3,482,000 or $.72 per share
(diluted) for the same period ended September 30, 2004.
During the third quarter of 2004, earnings were impacted by a write-down of
$807,000 related to the redemption of the Corporation's prior trust preferred
security described below and a write-down of preferred stock deemed to be other
than temporarily impaired in the amount of $583,000.
For the quarter and nine-month period ended September 30, 2005, net interest
income totaled $5,583,000 and $17,043,000 respectively compared to $5,682,000
and $16,946,000 for the same periods during 2004.
During the quarter ended September 30, 2005, the Corporation's provision for
loan losses was $0 compared to $150,000 for the quarter ended September 30,
2004.
The allowance for loan losses totaled $4,283,000 or 0.98% of total loans at
September 30, 2005 as compared to $4,356,000 or 0.99% of total loans at December
31, 2004. Non-performing loans totaled $1,993,000 or 0.46% of total loans and
the Corporation held other real estate owned totaling $630,000 at September 30,
2005.
Non-interest income was $1,002,000 for the quarter ended September 30, 2005
versus $489,000 for the quarter ended September 30, 2004. Included in
non-interest income for the third quarter of 2005 was $250,000 representing a
gain on sale of loans. Included in non-interest income during the third quarter
of 2004 was a gain on sale of securities totaling $280,000 offset by the
write-down of preferred stock deemed other than temporarily impaired totaling
$583,000, as discussed above.
Non-interest expense for the quarter ended September 30, 2005 was $4,838,000
versus $5,457,000 for the quarter ended September 30, 2004. Included in
non-interest expenses for the quarter ended September 30, 2004 was the
write-down of $807,000 related to the redemption of the Corporation's trust
preferred security that was redeemed on September 30, 2004. The $807,000
represented the unamortized origination costs of the Corporation's initial trust
preferred security issued during September 1999. The trust preferred security
was redeemed and replaced with trust preferred securities bearing a lower
interest rate.
As of September 30, 2005, investments totaled $283,332,000, while net loans
totaled $431,337,000 as of September 30, 2005. Total assets increased to
$771,086,000 as of September 30, 2005 versus $755,547,000 at the end of 2004 and
deposits grew to $589,795,000 as of September 30, 2005.
Stockholders' equity at September 30, 2005 was $47,531,000, representing a book
value of $9.98 per share. For the nine-month period ended September 30, 2005,
the return on average assets was 0.68%, while the return on average equity was
10.81%. The Corporation's net interest margin for the quarter and nine-month
period ended September 30, 2005 was 3.15% and 3.19% respectively.
Donald R. Chase, President and CEO, said, "The Corporation continued the
restructuring of its residential real estate loan portfolio in anticipation of
additional increases in interest rates." The Corporation sold $22 million of
long-term, fixed rate mortgages during the quarter ended September 30, 2005
after completing a similar sale during the second quarter of 2005.
Chase stated, "Commercial loan activity continued to be very strong, with
commercial loans increasing by more than $27 million or 14% as of September 30,
2005 verses September 30, 2004.
"Our new Financial Services Division has been very well received. After just the
first few months of operations, our Financial Services representatives have more
than $5 million under management," according to Chase. "In addition," Chase
said, "we are pleased to announce a new service recently offered to retail
customers called Overdraft Privilege. This service makes available overdraft
limits to consumer checking account customers of between $400-$1,000 depending
on their type of product."
Westbank Corporation is the parent company of Westbank, a West Springfield,
Massachusetts, commercial bank and trust company operating 17 banking offices in
Massachusetts and Connecticut, with $771 million of total assets as of September
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
September 30, December 31,
(In thousands) 2005 2004
- ------------------------------------- ------------- -------------
(Unaudited)
Assets
Cash and due from banks
Non-interest bearing $ 15,152 $ 12,451
Interest bearing 9 34
Federal funds sold 61 669
Total cash and cash equivalents 15,222 13,154
Securities held to maturity 128,946 112,424
Securities available for sale 154,386 155,405
Loans $ 435,620 $ 438,475
Less allowance for loan
losses 4,283 4,356
Net loans 431,337 434,119
Investment in Federal Home Loan Bank
stock 6,450 6,450
Bank premises and equipment 7,255 6,885
Other real estate owned - net 630 630
Goodwill 8,837 8,837
Bank-owned life insurance 9,073 9,204
Other intangible assets 862 862
Investment in unconsolidated
investees 526 526
Other assets 7,562 7,051
Total Assets $ 771,086 $ 755,547
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 84,338 $ 83,864
Interest bearing 505,457 505,274
Total deposits 589,795 589,138
Funds borrowed 111,574 97,354
Payable to Westbank Capital Trust II 8,763 8,763
Payable to Westbank Capital Trust III 8,763 8,763
Other liabilities 4,660 4,067
Total Liabilities 723,555 708,085
Stockholders' equity
Common stock 9,541 9,493
Unearned compensation -
restricted stock (1,479) (1,652)
Additional paid in capital 19,004 20,377
Retained earnings 21,835 19,958
Treasury stock (167) (606)
Accumulated other comprehensive
income (1,203) (108)
Total stockholders' equity 47,531 47,462
Total Liabilities and Stockholders'
Equity $ 771,086 $ 755,547
Condensed Consolidated Statements of Income
Westbank Corporation and Subsidiaries
Quarter Ended Nine Months Ended
September 30, September 30,
(Dollar amounts in thousands, except ----------------------------- -----------------------------
per share data) 2005 2004 2005 2004
- ------------------------------------ ------------- ------------- ------------- -------------
(Unaudited)
Income:
Interest and fees on
loans $ 6,528 $ 6,140 $ 19,315 $ 18,448
Interest on securities 3,102 3,227 9,332 9,331
Interest on federal
funds sold 2 8 7 17
Total interest income 9,632 9,375 28,654 27,796
Interest expense 4,049 3,693 11,611 10,850
Net interest income 5,583 5,682 17,043 16,946
Provision for loan losses - 150 140 150
Net interest income after
provision for loan
losses 5,583 5,532 16,903 16,796
Gain on sale of securities
available for sale - 280 96 507
Other-than-temporary
impairment
of investment
securities - (583) - (583)
Gain on sale of loans 250 14 415 441
Other non-interest income 752 778 2,610 2,335
Total non-interest income 1,002 489 3,121 2,700
Non-interest Expense:
Salaries and benefits 2,736 2,644 8,253 7,807
Occupancy - net 420 387 1,324 1,233
Other non-interest
expense 1,682 2,426 5,003 5,506
Total non-interest expense 4,838 5,457 14,580 14,546
Income before income taxes 1,747 564 5,444 4,950
Income taxes 549 112 1,587 1,468
Net Income $ 1,198 $ 452 $ 3,857 $ 3,482
Earnings per share
Basic $ 0.26 $ 0.10 $ 0.82 $ 0.76
Diluted $ 0.25 $ 0.09 $ 0.79 $ 0.72
Weighted average shares
outstanding
Basic 4,694,043 4,694,391 4,717,454 4,572,912
Diluted 4,870,555 4,950,096 4,906,499 4,831,114
SOURCE Westbank Corporation
-0- 10/27/2005
/CONTACT: John M. Lilly, Treasurer and Chief Financial Officer of
Westbank Corporation, +1-413-747-1465/
(WBKC)