Exhibit 99.1
FOR IMMEDIATE RELEASE
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April 21, 2006
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
2006 FIRST QUARTER EARNINGS
West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported net
income of $909,000 for the quarter ended March 31, 2006, representing $.19 per
share (diluted) versus $1,411,000 or $.29 per share (diluted) for the quarter
ended March 31, 2005. Included in earnings for the quarter ended March 31, 2006
were gains on sale of loans totaling $19,000, while the quarter ended March 31,
2005 included non-taxable life insurance proceeds of $430,000 and gains on the
sale of securities and loans totaling $112,000.
For the quarter ended March 31, 2006, net interest income totaled $5,403,000
compared to $5,697,000 at the end of the first quarter of 2005. The
Corporation's net interest margin totaled 2.84% for the period ended March 31,
2006 compared to 3.18% for the period ended March 31, 2005.
At March 31, 2006, the allowance for loan losses was $4,173,000 or 0.94% of
total loans compared to $4,199,000 or 0.97% of total loans at December 31, 2005.
The Corporation's provision for loan losses for the first quarter of 2006 was $0
versus $140,000 for the first quarter of 2005. As of March 31, 2006, credit
quality remained strong as non-performing loans totaled $1,806,000, representing
0.41% of total loans, compared to December 31, 2005 when non-performing loans
totaled $2,216,000 or 0.51% of total loans. Donald R. Chase, President and Chief
Executive Officer, said, "We are very pleased with the strong credit quality of
our loan portfolio." As of March 31, 2006, other real estate owned totaled
$608,000.
Non-interest income totaled $913,000 for the quarter ended March 31, 2006 versus
$1,217,000 for the same period of 2005. During the quarter ended March 31, 2006,
non-interest income declined by $304,000, primarily as a result of the life
insurance proceeds and gain on the sale of securities and loans discussed above,
offset by an increase in deposit services charges of $88,000 and other fee
income of $131,000.
Non-interest expense for the quarter ended March 31, 2006 totaled $4,993,000
versus $4,922,000 for the same period of 2005.
As of March 31, 2006, securities totaled $323 million, while net loans grew to
$437 million from $428 million at December 31, 2005. Deposits totaled $584
million at March 31, 2006, as compared to $599 million at December 31, 2005 and
assets totaled $822 million at March 31, 2006 versus $809 million at December
31, 2005.
Shareholders' equity at March 31, 2006 totaled $46,588,000, representing a book
value of $9.80 per share. The annualized return on average assets was 0.45% and
the annualized return on average equity was 7.76% for the three months ended
March 31, 2006.
According to Chase, "Commercial loan activity continues to drive our loan
volume, with commercial mortgages totaling $141 million at March 31, 2006 versus
$118 million at March 31, 2005, an increase of $23 million or 19%. In addition,
we are pleased to see a slight increase in residential mortgage activity."
"We are also pleased to report that construction of our newest full-service
branch office in Southwick, Massachusetts, is moving along nicely," 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 June of this year."
Chase also commented that, "April marks the one-year anniversary of our
affiliation with Infinex Financial Services. The Financial Services division
(Westco Financial Services) offers investment and insurance services. We begin
our second year of operation with assets under management of approximately $10
million and we look forward to continued growth in this business line during the
coming year."
Westbank Corporation is the holding company for Westbank of West Springfield,
Massachusetts, a commercial bank and trust company operating 17 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
MARCH 31, December 31,
(in thousands) 2006 2005
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(Unaudited)
ASSETS
Cash and due from banks
Non-interest bearing $ 15,645 $ 13,899
Interest bearing cash and cash equivalents 488 10
Federal funds sold 105 24
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Total cash and cash equivalents 16,238 13,933
Securities held to maturity 154,157 151,358
Securities available for sale 168,676 172,073
Loans held for sale 206 -
Loans $ 441,657 $ 432,459
Less allowance for loan losses 4,173 4,199
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Net loans 437,484 428,260
Investment in Federal Home Loan Bank stock 7,676 6,450
Bank premises and equipment 7,993 7,577
Other real estate owned - net 608 630
Goodwill 8,837 8,837
Bank-owned life insurance 9,238 9,149
Other intangible assets 1,792 1,792
Investment in unconsolidated investees 526 526
Other assets 8,405 8,122
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Total Assets $ 821,836 $ 808,707
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 80,910 $ 84,300
Interest bearing 502,755 515,059
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Total deposits 583,665 599,359
Funds borrowed 167,865 138,454
Junior subordinated debentures 17,526 17,526
Other liabilities 6,192 5,990
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Total Liabilities 775,248 761,329
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Stockholders' equity
Common stock 9,560 9,560
Unearned compensation - restricted stock - (1,424)
Additional paid in capital 17,708 19,105
Retained earnings 22,661 22,417
Treasury stock (381) (420)
Accumulated other comprehensive income (2,960) (1,860)
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Total stockholders' equity 46,588 47,378
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Total Liabilities and Stockholders' Equity $ 821,836 $ 808,707
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Westbank Corporation and Subsidiaries
Quarter Ended
March 31,
(Dollar amounts in thousands, except per -----------------------
share data) 2006 2005
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(Unaudited)
Income:
Interest and fees on loans $ 6,643 $ 6,246
Interest on securities 3,858 3,147
Interest from interest-bearing cash
equivalents and federal funds sold 7 3
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Total interest income 10,508 9,396
Interest expense 5,105 3,699
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Net interest income 5,403 5,697
Provision for loan losses - 140
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Net interest income after
provision for loan losses 5,403 5,557
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Gain on sale of securities available for sale - 96
Gain on sale of loans 19 16
Other non-interest income 894 1,105
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Total non-interest income 913 1,217
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Non-interest Expense:
Salaries and benefits 2,876 2,697
Occupancy - net 432 499
Other non-interest expense 1,685 1,726
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Total non-interest expense 4,993 4,922
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Income before income taxes 1,323 1,852
Income taxes 414 441
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Net Income $ 909 $ 1,411
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Earnings per share
Basic $ 0.19 $ 0.30
Diluted $ 0.19 $ 0.29
Weighted average shares outstanding
Basic 4,676,319 4,728,089
Diluted 4,838,219 4,939,485