EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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November 3, 2006
FOR MORE INFORMATION, CONTACT:
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John M. Lilly, Treasurer and Chief Financial Officer (413) 747-1465
Nasdaq Symbol - WBKC
WESTBANK REPORTS EARNINGS AND PROGRESS ON MERGER WITH NEWALLIANCE
West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported net
income of $177,000 for the quarter ended September 30, 2006, representing $.04
per share (diluted) and $1,667,000 or $.34 per diluted share for the nine months
ended September 30, 2006. This compares to earnings for the quarter and nine
months ended September 30, 2005 of $1,198,000 or $.25 per diluted share and
$3,857,000 or $.79 per diluted share respectively. Donald R. Chase, President
and Chief Executive Officer, said, "Merger-related expenses had a significant
impact on earnings for the quarter ended September 30, 2006."
For the quarter and nine-month period ended September 30, 2006, net interest
income was $4,810,000 and $15,234,000 respectively compared to $5,583,000 and
$17,043,000 for the same periods during 2005. The net interest margin was 2.49%
and 2.64% for the three- and nine-month periods ended September 30, 2006
respectively.
The allowance for loan losses was $4,007,000 or .88% of total loans at September
30, 2006 as compared to $4,199,000 or .97% of total loans at December 31, 2005.
Excluding U.S.D.A.- and S.B.A.-guaranteed loans, the allowance for loan losses
to total loans represented .92% as of September 30, 2006 versus .98% at December
31, 2005. Non-performing loans totaled $1,554,000 or .34% of total loans and the
Corporation held other real estate owned totaling $500,000 at September 30,
2006.
Non-interest income was $962,000 for the quarter ended September 30, 2006 versus
$1,002,000 for the quarter ended September 30, 2005. Included in the quarter
ended September 30, 2005 were gains on the sale of loans totaling $250,000.
Non-interest expense for the three months ended September 30, 2006 totaled
$5,471,000 compared to $4,838,000 for the same period of 2005. Included in
non-interest expense for the quarter ended September 30, 2006 were
merger-related fees totaling $480,000 and a provision for other real estate
owned of $108,000.
As of September 30, 2006, securities totaled $317 million as compared to $323
million at December 31, 2005, while net loans grew to $451 million from $428
million at December 31, 2005. Deposits totaled $606 million at September 30,
2006 as compared to $599 million at December 31, 2005 and assets totaled $827
million at September 30, 2006 versus $809 million at December 31, 2005.
On July 18, 2006, Westbank Corporation and NewAlliance Bancshares announced they
had entered into a definitive agreement through which NewAlliance Bancshares
will acquire Westbank Corporation for approximately $116 million in cash and
stock. The acquisition is expected to close early in the first quarter of 2007
and is subject to Westbank shareholder approval, as well as approval of banking
regulators.
"We have recently received approval from the Federal Deposit Insurance
Corporation and the Board of Governors of the Federal Reserve System, and are
awaiting approval from the state regulators. We anticipate holding a special
shareholders meeting in December to approve the merger and, in the meantime, we
are working with NewAlliance management and staff to ensure a very smooth and
successful transition from the Westbank name to that of NewAlliance," according
to Chase.
Westbank Corporation is the holding company for Westbank of West Springfield,
Massachusetts, a commercial bank and trust company operating 16 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.
This press release does not constitute an offer of securities. NewAlliance
Bancshares and Westbank Corporation will file a registration statement, a proxy
statement/prospectus and other relevant documents concerning the proposed
transaction with the Securities and Exchange Commission ("SEC"). Shareholders of
Westbank Corporation are urged to read the registration statement, the proxy
statement/prospectus and all other documents which will be filed with SEC, and
any amendments or supplements to those documents, because they will contain
important information which you should consider before making any decision
regarding the merger. You will be able to obtain a free copy of the proxy
statement/prospectus, as well as other filings containing information about
NewAlliance Bancshares and Westbank Corporation, at the SEC's Web site
(http://www.sec.gov) and at their respective Web sites, www.newalliancebank.com
and www.westbankonline.com.
Copies of the proxy statement/prospectus can be obtained without charge, when
available, by directing a request to NewAlliance Bancshares, Inc., 195 Church
Street, New Haven, Connecticut 06510, or to Westbank Corporation, 225 Park
Avenue, West Springfield, Massachusetts 01089-3326.
Westbank Corporation and its directors and executive officers may be deemed to
be participants in the solicitation of proxies from the shareholders of Westbank
Corporation in connection with the merger. Information about the directors and
executive officers of Westbank Corporation and their ownership of Westbank
Corporation common stock is set forth in its proxy statement for its 2006 Annual
Meeting of Shareholders, dated March 15, 2006, filed with the SEC which is
available at the Westbank Corporation and SEC Web sites noted above. Additional
information regarding the interests of such participants may be obtained by
reading the proxy statement/prospectus when it becomes available.
CONDENSED CONSOLIDATED BALANCE SHEETS
Westbank Corporation and Subsidiaries
(In thousands) SEPTEMBER 30, 2006 December 31, 2005
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(Unaudited)
ASSETS
Cash and due from banks
Non-interest bearing $ 13,506 $ 13,899
Interest bearing cash and cash equivalents 421 10
Federal funds sold 511 24
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Total cash and cash equivalents 14,438 13,933
Securities held to maturity 166,767 151,358
Securities available for sale 149,746 172,073
Loans $ 454,549 $ 432,459
Less allowance for loan losses 4,007 4,199
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Net loans 450,542 428,260
Investment in Federal Home Loan Bank stock 7,682 6,450
Bank premises and equipment 8,228 7,577
Other real estate owned - net 500 630
Goodwill 8,837 8,837
Bank-owned life insurance 9,407 9,149
Other intangible assets 1,792 1,792
Investment in unconsolidated investees 526 526
Other assets 8,585 8,122
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Total Assets $ 827,050 $ 808,707
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 78,514 $ 84,300
Interest bearing 527,865 515,059
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Total deposits 606,379 599,359
Funds borrowed 148,528 138,454
Junior subordinated debentures 17,526 17,526
Other liabilities 6,981 5,990
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Total Liabilities 779,414 761,329
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Stockholders' equity
Common stock 9,699 9,560
Unearned compensation - restricted stock - (1,424)
Additional paid in capital 18,357 19,105
Retained earnings 22,076 22,417
Treasury stock (506) (420)
Accumulated other comprehensive loss (1,990) (1,860)
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Total stockholders' equity 47,636 47,378
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Total Liabilities and Stockholders' Equity $ 827,050 $ 808,707
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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) 2006 2005 2006 2005
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(Unaudited)
Interest Income:
Interest and fees on loans $ 7,227 $ 6,528 $ 20,923 $ 19,315
Interest on securities 3,971 3,102 11,633 9,332
Interest from interest-bearing cash
equivalents and federal funds sold 11 2 27 7
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Total interest income 11,209 9,632 32,583 28,654
Interest expense 6,399 4,049 17,349 11,611
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Net interest income 4,810 5,583 15,234 17,043
Provision for loan losses 45 - 45 140
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Net interest income after
provision for loan losses 4,765 5,583 15,189 16,903
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Gain on sale of securities
available for sale - - - 96
Gain on sale of loans 1 250 17 415
Other non-interest income 961 752 2,758 2,610
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Total non-interest income 962 1,002 2,775 3,121
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Non-interest expense:
Salaries and benefits 2,848 2,736 8,573 8,253
Occupancy - net 314 420 1,059 1,324
Other non-interest expense 2,309 1,682 5,937 5,003
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Total non-interest expense 5,471 4,838 15,569 14,580
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Income before income taxes 256 1,747 2,395 5,444
Income taxes 79 549 728 1,587
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Net Income $ 177 $ 1,198 $ 1,667 $ 3,857
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Earnings per share
- Basic $ 0.04 $ 0.26 $ 0.35 $ 0.82
- Diluted $ 0.04 $ 0.25 $ 0.34 $ 0.79
Weighted average shares outstanding
- Basic 4,749,648 4,694,043 4,705,711 4,717,454
- Diluted 4,966,217 4,870,555 4,891,475 4,906,499