EX-99.1 2 exhibit99-1_12824.txt PRESS RELEASE EXHIBIT 99.1 ------------ FOR IMMEDIATE RELEASE -------------------------------------------------------------------------------- July 28, 2004 FOR MORE INFORMATION, CONTACT: -------------------------------------------------------------------------------- John M. Lilly, Treasurer and Chief Financial Officer (413) 747-1465 Nasdaq Symbol - WBKC WESTBANK CORPORATION ANNOUNCES QUARTERLY EARNINGS West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported quarterly net income of $1,444,000, representing $0.30 per share (diluted), while earnings for the six-month period ended June 30, 2004 totaled $3,029,000 or $0.63 per share (diluted). Earnings for the second quarter of 2003 totaled $1,502,000 or $0.32 per share (diluted) and $3,008,000 or $0.63 per share (diluted) for the first six months of 2003. Net interest income improved to $5,611,000 for the quarter, an increase of $262,000, the result of earning asset growth, while the corporation's net interest margin for the quarter and year to date was 3.22% and 3.25% respectively. Non-interest income for the three-month period ended June 30, 2004 increased to $1,017,000 versus $994,000 for the same quarter during 2003. Included in the most recent quarter were gains on sales of securities and loans of $165,000 and $47,000 respectively versus gains on sales of securities and loans totaling $4,000 and $246,000 respectively during the second quarter of 2003. Operating expenses for the period totaled $4,503,000 versus $4,229,000 for the second quarter of 2003. The increase in operating expenses is a result of the overall growth of the Corporation. As of June 30, 2004, assets totaled $766.1 million, an increase of $115.7 million or 18%. Investments increased by $163.6 million and total $286.2 million, while loans totaled $427.9 million at the end of June 2004. Deposits also showed significant growth, totaling $583.9 million versus $537.3 million at June 30, 2003. Asset quality remains strong, with non-performing assets totaling $1,866,000 and representing just 0.24% of total assets. During the quarter, the Corporation's provision for loan losses was $-0- and the allowance for loan losses to total loans was 0.99%. Stockholders' equity for the period ended June 30, 2004 totaled $44,486,000, representing a book value of $9.48. The results of the six months ended June 30,2004 represent a return on assets of 0.83% and a return on equity of 13.3%. "We continue to be pleased with the results of the Corporation," according to Donald R. Chase, President and Chief Executive Officer. "Although residential real estate volume has slowed, the Corporation has seen a significant pick-up in commercial loans and commercial real estate volume. Going into the third quarter, commercial loan and mortgage commitments are in excess of $43 million." Chase continued, "We are also very pleased to have been recognized by U.S. BANKERS MAGAZINE as one of the top 200 publicly traded community banks in the United States. Westbank Corporation ranked 77th based on three years' return on equity and was the only western Massachusetts bank recognized in the top 200." 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. CONDENSED CONSOLIDATED BALANCE SHEETS WESTBANK CORPORATION AND SUBSIDIARIES June 30, (Unaudited) (DOLLAR AMOUNTS IN THOUSANDS) 2004 2003 =============================================================================== ASSETS Cash and due from banks Non-interest bearing $ 19,499 $ 20,036 Interest bearing 7 83 Federal funds sold 529 24,922 Securities held to maturity 71,974 317 Securities available for sale 214,181 122,254 Loans $ 427,899 $ 456,593 (Less) allowance for loan losses 4,227 5,122 ------------------------------------------------------------------------------- Net loans 423,672 451,471 Bank premises and equipment 6,636 6,351 Other real estate owned - net 706 Goodwill 8,837 8,837 Intangible assets 929 Investment in unconsolidated investee 526 526 Other assets 18,588 15,567 ------------------------------------------------------------------------------- TOTAL ASSETS $ 766,084 $ 650,364 =============================================================================== LIABILITIES AND EQUITY Deposits Non-interest bearing $ 82,443 $ 72,493 Interest bearing 501,505 464,790 ------------------------------------------------------------------------------- Total Deposits 583,948 537,283 Funds borrowed 116,287 46,403 Payable to Westbank Capital Trust 1 17,526 17,526 Other liabilities 3,837 4,945 ------------------------------------------------------------------------------- Total Liabilities 721,598 606,157 ------------------------------------------------------------------------------- Stockholders' Equity Common stock 9,493 9,047 Unearned compensation - restricted stock award (1,764) Additional paid in capital 20,443 14,516 Retained earnings 19,692 20,731 Treasury stock (1,108) (1,917) Accumulated other comprehensive income (loss) (2,270) 1,830 ------------------------------------------------------------------------------- Total Stockholders' Equity 44,486 44,207 ------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 766,084 $ 650,364 =============================================================================== CONDENSED CONSOLIDATED STATEMENTS OF INCOME WESTBANK CORPORATION AND SUBSIDIARIES
June 30, (Unaudited) Quarter Ended Six Months Ended (DOLLAR AMOUNTS IN THOUSANDS, --------------------------- --------------------------- EXCEPT PER SHARE DATA) 2004 2003 (1) 2004 2003 (1) --------------------------------------------------------------------------------------------------- Income: Interest and fees on loans $ 5,997 $ 7,281 $ 12,186 $ 14,914 Interest on securities 3,240 1,598 6,104 3,267 Interest on federal funds sold 2 54 9 116 --------------------------------------------------------------------------------------------------- Total interest income 9,239 8,933 18,299 18,297 Interest expense 3,628 3,584 7,157 7,432 --------------------------------------------------------------------------------------------------- Net interest income 5,611 5,349 11,142 10,865 Provision for loan losses --------------------------------------------------------------------------------------------------- Net interest income after provision 5,611 5,349 11,142 10,865 --------------------------------------------------------------------------------------------------- Gain/(loss) on sale of securities available for sale 165 4 227 263 Gain/(loss) on sale of loans 47 246 427 246 Other non-interest income 805 744 1,679 1,478 --------------------------------------------------------------------------------------------------- Total non-interest income 1,017 994 2,333 1,987 --------------------------------------------------------------------------------------------------- Operating Expenses: Salaries and benefits 2,567 2,443 5,163 4,813 Other operating expenses 1,551 1,421 3,080 2,768 Occupancy - net 385 365 846 810 --------------------------------------------------------------------------------------------------- Total operating expenses 4,503 4,229 9,089 8,391 --------------------------------------------------------------------------------------------------- Income before income taxes 2,125 2,114 4,386 4,461 Income taxes 681 612 1,357 1,453 --------------------------------------------------------------------------------------------------- Net Income $ 1,444 $ 1,502 $ 3,029 $ 3,008 =================================================================================================== Earnings per share - Basic $ 0.32 $ 0.33 $ 0.67 $ 0.66 - Diluted $ 0.30 $ 0.32 $ 0.63 $ 0.63 Weighted average shares outstanding - Basic 4,573,803 4,600,565 4,511,505 4,581,224 - Diluted 4,839,609 4,763,909 4,782,541 4,740,314
(1) Share amounts and earnings per share are adjusted for the 5% stock dividend and distribution in May 2004.