EX-99.1 2 wc6600ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE -------------------------------------------------------------------------------- July 28, 2006 FOR MORE INFORMATION, CONTACT: -------------------------------------------------------------------------------- John M. Lilly, Treasurer and Chief Financial Officer (413) 747-1465 Nasdaq Symbol - WBKC WESTBANK CORPORATION REPORTS SECOND QUARTER EARNINGS AND PREPARES FOR MERGER WITH NEWALLIANCE BANCSHARES West Springfield, MA -- Westbank Corporation (Nasdaq: WBKC) today reported net income of $581,000 for the quarter ended June 30, 2006, representing $.12 per share (diluted) versus $1,248,000 or $.25 per share (diluted) for the quarter ended June 30, 2005. For the six-month period ended June 30, 2006, net income totaled $1,490,000 or $.31 per share (diluted) compared to $2,659,000 or $.54 per share (diluted) for the six months ended June 30, 2005. The results of the quarter and year-to-date periods were largely impacted by net interest margin compression, as well as higher operating expenses. For the quarter and six-month period ended June 30, 2006, net interest income was $5,021,000 and $10,424,000 respectively compared to $5,763,000 and $11,460,000 for the same periods during 2005. The net interest margin was 2.60% and 2.72% for the three- and six-month periods ended June 30, 2006 respectively. The allowance for loan losses was $4,123,000 or .92% of total loans at June 30, 2006 as compared to $4,199,000 or .97% of total loans at December 30, 2005. Non-performing loans totaled $2,016,000 or .45% of total loans and the Corporation held other real estate owned totaling $608,000 at June 30, 2006. Non-interest income was $900,000 for the quarter ended June 30, 2006 versus $902,000 for the quarter ended June 30, 2005. Included in the quarter ended June 30, 2005 were gains on the sale of loans totaling $149,000. Non-interest expense for the three-months ended June 30, 2006 totaled $5,105,000 compared to $4,820,000 for the same period of 2005. Included in non-interest expense for the quarter ended June 30, 2006 was approximately $115,000 in employment-related fees and strategic business planning costs. During the quarter, the Federal Home Loan Bank of Boston (the "FHLB") changed its policy for dividend declarations such that the dividend based on net income for the second quarter of 2006 is not expected to be declared until the third quarter of 2006. In the first quarter of 2006, the Corporation recognized dividend income of approximately $92,000 from the FHLB. As of June 30, 2006, securities totaled $318 million as compared to $323 million at December 31, 2005, while net loans grew to $445 million from $428 million at December 31, 2005. Deposits totaled $606 million at June 30, 2006 as compared to $599 million at December 31, 2005 and assets totaled $822 million at June 30, 2006 versus $809 million at December 31, 2005. On July 18, 2006, Westbank Corporation and NewAlliance Bancshares announced their intent to enter 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. President and Chief Executive Officer Donald R. Chase said, "We are looking forward to working with NewAlliance in planning and implementing what we expect to be a very smooth and successful transition leading up to the merger. In selecting NewAlliance, we believe we have selected the best possible partner in terms of our shareholders, customers and employees." 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. 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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME Westbank Corporation and Subsidiaries

WESTBANK CORP 8-K