WBKC Wolverine Bancorp, Inc.

WEST SPRINGFIELD, Mass., July 28 /PRNewswire-FirstCall/ -- 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, http://www.newalliancebank.com/ and http://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) June 30, 2006 December 31, 2005 (Unaudited) Assets Cash and due from banks Non-interest bearing $12,493 $13,899 Interest bearing cash and cash equivalents 407 10 Federal funds sold 189 24 Total cash and cash equivalents 13,089 13,933 Securities held to maturity 151,831 151,358 Securities available for sale 165,741 172,073 Loans $448,689 $432,459 Less allowance for loan losses 4,123 4,199 Net loans 444,566 428,260 Investment in Federal Home Loan Bank stock 7,682 6,450 Bank premises and equipment 8,348 7,577 Other real estate owned - net 608 630 Goodwill 8,837 8,837 Bank-owned life insurance 9,324 9,149 Other intangible assets 1,792 1,792 Investment in unconsolidated investees 526 526 Other assets 9,752 8,122 Total Assets $822,096 $808,707 Liabilities and Stockholders' Equity Deposits Non-interest bearing $76,762 $84,300 Interest bearing 529,568 515,059 Total deposits 606,330 599,359 Funds borrowed 144,836 138,454 Junior subordinated debentures 17,526 17,526 Other liabilities 7,051 5,990 Total Liabilities 775,743 761,329 Stockholders' equity Common stock 9,699 9,560 Unearned compensation - restricted stock - (1,424) Additional paid in capital 18,308 19,105 Retained earnings 22,576 22,417 Treasury stock (431) (420) Accumulated other comprehensive loss (3,799) (1,860) Total stockholders' equity 46,353 47,378 Total Liabilities and Stockholders' Equity $822,096 $808,707 Condensed Consolidated Statements of Income Westbank Corporation and Subsidiaries Quarter Ended June 30, Six Months Ended June 30, (Dollar amounts in thousands, except per share data) 2006 2005 2006 2005 (Unaudited) Interest Income: Interest and fees on loans $7,053 $6,541 $13,696 $12,787 Interest on securities 3,804 3,083 7,662 6,230 Interest from interest- bearing cash equivalents and federal funds sold 9 2 16 5 Total interest income 10,866 9,626 21,374 19,022 Interest expense 5,845 3,863 10,950 7,562 Net interest income 5,021 5,763 10,424 11,460 Provision for loan losses - - - 140 Net interest income after provision for loan losses 5,021 5,763 10,424 11,320 Gain on sale of securities available for sale - - - 96 (Loss) gain on sale of loans (3) 149 16 165 Other non-interest income 903 753 1,797 1,858 Total non-interest income 900 902 1,813 2,119 Non-interest expense: Salaries and benefits 2,849 2,820 5,725 5,517 Occupancy - net 376 319 745 731 Other non-interest expense 1,880 1,681 3,628 3,494 Total non-interest expense 5,105 4,820 10,098 9,742 Income before income taxes 816 1,845 2,139 3,697 Income taxes 235 597 649 1,038 Net Income $581 $1,248 $1,490 $2,659 Earnings per share - Basic $0.12 $0.26 $0.32 $0.56 - Diluted $0.12 $0.25 $0.31 $0.54 Weighted average shares outstanding - Basic 4,690,360 4,730,604 4,683,379 4,729,354 - Diluted 4,869,183 4,909,831 4,853,740 4,924,666 DATASOURCE: Westbank Corporation CONTACT: John M. Lilly, Treasurer and Chief Financial Officer of Westbank Corporation, +1-413-747-1465 Web site: http://www.westbankonline.com/ http://www.newalliancebank.com/

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