WBKC Wolverine Bancorp, Inc.

WEST SPRINGFIELD, Mass., April 21 /PRNewswire-FirstCall/ -- 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 (In thousands) March 31, 2006 December 31, 2005 (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 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 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 Total Assets $821,836 $808,707 Liabilities and Stockholders' Equity Deposits Non-interest bearing $80,910 $84,300 Interest bearing 502,755 515,059 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 Total Liabilities 775,248 761,329 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) Total stockholders' equity 46,588 47,378 Total Liabilities and Stockholders' Equity $821,836 $808,707 Condensed Consolidated Statements of Income Westbank Corporation and Subsidiaries Quarter Ended March 31, (Dollar amounts in thousands, except per share data) 2006 2005 (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 Total interest income 10,508 9,396 Interest expense 5,105 3,699 Net interest income 5,403 5,697 Provision for loan losses - 140 Net interest income after provision for loan losses 5,403 5,557 Gain on sale of securities available for sale - 96 Gain on sale of loans 19 16 Other non-interest income 894 1,105 Total non-interest income 913 1,217 Non-interest Expense: Salaries and benefits 2,876 2,697 Occupancy -- net 432 499 Other non-interest expense 1,685 1,726 Total non-interest expense 4,993 4,922 Income before income taxes 1,323 1,852 Income taxes 414 441 Net Income $909 $1,411 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 DATASOURCE: Westbank Corporation CONTACT: John M. Lilly, Treasurer and Chief Financial Officer of Westbank Corporation, +1-413-747-1465

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