WBKC Wolverine Bancorp, Inc.

WEST SPRINGFIELD, Mass., Nov. 3 /PRNewswire-FirstCall/ -- 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, 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) September 30, 2006 December 31, 2005 (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 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 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 Total Assets $827,050 $808,707 Liabilities and Stockholders' Equity Deposits Non-interest bearing $78,514 $84,300 Interest bearing 527,865 515,059 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 Total Liabilities 779,414 761,329 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) Total stockholders' equity 47,636 47,378 Total Liabilities and Stockholders' Equity $827,050 $808,707 Condensed Consolidated Statements of Income Westbank Corporation and Subsidiaries Quarter Ended Nine Months Ended September 30, September 30, (Dollar amounts in 2006 2005 2006 2005 thousands, except per share data) (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 Total interest income 11,209 9,632 32,583 28,654 Interest expense 6,399 4,049 17,349 11,611 Net interest income 4,810 5,583 15,234 17,043 Provision for loan losses 45 - 45 140 Net interest income after provision for loan losses 4,765 5,583 15,189 16,903 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 Total non-interest income 962 1,002 2,775 3,121 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 Total non-interest expense 5,471 4,838 15,569 14,580 Income before income taxes 256 1,747 2,395 5,444 Income taxes 79 549 728 1,587 Net Income $177 $1,198 $1,667 $3,857 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 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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