NewAlliance Earnings Up Over Year Ago and Prior Quarter.

NEW HAVEN, Conn. -- NewAlliance Bancshares, Inc. (NYSE: NAL) today announced net income of $15.1 million, or 15 cents per diluted share, for the third quarter ended September 30, 2006, 18% higher than net income of $12.7 million, or 12 cents per diluted share, for the third quarter of 2005. On an earnings per share basis, third quarter 2006 income was 25 percent higher than the same quarter a year ago. Third quarter earnings compared to $11.8 million, or 12 cents per diluted share, for the prior quarter.

Earnings were favorably affected by $1.3 million on an after tax basis, or one cent per diluted share, as the result of a cumulative adjustment from a change in the accounting for certain limited partnerships to the equity method of accounting from the cost method of accounting. Without this one time adjustment, net income would have been $13.8 million, or 14 cents per diluted share, an increase of 8% in net income over the same quarter a year ago.

The Company also announced it will pay a quarterly dividend of 6 cents per share on November 20, 2006 to shareholders of record on November 10, 2006. The quarterly dividend is up from 5.5 cents per share from the same quarter a year ago and level with the prior quarter.

"We are pleased with our current earnings momentum, both from the prior quarter and the same quarter a year ago," said Peyton R. Patterson, NewAlliance Chairman, President and Chief Executive Officer. "While the headwinds facing our industry remain strong, we are encouraged with our quarterly results, particularly the past year's loan growth and strengthened checking deposits."

Key factors affecting the quarter follow:

Total loans at September 30, 2006 increased 17% over September 30, 2005, including increases in all categories of consumer and commercial lending.

Total deposits increased by 2.8% at September 30, 2006 from September 30, 2005. Most notably, average balances of checking accounts for the quarter were more than 6% higher than checking account average balances for the same quarter a year ago.

Both loan and checking deposit growth were aided in part by the acquisition of Cornerstone Bank which closed at the start of 2006.

Non-interest income increased in the third quarter of 2006 from $12.4 million to $14.8 million as compared to the third quarter of 2005, led by growth in service charges and increases in income from bank owned life insurance (BOLI), in addition to the cumulative adjustment. Without the adjustment, non-interest income for the third quarter would have been $12.8 million.

NewAlliance benefited from the receipt of a Federal Home Loan Bank dividend that was approximately $1 million (pre-tax) larger than the usual quarterly FHLB dividend to offset a skipped dividend in the second quarter.

Total non-interest expense declined by 2.5% to $34.9 million for the quarter ended September 30, 2006 from $35.8 million for the same quarter a year ago and by 5.6% from $37.0 million for the prior quarter.

The Company's efficiency ratio improved to 62.8% from 63.4% for the same quarter a year ago and from 67.7% from the prior quarter.

Asset quality at the Company remained sound with non-performing loans near historically low levels and continued favorable charge-off experience.

NewAlliance continued to face the challenge of a declining net interest margin. The margin for the quarter ended September 30, 2006 was 2.68% as compared to 3.01% for the same quarter a year ago and 2.77% for the prior quarter.

The Company's book value at September 30, 2006 was $12.36 and its tangible book value was $7.74 as compared to $12.09 and $7.87, respectively, at September 30, 2005 and $12.11 and $7.48, respectively, at June 30, 2006. Shareholders' equity at September 30, 2006 was $1.35 billion as compared to $1.33 billion at June 30, 2006.

At September 30, 2006, NewAlliance Bancshares, the parent company of NewAlliance Bank, headquartered in New Haven, Connecticut, had $7.20 billion in assets and operated 71 Connecticut banking offices.

During the third quarter, the Company announced that it had entered a definitive agreement to acquire Westbank Corporation and make its initial entry into Massachusetts. Westbank operates 17 branches and has over $800 million in assets. At the time of the announcement, the transaction was valued at approximately $116 million in cash and stock. The transaction is subject to customary regulatory approvals and Westbank shareholder approval. It is expected to close in the first quarter of 2007.

In addition to offering a full range of consumer and commercial banking products and services, NewAlliance Bank also provides trust services and investment and insurance products and services. The Bank's website is at www.newalliancebank.com. Shareholders are particularly urged to monitor the Investor Relations section of the Company's website.

A webcast and conference call to discuss third quarter results will be held on Wednesday, November 1, 2006 at 10:00 a.m. Eastern Time. This call is being webcast by CCBN and can be accessed in the Investor Relations area of the Company's website at www.newalliancebank.com. Individuals can dial in to the call at 1-866-202-3109, passcode 31848999. The international dial-in number is 1-617-213-8844.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

A replay of the webcast and call will be available after Noon on November 1, 2006 through November 15, 2006. To access the replay, dial 1-888-286-8010, passcode 29927446, or for international access, dial 1-617-801-6888.

NewAlliance will also have a podcast available from its website 24 hours after the call for those interested in downloading the conference call onto individual listening devices or laptops.

Note: In discussing financial results, management may refer to certain non-GAAP (Generally Accepted Accounting Principles) measures. The Company's management believes these non-GAAP measurements, which generally exclude the effects of charges and expenses related to the consummation of mergers and acquisitions and costs related to the integration of merged entities are essential to a proper understanding of the operating results of the Company's core business largely because the merger and acquisition related items and their impact on the Company's performance are difficult to predict. These non-GAAP measurements are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to non-GAAP performance measures that may be presented by other companies. A reconciliation of GAAP and non-GAAP information is included in this report.

Statements in this news release, if any, concerning future results, performance, expectations or intentions are forward-looking statements. Actual results, performance or developments may differ materially from forward-looking statements as a result of known or unknown risks, uncertainties and other factors, including those identified from time to time in the Company's filings with the Securities and Exchange Commission, press releases and other communications. Actual results also may differ based on the Company's ability to successfully maintain and integrate customers from acquisitions. The Company intends any forward-looking statements to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Except as required by applicable law or regulation, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made.

This press release does not constitute an offer of securities. NewAlliance and Westbank have filed 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 are urged to read the registration statement, the proxy statement/prospectus and all other documents which will be filed with the SEC, and any amendments or supplements to those documents, because they will contain important information which shareholders should consider before making any decision regarding the merger. Shareholders of Westbank will be mailed the proxy statement/prospectus following the SEC's declaration of effectiveness of the related registration statement. You will be able to obtain a free copy of the proxy statement/prospectus, as well as other filings containing information of NewAlliance and Westbank, at the SEC's website (http://www.sec.gov) and at their respective websites, www.newalliancebank.com and www.westbankonline.com.

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