×

Westbury Bancorp, Inc. Reports Net Income for the Three Months Ended December 31, 2015

WEST BEND, Wis., Jan. 27, 2016 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $1.0 million, or $0.27 per common share, for the three months ended December 31, 2015, compared to net income of $447,000, or $0.10 per common share for the three months ended December 31, 2014.

Kirk Emerich, Executive Vice President and Chief Financial Officer, said, "We are pleased to announce a strong start to 2016. The hard work of our banking team has resulted in improvements to net interest income and noninterest expense while maintaining noninterest income as a healthy percentage of total revenue. Our loan growth has added additional net interest income while at the same time, the decisions we made, which were previously announced, to close certain underperforming branches and to buy out certain service contracts have resulted in expense savings as expected."

Greg Remus, President and Chief Executive Officer, added, "While our loan growth has slowed this quarter, we are continuing to seek opportunities to add high quality commercial business and real estate loans to our portfolio in the quarters ahead. We are also pleased that our improved earnings and our stock repurchase program have combined to continue to improve our price to book value ratio and return on equity."

Highlights for the quarter include:

  • During the three months ended December 31, 2015, our net loan portfolio grew by $3.1 million, or 2.5% annualized growth. The portfolio growth consisted primarily of increases in multifamily and commercial real estate loans. Loan growth was the primary driver of an increase in total interest and dividend income of $100,000, or 1.8%, to $5.6 million for the three months ended December 31, 2015 compared to $5.5 million for the three months ended September 30, 2015 and an increase of $715,000, or 14.7%, compared to $4.9 million for the three months ended December 31, 2014.
  • During the three months ended December 31, 2015, our deposits increased by $25.1 million, or 18.9% annualized growth. Deposit growth was the primary cause of the increase in total interest expense of $38,000, or 6.9%, to $590,000 for the three months ended December 31, 2015 compared to $552,000 for the three months ended September 30, 2015 and an increase of $161,000, or 37.5%, compared to $429,000 for the three months ended December 31, 2014.
  • Net interest income increased $62,000, or 1.3%, to $5.0 million for the three months ended December 31, 2015 compared to $4.9 million for the three months ended September 30, 2015 and an increase of $554,000, or 12.4%, compared to $4.5 million for the three months ended December 31, 2014.
  • Our net interest margin was 3.41% for the three months ended December 31, 2015 compared to 3.44% for the three months ended September 30, 2015 and 3.43% for the three months ended December 31, 2014.
  • Non-performing assets decreased to $718,000, or 0.11% of total assets, at December 31, 2015, compared to $1.1 million, or 0.17% of total assets, at September 30, 2015.
  • Classified assets decreased to $2.4 million, or 0.36% of total assets, at December 31, 2015, compared to $4.1 million, or 0.64% of total assets, at September 30, 2015. The decrease resulted from the refinance, by another financial institution, of a large commercial business loan that had been classified Substandard.
  • Annualized net charge-offs decreased to 0.00% of average loans for the three months ended December 31, 2015, compared to 0.07% of average loans for the three months ended September 30, 2015 and 0.19% of average loans for the three months ended December 31, 2014.
  • Non-interest income was $1.6 million for the three months ended December 31, 2015, compared to $1.8 million for the three months ended September 30, 2015 and $1.7 million for the three months ended December 31, 2014.
  • Non-interest expense was $4.8 million for the three months ended December 31, 2015 compared to $6.6 million for the three months ended September 30, 2015 and $5.1 million for the three months ended December 31, 2014. A decrease in valuation loss on real estate held for sale was the primary cause of the decrease from the September 2015 quarter to the December 2015 quarter. The decrease in other expenses compared to the three months ended December 31, 2014 also resulted from cost savings from a canceled service contract which had been bought out in June 2015.
  • During the quarter, we continued our stock repurchase programs. For the three months ended December 31, 2015, we purchased 27,994 shares at an average price of $18.07 per share.

About Westbury Bancorp, Inc.

Westbury Bancorp, Inc. is the holding company for Westbury Bank. The Company's common shares are traded on the Nasdaq Capital Market under the symbol “WBB”.

Westbury Bank is an independent community bank serving communities in Washington, Waukesha and Outagamie Counties through its eight full service offices and one loan production office providing deposit and loan services to individuals, professionals and businesses throughout its markets.

Forward-Looking Information

Information contained in this press release, other than historical information, may be considered forward-looking in nature as defined by the Private Securities Litigation Reform Act of 1995 and is subject to various risks, uncertainties, and assumptions. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the Company's operations and business environment. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company’s operating results, performance or financial condition are competition, the demand for the Company’s products and services, the Company's ability to maintain current deposit and loan levels at current interest rates, deteriorating credit quality, including changes in the interest rate environment reducing interest margins, changes in prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions, the Company's ability to maintain required capital levels and adequate sources of funding and liquidity, the Company's ability to secure confidential information through the use of computer systems and telecommunications networks, and other factors as set forth in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations. Certain tabular presentations may not reconcile because of rounding.

WEBSITE: www.westburybankwi.com


At or For the Three Months Ended:
December 31,
2015
September 30,
2015
June 30,
2015
March 31,
2015
December 31,
2014
Selected Financial Condition Data:(Dollars in thousands)
Total assets$670,577 $638,929 $629,380 $610,134 $594,614
Loans receivable, net496,545 493,425 486,497 467,447 438,172
Allowance for loan losses4,747 4,598 4,536 4,483 4,224
Securities available for sale84,237 80,286 79,450 77,881 83,180
Total liabilities591,459 560,117 552,379 530,998 508,088
Deposits556,144 531,020 522,031 512,047 472,688
Stockholders' equity79,118 78,812 77,001 79,136 86,526
Asset Quality Ratios:
Non-performing assets to total assets0.11%0.17%0.39%0.52%0.60%
Non-performing loans to total loans0.11%0.16%0.21%0.23%0.27%
Total classified assets to total assets0.36%0.64%0.73%0.82%1.02%
Allowance for loan losses to non-performing loans863.09%572.60%434.90%412.04%349.96%
Allowance for loan losses to total loans0.95%0.92%0.92%0.95%0.95%
Net charge-offs to average loans (annualized)%0.07%0.08%0.04%0.19%
Capital Ratios:
Average equity to average assets11.83%11.98%12.48%13.72%15.01%
Equity to total assets at end of period11.80%12.34%12.23%12.97%14.55%
Total capital to risk-weighted assets (Bank only)12.99%13.12%13.50%14.11%15.81%
Tier 1 capital to risk-weighted assets (Bank only)12.09%12.25%12.61%13.18%14.81%
Tier 1 capital to average assets (Bank only)9.77%10.01%10.26%10.57%10.79%
CET1 capital to risk-weighted assets (Bank only)12.09%12.25%12.61%13.18% N/A


Three Months Ended:
December 31, 2015 December 31, 2014
Selected Operating Data:(in thousands)
Interest and dividend income$5,595 $4,880
Interest expense590 429
Net interest income5,005 4,451
Provision for loan losses150 350
Net interest income after provision for loan losses4,855 4,101
Service fees on deposit accounts1,078 1,156
Other non-interest income527 518
Total non-interest income1,605 1,674
Salaries, employee benefits, and commissions2,364 2,436
Occupancy and furniture and equipment419 416
Data processing747 781
Net loss from operations and sale of foreclosed real estate13 148
Valuation loss on real estate held for sale47
Other non-interest expense1,195 1,324
Total non-interest expense4,785 5,105
Income before income tax expense1,675 670
Income tax expense636 223
Net income$1,039 $447


At or For the Three Months Ended:
December 31,
2015
September 30,
2015
June 30,
2015
March 31,
2015
December 31,
2014
Selected Operating Data:(in thousands)
Interest and dividend income$5,595 $5,495 $5,285 $5,120 $4,880
Interest expense590 552 518 460 429
Net interest income5,005 4,943 4,767 4,660 4,451
Provision for loan losses150 150 150 300 350
Net interest income after provision for loan losses4,855 4,793 4,617 4,360 4,101
Service fees on deposit accounts1,078 1,066 1,081 999 1,156
Other non-interest income527 767 525 612 518
Total non-interest income1,605 1,833 1,606 1,611 1,674
Salaries, employee benefits, and commissions2,364 2,703 2,476 2,510 2,436
Occupancy and furniture and equipment419 435 450 510 416
Data processing747 815 831 792 781
Net loss from operations and sale of foreclosed real estate13 114 316 120 148
Valuation loss on real estate held for sale47 975
Branch realignment 1 250
Buyout of service contract 350
Other non-interest expense1,195 1,538 1,392 1,290 1,324
Total non-interest expense4,785 6,581 6,065 5,222 5,105
Income before income tax expense1,675 45 158 749 670
Income tax expense (benefit)636 (2,438)48 265 223
Net income$1,039 $2,483 $110 $484 $447



At or For the Three Months Ended:
December 31,
2015
December 31,
2014
Selected Financial Performance Ratios:
Return on average assets0.63% 0.31%
Return on average equity5.30% 2.05%
Interest rate spread3.40% 3.40%
Net interest margin3.41% 3.43%
Non-interest expense to average total assets2.88% 3.52%
Average interest-earning assets to average interest-bearing liabilities102.03% 107.32%
Per Share and Stock Market Data:
Net income per common share$0.27 $0.10
Basic weighted average shares outstanding3,813,658 4,459,616
Book value per share - excluding unallocated ESOP shares$20.00 $18.61
Book value per share - including unallocated ESOP shares$18.37 $17.24
Closing market price$18.00 $16.40
Price to book ratio - excluding unallocated ESOP shares90.00% 88.12%
Price to book ratio - including unallocated ESOP shares97.99% 95.13%


Contact: Kirk Emerich - Executive Vice President and CFO Greg Remus - President and CEO 262-334-5563

Source:Westbury Bancorp, Inc.