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Westbury Bancorp, Inc. Reports Net Income for the Three and Six Months Ended March 31, 2016

WEST BEND, Wis., April 25, 2016 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $873,000, or $0.23 per common share, and $1.9 million, or $0.51 per common share, for the three and six months ended March 31, 2016, respectively, compared to net income of $484,000, or $0.11 per common share, and $931,000, or $0.21 per common share, for the three and six months ended March 31, 2015, respectively.

Kirk Emerich, Executive Vice President and Chief Financial Officer, said, "We are pleased to continue our strong start to 2016. The hard work of our banking team has resulted in asset growth and improvements to net interest income and noninterest expense while maintaining noninterest income as a healthy percentage of total revenue. Our core earnings run rate is reflected in the results for the first two quarters of the year."

Greg Remus, President and Chief Executive Officer, added, "Our loan growth has picked up this quarter, while we are continuing to seek opportunities to add experienced lenders to our team who will 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 ratio of price to tangible book value and return on equity. Our team is focused on ongoing improvement in our performance."

Highlights for the six months include:

  • During the six months ended March 31, 2016, our net loan portfolio grew by $15.4 million, or 6.2% annualized growth. The portfolio growth consisted primarily of multifamily and commercial real estate loans. As a result, we experienced an increase in total interest and dividend income of $1.3 million, or 13.0%, to $11.3 million for the six months ended March 31, 2016 compared to $10.0 million for the six months ended March 31, 2015.
  • During the six months ended March 31, 2016, our deposits increased by $19.2 million, or 7.2% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of an increase in total interest expense of $342,000, or 38.5%, to $1.2 million for the six months ended March 31, 2016 compared to $889,000 for the six months ended March 31, 2015.
  • Net interest income increased $1.0 million, or 10.5%, to $10.1 million for the six months ended March 31, 2016 compared to $9.1 million for the six months ended March 31, 2015. Our net interest margin was 3.40% for the six months ended March 31, 2016 compared to 3.41% for the six months ended March 31, 2015. The average yield on interest-earning assets increased 7 basis points, primarily due to our loan growth, while the average cost of funds also increased by 7 basis points. Our net interest margin declined as a result of the decrease in the ratio of interest-earning assets to interest-bearing liabilities to 101.67% for the six months ended March 31, 2016 from 105.22% for the six months ended March 31, 2015.
  • Non-performing assets decreased by $639,000, or 58.8%, to $447,000, or 0.07% of total assets, at March 31, 2016, compared to $1.1 million, or 0.17% of total assets, at September 30, 2015.
  • Classified assets decreased $2.0 million, or 48.5%, to $2.1 million, or 0.32% of total assets, at March 31, 2016, compared to $4.1 million, or 0.64% of total assets, at September 30, 2015.
  • Loans past due 30-89 days decreased $73,000, or 11.4%, to $566,000 at March 31, 2016 from $639,000 at September 30, 2015.
  • Net charge-offs decreased to 0.00% of average loans for the six months ended March 31, 2016, compared to 0.11% of average loans for the six months ended March 31, 2015.
  • Due to the decrease in non-performing loans and the decrease in net charge-offs during the first half of 2016, the ratio of our allowance for loan losses to non-performing loans increased to 1087.9% at March 31, 2016 compared to 572.6% at September 30, 2015.
  • Non-interest income was $3.1 million for the six months ended March 31, 2016, compared to $3.3 million for the six months ended March 31, 2015. Non-interest income represented 21.29% of total revenue for the six months ended March 31, 2016 compared to 24.73% for the six months ended March 31, 2015.
  • Non-interest expense was $9.7 million for the six months ended March 31, 2016, compared to $10.3 million for the six months ended March 31, 2015. Non-interest expense to average total assets was 2.92% for the six months ended March 31, 2016 compared to 3.44% for the six months ended March 31, 2015.
  • We have been an active buyer of our stock since the implementation of our first stock repurchase program in May 2014. For the six months ended March 31, 2016, we purchased 170,632 shares at an average price of $18.97 per share. In total, since we began our stock repurchase programs in May 2014, we have repurchased 1,182,741 shares, or 23.0% of the shares outstanding as of May 12, 2014, at an average price of $16.98 per share over the life of the repurchase programs.
  • Our stock repurchase activity has reduced our average equity to average assets ratio to 11.48% at March 31, 2016 from 16.65% at March 31, 2014, the last quarter end before we began our first stock repurchase program. Additionally, our tangible book value per share increased by $0.66, or 3.6%, to $18.87 at March 31, 2016 from $18.21 at September 30, 2015. Based on our closing share price of $19.00 on March 31, 2016, our price to tangible book value was 100.7% compared to 97.9% at September 30, 2015 based on the closing share price of $17.82 at that date.

Highlights for the quarter include:

  • During the three months ended March 31, 2016, our net loan portfolio grew by $12.3 million, or 9.9% annualized growth. The portfolio growth consisted primarily of increases in commercial business, multifamily and commercial real estate loans. Loan growth was the primary driver of an increase in total interest and dividend income of $110,000, or 2.0%, to $5.7 million for the three months ended March 31, 2016 compared to $5.6 million for the three months ended December 31, 2015 and an increase of $585,000, or 11.4%, compared to $5.1 million for the three months ended March 31, 2015.
  • During the three months ended March 31, 2016, our deposits increased by $5.9 million, or 4.3% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of the increase in total interest expense of $51,000, or 8.6%, to $641,000 for the three months ended March 31, 2016 compared to $590,000 for the three months ended December 31, 2015 and an increase of $181,000, or 39.3%, compared to $460,000 for the three months ended March 31, 2015.
  • Net interest income increased $59,000, or 1.2%, to $5.1 million for the three months ended March 31, 2016 compared to $5.0 million for the three months ended December 31, 2015 and an increase of $404,000, or 8.7%, compared to $4.7 million for the three months ended March 31, 2015. Our net interest margin was 3.39% for the three months ended March 31, 2016 compared to 3.41% for the three months ended December 31, 2015 and 3.39% for the three months ended March 31, 2015.
  • Non-performing assets decreased to $447,000, or 0.07% of total assets, at March 31, 2016, compared to $718,000, or 0.11% of total assets, at December 31, 2015 and $3.2 million, or 0.52% of total assets, at March 31, 2015.
  • Classified assets decreased to $2.1 million, or 0.32% of total assets, at March 31, 2016, compared to $2.4 million, or 0.36% of total assets, at December 31, 2015 and $2.9 million, or 0.82% of total assets, at March 31, 2015.
  • Loans past due 30-89 days decreased $200,000, or 26.1%, to $566,000 at March 31, 2016 from $766,000 at December 31, 2015.
  • Annualized net charge-offs were 0.01% of average loans for the three months ended March 31, 2016, compared to 0.00% of average loans for the three months ended December 31, 2015 and 0.04% of average loans for the three months ended March 31, 2015.
  • Due to the decrease in non-performing loans and the decrease in net charge-offs during the current year quarter, the ratio of our allowance for loan losses to non-performing loans increased to 1087.9% at March 31, 2016 compared to 863.1% at December 31, 2015.
  • Non-interest income was $1.5 million for the three months ended March 31, 2016, compared to $1.6 million for the three months ended December 31, 2015 and $1.6 million for the three months ended March 31, 2015. Non-interest income represented 22.27% of total revenue for the three months ended March 31, 2016, compared to 24.28% for the three months ended December 31, 2015 and 25.69% for the three months ended March 31, 2015.
  • Non-interest expense was $5.0 million for the three months ended March 31, 2016, compared to $4.8 million for the three months ended December 31, 2015 and $5.2 million for the three months ended March 31, 2015. Non-interest expense to average total assets was 2.95% for the three months ended March 31, 2016, compared to 2.88% for the three months ended December 31, 2015 and 3.52% for the three months ended March 31, 2015.
  • During the quarter, we continued our stock repurchase programs. For the three months ended March 31, 2016, we purchased 142,638 shares at an average price of $19.15 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:
March 31,
2016
December 31,
2015
September 30,
2015
June 30,
2015
March 31,
2015
Selected Financial Condition Data:(Dollars in thousands)
Total assets$655,107 $670,577 $638,929 $629,380 $610,134
Loans receivable, net508,800 496,545 493,425 486,497 467,447
Allowance for loan losses4,863 4,747 4,598 4,536 4,483
Securities available for sale81,936 84,237 80,286 79,450 77,881
Total liabilities576,499 591,459 560,117 552,379 530,998
Deposits550,217 556,144 531,020 522,031 512,047
Stockholders' equity78,608 79,118 78,812 77,001 79,136
Asset Quality Ratios:
Non-performing assets to total assets0.07%0.11%0.17%0.39%0.52%
Non-performing loans to total loans0.09%0.11%0.16%0.21%0.23%
Total classified assets to total assets0.32%0.36%0.64%0.73%0.82%
Allowance for loan losses to non-performing loans1087.92%863.09%572.60%434.90%412.04%
Allowance for loan losses to total loans0.95%0.95%0.92%0.92%0.95%
Net charge-offs to average loans (annualized)0.01%%0.07%0.08%0.04%
Capital Ratios:
Average equity to average assets11.48%11.83%11.98%12.48%13.72%
Equity to total assets at end of period12.00%11.80%12.34%12.23%12.97%
Total capital to risk-weighted assets (Bank only)13.17%12.99%13.12%13.50%14.11%
Tier 1 capital to risk-weighted assets (Bank only)12.26%12.09%12.25%12.61%13.18%
Tier 1 capital to average assets (Bank only)9.90%9.77%10.01%10.26%10.57%
CET1 capital to risk-weighted assets (Bank only)12.26%12.09%12.25%12.61%13.18%


Three Months Ended: Six Months Ended:
March 31,
2016
March 31,
2015
March 31,
2016
March 31,
2015
Selected Operating Data:(in thousands)
Interest and dividend income$5,705 $5,120 $11,300 $10,000
Interest expense641 460 1,231 889
Net interest income5,064 4,660 10,069 9,111
Provision for loan losses125 300 275 650
Net interest income after provision for loan losses4,939 4,360 9,794 8,461
Service fees on deposit accounts947 999 2,025 2,155
Other non-interest income504 612 1,031 1,130
Total non-interest income1,451 1,611 3,056 3,285
Salaries, employee benefits, and commissions2,542 2,510 4,906 4,946
Occupancy and furniture and equipment443 510 862 926
Data processing772 792 1,519 1,573
Net loss from operations and sale of foreclosed real estate 31 13 179
Valuation loss on real estate held for sale 47
Other non-interest expense1,195 1,379 2,390 2,703
Total non-interest expense4,952 5,222 9,737 10,327
Income before income tax expense1,438 749 3,113 1,419
Income tax expense565 265 1,201 488
Net income$873 $484 $1,912 $931


At or For the Three Months Ended:
March 31,
2016
December 31,
2015
September 30,
2015
June 30,
2015
March 31,
2015
Selected Operating Data:(in thousands)
Interest and dividend income$5,705 $5,595 $5,495 $5,285 $5,120
Interest expense641 590 552 518 460
Net interest income5,064 5,005 4,943 4,767 4,660
Provision for loan losses125 150 150 150 300
Net interest income after provision for loan losses4,939 4,855 4,793 4,617 4,360
Service fees on deposit accounts947 1,078 1,066 1,081 999
Other non-interest income504 527 767 525 612
Total non-interest income1,451 1,605 1,833 1,606 1,611
Salaries, employee benefits, and commissions2,542 2,364 2,703 2,476 2,510
Occupancy and furniture and equipment443 419 435 450 510
Data processing772 747 815 831 792
Net loss from operations and sale of foreclosed real estate 13 323 316 31
Valuation loss on real estate held for sale 47 975
Branch realignment 1 250
Buyout of service contract 350
Other non-interest expense1,195 1,195 1,329 1,392 1,379
Total non-interest expense4,952 4,785 6,581 6,065 5,222
Income before income tax expense1,438 1,675 45 158 749
Income tax expense (benefit)565 636 (2,438)48 265
Net income$873 $1,039 $2,483 $110 $484


At or For the Three Months
Ended
At or For the Six Months
Ended
March 31,
2016
March 31,
2015
March 31,
2016
March 31,
2015
Selected Financial Performance Ratios:
Return on average assets0.52% 0.31%0.57% 0.31%
Return on average equity4.53% 2.05%4.92% 2.16%
Interest rate spread3.39% 3.38%3.40% 3.40%
Net interest margin3.39% 3.39%3.40% 3.41%
Non-interest expense to average total assets2.95% 3.52%2.92% 3.44%
Average interest-earning assets to average interest-bearing liabilities101.31% 107.32%101.67% 105.22%
Per Share and Stock Market Data:
Net income per common share$0.23 $0.11 $0.51 $0.21
Basic weighted average shares outstanding3,726,867 4,289,089 3,768,327 4,375,289
Book value per share - excluding unallocated ESOP shares$20.55 $19.01 $20.55 $19.01
Book value per share - including unallocated ESOP shares$18.87 $17.48 $18.88 $17.48
Closing market price$19.00 $17.50 $19.00 $17.50
Price to book ratio - excluding unallocated ESOP shares92.46% 92.06%92.46% 92.06%
Price to book ratio - including unallocated ESOP shares100.69% 100.11%100.64% 100.11%


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

Source:Westbury Bancorp, Inc.