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Westbury Bancorp, Inc. Reports Net Income for the Three and Nine Months Ended June 30, 2016

WEST BEND, Wis., July 29, 2016 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $906,000, or $0.25 per common share, and $2.8 million, or $0.76 per common share, for the three and nine months ended June 30, 2016, respectively, compared to net income of $110,000, or $0.03 per common share, and $1.0 million, or $0.25 per common share, for the three and nine months ended June 30, 2015, respectively.

Greg Remus, President and Chief Executive Officer, said, "Our loan growth has continued this quarter. Additionally, we are pleased that we were able to add two experienced lenders to our team during the quarter in the Madison market, which is new to Westbury. We believe these lenders will add high quality commercial business and real estate loans, in a new market, 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 and the creation of shareholder value."

Kirk Emerich, Executive Vice President and Chief Financial Officer, added, "We are pleased to add to our solid performance for 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."

Highlights for the nine months include:

  • During the nine months ended June 30, 2016, our net loan portfolio increased by $25.9 million, or 7.0% annualized growth. The portfolio growth consisted primarily of multifamily and commercial real estate loans. As a result of this loan growth, we experienced an increase in total interest and dividend income of $1.8 million, or 11.6%, to $17.1 million for the nine months ended June 30, 2016 compared to $15.3 million for the nine months ended June 30, 2015.
  • During the nine months ended June 30, 2016, our deposits increased by $32.5 million, or 8.2% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of an increase in total interest expense of $501,000, or 35.6%, to $1.9 million for the nine months ended June 30, 2016 compared to $1.4 million for the nine months ended June 30, 2015.
  • Net interest income increased $1.3 million, or 9.2%, to $15.2 million for the nine months ended June 30, 2016 compared to $13.9 million for the nine months ended June 30, 2015. Our net interest margin was 3.38% for the nine months ended June 30, 2016 compared to 3.41% for the nine months ended June 30, 2015. The average yield on interest-earning assets increased 5 basis points, primarily due to our loan growth, while our average cost of funds 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 101.65% for the nine months ended June 30, 2016 from 104.26% for the nine months ended June 30, 2015.
  • Non-performing assets decreased by $524,000, or 48.3%, to $562,000, or 0.08% of total assets, at June 30, 2016, compared to $1.1 million, or 0.17% of total assets, at September 30, 2015.
  • Classified assets decreased $2.0 million, or 48.8%, to $2.1 million, or 0.31% of total assets, at June 30, 2016, compared to $4.1 million, or 0.64% of total assets, at September 30, 2015.
  • Loans past due 30-89 days decreased $188,000, or 29.4%, to $451,000 at June 30, 2016 from $639,000 at September 30, 2015.
  • Annualized net charge-offs decreased to 0.02% of average loans for the nine months ended June 30, 2016, compared to 0.10% of average loans for the nine months ended June 30, 2015.
  • Due to the decrease in non-performing loans and the decrease in net charge-offs during the first nine months of 2016, the ratio of our allowance for loan losses to non-performing loans increased to 900.71% at June 30, 2016 compared to 572.60% at September 30, 2015.
  • Non-interest income was $4.6 million for the nine months ended June 30, 2016, compared to $4.9 million for the nine months ended June 30, 2015. Non-interest income represented 21.3% of total revenue for the nine months ended June 30, 2016 compared to 24.2% for the nine months ended June 30, 2015.
  • Non-interest expense was $14.8 million for the nine months ended June 30, 2016, compared to $16.4 million for the nine months ended June 30, 2015. Non-interest expense to average total assets was 2.93% for the nine months ended June 30, 2016 compared to 3.57% for the nine months ended June 30, 2015.
  • We have been an active buyer of our stock since the implementation of our first stock repurchase program in May 2014. For the nine months ended June 30, 2016, we purchased 237,015 shares at an average price of $19.14 per share. In total, since we began our stock repurchase programs in May 2014, we have repurchased 1,249,124 shares, or 24.3% of the shares outstanding as of May 12, 2014, at an average price of $17.12 per share over the life of the repurchase programs.
  • Our stock repurchase activity has reduced our average equity to average assets ratio to 11.15% at June 30, 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 $1.09, or 6.0%, to $19.30 at June 30, 2016 from $18.21 at September 30, 2015. Based on our closing share price of $19.50 on June 30, 2016, our price to tangible book value was 101.0% 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 June 30, 2016, our net loan portfolio increased by $10.5 million, or 8.3% annualized growth. The loan 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 $58,000, or 1.0%, to $5.8 million for the three months ended June 30, 2016 compared to $5.7 million for the three months ended March 31, 2016 and an increase of $478,000, or 9.0%, compared to $5.3 million for the three months ended June 30, 2015.
  • During the three months ended June 30, 2016, our deposits increased by $13.3 million, or 9.7% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of the increase in total interest expense of $36,000, or 5.6%, to $677,000 for the three months ended June 30, 2016 compared to $641,000 for the three months ended March 31, 2016 and an increase of $159,000, or 30.7%, compared to $518,000 for the three months ended June 30, 2015.
  • Net interest income increased $22,000, or 0.4%, to $5.1 million for the three months ended March 31, 2016 compared to $5.1 million for the three months ended March 31, 2016 and an increase of $319,000, or 6.7%, compared to $4.8 million for the three months ended June 30, 2015. Our net interest margin was 3.33% for the three months ended June 30, 2016 compared to 3.39% for the three months ended March 31, 2016 and 3.40% for the three months ended June 30, 2015.
  • Non-performing assets were $562,000, or 0.08% of total assets, at June 30, 2016, compared to $447,000, or 0.07% of total assets, at March 31, 2016 and $2.5 million, or 0.39% of total assets, at June 30, 2015.
  • Classified assets held constant at $2.1 million, or 0.31% of total assets, at June 30, 2016, compared to $2.1 million, or 0.32% of total assets, at March 31, 2016 and $4.6 million, or 0.73% of total assets, at June 30, 2015.
  • Loans past due 30-89 days decreased $200,000, or 26.1%, to $451,000 at June 30, 2016 from $566,000 at March 31, 2016.
  • Annualized net charge-offs were 0.04% of average loans for the three months ended June 30, 2016, compared to 0.01% of average loans for the three months ended March 31, 2016 and 0.08% of average loans for the three months ended June 30, 2015.
  • Due to the increase in non-performing loans offset by the decrease in net charge-offs during the current year quarter, the ratio of our allowance for loan losses to non-performing loans decreased to 900.71% at June 30, 2016 compared to 1,087.92% at March 31, 2016.
  • Non-interest income was $1.6 million for the three months ended June 30, 2016, compared to $1.5 million for the three months ended March 31, 2016 and $1.6 million for the three months ended June 30, 2015. Non-interest income represented 23.46% of total revenue for the three months ended June 30, 2016, compared to 22.27% for the three months ended March 31, 2016 and 25.20% for the three months ended June 30, 2015.
  • Non-interest expense was $5.1 million for the three months ended June 30, 2016, compared to $5.0 million for the three months ended March 31, 2016 and $6.1 million for the three months ended June 30, 2015. Non-interest expense to average total assets was 2.96% for the three months ended June 30, 2016, compared to 2.95% for the three months ended March 31, 2016 and 3.83% for the three months ended June 30, 2015.
  • During the quarter, we continued our stock repurchase programs. For the three months ended June 30, 2016, we purchased 66,383 shares at an average price of $19.58 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, Dane and Outagamie Counties through its eight full service offices and two loan production offices 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:
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Selected Financial Condition Data:(Dollars in thousands)
Total assets$670,778 $655,107 $670,577 $638,929 $629,380
Loans receivable, net519,332 508,800 496,545 493,425 486,497
Allowance for loan losses5,062 4,863 4,747 4,598 4,536
Securities available for sale87,254 81,936 84,237 80,286 79,450
Total liabilities591,696 576,499 591,459 560,117 552,379
Deposits563,515 550,217 556,144 531,020 522,031
Stockholders' equity79,082 78,608 79,118 78,812 77,001
Asset Quality Ratios:
Non-performing assets to total assets0.08%0.07%0.11%0.17%0.39%
Non-performing loans to total loans0.11%0.09%0.11%0.16%0.21%
Total classified assets to total assets0.31%0.32%0.36%0.64%0.73%
Allowance for loan losses to non-performing loans900.71%1087.92%863.09%572.60%434.90%
Allowance for loan losses to total loans0.96%0.95%0.95%0.92%0.92%
Net charge-offs to average loans (annualized)0.04%0.01%%0.07%0.08%
Capital Ratios:
Average equity to average assets11.15%11.48%11.83%11.98%12.48%
Equity to total assets at end of period11.79%12.00%11.80%12.34%12.23%
Total capital to risk-weighted assets (Bank only)12.99%13.17%12.99%13.12%13.50%
Tier 1 capital to risk-weighted assets (Bank only)12.08%12.26%12.09%12.25%12.61%
Tier 1 capital to average assets (Bank only)9.87%9.90%9.77%10.01%10.26%
CET1 capital to risk-weighted assets (Bank only)12.08%12.26%12.09%12.25%12.61%


Three Months Ended: Nine Months Ended:
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015
Selected Operating Data:(in thousands)
Interest and dividend income$5,763 $5,285 $17,063 $15,285
Interest expense677 518 1,908 1,407
Net interest income5,086 4,767 15,155 13,878
Provision for loan losses250 150 525 800
Net interest income after provision for loan losses4,836 4,617 14,630 13,078
Service fees on deposit accounts975 1,081 3,000 3,236
Other non-interest income584 525 1,615 1,655
Total non-interest income1,559 1,606 4,615 4,891
Salaries, employee benefits, and commissions2,545 2,476 7,451 7,422
Occupancy and furniture and equipment428 450 1,290 1,376
Data processing781 831 2,300 2,404
Net loss (gain) from operations and sale of foreclosed real estate(8) 316 5 495
Valuation loss on real estate held for sale90 137
Branch realignment 250 250
Buyout of service contract 350 350
Other non-interest expense1,243 1,392 3,633 4,095
Total non-interest expense5,079 6,065 14,816 16,392
Income before income tax expense1,316 158 4,429 1,577
Income tax expense410 48 1,611 536
Net income$906 $110 $2,818 $1,041


At or For the Three Months Ended:
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Selected Operating Data:(in thousands)
Interest and dividend income$5,763 $5,705 $5,595 $5,495 $5,285
Interest expense677 641 590 552 518
Net interest income5,086 5,064 5,005 4,943 4,767
Provision for loan losses250 125 150 150 150
Net interest income after provision for loan losses4,836 4,939 4,855 4,793 4,617
Service fees on deposit accounts975 947 1,078 1,066 1,081
Other non-interest income584 504 527 767 525
Total non-interest income1,559 1,451 1,605 1,833 1,606
Salaries, employee benefits, and commissions2,545 2,542 2,364 2,703 2,476
Occupancy and furniture and equipment428 443 419 435 450
Data processing781 772 747 815 831
Net loss (gain) from operations and sale of foreclosed real estate(8) 13 323 316
Valuation loss on real estate held for sale90 47 975
Branch realignment 1 250
Buyout of service contract 350
Other non-interest expense1,243 1,195 1,195 1,329 1,392
Total non-interest expense5,079 4,952 4,785 6,581 6,065
Income before income tax expense1,316 1,438 1,675 45 158
Income tax expense (benefit)410 565 636 (2,438)48
Net income$906 $873 $1,039 $2,483 $110


At or For the Three Months Ended At or For the Nine Months Ended
June 30, 2016 June 30, 2015June 30, 2016 June 30, 2015
Selected Financial Performance Ratios:
Return on average assets0.53% 0.07%0.56% 0.23%
Return on average equity4.74% 0.56%4.86% 1.66%
Interest rate spread3.32% 3.39%3.37% 3.39%
Net interest margin3.33% 3.40%3.38% 3.41%
Non-interest expense to average total assets2.96% 3.83%2.93% 3.57%
Average interest-earning assets to average interest-bearing liabilities101.61% 102.49%101.65% 104.26%
Per Share and Stock Market Data:
Net income per common share$0.25 $0.03 $0.76 $0.25
Basic weighted average shares outstanding3,625,661 3,900,866 3,709,768 4,217,149
Book value per share - excluding unallocated ESOP shares$20.98 $19.05 $20.98 $19.05
Book value per share - including unallocated ESOP shares$19.30 $17.49 $19.30 $17.49
Closing market price$19.50 $17.33 $19.50 $17.33
Price to book ratio - excluding unallocated ESOP shares92.95% 90.97%92.95% 90.97%
Price to book ratio - including unallocated ESOP shares101.04% 99.09%101.04% 99.09%


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

Source:Westbury Bancorp, Inc.