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Westbury Bancorp, Inc. Reports Net Income for the Three Months and Year Ended September 30, 2019

WEST BEND, Wis., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (WBBW), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $1.9 million, or $0.59 per common share for the three months ended September 30, 2019, and $6.9 million, or $2.15 per common share, for the year ended September 30, 2019, compared to net income of $1.4 million, or $0.40 per common share for the three months ended September 30, 2018, and net income of $4.2 million, or $1.21 per common share, for the year ended September 30, 2018.

Highlights for the year included:

  • During the year ended September 30, 2019, our net loan portfolio decreased by $5.6 million, or 0.87%. The portfolio reduction occurred primarily in multifamily and single family loans, offset by growth in commercial and industrial loans, commercial real estate and life insurance cash value loans.  In spite of the reduction in the size of the loan portfolio at year end, we experienced an increase in total interest and dividend income of $3.3 million, or 11.49%, to $32.4 million for the year ended September 30, 2019 compared to $29.0 million for the year ended September 30, 2018 as average loan balances were $665.3 million for the year ended September 30, 2019 compared to $630.8 million for the year ended September 30, 2018.
  • During the year ended September 30, 2019, our deposits increased by $52.1 million, or 7.71%.  As a result of the increase in balances and the rising interest rate environment during most of the year, total interest expense increased by $1.8 million, or 36.84%, to $6.7 million for the year ended September 30, 2019 compared to $4.9 million for the year ended September 30, 2018.
  • Net interest income increased $1.5 million, or 6.35%, to $25.7 million for the year ended September 30, 2019 compared to $24.1 million for the year ended September 30, 2018.  Our net interest margin was 3.24% for the year ended September 30, 2019 compared to 3.20% for the year ended September 30, 2018.
  • Non-performing assets decreased to $764,000 or 0.09% of total assets, at September 30, 2019, compared to $5.8 million, or 0.71% of total assets, at September 30, 2018.
  • Classified assets decreased to $1.6 million or 0.19% of total assets, at September 30, 2019, compared to $6.8 million, or 0.83% of total assets, at September 30, 2018.
  • Loans past due 30-89 days decreased $437,000, or 82.92%, to $90,000, or 0.01% of net loans, at September 30, 2019 from $527,000, or 0.08% of net loans, at September 30, 2018.
  • Net charge-offs were 0.01% of average loans for the year ended September 30, 2019, compared to net charge-offs of 0.01% of average loans for the year ended September 30, 2018.
  • The allowance for loan losses was 1.06% of total loans as of September 30, 2019 compared to 0.93% at September 30, 2018.  The ratio of allowance to total loans increased as the makeup of our portfolio shifted due to decreases in single family and multifamily balances and increases in commercial real estate and commercial and industrial loans during the year.
  • Non-interest income was $6.3 million for the year ended September 30, 2019, compared to $5.7 million for the year ended September 30, 2018.  The increase was primarily the result of increases in gain on sale of loans of $352,000 and service fees on deposit accounts of $159,000.
  • Non-interest expense was $21.6 million for the year ended September 30, 2019, compared to $22.1 million for the year ended September 30, 2018.  The decrease was primarily related to a decrease in each of accounting, legal and professional fees of $409,000, data processing expense of $322,000, and FDIC insurance premiums of $83,000, partially offset by an increase in compensation and employee benefits of $412,000.
  • We have been an active buyer of our stock since the implementation of our first stock repurchase program in May 2014.  For the year ended September 30, 2019, we purchased 332,547 shares.  In total, since we began our stock repurchase programs in May 2014, we have repurchased 2,073,314 shares, or 40.32% of the shares outstanding in May 2014.
  • Our stock repurchase activity has reduced our average equity to average assets ratio to 9.68% at September 30, 2019 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 $3.54, or 16.7%, to $24.68 at September 30, 2019 from $21.14 at September 30, 2018.  Based on our closing share price of $25.60 on September 30, 2019, our price to tangible book value was 103.73% compared to 104.07% on September 30, 2018 based on the closing share price of $22.00 at that date.

About Westbury Bancorp, Inc.

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

Westbury Bank is an independent community bank serving the communities of suburban Milwaukee and Madison in Washington, Waukesha, and Dane Counties (Wisconsin) 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

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


  At or For the Three Months Ended:
  September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
Selected Financial Condition Data:          
Total assets $ 855,624   $ 845,986   $ 823,212   $ 840,264   $ 816,297  
Loans receivable, net 646,062   656,598   666,931   679,403   651,704  
Allowance for loan losses 6,890   6,787   6,784   6,482   6,092  
Securities available for sale 102,448   97,598   99,939   104,087   104,190  
Total liabilities 773,179   765,947   746,052   765,246   739,194  
Deposits 728,696   722,480   702,284   691,705   676,553  
Stockholders' equity 82,445   80,039   77,160   77,827   77,103  
           
Asset Quality Ratios:          
Non-performing assets to total assets 0.08 % 0.10 % 0.02 % 0.02 % 0.71 %
Non-performing loans to total loans 0.11 % 0.10 % 0.03 % 0.03 % 0.87 %
Total classified assets to total assets 0.09 % 0.11 % 0.04 % 0.12 % 0.83 %
Allowance for loan losses to non-performing loans 986.48 % 976.59 % 3,627.81 % 3,430.16 % 105.98 %
Allowance for loan losses to total loans 1.06 % 1.02 % 1.01 % 0.95 % 0.93 %
Net charge-offs (recoveries) to average loans - annualized % % % 0.04 % %
           
Capital Ratios:          
Average equity to average assets 9.68 % 9.46 % 9.33 % 9.27 % 9.89 %
Equity to total assets at end of period 9.64 % 9.46 % 9.37 % 9.23 % 9.45 %
Total capital to risk-weighted assets (Bank only) 12.80 % 12.64 % 12.81 % 12.30 % 12.47 %
Tier 1 capital to risk-weighted assets (Bank only) 11.80 % 11.66 % 11.81 % 11.40 % 11.57 %
Tier 1 capital to average assets (Bank only) 9.59 % 9.68 % 9.61 % 9.57 % 9.62 %
CETI capital to risk-weighted assets (Bank only) 11.37 % 11.66 % 11.81 % 11.40 % 11.57 %


  Three Months Ended   Years Ended
  September 30, 2019   September 30, 2018   September 30, 2019   September 30, 2018
               
Selected Operating Data: (in thousands, except per share data)
Interest and dividend income $ 8,107   $ 7,640   $ 32,377   $ 29,041
Interest expense 1,722   1,419   6,694   4,892
Net interest income 6,385   6,221   25,683   24,149
Provision for loan losses 100   200   850   400
Net interest income after provision for loan losses 6,285   6,021   24,833   23,749
Service fees on deposit accounts 1,051   1,063   4,021   3,862
Other non-interest income 737   380   2,245   1,806
Total non-interest income 1,788   1,443   6,266   5,668
               
Compensation and employee benefits 3,152   3,160   12,485   12,073
Occupancy, furniture and equipment 578   479   2,194   2,131
Data processing 797   771   3,085   3,407
Other non-interest expense 927   1,048   3,821   4,485
Total non-interest expense 5,454   5,458   21,585   22,096
Income before income tax expense 2,619   2,006   9,514   7,321
Income tax expense 742   610   2,629   3,116
Net income $ 1,877   $ 1,396   $ 6,885   $ 4,205
               
Basic earnings per share $ 0.59   $ 0.40   $ 2.15   $ 1.21
Diluted earnings per share $ 0.57   $ 0.39   $ 2.09   $ 1.18


  For the Three Months Ended:
  September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2019 September 30, 2018
Selected Operating Data: (in thousands, except per share data)
Interest and dividend income $ 8,107   $ 8,082   $ 8,087   $ 8,100   $ 7,640  
Interest expense 1,722   1,715   1,693   1,564   1,419  
Net interest income 6,385   6,367   6,394   6,536   6,221  
Provision for loan losses 100     300   450   200  
Net interest income after provision for loan losses 6,285   6,367   6,094   6,086   6,021  
Service fees on deposit accounts 1,051   991   904   1,075   1,063  
Other non-interest income 737   755   339   415   380  
Total non-interest income 1,788   1,746   1,243   1,490   1,443  
           
Salaries, employee benefits, and commissions 3,152   3,179   3,084   3,070   3,160  
Occupancy and furniture and equipment 578   632   523   460   479  
Data processing 797   780   770   737   771  
Other non-interest expense 927   1,018   950   927   1,048  
Total non-interest expense 5,454   5,609   5,327   5,194   5,458  
Income before income tax expense 2,619   2,504   2,010   2,382   2,006  
Income tax expense 742   693   540   655   610  
Net income $ 1,877   $ 1,811   $ 1,470   $ 1,727   $ 1,396  
           
Basic earnings per share $ 0.59   $ 0.58   $ 0.46   $ 0.52   $ 0.40  
Diluted earnings per share $ 0.57   $ 0.56   $ 0.45   $ 0.51   $ 0.39  


  At or For the Three Months Ended   At or For the Year Ended
  September 30, 2019   September 30, 2018   September 30, 2019
  September 30, 2018
Selected Financial Performance Ratios:            
Return on average assets 0.89 %   0.69 % 0.82 %   0.52 %
Return on average equity 9.16 %   7.24 % 8.72 %   5.29 %
Interest rate spread 3.16 %   3.19 % 3.20 %   3.16 %
Net interest margin 3.20 %   3.23 % 3.24 %   3.20 %
Non-interest expense to average total assets 2.58 %   2.69 % 2.58 %   2.75 %
Average interest-earning assets to average interest-bearing liabilities 106.08 %   105.61 % 105.89 %   105.45 %
             
Per Share and Stock Market Data:            
Basic earnings per share $ 0.59     $ 0.40     $ 2.15     $ 1.21  
Diluted earnings per share $ 0.57     $ 0.39     $ 2.09     $ 1.18  
Basic weighted average shares outstanding 3,155,758     3,420,159   3,203,969     3,468,134  
Book value per share - excluding unallocated ESOP shares $ 26.14     $ 22.73     $ 26.14     $ 22.73  
Book value per share - including unallocated ESOP shares $ 24.68     $ 21.14     $ 24.68     $ 21.14  
Closing market price $ 25.60     $ 22.00     $ 25.60     $ 22.00  
Price to book ratio - excluding unallocated ESOP shares 97.93 %   96.79 % 97.93 %   96.79 %
Price to book ratio - including unallocated ESOP shares 103.73 %   104.07 % 103.73 %   104.07 %