Westbury Bancorp, Inc. Reports Net Income for the Three Months and Year Ended September 30, 2016
October 28 2016 - 4:40PM
Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the
“Company”) for Westbury Bank (the “Bank”), today announced net
income of $653,000, or $0.18 per common share for the three months
ended September 30, 2016, and $3.5 million, or $0.94 per common
share, for the year ended September 30, 2016, compared to net
income of $2.5 million, or $0.64 per common share for the three
months ended September 30, 2015, and net income of $3.5 million, or
$0.85 per common share, for the year ended September 30,
2015.
Greg Remus, President and Chief Executive Officer, added, "We
are excited to see that our strategic initiatives to grow
organically at a measured pace while building strong banking
relationships are leading to improved performance. We believe
our new Madison commercial loan production office will contribute
to these goals. We are confident that our current strategy will
continue to provide revenue and earnings growth and build long-term
shareholder value."
Kirk Emerich, Chief Financial Officer and Executive Vice
President-Investor Relations, said, "We are pleased to have matched
the prior year's net income this year while increasing earnings per
share by 10.6%. This is a result of ongoing improvement in
our core operating results, given that 2015 net income included the
reversal of our deferred tax asset valuation reserve offset
partially by restructuring expenses."
Highlights for the year included:
- During the year ended September 30, 2016, our net loan
portfolio grew by $40.3 million, or 8.2%. The portfolio growth
consisted primarily of single family, multifamily and commercial
real estate loans. As a result of this loan growth, we
experienced an increase in total interest and dividend income of
$2.2 million, or 10.4%, to $22.9 million for the year ended
September 30, 2016 compared to $20.8 million for the year ended
September 30, 2015.
- During the year ended September 30, 2016, our deposits
increased by $61.0 million, or 11.5%. This deposit growth was the
primary cause of an increase in total interest expense of
$643,000, or 32.8%, to $2.6 million for the year ended September
30, 2016 compared to $2.0 million for the year ended September 30,
2015.
- Net interest income increased $1.5 million, or 8.1%, to $20.3
million for the year ended September 30, 2016 compared to $18.8
million for the year ended September 30, 2015. Our net
interest margin was 3.38% for the year ended September 30, 2016
compared to 3.43% for the year ended September 30, 2015. The
average yield on interest-earning assets increased 3 basis points
between years, primarily due to our loan growth during 2016, while
the average cost of funds increased by 7 basis points.
- Non-performing assets decreased by $425,000, or 39.1%, to
$661,000, or 0.09% of total assets, at September 30, 2016, compared
to $1.1 million, or 0.17% of total assets, at September 30, 2015.
- Classified assets decreased $2.1 million, or 51.9%, to $2.0
million, or 0.28% of total assets, at September 30, 2016, compared
to $4.1 million, or 0.64% of total assets, at September 30,
2015.
- Loans past due 30-89 days increased $92,000, or 14.4%, to
$731,000, or 0.14% of net loans, at September 30, 2016 from
$639,000, or 0.13% of net loans, at September 30, 2015.
- Net charge-offs decreased to 0.03% of average loans for the
year ended September 30, 2016, compared to 0.09% of average loans
for the year ended September 30, 2015.
- Due to the decrease in non-performing loans and the decrease in
net charge-offs, the ratio of our allowance for loan losses to
non-performing loans increased to 933.1% at September 30, 2016
compared to 572.6% at September 30, 2015.
- Non-interest income was $6.5 million for the year ended
September 30, 2016, compared to $6.7 million for the year ended
September 30, 2015. The decrease was primarily the result of
decreases in rental income of $478,000, service fees on deposit
accounts of $318,000 and servicing fee income of $104,000, offset
by increases of $461,000 in gains on sales of securities and
$331,000 in gains on sales of loans.
- Non-interest expense was $20.6 million for the year ended
September 30, 2016, compared to $23.0 million for the year ended
September 30, 2015. Non-recurring non-interest expense,
consisting of expenses related to branch closings, valuation
adjustments on real estate designated as held for sale and service
contract buyouts, was $276,000 for the year ended September 30,
2016 compared to $1.6 million for the year ended September 30,
2015.
- In September 2015, we reversed the valuation allowance of $2.4
million on our deferred tax asset. The reversal resulted in a
net income tax benefit of $1.9 million for the year ended September
30, 2015 compared to income tax expense of $2.0 million for the
year ended September 30, 2016.
- 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, 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 in May 2014, at an average price of $17.12 per share.
- Our stock repurchase activity has reduced our average equity to
average assets ratio to 11.07% at September 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 $1.22, or 6.7%, to $19.43 at September
30, 2016 from $18.21 at September 30, 2015. Based on our
closing share price of $19.53 on September 30, 2016, our price to
tangible book value was 100.5% compared to 97.9% on September 30,
2015 based on the closing share price of $17.82 at that date.
Highlights for the fourth quarter include:
- During the three months ended September 30, 2016, our net loan
portfolio grew by $14.4 million, or 11.1% annualized growth. The
portfolio growth consisted primarily of single family, multifamily
and commercial real estate loans. Loan growth was the primary
driver of an increase in total interest and dividend income of
$118,000, or 2.0%, to $5.9 million for the three months ended
September 30, 2016 compared to $5.8 million for the three months
ended June 30, 2016 and an increase of $386,000, or 7.0%, compared
to $5.5 million for the three months ended September 30, 2015.
- During the three months ended September 30, 2016, our deposits
increased by $28.5 million, or 20.2% annualized growth. Deposit
growth was the primary cause of the increase in total interest
expense of $17,000, or 2.5%, to $694,000 for the three months
ended September 30, 2016 compared to $677,000 for the three months
ended June 30, 2016 and an increase of $142,000, or 25.7%, compared
to $552,000 for the three months ended September 30, 2015.
- Net interest income increased $101,000, or 2.0%, to $5.2
million for the three months ended September 30, 2016 compared to
$5.1 million for the three months ended June 30, 2016 and an
increase of $244,000, or 4.9%, compared to $4.9 million for the
three months ended September 30, 2015. Our net interest
margin was 3.34% for the three months ended September 30, 2016
compared to 3.33% for the three months ended June 30, 2016 and
3.45% for the three months ended September 30, 2015.
- Non-performing assets increased slightly to $661,000, or 0.09%
of total assets, at September 30, 2016, compared to $562,000, or
0.08% of total assets, at June 30, 2016.
- Classified assets decreased to $2.0 million, or 0.28% of total
assets, at September 30, 2016, compared to $2.1 million, or 0.31%
of total assets, at June 30, 2016.
- Loans past due 30-89 days increased $280,000, or 62.1%, to
$731,000, or 0.14% of net loans, at September 30, 2016 from
$451,000, or 0.09% of net loans, at June 30, 2016.
- Annualized net charge-offs were 0.05% of average loans for the
three months ended September 30, 2016, compared to 0.04% of average
loans for the three months ended June 30, 2016 and 0.07% of average
loans for the three months ended September 30, 2015.
- The ratio of our allowance for loan losses to non-performing
loans increased to 933.10% at September 30, 2016 compared to
900.71% at June 30, 2016.
- Non-interest income was $1.9 million for the three months ended
September 30, 2016, compared to $1.6 million for the three months
ended June 30, 2016 and $1.8 million for the three months ended
September 30, 2015. The increase in the current quarter was
due primarily to increases in gains on sales of securities as we
managed our investment portfolio in the current low interest rate
environment.
- Non-interest expense was $5.8 million for the three months
ended September 30, 2016 compared to $5.1 million for the three
months ended June 30, 2016 and $6.6 million for the three months
ended September 30, 2015. The increase compared to the June
quarter is primarily related to the expenses incurred by the Bank
associated with the opening of our Madison loan office.
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: |
|
|
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
Selected
Financial Condition Data: |
|
(Dollars in thousands) |
Total assets |
|
$ |
702,625 |
|
$ |
670,778 |
|
$ |
655,107 |
|
$ |
670,577 |
|
$ |
638,929 |
|
Loans receivable, net |
|
533,759 |
|
519,332 |
|
508,800 |
|
496,545 |
|
493,425 |
|
Allowance for loan losses |
|
5,244 |
|
5,062 |
|
4,863 |
|
4,747 |
|
4,598 |
|
Securities available for sale |
|
93,772 |
|
87,254 |
|
81,936 |
|
84,237 |
|
80,286 |
|
Total liabilities |
|
622,996 |
|
591,696 |
|
576,499 |
|
591,459 |
|
560,117 |
|
Deposits |
|
591,977 |
|
563,515 |
|
550,217 |
|
556,144 |
|
531,020 |
|
Stockholders'
equity |
|
79,629 |
|
79,082 |
|
78,608 |
|
79,118 |
|
78,812 |
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
Non-performing assets
to total assets |
|
0.09 |
% |
0.08 |
% |
0.07 |
% |
0.11 |
% |
0.17 |
% |
Non-performing loans to
total loans |
|
0.10 |
% |
0.11 |
% |
0.09 |
% |
0.11 |
% |
0.16 |
% |
Total classified assets
to total assets |
|
0.28 |
% |
0.31 |
% |
0.32 |
% |
0.36 |
% |
0.64 |
% |
Allowance for loan
losses to non-performing loans |
|
933.10 |
% |
900.71 |
% |
1,087.92 |
% |
863.09 |
% |
572.60 |
% |
Allowance for loan
losses to total loans |
|
0.97 |
% |
0.96 |
% |
0.95 |
% |
0.95 |
% |
0.92 |
% |
Net charge-offs to
average loans (annualized) |
|
0.05 |
% |
0.04 |
% |
0.01 |
% |
— |
% |
0.07 |
% |
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
Average equity to
average assets |
|
11.07 |
% |
11.15 |
% |
11.48 |
% |
11.83 |
% |
11.98 |
% |
Equity to total assets
at end of period |
|
11.33 |
% |
11.79 |
% |
12.00 |
% |
11.80 |
% |
12.34 |
% |
Total capital to
risk-weighted assets (Bank only) |
|
13.54 |
% |
12.99 |
% |
13.17 |
% |
12.99 |
% |
13.12 |
% |
Tier 1 capital to
risk-weighted assets (Bank only) |
|
12.61 |
% |
12.08 |
% |
12.26 |
% |
12.09 |
% |
12.25 |
% |
Tier 1 capital to
average assets (Bank only) |
|
10.23 |
% |
9.87 |
% |
9.90 |
% |
9.77 |
% |
10.01 |
% |
CET1 capital to
risk-weighted assets (Bank only) |
|
12.61 |
% |
12.08 |
% |
12.26 |
% |
12.09 |
% |
12.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
|
|
September 30, 2016 |
|
September 30, 2015 |
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Operating Data: |
|
(in thousands) |
Interest and dividend
income |
|
$ |
5,881 |
|
|
$ |
5,495 |
|
|
$ |
22,944 |
|
|
$ |
20,780 |
|
Interest expense |
|
694 |
|
|
552 |
|
|
2,602 |
|
|
1,959 |
|
Net interest income |
|
5,187 |
|
|
4,943 |
|
|
20,342 |
|
|
18,821 |
|
Provision for loan
losses |
|
250 |
|
|
150 |
|
|
775 |
|
|
950 |
|
Net interest income after provision
for loan losses |
|
4,937 |
|
|
4,793 |
|
|
19,567 |
|
|
17,871 |
|
Service fees on deposit
accounts |
|
984 |
|
|
1,066 |
|
|
3,984 |
|
|
4,302 |
|
Other non-interest
income |
|
922 |
|
|
767 |
|
|
2,537 |
|
|
2,422 |
|
Total non-interest income |
|
1,906 |
|
|
1,833 |
|
|
6,521 |
|
|
6,724 |
|
|
|
|
|
|
|
|
|
|
Salaries, employee
benefits, and commissions |
|
3,114 |
|
|
2,703 |
|
|
10,565 |
|
|
10,125 |
|
Occupancy and furniture
and equipment |
|
474 |
|
|
435 |
|
|
1,764 |
|
|
1,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data processing |
|
790 |
|
|
815 |
|
|
3,090 |
|
|
3,219 |
|
Net loss from
operations and sale of foreclosed real estate |
|
3 |
|
|
323 |
|
|
8 |
|
|
818 |
|
Valuation loss on real
estate held for sale |
|
139 |
|
|
975 |
|
|
276 |
|
|
975 |
|
Branch realignment |
|
— |
|
|
1 |
|
|
— |
|
|
251 |
|
Buyout of service
contract |
|
— |
|
|
— |
|
|
— |
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-interest
expense |
|
1,295 |
|
|
1,329 |
|
|
4,928 |
|
|
5,424 |
|
Total non-interest expense |
|
5,815 |
|
|
6,581 |
|
|
20,631 |
|
|
22,973 |
|
Income before income
tax expense |
|
1,028 |
|
|
45 |
|
|
5,457 |
|
|
1,622 |
|
Income tax expense
(benefit) |
|
375 |
|
|
(2,438 |
) |
|
1,986 |
|
|
(1,902 |
) |
Net income |
|
$ |
653 |
|
|
$ |
2,483 |
|
|
$ |
3,471 |
|
|
$ |
3,524 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
|
$ |
0.64 |
|
|
$ |
0.94 |
|
|
$ |
0.85 |
|
Diluted earnings per
share |
|
$ |
0.17 |
|
|
$ |
0.64 |
|
|
$ |
0.93 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months
Ended: |
|
|
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
Selected
Operating Data: |
|
(in thousands) |
Interest and dividend
income |
|
$ |
5,881 |
|
$ |
5,763 |
|
$ |
5,705 |
|
$ |
5,595 |
|
$ |
5,495 |
|
Interest expense |
|
694 |
|
677 |
|
641 |
|
590 |
|
552 |
|
Net interest income |
|
5,187 |
|
5,086 |
|
5,064 |
|
5,005 |
|
4,943 |
|
Provision for loan losses |
|
250 |
|
250 |
|
125 |
|
150 |
|
150 |
|
Net interest income after provision
for loan losses |
|
4,937 |
|
4,836 |
|
4,939 |
|
4,855 |
|
4,793 |
|
Service fees on deposit
accounts |
|
984 |
|
975 |
|
947 |
|
1,078 |
|
1,066 |
|
Other non-interest
income |
|
922 |
|
584 |
|
504 |
|
527 |
|
767 |
|
Total non-interest income |
|
1,906 |
|
1,559 |
|
1,451 |
|
1,605 |
|
1,833 |
|
|
|
|
|
|
|
|
Salaries, employee
benefits, and commissions |
|
3,114 |
|
2,545 |
|
2,542 |
|
2,364 |
|
2,703 |
|
Occupancy and furniture
and equipment |
|
474 |
|
428 |
|
443 |
|
419 |
|
435 |
|
Data Processing |
|
790 |
|
781 |
|
772 |
|
747 |
|
815 |
|
Net loss (gain) from
operations and sale of foreclosed real estate |
|
3 |
|
(8 |
) |
— |
|
13 |
|
323 |
|
Valuation loss on real
estate held for sale |
|
139 |
|
90 |
|
— |
|
47 |
|
975 |
|
Branch realignment |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
Buyout of service
contract |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Other non-interest
expense |
|
1,295 |
|
1,243 |
|
1,195 |
|
1,195 |
|
1,329 |
|
Total non-interest expense |
|
5,815 |
|
5,079 |
|
4,952 |
|
4,785 |
|
6,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense |
|
1,028 |
|
1,316 |
|
1,438 |
|
1,675 |
|
45 |
|
Income tax expense
(benefit) |
|
375 |
|
410 |
|
565 |
|
636 |
|
(2,438 |
) |
Net income |
|
$ |
653 |
|
$ |
906 |
|
$ |
873 |
|
$ |
1,039 |
|
$ |
2,483 |
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
$ |
0.25 |
|
$ |
0.23 |
|
$ |
0.27 |
|
$ |
0.64 |
|
Diluted earnings per
share |
|
$ |
0.17 |
|
$ |
0.25 |
|
$ |
0.23 |
|
$ |
0.27 |
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
At or For the Years Ended |
|
|
September 30, 2016 |
|
September 30, 2015 |
September 30, 2016 |
|
September 30, 2015 |
Selected
Financial Performance Ratios: |
|
|
|
|
|
|
|
Return on average
assets |
|
0.37 |
% |
|
1.53 |
% |
0.51 |
% |
|
0.57 |
% |
Return on average
equity |
|
3.37 |
% |
|
12.79 |
% |
4.49 |
% |
|
4.28 |
% |
Interest rate
spread |
|
3.32 |
% |
|
3.45 |
% |
3.37 |
% |
|
3.41 |
% |
Net interest
margin |
|
3.34 |
% |
|
3.45 |
% |
3.38 |
% |
|
3.43 |
% |
Non-interest expense to
average total assets |
|
3.32 |
% |
|
4.06 |
% |
3.03 |
% |
|
3.70 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
105.88 |
% |
|
102.19 |
% |
101.85 |
% |
|
103.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share and
Stock Market Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.18 |
|
|
$ |
0.64 |
|
$ |
0.94 |
|
|
$ |
0.85 |
|
Diluted earnings per
share |
|
$ |
0.17 |
|
|
$ |
0.64 |
|
$ |
0.93 |
|
|
$ |
0.85 |
|
Basic weighted average
shares outstanding |
|
3,693,285 |
|
|
3,861,342 |
|
3,696,433 |
|
|
4,127,465 |
|
Book value per share -
excluding unallocated ESOP shares |
|
$ |
21.07 |
|
|
$ |
19.83 |
|
$ |
21.07 |
|
|
$ |
19.83 |
|
Book value per share -
including unallocated ESOP shares |
|
$ |
19.43 |
|
|
$ |
18.21 |
|
$ |
19.43 |
|
|
$ |
18.21 |
|
Closing market
price |
|
$ |
19.53 |
|
|
$ |
17.82 |
|
$ |
19.53 |
|
|
$ |
17.82 |
|
Price to book ratio -
excluding unallocated ESOP shares |
|
92.69 |
% |
|
89.86 |
% |
92.69 |
% |
|
89.86 |
% |
Price to book ratio -
including unallocated ESOP shares |
|
100.51 |
% |
|
97.86 |
% |
100.51 |
% |
|
97.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Kirk Emerich- Executive Vice President and CFO
Greg Remus - President and CEO
262-334-5563
Westbury Bancorp, Inc. (NASDAQ:WBB)
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From Jan 2025 to Feb 2025
Westbury Bancorp, Inc. (NASDAQ:WBB)
Historical Stock Chart
From Feb 2024 to Feb 2025