RALEIGH, N.C., Feb. 12, 2018 (GLOBE NEWSWIRE) -- West Town Bancorp, Inc. (OTC PINK:WTWB) (the “Company” or “West Town”), the multi-bank holding company for West Town Bank & Trust and Sound Bank, reported today fourth quarter net earnings of $552,000 or $0.20 per diluted share, compared to a net loss of $537,000, or ($0.38) per share for the fourth quarter of 2016.  The fourth quarter of 2017 included a $548,000 revaluation of the Company’s net deferred tax liability that was required in light of the December 2017 enactment of the Tax Cuts and Jobs Act.  The revaluation lowered the Company’s tax expenses for 2017.  Net earnings for the year ended December 31, 2017, totaled $2,892,000, or $1.54 per diluted share, an increase of $1,092,000, or 60.7% as compared to $1,800,000 and $1.24 per diluted share for the year ended December 31, 2016.  Return on average assets was 0.83%, and return on average shareholders’ equity was 7.27% as compared to 0.74% and 6.99% respectively for fiscal year 2016.

Eric Bergevin, President and CEO commented, “2017 was a monumental year for West Town Bancorp as we made a strategic investment in Windsor Advantage LLC (“Windsor”), which contributed significant noninterest income to the Company, completed a highly successful capital raise with gross proceeds of $17.5 million, and consummated the closing and system conversion of the Sound Banking Company acquisition.  Our governmental guaranteed lending division recorded $359 million in loan originations during the year, with $90 million of that production occurring in the fourth quarter of 2017.  As anticipated, net income was impacted in the fourth quarter 2017 by two factors: 1) new tax legislation and 2) our “originate and hold” strategy for government guaranteed loans to leverage excess capital that was embarked upon in September 2017.  This “originate-and-hold” strategy significantly contributed to our $56.2 million asset growth in the fourth quarter of 2017 and enhanced interest income.  We expect to resume selling the guaranteed portion of these loans into the secondary market during the first quarter of 2018 on a systematic “first in-first out” basis to optimize the gain on sale premium and manage liquidity and capital levels.” 

Fourth quarter 2017 highlights:

• Asset growth of $56.2 million, compared to the linked quarter ended September 30, 2017.
• Return on average assets of 0.44%, compared to (0.80%) for fourth quarter of 2016.
• Return on average common shareholders’ equity of 3.62%, compared to (7.82%) for the fourth quarter of 2016.
• Return on average tangible common shareholders’ equity of 4.31%, compared to (7.82%) for fourth quarter of 2016.
• West Town Bank & Trust earned net income totaling $560,000 for the fourth quarter of 2017, resulting in a return on average assets of 0.76% and a return on average common shareholders’ equity of 6.29%.  Included in net income is a revaluation of West Town Bank & Trust’s deferred tax liability totaling $605,000, which lowered West Town Bank & Trust’s tax expense.
• Sound Bank recorded a net loss of $21,000 for the fourth quarter of 2017, resulting in a return on average assets of (0.04%) and a return on average common equity of (0.31%).  Included in the net loss is a revaluation of Sound Bank’s deferred tax asset totaling $115,000, which resulted in a charge to earnings.

                         
Financial Performance (Consolidated)
(Includes Sound Bank as of 9/1/2017)

In thousands, except per share data	Three Months Ended															Twelve Months Ended
		12/31/17			9/30/17			6/30/17		3/31/17		12/31/16					12/31/17			12/31/16
Interest income
Interest and fees on loans	$	6,062		$	4,223		$	3,288	$	3,373	$	3,311				$	16,946		$	11,895
Investment securities & deposits		155			142			78		73		55					448			209
Total interest income		6,217			4,365			3,366		3,446		3,366					17,394			12,104
Interest expense
Interest on deposits		792			712			684		677		674					2,865			2,353
Interest on borrowed funds		191			102			92		56		38					441			117
Total interest expense		983			814			776		733		712					3,306			2,470
Net interest income		5,234			3,551			2,590		2,713		2,654					14,088			9,634
Provision for loan losses		1,129			491			281		276		570					2,177			1,319
Noninterest income
Government lending revenue		192			1,537			730		1,636		2,111					4,095			7,129
Mortgage revenue		515			699			1,938		1,555		1,809					4,707			8,539
Service charge revenue		203			89			15		17		21					324			105
Bank owned life insurance income		60			42			37		31		32					170			139
Income from Windsor investment		203			519			573		205		0					1,500			0
Gain (loss) on sale of securities		0			(7	)		0		0		2					(7	)		0
Other noninterest income		373			134			119		112		118					738			658
Total noninterest income		1,546			3,013			3,412		3,556		4,093					11,527			16,570
Noninterest expense
Compensation		3,248			2,481			2,812		2,801		3,525					11,342			12,291
Occupancy and equipment		434			303			314		366		331					1,417			1,336
Loan, foreclosure and OREO		373			287			408		19		275					1,087			1,597
Professional services		313			155			404		258		1,606					1,130			2,444
Data processing		316			247			143		148		303					854			915
Communication		188			112			85		84		106					469			372
Advertising		109			91			77		92		185					369			666
Transaction-related expenses		60			231			125		172		176					588			298
Other operating expense		856			547			438		482		488					2,323			1,735
Total noninterest expense		5,897			4,454			4,806		4,422		6,995					19,579			21,654
Income before income taxes		(246	)		1,619			915		1,571		(818		)			3,859			3,231
Income tax expense		(798	)		672			401		692		(281		)			967			1,431
Net income (loss)	$	552		$	947		$	514	$	879	$	(537		)		$	2,892		$	1,800
Basic earnings (loss) per common share (1) (3)	$	0.21		$	0.59		$	0.35	$	0.60	$	(0.39		)		$	1.60		$	1.31
Diluted earnings (loss) per common share (1) (3)	$	0.20		$	0.56		$	0.34	$	0.57	$	(0.38		)		$	1.54		$	1.24
Weighted average common shares outstanding (1)		2,649			1,626			1,467		1,465		1,380					1,804			1,375
Diluted average common shares outstanding (1)		2,755			1,932			1,534		1,531		1,445					1,881			1,450

Performance Ratios

	Three Months Ended																Twelve Months Ended
		12/31/17			9/30/17(1)			6/30/17(2)			3/31/17(2)			12/31/16				12/31/17			12/31/16
PER COMMON SHARE
Basic earnings (loss) per common share	$	0.21		$	0.59		$	0.35		$	0.60		$	(0.39)			$	1.60		$	1.31
Diluted earnings (loss) per common share	$	0.20		$	0.56		$	0.34		$	0.57		$	(0.38)			$	1.54		$	1.24
Book value per common share	$	22.21		$	22.03		$	20.62		$	20.25		$	19.11			$	22.21		$	21.61
Tangible book value per common share	$	19.07		$	18.69		$	20.62		$	20.25		$	19.11			$	19.07		$	19.11
FINANCIAL RATIOS (ANNUALIZED)
Return on average assets		0.44%			1.09%			0.75%			1.31%			(0.80%)				0.83%			0.74%
Return on average common shareholders’ equity		3.62%			9.62%			6.78%			12.40%			(7.82%)				7.27%			6.99%
Return on tangible common equity		4.31%			9.99%			6.96%			12.57%			(7.82%)				10.58%			9.35%
Net interest margin (FTE)		4.66%			4.58%			4.27%			4.46%			4.33%				6.05%			5.87%
Efficiency ratio		87.0%			67.8%			80.1%			70.5%			103.7%				76.4%			82.6%

⁽¹⁾ Calculation of book value per common share and tangible book value per common share for September 30, 2017, includes the 698,580 common shares that were issued in October 2017 for the Sound Bank acquisition and the convertible preferred equity as if converted to 329,130 shares of common stock.  These incremental shares are not included in EPS calculations for the quarter ended September 30, 2017.         

⁽²⁾ Calculation of book value per common share and tangible book value per common share for June 30, 2017 and March 31, 2017 include the convertible preferred equity outstanding as of such dates as if converted to 21,739 shares of common stock.  These incremental shares are not included in the quarter-end EPS calculations as of such dates.

⁽³⁾ Sum of quarterly EPS may not total YTD EPS due to the 698,580 common shares issued in October 2017 as part of the Sound Bank acquisition and the 329,130 common shares issued December 1, 2017, due to the conversion of the convertible preferred stock into common stock at the preferred stock’s conversion ratio

 

Noninterest Income and Expense Data (Consolidated)
(Includes Sound Bank as of 9/1/2017)

Dollars in thousands	Three Months Ended												Twelve Months Ended
		12/31/17		9/30/17			6/30/17		3/31/17		12/31/16			Unaudited 12/31/17			Audited 12/31/16
Noninterest income
Government lending revenue	$	192	$	1,537		$	730	$	1,636	$	2,111		$	4,095		$	7,129
Mortgage revenue		515		699			1,938		1,555		1,809			4,707			8,539
Service charge revenue		203		89			15		17		21			324			105
Bank owned life insurance income		60		42			37		31		32			170			139
Income from Windsor investment		203		519			573		205		0			1,500			0
Gain (loss) on sale of securities		0		(7	)		0		0		2			(7	)		0
Other noninterest income		373		134			119		112		118			738			658
Total noninterest income	$	1,546	$	3,013		$	3,412	$	3,556	$	4,093		$	11,527		$	16,570
Noninterest expense
Compensation	$	3,248	$	2,481		$	2,812	$	2,801	$	3,525		$	11,342		$	12,291
Occupancy and equipment		434		303			314		366		331			1,417			1,336
Loan, foreclosure and OREO		373		287			408		19		275			1,087			1,597
Professional services		313		155			404		258		1,606			1,130			2,444
Data processing		316		247			143		148		303			854			915
Communication		188		112			85		84		106			469			372
Advertising		109		91			77		92		185			369			666
Transaction-related expenses		60		231			125		172		176			588			298
Other operating expense		856		547			438		482		488			2,323			1,735
Total noninterest expense	$	5,897	$	4,454		$	4,806	$	4,422	$	6,995		$	19,579		$	21,654

Total noninterest income for the fourth quarter of 2017 was $1,547,000, a decrease of $1,466,000 or 48.6% from $3,013,000 for the third quarter of 2017.  The decrease in noninterest income was primarily attributable to the governmental lending “originate and hold” strategy implemented in the fourth quarter of 2017.  Other notable changes in the noninterest category, as compared to the linked quarter are an increase in service charge revenue derived from having a full three months included for Sound Bank for the fourth quarter of 2017, as compared to only one month of Sound Bank activity for the third quarter of 2017; a reduction in income from Windsor resulting primarily from year-end tax entries; and an increase in other noninterest income resulting from a gain recorded on the sale of fixed assets at West Town Bank & Trust. 

In comparison to the prior year, noninterest income totaled $11,526,000, a decrease of $5,043,000, or 30.4% as compared to 2016.  The reduction was driven by a $3,832,000, or 44.8% decrease in mortgage revenue and a $1,736,000, or 29.7% decrease in governmental lending revenue.  Mortgage revenue is down year over year due to the Company’s shift away from a national mortgage operation that was primarily dependent upon refinance activity, while the reduction in governmental lending revenue is due to the “originate-and-hold” strategy implemented in the fourth quarter of 2017.  These reductions were offset by increases in service charge revenue and BOLI income due to the Sound Bank acquisition and the income earned from the Company’s investment in Windsor.

Total noninterest expense was $5,898,000 for the fourth quarter of 2017, an increase of $1,444,000 from $4,454,000 for the linked quarter ended September 30, 2017.  The increases are primarily related to having a full three-months of activity for Sound Bank for the fourth quarter of 2017, as compared to only one-month of Sound Bank activity included in the Company’s consolidated results for the linked quarter. 

Total noninterest expense for the year was $19,580,000, a decrease of $2,074,000, or 9.5% as compared to the $21,654,000 reported for 2016.  Compensation is down year over year despite the Sound Bank acquisition, due primarily to the change in mortgage strategy, and professional fees are down significantly year over year due to the $1.4 million litigation settlement that was recorded during the fourth quarter of 2016.  The litigation settlement reserve that was finalized in the fourth quarter of 2017 for a total of $1,243,000.  The $297,000, or 44.5% reduction in advertising expense for 2017, as compared to 2016, is also related to the change in mortgage strategy.  Transaction-related expenses totaled $588,000, an increase of $290,000, or 97.3% as compared to the $298,000 incurred in fiscal year 2016.

Selected Consolidated Balance Sheet Data

Dollars in thousands	Ending Balance
		12/31/17			9/30/17			6/30/17			3/31/17			12/31/16
Portfolio loans:
Originated loans	$	242,744		$	206,133		$	200,863		$	175,862		$	170,112
Acquired loans, net		135,808			144,994			0			0			0
Allowance for loan losses		(3,427	)		(2,841	)		(2,580	)		(2,537	)		(2,318	)
Portfolio loans, net		375,125			348,286			198,283			173,325			167,794
Loans held for sale		66,706			21,023			30,166			45,266			58,923
Investment securities and deposits		48,080			64,970			25,953			26,807			28,399
Total interest-earning assets		489,911			433,896			254,402			245,398			255,116
Loan servicing rights		5,237			5,568			5,721			5,624			5,569
Goodwill		7,016			7,016			0			0			0
Other intangible assets, net		2,272			2,450			0			0			0
Total assets		544,134			487,904			283,628			275,343			280,158
Deposits
Noninterest bearing deposits	$	84,178		$	70,984		$	24,141		$	22,926		$	20,820
Interest-bearing deposits		308,556			317,714			201,072			201,179			195,999
Total deposits		392,734			388,698			225,213			224,105			216,819
Borrowings		78,903			19,309			22,599			16,000			30,000
Total interest-bearing liabilities		471,637			408,007			247,812			240,105			246,819
Shareholders’ equity:
Preferred equity	$	0		$	7,570		$	500		$	500		$	0
Common equity		46,503			38,688			12,421			12,362			12,359
Retained earnings		18,284			17,895			16,949			16,434			15,556
Accumulated other comprehensive income		(4	)		28			50			42			40
Windsor call option		797			797			797			797			0
Total shareholders’ equity	$	65,580		$	64,978		$	30,717		$	30,135		$	27,955

Total assets were $544,134,000, an increase of 11.5% as compared to total assets of $487,904,000 at September 30, 2017.  Total net portfolio loans were $375,125,000 at December 31, 2017, an increase of $27,222,000, or 7.8% as compared to $347,903,000 at September 30, 2017.  Loans held for sale increased $45,683,000 or 217.3% to $66,706,000 as compared to $21,023,000 at September 30, 2017.  The increases are all primarily attributable to the “originate-and-hold” strategy implemented in the fourth quarter of 2017 to leverage the excess capital position at West Town Bank & Trust.   The Guaranteed Governmental Lending Division at West Town Bank & Trust originated $90 million in new loans during the fourth quarter of 2017, its highest quarterly volume of originations ever.  

Total deposits were $392,734,000 at December 31, 2017, an increase of $4,036,000 as compared to total deposits of $388,698,000 at September 30, 2017, while borrowings increased $59,594,000 as compared to the linked quarter.  The Company used overnight borrowings at the FHLB to fund the increased government guaranteed loan production during the quarter to essentially match fund the loans held for sale. 

Total shareholders’ equity was $65,380,000 at December 31, 2017, an increase of $602,000 or 1% as compared to $64,978,000 at September 30, 2017.  The Company’s holders of convertible preferred stock converted their shares to 329,130 shares of non-voting common stock on December 1, 2017, at the predetermined conversion ratio.  As a result of such conversions, the Company had no shares of convertible preferred stock outstanding at December 31, 2017. As part of the Windsor investment, the Company obtained a call option to acquire the remaining 56.5% of Windsor on or before December 31, 2019.  At December 31, 2017, both banks’ capital ratios exceed the minimum thresholds established for well-capitalized banks by regulatory measures.

	“Well Capitalized” Minimums	West Town Bank & Trust	Sound Bank
Tier 1 common equity ratio	6.5%	13.5%	13.1%
Tier 1 risk based capital ratio	8.0%	13.5%	13.1%
Total risk based capital ratio	10.0%	14.8%	13.2%
Tier 1 leverage ratio	5.0%	12.0%	10.0%

Acquired Loan Summary

Dollars in thousands		12/31/17			9/30/17
Performing acquired loans	$	132,846		$	142,087
Less:  remaining FMV adjustments		(1,592)			(1,783)
Performing acquired loans, net	$	131,254		$	140,304
FMV adjustment %		1.2%			1.3%
Purchase credit impaired loans (PCI)	$	5,386		$	5,657
Less:  remaining FMV adjustments		(832)			(967)
PCI loans, net	$	4,554		$	4,690
FMV adjustment %		15.4%			17.1%
Total acquired performing loans		131,254			140,304
Total acquired PCI loans		4,554			4,690
Total acquired loans		135,808			144,994
FMV adjustment % all acquired loans		1.8%			1.9%

The performing acquired loan pool decreased $9,241,000 during the fourth quarter of 2017.  The reduction is due to $6,629,000 in principal payments and $2,612,000 in renewals.  The PCI loan pool decreased $271,000 during the fourth quarter due to $168,000 in principal payments and $103,000 in net charge-offs.

Asset Quality

The Company’s nonperforming assets to total assets ratio decreased 33 basis points during the fourth quarter of 2017 from 1.68% at September 30, 2017, to 1.35% at December 31, 2017.  Excluding acquired loans, nonperforming assets to total assets declined 78 basis points from 3.31% at September 30, 2017, to 2.53% at December 31, 2017.  The reduction is related to the net charge-offs during the quarter and a decline in nonaccrual balances.  In comparison to the prior year, the Company’s nonperforming assets to total assets ratio decreased 19 basis points from 1.54% at December 31, 2016, to 1.35% at December 31, 2017. 

The Company recorded a $1,129,000 provision for loan losses during the fourth quarter of 2017, as compared to a provision of $491,000 in the third quarter 2017 and $570,000 in fourth quarter 2016.  For the year, the Company recorded a $2,177,000 provision for loan losses, an increase of $858,000 from the $1,319,000 recorded in 2016.  The increased provision expense is reflective of the organic growth in portfolio loans (primarily government guaranteed lending) and the $1,069,000 in net charge-offs recorded during 2017.  Excluding acquired loans, the ratio of allowance for loan and lease losses as a percentage of total portfolio loans increased from 1.36% at December 31, 2016, to 1.41% at December 31, 2017.

Dollars in thousands	Ending Balance
		12/31/17		9/30/17			6/30/17			3/31/17			12/31/16
Nonaccrual loans – non-acquired	$	6,218	$	6,803		$	6,967		$	3,717		$	3,447
Nonaccrual loans – acquired		413		0			0			0			0
OREO – non-acquired		0		0			270			270			873
OREO – acquired		0		0			0			0			0
90 days past due – non-acquired		0		0			0			0			0
90 days past due – acquired		697		1,396			0			0			0
Total nonperforming assets		7,328		8,199			7,237			3,987			4,320
Total nonperforming assets – non-acquired		6,218		6,803			7,237			3,986			4,320
Net charge-offs, QTD	$	543	$	230		$	238		$	58		$	420
Annualized net charge-offs to total average portfolio loans		0.54%		0.34%			0.43%			0.10%			0.74%
Ratio of total nonperforming assets to total assets		1.35%		1.68%			2.55%			1.45%			1.54%
Ratio of total nonperforming loans to total portfolio loans		1.95%		2.35%			3.51%			2.14%			2.05%
Ratio of total allowance for loan losses to total portfolio loans		0.91%		0.81%			1.28%			1.44%			1.36%
Excluding acquired (Non-GAAP)
Ratio of nonperforming assets to loans and OREO		2.56		3.30%			3.60%			2.26%			2.53%
Ratio of nonperforming loans to loans		2.56		3.30%			3.47%			2.11%			2.03%
Ratio of allowance for loan losses to loans		1.41		1.38%			1.28%			1.44%			1.36%

Net Interest Income and Margin
(Includes Sound Bank as of 9/1/2017)

Dollars in thousands	Three Months Ended												Twelve Months Ended
		12/31/17		9/30/17		6/30/17		3/31/17		12/31/16				12/31/17		12/31/16
Quarterly average balances:
Loans	$	400,324	$	273,225	$	222,099	$	226,218	$	226,624			$	280,924	$	201,199
Investment securities		7,346		6,944		4,778		4,954		5,178				6,014		5,629
Interest-bearing balances and other		37,640		27,171		16,482		15,384		11,627				24,238		12,628
Total interest-earning assets		445,310		307,340		243,359		246,556		243,429				311,176		219,456
Noninterest deposits		75,707		40,028		21,089		22,576		19,339				39,996		14,928
Interest-bearing liabilities:
Interest bearing deposits		312,155		239,475		201,027		199,399		191,852				238,327		171,198
Borrowed funds		31,574		13,748		15,680		16,249		23,784				19,340		26,723
Total interest-bearing liabilities		343,729		253,223		216,707		215,648		215,636				257,667		197,921
Total assets		495,958		343,328		274,137		272,015		266,066				347,781		241,753
Common shareholders’ equity		60,432		40,848		29,629		28,334		27,264				39,746		25,731
Tangible common equity		50,795		37,617		29,629		28,334		27,264				36,503		25,731

Dollars in thousands	Three Months Ended																Twelve Months Ended
		12/31/17			9/30/17			6/30/17			3/31/17			12/31/16				12/31/17			12/31/16
Interest Income/Expense:
Loans	$	6,061		$	4,223		$	3,288		$	3,373		$	3,311			$	16,945		$	11,895
Investment securities, tax		39			47			29			29			28				144			101
Interest-bearing balances and other		117			95			49			44			27				304			108
Total interest income		6,217			4,365			3,366			3,446			3,366				17,393			12,104
Deposits		791			712			684			677			674				2,865			2,353
Borrowings		192			102			92			56			38				441			117
Total interest expense		983			814			776			733			712				3,306			2,470
Net interest income	$	5,234		$	3,551		$	2,590		$	2,713		$	2,654			$	14,087		$	9,634
Average Yields and Costs:
Loans		6.01%			6.13%			5.94%			6.05%			5.80%				8.06%			7.90%
Investment securities		2.12%			2.71%			2.43%			2.34%			2.16%				3.19%			2.39%
Interest-bearing balances and other		1.23%			1.39%			1.19%			1.16%			0.92%				1.68%			1.14%
Total interest-earning assets		5.54%			5.63%			5.55%			5.67%			5.49%				7.47%			7.37%
Total interest-bearing deposits		1.01%			1.18%			1.36%			1.38%			1.39%				1.61%			1.84%
Borrowed funds		2.41%			2.94%			2.35%			1.40%			0.63%				3.05%			0.59%
Total interest-bearing liabilities		1.13%			1.28%			1.44%			1.38%			1.31%				1.72%			1.67%
Cost of funds		0.93%			1.10%			1.31%			1.25%			1.20%				1.48%			1.55%
Net interest margin		4.66%			4.58%			4.27%			4.46%			4.33%				6.05%			5.87%

Net interest income for the fourth quarter of 2017 was $5,234,000, an increase from $3,551,000 for the third quarter of 2017. 

• West Town Bank & Trust contributed $3,453,000 for the fourth quarter of 2017, as compared to $2,981,000 for the third quarter of 2017, an increase of $472,000 or 15.8%.
• Sound Bank contributed $1,896,000 for the fourth quarter of 2017, as compared to $692,000 for the third quarter of 2017, an increase of $1,204,000 or 174.0%.  The third quarter of 2017 only reflected one month of activity for Sound Bank.
• Interest expense at the holding company totaled $115,000 for the fourth quarter of 2017, as compared to $85,000 for the third quarter of 2017, due to the increased $4 million in borrowings taken down August 31, 2017, in conjunction with closing the Sound Bank acquisition. 

Net interest margin was 4.66% for the fourth quarter of 2017, an 8 basis point increase as compared to 4.58% for the third quarter of 2017.

• West Town Bank & Trust net interest margin was 5.03% for the fourth quarter 2017, as compared to 4.71% for the third quarter of 2017.  The driver for the increase was the growth in the average loan balances of $24,467,000, or 11%. 
• Sound Bank net interest margin was 4.35% for the fourth quarter 2017, as compared to 4.46% for the third quarter.  Excluding accretion, the Sound Bank net interest margin was 3.82% for the fourth quarter 2017, as compared to 3.67% for the third quarter of 2017.
• On a consolidated basis, the Company’s cost of funds declined 17 basis points as compared to the third quarter of 2017.  This is primarily due to a full three-month’s activity from Sound Bank in the fourth quarter.  Sound Bank’s cost of funds was 0.30%, as compared to West Town Bank & Trust cost of funds of 1.18% for the fourth quarter of 2017.

Average interest-earning assets for the fourth quarter of 2017 were $445,310,000, an increase of $137,970,000, or 44.9% as compared to $307,340,000 for the third quarter of 2017.  The increase was primarily due to the Sound Banking Company acquisition as well as the increased loan production at West Town Bank & Trust coupled with its “originate-and-hold” strategy implemented in the fourth quarter of 2017.  Likewise, average interest-bearing liabilities were $343,729,000, an increase of $90,506,000, or 35.7%, as compared to the $253,223,000 for the third quarter of 2017, due primarily to the Sound Banking Company acquisition. 

About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the multi-bank holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois and North Carolina, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are residential mortgage, commercial, and installment loans. Additionally, both banks engage in mortgage banking activities and, as such, originate and sell one-to-four family residential mortgage loans in multiple states. The Company is registered with, and supervised by, the Federal Reserve.  West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC.  Sound Bank’s primary regulators are the North Carolina Commissioner of Banks and the FDIC.

For more information, visit www.westtownbank.com.

Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate," and "believe," variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; recent changes in tax law, including the impact of such changes on our tax assets and liabilities; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Sound Banking Company acquisition; and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release. 

Contact: Eric Bergevin, 252-482-4400