Westbury Bancorp, Inc. Reports Net Income for the Three Months and Year Ended September 30, 2018
WEST BEND, Wis., Oct. 30, 2018 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (OTCQX: WBBW), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $1.4 million, or $0.40 per common share for the three months ended September 30, 2018, and $4.2 million, or $1.21 per common share, for the year ended September 30, 2018, compared to net income of $536,000, or $0.14 per common share for the three months ended September 30, 2017, and net income of $2.8 million, or $0.78 per common share, for the year ended September 30, 2017.
Highlights for the year included:
- During the year ended September 30, 2018, our net loan portfolio grew by $49.7 million, or 8.26%. The portfolio growth consisted primarily of growth in commercial real estate, multifamily, commercial and industrial, and single family loans. As a result of this loan growth and the rising interest rate environment, we experienced an increase in total interest and dividend income of $3.8 million, or 15.03%, to $29.0 million for the year ended September 30, 2018 compared to $25.2 million for the year ended September 30, 2017.
- During the year ended September 30, 2018, our deposits increased by $756,000, or 0.11%. As a result of the rising interest rate environment during the year, total interest expense increased by $1.5 million, or 43.50%, to $4.9 million for the year ended September 30, 2018 compared to $3.4 million for the year ended September 30, 2017.
- Net interest income increased $2.3 million, or 10.59%, to $24.1 million for the year ended September 30, 2018 compared to $21.8 million for the year ended September 30, 2017. Our net interest margin was 3.20% for the year ended September 30, 2018 compared to 3.27% for the year ended September 30, 2017.
- Non-performing assets increased to $5.8 million or 0.71% of total assets, at September 30, 2018, compared to $294,000, or 0.04% of total assets, at September 30, 2017. This increase was the result of one commercial loan relationship totaling $5.6 million becoming non-performing during the year. This commercial loan relationship was paid in full subsequent to September 30, 2018.
- Classified assets increased to $6.8 million, or 0.83% of total assets, at September 30, 2018, compared to $1.9 million, or 0.24% of total assets, at September 30, 2017. This increase was the result of one commercial loan relationship totaling $5.6 million that was classified during the year. This commercial loan relationship was paid in full subsequent to September 30, 2018.
- Loans past due 30-89 days decreased $448,000, or 36.36%, to $527,000, or 0.08% of net loans, at September 30, 2018 from $975,000, or 0.16% of net loans, at September 30, 2017.
- Net charge-offs were 0.01% of average loans for the year ended September 30, 2018, compared to net recoveries of 0.01% of average loans for the year ended September 30, 2017.
- The allowance for loan losses was 0.93% of total loans as of September 30, 2018 compared to 0.95% at September 30, 2017.
- Non-interest income was $5.7 million for the year ended September 30, 2018, compared to $6.1 million for the year ended September 30, 2017. The decrease was primarily the result of decreases in each of insurance and securities sales commissions of $148,000, due to the sale of this business in fiscal 2017, and rental income from real estate operations of $106,000, due to the sale of a property in fiscal 2018.
- Non-interest expense was $22.1 million for the year ended September 30, 2018, compared to $22.9 million for the year ended September 30, 2017. The decrease was primarily related a decrease in each of valuation adjustments on real estate designated as held for sale of $702,000, occupancy expense of $182,000, and FDIC insurance premiums of $147,000, partially offset by an increase in compensation and employee benefits of $468,000.
- 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, 2018, we purchased 357,514 shares. In total, since we began our stock repurchase programs in May 2014, we have repurchased 1,736,864 shares, or 33.77% of the shares outstanding in May 2014.
- Our stock repurchase activity has reduced our average equity to average assets ratio to 9.89% at September 30, 2018 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 $0.53, or 2.6%, to $21.14 at September 30, 2018 from $20.61 at September 30, 2017. Based on our closing share price of $22.00 on September 30, 2018, our price to tangible book value was 104.07% compared to 96.80% on September 30, 2017 based on the closing share price of $19.95 at that date.
Highlights for the fourth quarter include:
- During the three months ended September 30, 2018, our net loan portfolio grew by $13.1 million, or 8.20% annualized growth. Loan growth was the primary driver of an increase in total interest and dividend income of $245,000, or 3.31%, to $7.6 million for the three months ended September 30, 2018 compared to $7.4 million for the three months ended June 30, 2018 and an increase of $853,000, or 12.6%, compared to $6.8 million for the three months ended September 30, 2017.
- During the three months ended September 30, 2018, our deposits increased by $5.4 million, or 3.20% annualized. Growth in average deposit balances and the rising interest rate environment were the primary causes of the increase in total interest expense of $121,000 or 9.32%, to $1.4 million for the three months ended September 30, 2018 compared to $1.3 million for the three months ended June 30, 2018 and an increase of $428,000, or 43.19%, compared to $1.0 million for the three months ended September 30, 2017.
- Net interest income increased $141,000, or 2.31%, to $6.2 million for the three months ended September 30, 2017 compared to $6.1 million for the three months ended June 30, 2018 and an increase of $442,000, or 7.63%, compared to $5.8 million for the three months ended September 30, 2017. Our net interest margin was 3.23% for the three months ended September 30, 2018 compared to 3.26% for the three months ended June 30, 2018 and 3.27% for the three months ended September 30, 2017.
- Non-performing assets increased to $5.8 million, or 0.71% of total assets, at September 30, 2018, compared to $203,000, or 0.03% of total assets, at June 30, 2018. This increase was the result of one commercial loan relationship totaling $5.6 million becoming non-performing during the quarter. This commercial loan relationship was paid in full subsequent to September 30, 2018.
- Classified assets remained unchanged at $6.8 million, or 0.83% of total assets, at September 30, 2018, compared to $6.8 million, or 0.84% of total assets, at June 30, 2018.
- Loans past due 30-89 days increased $175,000, or 49.72%, to $527,000, or 0.08% of net loans, at September 30, 2018 from $352,000, or 0.06% of net loans, at June 30, 2018.
- Annualized net recoveries were 0.00% of average loans for the three months ended September 30, 2018, compared to net charge-offs of 0.04% of average loans for the three months ended June 30, 2018 and annualized net recoveries of 0.03% of average loans for the three months ended September 30, 2017.
- Non-interest income was $1.4 million for the three months ended September 30, 2018, compared to $1.3 million for the three months ended June 30, 2018 and $1.5 million for the three months ended September 30, 2017.
- Non-interest expense was $5.5 million for the three months ended September 30, 2018 compared to $5.4 million for the three months ended June 30, 2018 and $6.3 million for the three months ended September 30, 2017. The decrease compared to the 2017 period is primarily related to the valuation allowance on real estate held for sale which was recorded during the three months ended September 30, 2017. This allowance related to a property which was transferred from office properties and equipment to real estate held for sale based on a viable offer to purchase received during the quarter ended September 30, 2017. The property was sold in the first quarter of fiscal 2018.
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 communities in Washington, Waukesha, and Dane 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.
| _______________________________ | |
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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, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
|||||||||||
| Selected Financial Condition Data: | (Dollars in thousands) | ||||||||||||||
| Total assets | $ | 816,297 | $ | 807,910 | $ | 801,426 | $ | 810,391 | $ | 790,289 | |||||
| Loans receivable, net | 651,704 | 638,608 | 627,410 | 614,531 | 601,988 | ||||||||||
| Allowance for loan losses | 6,092 | 5,845 | 5,765 | 5,765 | 5,760 | ||||||||||
| Securities available for sale | 106,144 | 107,748 | 110,986 | 114,946 | 122,601 | ||||||||||
| Total liabilities | 739,194 | 730,684 | 724,828 | 732,829 | 709,205 | ||||||||||
| Deposits | 676,553 | 671,188 | 676,511 | 679,467 | 675,797 | ||||||||||
| Stockholders' equity | 77,103 | 77,226 | 76,598 | 77,562 | 81,084 | ||||||||||
| Asset Quality Ratios: | |||||||||||||||
| Non-performing assets to total assets | 0.71 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | % | |||||
| Non-performing loans to total loans | 0.87 | % | 0.03 | % | 0.04 | % | 0.04 | % | 0.05 | % | |||||
| Total classified assets to total assets | 0.83 | % | 0.84 | % | 0.16 | % | 0.16 | % | 0.26 | % | |||||
| Allowance for loan losses to non-performing loans | 105.98 | % | 2,901.97 | % | 2,506.52 | % | 2,382.23 | % | 2,035.34 | % | |||||
| Allowance for loan losses to total loans | 0.93 | % | 0.91 | % | 0.91 | % | 0.93 | % | 0.95 | % | |||||
| Net charge-offs (recoveries) to average loans - annualized | — | % | 0.04 | % | 0.03 | % | — | % | (0.03 | )% | |||||
| Capital Ratios: | |||||||||||||||
| Average equity to average assets | 9.89 | % | 9.50 | % | 9.73 | % | 9.67 | % | 9.79 | % | |||||
| Equity to total assets at end of period | 10.26 | % | 9.56 | % | 9.56 | % | 9.57 | % | 10.26 | % | |||||
| Total capital to risk-weighted assets (Bank only) | 12.47 | % | 12.40 | % | 12.16 | % | 12.74 | % | 12.66 | % | |||||
| Tier 1 capital to risk-weighted assets (Bank only) | 11.57 | % | 11.53 | % | 11.31 | % | 11.85 | % | 11.76 | % | |||||
| Tier 1 capital to average assets (Bank only) | 9.58 | % | 9.50 | % | 9.61 | % | 9.66 | % | 9.58 | % | |||||
| CETI capital to risk-weighted assets (Bank only) | 11.57 | % | 11.53 | % | 11.31 | % | 11.85 | % | 11.76 | % | |||||
| Three Months Ended | Years Ended | ||||||||||||||
| September 30, 2018 |
September 30, 2017 |
September 30, 2018 |
September 30, 2017 |
||||||||||||
| Selected Operating Data: | (in thousands, except per share data) | ||||||||||||||
| Interest and dividend income | $ | 7,640 | $ | 6,787 | $ | 29,041 | $ | 25,246 | |||||||
| Interest expense | 1,419 | 991 | 4,892 | 3,409 | |||||||||||
| Net interest income | 6,221 | 5,796 | 24,149 | 21,837 | |||||||||||
| Provision for loan losses | 200 | 100 | 400 | 450 | |||||||||||
| Net interest income after provision for loan losses | 6,021 | 5,696 | 23,749 | 21,387 | |||||||||||
| Service fees on deposit accounts | 1,063 | 1,004 | 3,862 | 3,919 | |||||||||||
| Other non-interest income | 380 | 455 | 1,806 | 2,136 | |||||||||||
| Total non-interest income | 1,443 | 1,459 | 5,668 | 6,055 | |||||||||||
| Salaries, employee benefits, and commissions | 3,160 | 2,863 | 12,073 | 11,605 | |||||||||||
| Occupancy and furniture and equipment | 479 | 577 | 2,313 | 1,764 | |||||||||||
| Data processing | 771 | 920 | 3,454 | 3,090 | |||||||||||
| Other non-interest expense | 1,048 | 1,951 | 4,485 | 5,559 | |||||||||||
| Total non-interest expense | 5,458 | 6,311 | 22,096 | 22,931 | |||||||||||
| Income before income tax expense | 2,006 | 844 | 7,321 | 4,511 | |||||||||||
| Income tax expense | 610 | 308 | 3,116 | 1,664 | |||||||||||
| Net income | $ | 1,396 | $ | 536 | $ | 4,205 | $ | 2,847 | |||||||
| Basic earnings per share | $ | 0.40 | $ | 0.14 | $ | 1.21 | $ | 0.78 | |||||||
| Diluted earnings per share | $ | 0.39 | $ | 0.14 | $ | 1.18 | $ | 0.76 | |||||||
| For the Three Months Ended: | |||||||||||||||
| September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
|||||||||||
| Selected Operating Data: | (in thousands, except per share data) | ||||||||||||||
| Interest and dividend income | $ | 7,640 | $ | 7,395 | $ | 7,034 | $ | 6,972 | $ | 6,787 | |||||
| Interest expense | 1,419 | 1,298 | 1,138 | 1,037 | 991 | ||||||||||
| Net interest income | 6,238 | 6,097 | 5,896 | 5,935 | 5,796 | ||||||||||
| Provision for loan losses | 200 | 150 | 50 | — | 100 | ||||||||||
| Net interest income after provision for loan losses | 6,038 | 5,947 | 5,846 | 5,935 | 5,696 | ||||||||||
| Service fees on deposit accounts | 1,063 | 980 | 867 | 952 | 1,004 | ||||||||||
| Other non-interest income | 380 | 369 | 509 | 548 | 455 | ||||||||||
| Total non-interest income | 1,443 | 1,349 | 1,376 | 1,500 | 1,459 | ||||||||||
| Salaries, employee benefits, and commissions | 3,160 | 3,005 | 2,954 | 2,955 | 2,863 | ||||||||||
| Occupancy and furniture and equipment | 479 | 521 | 600 | 531 | 577 | ||||||||||
| Data processing | 771 | 801 | 905 | 929 | 921 | ||||||||||
| Other non-interest expense | 1,048 | 1,074 | 1,099 | 1,264 | 1,951 | ||||||||||
| Total non-interest expense | 5,458 | 5,401 | 5,558 | 5,679 | 6,311 | ||||||||||
| Income before income tax expense | 2,023 | 1,895 | 1,664 | 1,756 | 844 | ||||||||||
| Income tax expense | 610 | 575 | 489 | 1,442 | 308 | ||||||||||
| Net income | $ | 1,396 | $ | 1,320 | $ | 1,175 | $ | 314 | $ | 536 | |||||
| Basic earnings per share | $ | 0.40 | $ | 0.38 | $ | 0.34 | $ | 0.09 | $ | 0.14 | |||||
| Diluted earnings per share | $ | 0.39 | $ | 0.37 | $ | 0.33 | $ | 0.09 | $ | 0.14 | |||||
| At or For the Three Months Ended | At or For the Year Ended | |||||||||||||
| September 30, 2018 |
September 30, 2017 |
September 30, 2017 |
September 30, 2017 |
|||||||||||
| Selected Financial Performance Ratios: | ||||||||||||||
| Return on average assets | 0.69 | % | 0.27 | % | 0.52 | % | 0.38 | % | ||||||
| Return on average equity | 7.24 | % | 2.79 | % | 5.29 | % | 3.75 | % | ||||||
| Interest rate spread | 3.19 | % | 3.25 | % | 3.16 | % | 3.26 | % | ||||||
| Net interest margin | 3.23 | % | 3.27 | % | 3.20 | % | 3.27 | % | ||||||
| Non-interest expense to average total assets | 2.69 | % | 3.22 | % | 2.75 | % | 3.09 | % | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 105.61 | % | 103.09 | % | 105.45 | % | 102.68 | % | ||||||
| Per Share and Stock Market Data: | ||||||||||||||
| Basic earnings per share | $ | 0.40 | $ | 0.14 | $ | 1.21 | $ | 0.78 | ||||||
| Diluted earnings per share | $ | 0.39 | $ | 0.14 | $ | 1.18 | $ | 0.76 | ||||||
| Basic weighted average shares outstanding | 3,420,159 | 3,692,166 | 3,468,134 | 3,633,171 | ||||||||||
| Book value per share - excluding unallocated ESOP shares | $ | 22.73 | $ | 22.32 | $ | 22.73 | $ | 22.32 | ||||||
| Book value per share - including unallocated ESOP shares | $ | 21.14 | $ | 20.61 | $ | 21.14 | $ | 20.61 | ||||||
| Closing market price | $ | 22.00 | $ | 19.95 | $ | 22.00 | $ | 19.95 | ||||||
| Price to book ratio - excluding unallocated ESOP shares | 96.79 | % | 89.38 | % | 96.79 | % | 89.38 | % | ||||||
| Price to book ratio - including unallocated ESOP shares | 104.07 | % | 96.80 | % | 104.07 | % | 96.80 | % | ||||||
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