Westbury Bancorp, Inc. Reports Net Income for the Three and Six Months Ended March 31, 2016
April 28 2016 - 11:46AM
Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the
“Company”) for Westbury Bank (the “Bank”), today announced net
income of $873,000, or $0.23 per common share, and $1.9 million, or
$0.51 per common share, for the three and six months ended March
31, 2016, respectively, compared to net income of $484,000, or
$0.11 per common share, and $931,000, or $0.21 per common share,
for the three and six months ended March 31, 2015,
respectively.
Kirk Emerich, Executive Vice President and Chief Financial
Officer, said, "We are pleased to continue our strong start to
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. Our core earnings run rate
is reflected in the results for the first two quarters of the
year."
Greg Remus, President and Chief Executive Officer, added, "Our
loan growth has picked up this quarter, while we are continuing to
seek opportunities to add experienced lenders to our team who will
add high quality commercial business and real estate loans 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."
Highlights for the six months include:
- During the six months ended March 31, 2016, our net loan
portfolio grew by $15.4 million, or 6.2% annualized growth. The
portfolio growth consisted primarily of multifamily and commercial
real estate loans. As a result, we experienced an increase in
total interest and dividend income of $1.3 million, or 13.0%, to
$11.3 million for the six months ended March 31, 2016 compared to
$10.0 million for the six months ended March 31, 2015.
- During the six months ended March 31, 2016, our deposits
increased by $19.2 million, or 7.2% annualized growth. Deposit
growth and the use of long-term FHLB advances were the primary
causes of an increase in total interest expense of $342,000, or
38.5%, to $1.2 million for the six months ended March 31, 2016
compared to $889,000 for the six months ended March 31, 2015.
- Net interest income increased $1.0 million, or 10.5%, to $10.1
million for the six months ended March 31, 2016 compared to $9.1
million for the six months ended March 31, 2015. Our net
interest margin was 3.40% for the six months ended March 31, 2016
compared to 3.41% for the six months ended March 31, 2015.
The average yield on interest-earning assets increased 7 basis
points, primarily due to our loan growth, while the average cost of
funds also 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 101.67%
for the six months ended March 31, 2016 from 105.22% for the six
months ended March 31, 2015.
- Non-performing assets decreased by $639,000, or 58.8%, to
$447,000, or 0.07% of total assets, at March 31, 2016, compared to
$1.1 million, or 0.17% of total assets, at September 30, 2015.
- Classified assets decreased $2.0 million, or 48.5%, to $2.1
million, or 0.32% of total assets, at March 31, 2016, compared to
$4.1 million, or 0.64% of total assets, at September 30, 2015.
- Loans past due 30-89 days decreased $73,000, or 11.4%, to
$566,000 at March 31, 2016 from $639,000 at September 30,
2015.
- Net charge-offs decreased to 0.00% of average loans for the six
months ended March 31, 2016, compared to 0.11% of average loans for
the six months ended March 31, 2015.
- Due to the decrease in non-performing loans and the decrease in
net charge-offs during the first half of 2016, the ratio of our
allowance for loan losses to non-performing loans increased to
1087.9% at March 31, 2016 compared to 572.6% at September 30,
2015.
- Non-interest income was $3.1 million for the six months ended
March 31, 2016, compared to $3.3 million for the six months ended
March 31, 2015. Non-interest income represented 21.29% of
total revenue for the six months ended March 31, 2016 compared to
24.73% for the six months ended March 31, 2015.
- Non-interest expense was $9.7 million for the six months ended
March 31, 2016, compared to $10.3 million for the six months ended
March 31, 2015. Non-interest expense to average total assets
was 2.92% for the six months ended March 31, 2016 compared to 3.44%
for the six months ended March 31, 2015.
- We have been an active buyer of our stock since the
implementation of our first stock repurchase program in May
2014. For the six months ended March 31, 2016, we purchased
170,632 shares at an average price of $18.97 per share. In
total, since we began our stock repurchase programs in May 2014, we
have repurchased 1,182,741 shares, or 23.0% of the shares
outstanding as of May 12, 2014, at an average price of $16.98 per
share over the life of the repurchase programs.
- Our stock repurchase activity has reduced our average equity to
average assets ratio to 11.48% at March 31, 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 $0.66, or 3.6%, to $18.87 at March 31,
2016 from $18.21 at September 30, 2015. Based on our closing
share price of $19.00 on March 31, 2016, our price to tangible book
value was 100.7% 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 March 31, 2016, our net loan
portfolio grew by $12.3 million, or 9.9% annualized growth. The
portfolio growth consisted primarily of increases in commercial
business, multifamily and commercial real estate loans. Loan
growth was the primary driver of an increase in total interest and
dividend income of $110,000, or 2.0%, to $5.7 million for the three
months ended March 31, 2016 compared to $5.6 million for the three
months ended December 31, 2015 and an increase of $585,000, or
11.4%, compared to $5.1 million for the three months ended March
31, 2015.
- During the three months ended March 31, 2016, our deposits
increased by $5.9 million, or 4.3% annualized growth. Deposit
growth and the use of long-term FHLB advances were the primary
causes of the increase in total interest expense of $51,000,
or 8.6%, to $641,000 for the three months ended March 31, 2016
compared to $590,000 for the three months ended December 31, 2015
and an increase of $181,000, or 39.3%, compared to $460,000 for the
three months ended March 31, 2015.
- Net interest income increased $59,000, or 1.2%, to $5.1 million
for the three months ended March 31, 2016 compared to $5.0 million
for the three months ended December 31, 2015 and an increase of
$404,000, or 8.7%, compared to $4.7 million for the three months
ended March 31, 2015. Our net interest margin was 3.39% for
the three months ended March 31, 2016 compared to 3.41% for the
three months ended December 31, 2015 and 3.39% for the three months
ended March 31, 2015.
- Non-performing assets decreased to $447,000, or 0.07% of total
assets, at March 31, 2016, compared to $718,000, or 0.11% of total
assets, at December 31, 2015 and $3.2 million, or 0.52% of total
assets, at March 31, 2015.
- Classified assets decreased to $2.1 million, or 0.32% of total
assets, at March 31, 2016, compared to $2.4 million, or 0.36% of
total assets, at December 31, 2015 and $2.9 million, or 0.82% of
total assets, at March 31, 2015.
- Loans past due 30-89 days decreased $200,000, or 26.1%, to
$566,000 at March 31, 2016 from $766,000 at December 31, 2015.
- Annualized net charge-offs were 0.01% of average loans for the
three months ended March 31, 2016, compared to 0.00% of average
loans for the three months ended December 31, 2015 and 0.04% of
average loans for the three months ended March 31, 2015.
- Due to the decrease in non-performing loans and the decrease in
net charge-offs during the current year quarter, the ratio of our
allowance for loan losses to non-performing loans increased to
1087.9% at March 31, 2016 compared to 863.1% at December 31,
2015.
- Non-interest income was $1.5 million for the three months ended
March 31, 2016, compared to $1.6 million for the three months ended
December 31, 2015 and $1.6 million for the three months ended March
31, 2015. Non-interest income represented 22.27% of total
revenue for the three months ended March 31, 2016, compared to
24.28% for the three months ended December 31, 2015 and 25.69% for
the three months ended March 31, 2015.
- Non-interest expense was $5.0 million for the three months
ended March 31, 2016, compared to $4.8 million for the three months
ended December 31, 2015 and $5.2 million for the three months ended
March 31, 2015. Non-interest expense to average total assets
was 2.95% for the three months ended March 31, 2016, compared to
2.88% for the three months ended December 31, 2015 and 3.52% for
the three months ended March 31, 2015.
- During the quarter, we continued our stock repurchase
programs. For the three months ended March 31, 2016, we
purchased 142,638 shares at an average price of $19.15 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 and Outagamie 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.
WEBSITE: www.westburybankwi.com
|
At or For the Three Months
Ended: |
|
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
Selected
Financial Condition Data: |
(Dollars in thousands) |
Total assets |
$ |
655,107 |
|
$ |
670,577 |
|
$ |
638,929 |
|
$ |
629,380 |
|
$ |
610,134 |
|
Loans
receivable, net |
508,800 |
|
496,545 |
|
493,425 |
|
486,497 |
|
467,447 |
|
Allowance for
loan losses |
4,863 |
|
4,747 |
|
4,598 |
|
4,536 |
|
4,483 |
|
Securities
available for sale |
81,936 |
|
84,237 |
|
80,286 |
|
79,450 |
|
77,881 |
|
Total liabilities |
576,499 |
|
591,459 |
|
560,117 |
|
552,379 |
|
530,998 |
|
Deposits |
550,217 |
|
556,144 |
|
531,020 |
|
522,031 |
|
512,047 |
|
Stockholders'
equity |
78,608 |
|
79,118 |
|
78,812 |
|
77,001 |
|
79,136 |
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
Non-performing assets
to total assets |
0.07 |
% |
0.11 |
% |
0.17 |
% |
0.39 |
% |
0.52 |
% |
Non-performing loans to
total loans |
0.09 |
% |
0.11 |
% |
0.16 |
% |
0.21 |
% |
0.23 |
% |
Total classified assets
to total assets |
0.32 |
% |
0.36 |
% |
0.64 |
% |
0.73 |
% |
0.82 |
% |
Allowance for loan
losses to non-performing loans |
1087.92 |
% |
863.09 |
% |
572.60 |
% |
434.90 |
% |
412.04 |
% |
Allowance for loan
losses to total loans |
0.95 |
% |
0.95 |
% |
0.92 |
% |
0.92 |
% |
0.95 |
% |
Net charge-offs to
average loans (annualized) |
0.01 |
% |
— |
% |
0.07 |
% |
0.08 |
% |
0.04 |
% |
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
Average equity to
average assets |
11.48 |
% |
11.83 |
% |
11.98 |
% |
12.48 |
% |
13.72 |
% |
Equity to total assets
at end of period |
12.00 |
% |
11.80 |
% |
12.34 |
% |
12.23 |
% |
12.97 |
% |
Total capital to
risk-weighted assets (Bank only) |
13.17 |
% |
12.99 |
% |
13.12 |
% |
13.50 |
% |
14.11 |
% |
Tier 1 capital to
risk-weighted assets (Bank only) |
12.26 |
% |
12.09 |
% |
12.25 |
% |
12.61 |
% |
13.18 |
% |
Tier 1 capital to
average assets (Bank only) |
9.90 |
% |
9.77 |
% |
10.01 |
% |
10.26 |
% |
10.57 |
% |
CET1 capital to
risk-weighted assets (Bank only) |
12.26 |
% |
12.09 |
% |
12.25 |
% |
12.61 |
% |
13.18 |
% |
|
Three Months Ended: |
|
Six Months Ended: |
|
March 31, 2016 |
|
March 31, 2015 |
|
March 31, 2016 |
|
March 31, 2015 |
Selected
Operating Data: |
(in thousands) |
Interest and dividend
income |
$ |
5,705 |
|
|
$ |
5,120 |
|
|
$ |
11,300 |
|
|
$ |
10,000 |
|
Interest expense |
641 |
|
|
460 |
|
|
1,231 |
|
|
889 |
|
Net interest
income |
5,064 |
|
|
4,660 |
|
|
10,069 |
|
|
9,111 |
|
Provision for loan
losses |
125 |
|
|
300 |
|
|
275 |
|
|
650 |
|
Net interest
income after provision for loan losses |
4,939 |
|
|
4,360 |
|
|
9,794 |
|
|
8,461 |
|
Service fees on deposit
accounts |
947 |
|
|
999 |
|
|
2,025 |
|
|
2,155 |
|
Other non-interest
income |
504 |
|
|
612 |
|
|
1,031 |
|
|
1,130 |
|
Total
non-interest income |
1,451 |
|
|
1,611 |
|
|
3,056 |
|
|
3,285 |
|
|
|
|
|
|
|
|
|
Salaries, employee
benefits, and commissions |
2,542 |
|
|
2,510 |
|
|
4,906 |
|
|
4,946 |
|
Occupancy and furniture
and equipment |
443 |
|
|
510 |
|
|
862 |
|
|
926 |
|
Data processing |
772 |
|
|
792 |
|
|
1,519 |
|
|
1,573 |
|
Net loss from
operations and sale of foreclosed real estate |
— |
|
|
31 |
|
|
13 |
|
|
179 |
|
Valuation loss on real
estate held for sale |
— |
|
|
— |
|
|
47 |
|
|
— |
|
Other non-interest
expense |
1,195 |
|
|
1,379 |
|
|
2,390 |
|
|
2,703 |
|
Total
non-interest expense |
4,952 |
|
|
5,222 |
|
|
9,737 |
|
|
10,327 |
|
Income before income
tax expense |
1,438 |
|
|
749 |
|
|
3,113 |
|
|
1,419 |
|
Income tax expense |
565 |
|
|
265 |
|
|
1,201 |
|
|
488 |
|
Net income |
$ |
873 |
|
|
$ |
484 |
|
|
$ |
1,912 |
|
|
$ |
931 |
|
|
At or For the Three Months
Ended: |
|
March 31, 2016 |
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
Selected
Operating Data: |
(in thousands) |
Interest and dividend
income |
$ |
5,705 |
|
$ |
5,595 |
|
$ |
5,495 |
|
$ |
5,285 |
|
$ |
5,120 |
|
Interest expense |
641 |
|
590 |
|
552 |
|
518 |
|
460 |
|
Net interest
income |
5,064 |
|
5,005 |
|
4,943 |
|
4,767 |
|
4,660 |
|
Provision for loan
losses |
125 |
|
150 |
|
150 |
|
150 |
|
300 |
|
Net interest
income after provision for loan losses |
4,939 |
|
4,855 |
|
4,793 |
|
4,617 |
|
4,360 |
|
Service fees on deposit
accounts |
947 |
|
1,078 |
|
1,066 |
|
1,081 |
|
999 |
|
Other non-interest
income |
504 |
|
527 |
|
767 |
|
525 |
|
612 |
|
Total
non-interest income |
1,451 |
|
1,605 |
|
1,833 |
|
1,606 |
|
1,611 |
|
|
|
|
|
|
|
Salaries, employee
benefits, and commissions |
2,542 |
|
2,364 |
|
2,703 |
|
2,476 |
|
2,510 |
|
Occupancy and furniture
and equipment |
443 |
|
419 |
|
435 |
|
450 |
|
510 |
|
Data processing |
772 |
|
747 |
|
815 |
|
831 |
|
792 |
|
Net loss from
operations and sale of foreclosed real estate |
— |
|
13 |
|
323 |
|
316 |
|
31 |
|
Valuation loss on real
estate held for sale |
— |
|
47 |
|
975 |
|
— |
|
— |
|
Branch realignment |
— |
|
— |
|
1 |
|
250 |
|
— |
|
Buyout of service
contract |
— |
|
— |
|
— |
|
350 |
|
— |
|
Other non-interest
expense |
1,195 |
|
1,195 |
|
1,329 |
|
1,392 |
|
1,379 |
|
Total
non-interest expense |
4,952 |
|
4,785 |
|
6,581 |
|
6,065 |
|
5,222 |
|
Income before income
tax expense |
1,438 |
|
1,675 |
|
45 |
|
158 |
|
749 |
|
Income tax expense
(benefit) |
565 |
|
636 |
|
(2,438 |
) |
48 |
|
265 |
|
Net income |
$ |
873 |
|
$ |
1,039 |
|
$ |
2,483 |
|
$ |
110 |
|
$ |
484 |
|
|
At or For the Three Months Ended |
At or For the Six Months Ended |
|
March 31, 2016 |
|
March 31, 2015 |
March 31, 2016 |
|
March 31, 2015 |
Selected
Financial Performance Ratios: |
|
|
|
|
|
|
Return on average
assets |
0.52 |
% |
|
0.31 |
% |
0.57 |
% |
|
0.31 |
% |
Return on average
equity |
4.53 |
% |
|
2.05 |
% |
4.92 |
% |
|
2.16 |
% |
Interest rate
spread |
3.39 |
% |
|
3.38 |
% |
3.40 |
% |
|
3.40 |
% |
Net interest
margin |
3.39 |
% |
|
3.39 |
% |
3.40 |
% |
|
3.41 |
% |
Non-interest expense to
average total assets |
2.95 |
% |
|
3.52 |
% |
2.92 |
% |
|
3.44 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
101.31 |
% |
|
107.32 |
% |
101.67 |
% |
|
105.22 |
% |
|
|
|
|
|
|
|
Per Share and
Stock Market Data: |
|
|
|
|
|
|
Net income per common
share |
$ |
0.23 |
|
|
$ |
0.11 |
|
$ |
0.51 |
|
|
$ |
0.21 |
|
Basic weighted average
shares outstanding |
3,726,867 |
|
|
4,289,089 |
|
3,768,327 |
|
|
4,375,289 |
|
Book value per share -
excluding unallocated ESOP shares |
$ |
20.55 |
|
|
$ |
19.01 |
|
$ |
20.55 |
|
|
$ |
19.01 |
|
Book value per share -
including unallocated ESOP shares |
$ |
18.87 |
|
|
$ |
17.48 |
|
$ |
18.88 |
|
|
$ |
17.48 |
|
Closing market
price |
$ |
19.00 |
|
|
$ |
17.50 |
|
$ |
19.00 |
|
|
$ |
17.50 |
|
Price to book ratio -
excluding unallocated ESOP shares |
92.46 |
% |
|
92.06 |
% |
92.46 |
% |
|
92.06 |
% |
Price to book ratio -
including unallocated ESOP shares |
100.69 |
% |
|
100.11 |
% |
100.64 |
% |
|
100.11 |
% |
Kirk Emerich - Executive Vice President and CFO
Greg Remus - President and CEO
262-334-5563
Westbury Bancorp, Inc. (NASDAQ:WBB)
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