Westbury Bancorp, Inc. Reports Net Income for the Three Months and Year Ended September 30, 2020

Friday, 30. October 2020 22:05

WEST BEND, Wis., Oct. 30, 2020 (GLOBE NEWSWIRE) -- Westbury Bancorp, Inc. (OTCQX: WBBW), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $1.9 million, or $0.76 per common share for the three months ended September 30, 2020, and $7.2 million, or $2.59 per common share, for the year ended September 30, 2020, compared to net income of $1.9 million, or $0.59 per common share for the three months ended September 30, 2019, and net income of $6.9 million, or $2.15 per common share, for the year ended September 30, 2019. 

Highlights for the year included:

  • During the year ended September 30, 2020, our net loan portfolio increased by $31.7 million, or 3.70%. The portfolio increase occurred primarily in commercial business - PPP loans, multifamily and home equity line of credit loans, offset by reductions in commercial and industrial loans, and single family loans. 
  • During the year ended September 30, 2020, our deposits increased by $47.7 million, or 6.55%.  The deposit increases occurred primarily in checking and savings accounts, offset by decreases in certificate of deposit accounts. 
  • Net interest income decreased $133,000, or 0.52%, to $25.6 million for the year ended September 30, 2020 compared to $25.7 million for the year ended September 30, 2019.  Our net interest margin was 3.14% for the year ended September 30, 2020 compared to 3.24% for the year ended September 30, 2019. 
  • Non-performing assets increased to $11.8 million or 1.33% of total assets, at September 30, 2020, compared to $764,000, or 0.09% of total assets, at September 30, 2019.  The increase was the result of a large commercial real estate loan being placed into receivership during the year.  This relationship had been previously classified at September 30, 2019.
  • Classified assets increased to $13.6 million or 1.53% of total assets, at September 30, 2020, compared to $9.2 million, or 1.07% of total assets, at September 30, 2019.  The increase was the result of one newly classified commercial and industrial loan relationship at September 30, 2020.
  • Loans past due 30-89 days increased $157,000, or 174.44%, to $247,000, or 0.01% of net loans, at September 30, 2020 from $90,000, or 0.01% of net loans, at September 30, 2019.
  • As of September 30, 2020, the Bank's COVID-19-related loan modifications totaled $27.9 million compared to $109.4 million as of June 30, 2020.
  • Net charge-offs were 0.04% of average loans for the year ended September 30, 2020, compared to net charge-offs of 0.01% of average loans for the year ended September 30, 2019.
  • The allowance for loan losses was 1.13% of total loans (or 1.25% of total loans excluding PPP loans) as of September 30, 2020 compared to 1.06% at September 30, 2019.  The ratio of allowance to total loans increased as the allowance increased while the loan portfolio decreased in size (excluding PPP loans).
  • Non-interest income was $8.0 million for the year ended September 30, 2020, compared to $6.3 million for the year ended September 30, 2019.  The increase was primarily the result of increases in gain on sale of loans of $1.8 million.
  • Non-interest expense was $22.2 million for the year ended September 30, 2020, compared to $21.6 million for the year ended September 30, 2019. 
  • 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, 2020, we purchased 583,101 shares.  In total, since we began our stock repurchase programs in May 2014, we have repurchased 2,656,415 shares, or 51.66% of the shares outstanding in May 2014. 
  • Our stock repurchase activity has reduced our average equity to average assets ratio to 8.75% at September 30, 2020 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 $3.76, or 15.2%, to $28.44 at September 30, 2020 from $24.68 at September 30, 2019.  Based on our closing share price of $19.50 on September 30, 2020, our price to tangible book value was 68.57% compared to 103.73% on September 30, 2019 based on the closing share price of $25.60 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.

___________________________________

WEBSITEwww.westburybankwi.com
  
Contact:Kirk Emerich- Executive Vice President and CFO
  
 Greg Remus - President and CEO
  
 262-335-6037
  

 

 At or For the Three Months Ended:
 September 30, 2020June 30, 2020March 31, 2020December 31, 2019September 30, 2019
Selected Financial Condition Data:     
Total assets$887,285 $905,170 $817,754 $833,328 $855,624 
Loans receivable, net692,391 680,130 642,790 663,265 646,062 
Allowance for loan losses7,908 7,632 7,079 6,986 6,890 
Securities available for sale94,875 91,598 87,088 100,296 102,453 
Total liabilities808,430 827,847 737,936 748,798 773,179 
Deposits776,412 787,825 706,889 720,060 728,696 
Stockholders' equity78,855 77,323 79,818 84,530 82,445 
      
Asset Quality Ratios:     
Non-performing assets to total assets1.33%1.31%1.39%1.09%0.08%
Non-performing loans to total loans1.25%1.28%1.29%1.36%0.11%
Total classified assets to total assets1.54%1.31%1.39%1.10%1.07%
Allowance for loan losses to non-performing loans90.15%86.55%84.69%76.84%986.48%
Allowance for loan losses to total loans1.13%1.11%1.09%1.04%1.06%
Net charge-offs (recoveries) to average loans - annualized0.16%%%(0.02%)%
      
Capital Ratios:     
Average equity to average assets8.75%9.08%10.18%9.96%9.68%
Equity to total assets at end of period8.89%8.54%9.76%10.14%9.64%
Total capital to risk-weighted assets (Bank only)12.98%12.82%12.71%12.47%12.80%
Tier 1 capital to risk-weighted assets (Bank only)11.83%11.70%11.67%11.49%11.80%
Tier 1 capital to average assets (Bank only)9.03%9.00%9.65%9.68%9.59%
CETI capital to risk-weighted assets (Bank only)11.83%11.70%11.67%11.49%11.37%
           


 
 Three Months Ended Years Ended
 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019
  
Selected Operating Data:(in thousands, except per share data)
Interest and dividend income$7,226  $8,107  $30,100  $32,377 
Interest expense778  1,722  4,550  6,694 
Net interest income6,448  6,385  25,550  25,683 
Provision for loan losses574  100  1,275  850 
Net interest income after provision for loan losses5,874  6,285  24,275  24,833 
Service fees on deposit accounts910  1,051  3,472  4,021 
Other non-interest income1,685  737  4,478  2,245 
Total non-interest income2,595  1,788  7,950  6,266 
        
Compensation and employee benefits3,141  3,152  12,559  12,485 
Occupancy, furniture and equipment596  578  2,405  2,194 
Data processing787  797  3,129  3,085 
Other non-interest expense1,275  927  4,104  3,821 
Total non-interest expense5,799  5,454  22,197  21,585 
Income before income tax expense2,670  2,619  10,028  9,514 
Income tax expense738  742  2,812  2,629 
Net income$1,932  $1,877  $7,216  $6,885 
        
Basic earnings per share$0.76  $0.59  $2.59  $2.15 
Diluted earnings per share$0.75  $0.57  $2.51  $2.09 
                


 
 For the Three Months Ended:
 September 30, 2020June 30, 2020March 31, 2020December 31, 2019September 30, 2019
Selected Operating Data:(in thousands, except per share data)
Interest and dividend income$7,226 $7,334 $7,692 $7,848 $8,107 
Interest expense778 940 1,303 1,529 1,722 
Net interest income6,448 6,394 6,389 6,319 6,385 
Provision for loan losses574 551 90 60 100 
Net interest income after provision for loan losses5,874 5,843 6,299 6,259 6,285 
Service fees on deposit accounts910 747 847 967 1,051 
Other non-interest income1,685 1,183 884 727 737 
Total non-interest income2,595 1,930 1,731 1,694 1,788 
      
Salaries, employee benefits, and commissions3,141 3,051 3,144 3,224 3,152 
Occupancy and furniture and equipment596 606 670 533 578 
Data processing787 758 795 789 797 
Other non-interest expense1,275 1,076 909 844 927 
Total non-interest expense5,799 5,491 5,518 5,390 5,454 
Income before income tax expense2,670 2,282 2,512 2,563 2,619 
Income tax expense738 633 714 726 742 
Net income$1,932 $1,649 $1,798 $1,837 $1,877 
      
Basic earnings per share$0.76 $0.58 $0.58 $0.58 $0.59 
Diluted earnings per share$0.75 $0.57 $0.56 $0.56 $0.57 
                


 
 At or For the Three Months EndedAt or For the Year Ended
 September 30, 2020 September 30, 2019September 30, 2020 September 30, 2019
Selected Financial Performance Ratios:      
Return on average assets0.86% 0.89%0.83% 0.82%
Return on average equity9.80% 9.16%8.80% 8.72%
Interest rate spread3.02% 3.16%3.11% 3.20%
Net interest margin3.04% 3.20%3.14% 3.24%
Non-interest expense to average total assets2.57% 2.58%2.57% 2.58%
Average interest-earning assets to average interest-bearing liabilities106.08% 105.89%106.08% 105.89%
       
Per Share and Stock Market Data:      
Basic earnings per share$0.76  $0.59 $2.59  $2.15 
Diluted earnings per share0.75  0.57 2.51  2.09 
Basic weighted average shares outstanding2,532,114  3,155,758 2,790,878  3,203,969 
Book value per share - excluding unallocated ESOP shares$29.77  $26.14 $29.77  $26.14 
Book value per share - including unallocated ESOP shares$28.44  $24.68 $28.44  $24.68 
Closing market price$19.50  $25.60 $19.50  $25.60 
Price to book ratio - excluding unallocated ESOP shares65.50% 97.93%65.50% 97.93%
Price to book ratio - including unallocated ESOP shares68.57% 103.73%68.57% 103.73%

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