OREANDA-NEWS. Westbury Bancorp, Inc. (NASDAQ:WBB), the holding company (the “Company”) for Westbury Bank (the “Bank”), today announced net income of $906,000, or $0.25 per common share, and $2.8 million, or $0.76 per common share, for the three and nine months ended June 30, 2016, respectively, compared to net income of $110,000, or $0.03 per common share, and $1.0 million, or $0.25 per common share, for the three and nine months ended June 30, 2015, respectively. 

Greg Remus, President and Chief Executive Officer, said, "Our loan growth has continued this quarter. Additionally, we are pleased that we were able to add two experienced lenders to our team during the quarter in the Madison market, which is new to Westbury.  We believe these lenders will add high quality commercial business and real estate loans, in a new market, 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 and the creation of shareholder value."

Kirk Emerich, Executive Vice President and Chief Financial Officer, added, "We are pleased to add to our solid performance for 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."

Highlights for the nine months include:

  • During the nine months ended June 30, 2016, our net loan portfolio increased by $25.9 million, or 7.0% annualized growth. The portfolio growth consisted primarily of multifamily and commercial real estate loans.  As a result of this loan growth, we experienced an increase in total interest and dividend income of $1.8 million, or 11.6%, to $17.1 million for the nine months ended June 30, 2016 compared to $15.3 million for the nine months ended June 30, 2015.
  • During the nine months ended June 30, 2016, our deposits increased by $32.5 million, or 8.2% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of an increase in total interest expense of  $501,000, or 35.6%, to $1.9 million for the nine months ended June 30, 2016 compared to $1.4 million for the nine months ended June 30, 2015.
  • Net interest income increased $1.3 million, or 9.2%, to $15.2 million for the nine months ended  June 30, 2016 compared to $13.9 million for the nine months ended June 30, 2015.  Our net interest margin was 3.38% for the nine months ended June 30, 2016 compared to 3.41% for the nine months ended June 30, 2015.  The average yield on interest-earning assets increased 5 basis points, primarily due to our loan growth, while our average cost of funds 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 101.65% for the nine months ended June 30, 2016 from 104.26% for the nine months ended June 30, 2015.
  • Non-performing assets decreased by $524,000, or 48.3%, to $562,000, or 0.08% of total assets, at June 30, 2016, compared to $1.1 million, or 0.17% of total assets, at September 30, 2015.  
  • Classified assets decreased $2.0 million, or 48.8%, to $2.1 million, or 0.31% of total assets, at June  30, 2016, compared to $4.1 million, or 0.64% of total assets, at September 30, 2015.
  • Loans past due 30-89 days decreased $188,000, or 29.4%, to $451,000 at June 30, 2016 from $639,000 at September 30, 2015.
  • Annualized net charge-offs decreased to 0.02% of average loans for the nine months ended June 30, 2016, compared to 0.10% of average loans for the nine months ended June 30, 2015.
  • Due to the decrease in non-performing loans and the decrease in net charge-offs during the first nine months of 2016, the ratio of our allowance for loan losses to non-performing loans increased to 900.71% at June 30, 2016 compared to 572.60% at September 30, 2015.
  • Non-interest income was $4.6 million for the nine months ended June 30, 2016, compared to $4.9 million for the nine months ended June 30, 2015.  Non-interest income represented 21.3% of total revenue for the nine months ended June 30, 2016 compared to 24.2% for the nine months ended June 30, 2015. 
  • Non-interest expense was $14.8 million for the nine months ended June 30, 2016, compared to $16.4 million for the nine months ended June 30, 2015.  Non-interest expense to average total assets was 2.93% for the nine months ended June 30, 2016 compared to 3.57% for the nine months ended June 30, 2015.
  • We have been an active buyer of our stock since the implementation of our first stock repurchase program in May 2014.  For the nine months ended June 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 as of May 12, 2014, at an average price of $17.12 per share over the life of the repurchase programs.  
  • Our stock repurchase activity has reduced our average equity to average assets ratio to 11.15% at June 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 $1.09, or 6.0%, to $19.30 at June 30, 2016 from $18.21 at September 30, 2015.  Based on our closing share price of $19.50 on June 30, 2016, our price to tangible book value was 101.0% 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 June 30, 2016, our net loan portfolio increased by $10.5 million, or 8.3% annualized growth. The loan portfolio growth consisted primarily of increases in multifamily and commercial real estate loans.  Loan growth was the primary driver of an increase in total interest and dividend income of $58,000, or 1.0%, to $5.8 million for the three months ended June 30, 2016 compared to $5.7 million for the three months ended March 31, 2016 and an increase of $478,000, or 9.0%, compared to $5.3 million for the three months ended June 30, 2015.
  • During the three months ended June 30, 2016, our deposits increased by $13.3 million, or 9.7% annualized growth. Deposit growth and the use of long-term FHLB advances were the primary causes of the increase in total interest expense of  $36,000, or 5.6%, to $677,000 for the three months ended June 30, 2016 compared to $641,000 for the three months ended March 31, 2016 and an increase of $159,000, or 30.7%, compared to $518,000 for the three months ended June 30, 2015.
  • Net interest income increased $22,000, or 0.4%, to $5.1 million for the three months ended March 31, 2016 compared to $5.1 million for the three months ended March 31, 2016 and an increase of $319,000, or 6.7%, compared to $4.8 million for the three months ended June 30, 2015.  Our net interest margin was 3.33% for the three months ended June 30, 2016 compared to 3.39% for the three months ended March 31, 2016 and 3.40% for the three months ended June 30, 2015.
  • Non-performing assets were $562,000, or 0.08% of total assets, at June 30, 2016, compared to $447,000, or 0.07% of total assets, at March 31, 2016 and $2.5 million, or 0.39% of total assets, at June 30, 2015.  
  • Classified assets held constant at $2.1 million, or 0.31% of total assets, at June 30, 2016, compared to $2.1 million, or 0.32% of total assets, at March 31, 2016 and $4.6 million, or 0.73% of total assets, at June 30, 2015. 
  • Loans past due 30-89 days decreased $200,000, or 26.1%, to $451,000 at June 30, 2016 from $566,000 at March 31, 2016.
  • Annualized net charge-offs were 0.04% of average loans for the three months ended June 30, 2016, compared to 0.01% of average loans for the three months ended March 31, 2016 and 0.08% of average loans for the three months ended June 30, 2015.
  • Due to the increase in non-performing loans offset by the decrease in net charge-offs during the current year quarter, the ratio of our allowance for loan losses to non-performing loans decreased to 900.71% at June 30, 2016 compared to 1,087.92% at March 31, 2016.
  • Non-interest income was $1.6 million for the three months ended June 30, 2016, compared to $1.5 million for the three months ended March 31, 2016 and $1.6 million for the three months ended June 30, 2015.  Non-interest income represented 23.46% of total revenue for the three months ended June 30, 2016, compared to 22.27% for the three months ended March 31, 2016 and 25.20% for the three months ended June 30, 2015.
  • Non-interest expense was $5.1 million for the three months ended June 30, 2016, compared to $5.0 million for the three months ended March 31, 2016 and $6.1 million for the three months ended June 30, 2015.  Non-interest expense to average total assets was 2.96% for the three months ended June 30, 2016, compared to 2.95% for the three months ended March 31, 2016 and 3.83% for the three months ended June 30, 2015.
  • During the quarter, we continued our stock repurchase programs.  For the three months ended June 30, 2016, we purchased 66,383 shares at an average price of $19.58 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”.

   
  At or For the Three Months Ended:
  June 30, 2016  March 31, 2016  December 31, 2015  September 30, 2015  June 30, 2015
Selected Financial Condition Data: (Dollars in thousands)
Total assets $ 670,778   $ 655,107   $ 670,577   $ 638,929   $ 629,380  
Loans receivable, net 519,332   508,800   496,545   493,425   486,497  
Allowance for loan losses 5,062   4,863   4,747   4,598   4,536  
Securities available for sale 87,254   81,936   84,237   80,286   79,450  
Total liabilities 591,696   576,499   591,459   560,117   552,379  
Deposits 563,515   550,217   556,144   531,020   522,031  
Stockholders' equity 79,082   78,608   79,118   78,812   77,001  
           
Asset Quality Ratios:          
Non-performing assets to total assets 0.08 % 0.07 % 0.11 % 0.17 % 0.39 %
Non-performing loans to total loans 0.11 % 0.09 % 0.11 % 0.16 % 0.21 %
Total classified assets to total assets 0.31 % 0.32 % 0.36 % 0.64 % 0.73 %
Allowance for loan losses to non-performing loans 900.71 % 1087.92 % 863.09 % 572.60 % 434.90 %
Allowance for loan losses to total loans 0.96 % 0.95 % 0.95 % 0.92 % 0.92 %
Net charge-offs to average loans (annualized) 0.04 % 0.01 % — % 0.07 % 0.08 %
           
Capital Ratios:          
Average equity to average assets 11.15 % 11.48 % 11.83 % 11.98 % 12.48 %
Equity to total assets at end of period 11.79 % 12.00 % 11.80 % 12.34 % 12.23 %
Total capital to risk-weighted assets (Bank only) 12.99 % 13.17 % 12.99 % 13.12 % 13.50 %
Tier 1 capital to risk-weighted assets (Bank only) 12.08 % 12.26 % 12.09 % 12.25 % 12.61 %
Tier 1 capital to average assets (Bank only) 9.87 % 9.90 % 9.77 % 10.01 % 10.26 %
CET1 capital to risk-weighted assets (Bank only) 12.08 % 12.26 % 12.09 % 12.25 % 12.61 %
                     
       
  Three Months Ended:   Nine Months Ended:
  June 30, 2016   June 30, 2015   June 30, 2016   June 30, 2015
Selected Operating Data: (in thousands)
Interest and dividend income $ 5,763     $ 5,285     $ 17,063     $ 15,285  
Interest expense 677     518     1,908     1,407  
Net interest income 5,086     4,767     15,155     13,878  
Provision for loan losses 250     150     525     800  
Net interest income after provision for loan losses 4,836     4,617     14,630     13,078  
Service fees on deposit accounts 975     1,081     3,000     3,236  
Other non-interest income 584     525     1,615     1,655  
Total non-interest income 1,559     1,606     4,615     4,891  
               
Salaries, employee benefits, and commissions 2,545     2,476     7,451     7,422  
Occupancy and furniture and equipment 428     450     1,290     1,376  
Data processing 781     831     2,300     2,404  
Net loss (gain) from operations and sale of foreclosed real estate (8 )   316     5     495  
Valuation loss on real estate held for sale 90     —     137     —  
Branch realignment —     250     —     250  
Buyout of service contract —     350     —     350  
Other non-interest expense 1,243     1,392     3,633     4,095  
Total non-interest expense 5,079     6,065     14,816     16,392  
Income before income tax expense 1,316     158     4,429     1,577  
Income tax expense 410     48     1,611     536  
Net income $ 906     $ 110     $ 2,818     $ 1,041  
               
   
  At or For the Three Months Ended:
  June 30, 2016  March 31, 2016  December 31, 2015  September 30, 2015  June 30, 2015
Selected Operating Data: (in thousands)
Interest and dividend income $ 5,763   $ 5,705   $ 5,595   $ 5,495   $ 5,285  
Interest expense 677   641   590   552   518  
Net interest income 5,086   5,064   5,005   4,943   4,767  
Provision for loan losses 250   125   150   150   150  
Net interest income after provision for loan losses 4,836   4,939   4,855   4,793   4,617  
Service fees on deposit accounts 975   947   1,078   1,066   1,081  
Other non-interest income 584   504   527   767   525  
Total non-interest income 1,559   1,451   1,605   1,833   1,606  
           
Salaries, employee benefits, and commissions 2,545   2,542   2,364   2,703   2,476  
Occupancy and furniture and equipment 428   443   419   435   450  
Data processing 781   772   747   815   831  
Net loss (gain) from operations and sale of foreclosed real estate (8 ) —   13   323   316  
Valuation loss on real estate held for sale 90   —   47   975   —  
Branch realignment —   —   —   1   250  
Buyout of service contract —   —   —   —   350  
Other non-interest expense 1,243   1,195   1,195   1,329   1,392  
Total non-interest expense 5,079   4,952   4,785   6,581   6,065  
Income before income tax expense 1,316   1,438   1,675   45   158  
Income tax expense (benefit) 410   565   636   (2,438 ) 48  
Net income $ 906   $ 873   $ 1,039   $ 2,483   $ 110  
                               
     
  At or For the Three Months Ended   At or For the Nine Months Ended
  June 30, 2016   June 30, 2015 June 30, 2016   June 30, 2015
Selected Financial Performance Ratios:            
Return on average assets 0.53 %   0.07 % 0.56 %   0.23 %
Return on average equity 4.74 %   0.56 % 4.86 %   1.66 %
Interest rate spread 3.32 %   3.39 % 3.37 %   3.39 %
Net interest margin 3.33 %   3.40 % 3.38 %   3.41 %
Non-interest expense to average total assets 2.96 %   3.83 % 2.93 %   3.57 %
Average interest-earning assets to average interest-bearing liabilities 101.61 %   102.49 % 101.65 %   104.26 %
             
Per Share and Stock Market Data:            
Net income per common share $ 0.25     $ 0.03   $ 0.76     $ 0.25  
Basic weighted average shares outstanding 3,625,661     3,900,866   3,709,768     4,217,149  
Book value per share - excluding unallocated ESOP shares $ 20.98     $ 19.05   $ 20.98     $ 19.05  
Book value per share - including unallocated ESOP shares $ 19.30     $ 17.49   $ 19.30     $ 17.49  
Closing market price $ 19.50     $ 17.33   $ 19.50     $ 17.33  
Price to book ratio - excluding unallocated ESOP shares 92.95 %   90.97 % 92.95 %   90.97 %
Price to book ratio - including unallocated ESOP shares 101.04 %   99.09 % 101.04 %   99.09 %