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

/EIN News/ -- 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.

___________________________________

WEBSITE:	www.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, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Selected Financial Condition Data:
Total assets	$	887,285		$	905,170		$	817,754		$	833,328		$	855,624
Loans receivable, net	692,391			680,130			642,790			663,265			646,062
Allowance for loan losses	7,908			7,632			7,079			6,986			6,890
Securities available for sale	94,875			91,598			87,088			100,296			102,453
Total liabilities	808,430			827,847			737,936			748,798			773,179
Deposits	776,412			787,825			706,889			720,060			728,696
Stockholders' equity	78,855			77,323			79,818			84,530			82,445
Asset Quality Ratios:
Non-performing assets to total assets	1.33		%	1.31		%	1.39		%	1.09		%	0.08		%
Non-performing loans to total loans	1.25		%	1.28		%	1.29		%	1.36		%	0.11		%
Total classified assets to total assets	1.54		%	1.31		%	1.39		%	1.10		%	1.07		%
Allowance for loan losses to non-performing loans	90.15		%	86.55		%	84.69		%	76.84		%	986.48		%
Allowance for loan losses to total loans	1.13		%	1.11		%	1.09		%	1.04		%	1.06		%
Net charge-offs (recoveries) to average loans - annualized	0.16		%	—		%	—		%	(0.02		%)	—		%
Capital Ratios:
Average equity to average assets	8.75		%	9.08		%	10.18		%	9.96		%	9.68		%
Equity to total assets at end of period	8.89		%	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 expense	778				1,722				4,550				6,694
Net interest income	6,448				6,385				25,550				25,683
Provision for loan losses	574				100				1,275				850
Net interest income after provision for loan losses	5,874				6,285				24,275				24,833
Service fees on deposit accounts	910				1,051				3,472				4,021
Other non-interest income	1,685				737				4,478				2,245
Total non-interest income	2,595				1,788				7,950				6,266
Compensation and employee benefits	3,141				3,152				12,559				12,485
Occupancy, furniture and equipment	596				578				2,405				2,194
Data processing	787				797				3,129				3,085
Other non-interest expense	1,275				927				4,104				3,821
Total non-interest expense	5,799				5,454				22,197				21,585
Income before income tax expense	2,670				2,619				10,028				9,514
Income tax expense	738				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, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 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 expense	778			940			1,303			1,529			1,722
Net interest income	6,448			6,394			6,389			6,319			6,385
Provision for loan losses	574			551			90			60			100
Net interest income after provision for loan losses	5,874			5,843			6,299			6,259			6,285
Service fees on deposit accounts	910			747			847			967			1,051
Other non-interest income	1,685			1,183			884			727			737
Total non-interest income	2,595			1,930			1,731			1,694			1,788
Salaries, employee benefits, and commissions	3,141			3,051			3,144			3,224			3,152
Occupancy and furniture and equipment	596			606			670			533			578
Data processing	787			758			795			789			797
Other non-interest expense	1,275			1,076			909			844			927
Total non-interest expense	5,799			5,491			5,518			5,390			5,454
Income before income tax expense	2,670			2,282			2,512			2,563			2,619
Income tax expense	738			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 Ended							At or For the Year Ended
	September 30, 2020				September 30, 2019			September 30, 2020				September 30, 2019
Selected Financial Performance Ratios:
Return on average assets	0.86		%		0.89		%	0.83		%		0.82		%
Return on average equity	9.80		%		9.16		%	8.80		%		8.72		%
Interest rate spread	3.02		%		3.16		%	3.11		%		3.20		%
Net interest margin	3.04		%		3.20		%	3.14		%		3.24		%
Non-interest expense to average total assets	2.57		%		2.58		%	2.57		%		2.58		%
Average interest-earning assets to average interest-bearing liabilities	106.08		%		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 share	0.75				0.57			2.51				2.09
Basic weighted average shares outstanding	2,532,114				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 shares	65.50		%		97.93		%	65.50		%		97.93		%
Price to book ratio - including unallocated ESOP shares	68.57		%		103.73		%	68.57		%		103.73		%