News Feed Item

Westbury Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2013

WEST BEND, Wis., Feb. 10, 2014 /PRNewswire/ -- Westbury Bancorp, Inc. (NASDAQ:  WBB), the holding company (the "Company") for Westbury Bank (the "Bank"), today announced earnings of $68,000, for the first quarter ended December 31, 2013, compared to net income of $841,000 for the quarter ended December 31, 2012 and $217,000 for the quarter ended September 30, 2013.  

Commenting on the earnings announcement, Ray Lipman, Chairman, President and CEO of the Company said, "While our earnings for the quarter were not strong, we are focused on both improving earnings and enhancing our customers' experience.  We believe that our investments in improved asset quality, top quality new banking talent and technology have positioned us for a successful future."

  • We were notified in January 2014 by the OCC that our Formal Agreement with the OCC was terminated effective December 24, 2013.  The termination of this agreement occurred only fourteen months after it was first implemented. 
  • Over the past few years, we have been focused on restructuring the balance sheet by reducing classified asset levels and less desirable loans.  As a result, our aggregate outstanding loan balances declined until the most recent quarter.  However, with new credit standards and experienced new commercial lenders, we are now positioned for prudent loan growth.  As a result, our loan portfolio increased by $3.6 million, or 1.1%, during the quarter. 
  • We recently filled the executive management position of Chief Operating Officer by promoting Greg Remus, our Senior Vice President of Lending, to the position.  In his expanded role, Greg will be responsible for improving our overall financial performance in consultation with the CEO, while allowing the CEO to focus on long term strategic matters, capital management strategies and improving long term shareholder value.
  • We continue to add new experienced commercial and retail banking managers that we believe will help position the Bank for improved overall efficiency and earnings.
  • We recently announced the decision to close two of our branch offices in May 2014 which we believe will reduce operating expenses going forward.  In our view, closing these branches is prudent given the evolution of retail banking in our market.  Over 74% of our checking account customers use online banking.  We believe our customers' receptivity, willingness and desire to use technology will allow us to lower our overall cost of providing service while capitalizing on new product sales to meet our customers' changing needs.
  • We continue to focus on the realignment of our branch footprint, infrastructure and culture to improve overall efficiency, as we address increased regulatory compliance costs and market pricing pressures.

Asset Quality

We have been focused on the reduction of our problem assets and monitoring our risk appetite in commercial lending for the past several years.  The effort has resulted in substantial improvement in the levels of non-performing assets (NPAs):

  • At December 31, 2013, NPAs decreased to $6.2 million, or 1.15% of total assets and 6.81% of total capital, from $10.4 million, or 1.92% of total assets and 11.52% of total capital, at September 30, 2013. 
  • Performing troubled debt restructurings (TDRs) were $3.8 million at December 31, 2013 compared to $3.2 million at September 30, 2013. 
  • Combined NPAs and performing TDRs were $10.0 million, or 1.87% of total assets and 11.05% of total capital at December 31, 2013 compared to $13.6 million, or 2.50% of total assets and 15.01% of total capital at September 30, 2013. 
  • Total classified assets decreased to $10.9 million, or 2.04% of total assets and 12.02% of total capital, at December 31, 2013, compared to $11.6 million, or 2.13% of total assets and 12.80% of total capital, at September 30, 2013.  

Income Statement

Net Interest Income and Margin  Net interest income decreased $308,000, or 7.0%, to $4.1 million for the quarter ended December 31, 2013 from $4.4 million for the quarter ended December 31, 2012 and was unchanged from $4.1 million for the quarter ended September 30, 2013.   Average interest-earning assets were $470.3 million for the quarter ended December 31, 2013, compared to $464.5 million for the quarter ended September 30, 2013 and $444.8 million for the quarter ended December 31, 2012.  Average deposits and interest-bearing liabilities were $447.1 million for the quarter ended December 31, 2013, compared to $447.3 million for the quarter ended September 30, 2013 and $475.0 million for the quarter ended December 31, 2012.  Our net interest margin decreased to 3.49% for the quarter ended December 31, 2013 from 3.97% for the quarter ended December 31, 2012.  The decrease in our net interest margin reflects the effects of downward pressure on loan pricing caused by the prolonged low interest rate environment and its adverse impact on our ability to further reduce rates on transaction accounts.  The change in asset mix with growth in the investment portfolio also negatively impacted the margin as investment securities generally do not carry yields as high as loan products.

Non-Interest Income   Non-interest income stabilized at $1.8 million for the quarter ended December 31, 2013, compared to $1.8 million for the quarter ended September 30, 2013. Year over year non-interest income declined from $3.0 million for the quarter ended December 31, 2012.  The decline from December 31, 2012 was primarily related to a reduction in gains on sales of loans (as market rate increases adversely affected the volume of new originations) and securities totaling $1.1 million (as the company had completed its balance sheet restructuring preceding its conversion to stock form), reduced commissions on insurance and securities sales related to the restructuring of that business, and reduced loan fees.  These decreases were partially offset by an improvement in mortgage servicing fee income of $375,000 for the quarter ended December 31, 2013 compared to the quarter ended December 31, 2012. 

Non-Interest Expense   Non-interest expense was $5.6 million for the quarter ended December 31, 2013, compared to $5.5 million for the quarter ended September 30, 2013 and $5.8 million for the quarter ended December 31, 2012.  A combination of partially offsetting compensation changes and a reduction in FDIC premiums resulted in the modest decline in non-interest expense.

Balance Sheet

Assets and Loans   Total assets decreased by $7.7 million, or 1.4%, to $535.6 million at December 31, 2013, from $543.3 million at September 30, 2013.  The decrease was primarily the result of decreases in cash and cash equivalents of $14.1 million , offset by increases in securities available for sale of $3.2 million and net loans of $3.6 million

Net loans increased by $3.6 million, or 1.1%, to $346.4 million at December 31, 2013 from $342.8 million at September 30, 2013, an annualized increase of 4.4%.  Single family loans increased $1.1 million, multifamily loans increased by $2.5 million, and commercial real estate loans increased $2.7 million, during the three months ended December 31, 2013, while home equity lines of credit decreased by $1.5 million, commercial business loans decreased by $1.0 million, and construction and land development loans decreased by $615,000

The net increase in our combined multifamily and commercial loan portfolio reflects our continuing efforts to restructure and grow that portfolio by building commercial relationships.  According to Mr. Lipman, "A primary and continuing focus has been the repositioning of our balance sheet by disposing of less attractive and non-performing assets, thereby enabling our staff of commercial lenders to concentrate on the growth of our multifamily and commercial loan portfolio."

Residential mortgage interest rates have increased, reducing demand for refinancing.  As a result, prepayments of existing balances have slowed and a larger portion of our originations are adjustable rate mortgages or fixed rate mortgages with terms of 10 years or less which are held in our portfolio.  This resulted in the growth in single family loans during the quarter.

Deposits   Deposits decreased $2.4 million, or 0.5%, to $438.6 million at December 31, 2013, from $441.0 million at September 30, 2013.  Our core deposits, which we consider to be our non-interest bearing and interest bearing checking accounts, passbook and statement savings accounts, and variable rate money market accounts increased $2.0 million, or 0.6%, to $353.2 million at December 31, 2013, from $351.3 million at September 30, 2013.  Certificates of deposit decreased $4.3 million, or 4.8%, to $85.4 million at December 31, 2013, from $89.7 million at September 30, 2013.   The decrease in certificates of deposit is attributed primarily to customers' decisions not to renew certificates in the current prolonged low interest rate environment. 

About Westbury Bancorp, Inc.

Westbury Bancorp, Inc. became the holding company for Westbury Bank as a result of the completion on April 9, 2013 of the Bank's conversion from mutual to stock form and the related stock offering.  In the offering the Company sold 5,090,000 shares of common stock at a price of $10.00 per share for gross offering proceeds of $50,900,000.  The Company's common shares began trading on the NASDAQ Global Market on April 10, 2013 under the symbol "WBB."

Westbury Bank is an independent community bank with over $500 million in assets.  It is the largest bank and only publicly traded bank headquartered in Washington County.  Westbury Bank serves communities in Washington, Waukesha and Milwaukee Counties through its 12 full service offices 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 risk, uncertainties, and assumptions. 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 and the demand for the Company's products and services, 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:

December 31, 2013

September 30, 2013

June 30, 2013

March 31, 2013

Selected Financial Condition Data:

Total assets









Loans receivable, net





Allowance for loan losses





Securities available for sale





Total liabilities










Stockholders' equity





Asset Quality Ratios:

Non-performing assets to total assets









Non-performing loans to total loans









Total classified assets to total assets









Allowance for loan losses to non-performing loans









Allowance for loan losses to total loans









Net charge-offs to average loans (annualized)









Capital Ratios:

Average equity to average assets









Equity to total assets at end of period









Total capital to risk-weighted assets (Bank only)









Tier 1 capital to risk-weighted assets (Bank only)









Tier 1 capital to average assets (Bank only)









Three Months Ended

December 31,


December 31,


Selected Operating Data:

Interest and dividend income





Interest expense



Net interest income



Provision for loan losses



Net interest income after provision for loan losses



Service fees on deposit accounts



Gain on sale of loans, net



Insurance and securities sales commissions



Gain (loss) on sale of branches and other assets


Rental income from real estate operations



Other non-interest income



Total non-interest income



Non-interest expense



Income before income taxes



Income tax expense (benefit)



Net income





At or For the Three Months


December 31,


December 31, 2012

Selected Financial Performance Ratios:

Return on average assets





Return on average equity





Interest rate spread





Net interest margin





Non-interest expense to average total assets





Average interest-earning assets to average interest-bearing liabilities





Per Share Data:

Net income per common share




Average shares outstanding



Book value per share




SOURCE Westbury Bancorp, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.