Welcome!

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

$

535,588


$

543,282


$

550,519


$

584,241


Loans receivable, net

346,411


342,780


338,515


354,101


Allowance for loan losses

3,743


4,266


4,563


5,380


Securities available for sale

108,915


105,705


97,120


66,986


Total liabilities

444,886


452,680


460,029


536,655


Deposits

438,625


440,978


448,171


457,140


Stockholders' equity

90,702


90,602


90,490


47,586







Asset Quality Ratios:





Non-performing assets to total assets

1.15

%

1.92

%

1.72

%

2.19

%

Non-performing loans to total loans

1.41

%

2.52

%

2.26

%

3.00

%

Total classified assets to total assets

2.04

%

2.13

%

2.75

%

3.69

%

Allowance for loan losses to non-performing loans

75.56

%

48.79

%

58.83

%

49.87

%

Allowance for loan losses to total loans

1.07

%

1.24

%

1.33

%

1.50

%

Net charge-offs to average loans (annualized)

0.79

%

0.44

%

1.11

%

1.52

%






Capital Ratios:





Average equity to average assets

16.62

%

16.54

%

15.64

%

8.90

%

Equity to total assets at end of period

16.94

%

16.68

%

16.44

%

8.14

%

Total capital to risk-weighted assets (Bank only)

18.98

%

18.85

%

18.64

%

12.17

%

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

17.91

%

17.64

%

17.39

%

10.91

%

Tier 1 capital to average assets (Bank only)

12.23

%

12.01

%

11.76

%

7.36

%



Three Months Ended



December 31,

2013


December 31,

2012


Selected Operating Data:





Interest and dividend income

$

4,526



$

5,036



Interest expense

424



626



Net interest income

4,102



4,410



Provision for loan losses

150



330



Net interest income after provision for loan losses

3,952



4,080



Service fees on deposit accounts

1,065



1,169



Gain on sale of loans, net

47



952



Insurance and securities sales commissions

95



223



Gain (loss) on sale of branches and other assets



(22)



Rental income from real estate operations

160



167



Other non-interest income

391



510



Total non-interest income

1,758



2,999



Non-interest expense

5,644



5,814



Income before income taxes

66



1,265



Income tax expense (benefit)

(2)



424



Net income

$

68



$

841










At or For the Three Months

Ended



December 31,

2013


December 31, 2012


Selected Financial Performance Ratios:





Return on average assets

0.05

%


0.64

%


Return on average equity

0.30

%


7.14

%


Interest rate spread

3.47

%


4.00

%


Net interest margin

3.49

%


3.97

%


Non-interest expense to average total assets

4.12

%


4.42

%


Average interest-earning assets to average interest-bearing liabilities

105.19

%


93.64

%







Per Share Data:





Net income per common share

$

0.01



N/A


Average shares outstanding


4,749,422



N/A


Book value per share

$

19.10



N/A












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
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.