Westbury Bancorp, Inc. · OTC:WBBW
Westbury Bancorp — 2014 Sterne Agee Financial Institutions Investor Conference
22 slides from Westbury Bancorp's conference presentation, Feb 13, 2014
Slide 1: Westbury Bancorp, Inc. 2014 Sterne Agee Financial Institutions Investor Conference
245-245-245 1-85-129 84-185-72 Westbury Bancorp, Inc. WBB 2014 Sterne Agee Financial Institutions Investor Conference Investor Presentation February 13, 2014 Raymond F. Lipman – Chairman, CEO & President
Slide 2: Forward-Looking Statements
245-245-245 1-85-129 84-185-72 Forward-Looking Statements This presentation contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “wou
Slide 3: Forward-Looking Statements – Cont’d.
245-245-245 1-85-129 84-185-72 Forward-Looking Statements – Cont’d. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: • our ability to improve our asset quality even as
Slide 4: Franchise Overview
245-245-245 1-85-129 84-185-72 Franchise Overview ► Established in 1926 under the name West Bend S&LA ► Changed name to West Bend Savings Bank in 1993 ► Formed a no-stock MHC – WBSB Bancorp, MHC – in 2001 ► In 2008, acquired Continental Savings Bank, Milwaukee, WI, in a merger of mutually-owned inst
Slide 5: Experienced Management Team
245-245-245 1-85-129 84-185-72 Experienced Management Team ► Raymond F. Lipman – Chairman, Chief Executive Officer & President – Serves as Chairman, CEO & President of Westbury Bancorp – More than 38 years of banking experience ► Greg J. Remus – Chief Operating Officer, Senior Vice President & Chief
Slide 6: Experienced Management Team – Cont’d.
245-245-245 1-85-129 84-185-72 Experienced Management Team – Cont’d. ► Nancie P. Heaps – Senior Vice President of Human Resources and Marketing – Joined Westbury Bank in 1973 – More than 40 years of banking experience ► Andrew M. Narr – Senior Vice President of Commercial Lending and Wealth Manageme
Slide 7: Westbury Bancorp’s Story
245-245-245 1-85-129 84-185-72 Westbury Bancorp’s Story ► Strive to Operate Like a Commercial Bank – Decision made to become more “bank-like” vs. operating as a “traditional” thrift – Focus on growing commercial business, CRE and multifamily loans and increasing transaction accounts – Infrastructure
Slide 8: Westbury Bancorp’s Story – Cont’d. (Loan Portfolio, Asset Quality, Capital)
245-245-245 1-85-129 84-185-72 Westbury Bancorp’s Story – Cont’d. ► Loan Portfolio – We have achieved a broadly diversified loan portfolio – Our team has experience in multiple categories of lending – CRE, multifamily, and C&I – Outstanding loan balances have declined in recent years as a result of
Slide 9: Westbury Bancorp’s Story – Cont’d. (Deposits, Technology)
245-245-245 1-85-129 84-185-72 Westbury Bancorp’s Story – Cont’d. ► Deposits – Nearly 80% of our deposits at 12/31/13 are transaction related (non CD) accounts – #2 market share in Washington County with 15.5% of total market deposits as of 6/30/13 – Average customer age in the low 40s ► Technology
Slide 10: Neighborhood Bank Branding
245-245-245 1-85-129 84-185-72 Neighborhood Bank Branding 10
Slide 11: Historical Assets & Equity
245-245-245 1-85-129 84-185-72 Historical Assets & Equity 11 Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. $644 $625 $579 $526 $543 $536 $55 $53 $46 $47 $91 $91 8.6% 8.5% 8.0% 8.9% 16.7% 16.9% 0.0% 2.0% 4.0% 6.0% 8.0%
Slide 12: Loan Composition and Historical Loan Trends
245-245-245 1-85-129 84-185-72 38.1% 14.2% 32.8% 2.9% 6.9% 5.2% Loan Composition Historical Loan Trends Loan Composition Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. 12 $494 $442 $404 $383 $347 $350 $0 $50 $100 $150
Slide 13: Deposit Composition and Historical Deposit Trends
245-245-245 1-85-129 84-185-72 Deposit Composition Historical Deposit Trends Deposit Composition Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. 13 12/31/13 16.5% 64.1% 19.5% $561 $556 $524 $467 $441 $439 $0 $100 $200 $
Slide 14: Low Cost of Funds
245-245-245 1-85-129 84-185-72 2.37 1.68 1.05 0.68 0.53 0.38 0.00 0.50 1.00 1.50 2.00 2.50 FYE 12/31/09 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 QE1 12/31/13 (% ) Low Cost of Funds Cost of Funds (%) Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year f
Slide 15: Improving Credit Quality: NPAs
245-245-245 1-85-129 84-185-72 $36.0 $30.5 $19.1 $13.2 $10.4 $6.2 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 FYE 12/31/09 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 QE1 12/31/13 ($ i n m illi o n s) NPAs ($mm) Improving Credit Quality Source: Company reports. Note: In 2012, the Company change
Slide 16: Improving Credit Quality: NPAs / Assets
245-245-245 1-85-129 84-185-72 5.60 4.88 3.29 2.50 1.92 1.15 0.00 1.00 2.00 3.00 4.00 5.00 6.00 FYE 12/31/09 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 QE1 12/31/13 (% ) NPAs / Assets (%) Source: Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to Septemb
Slide 17: Asset Quality Profile – Recent Quarters
245-245-245 1-85-129 84-185-72 Asset Quality Profile – Recent Quarters NPAs / Assets (%) LLR / NPLs (%) NCOs / Loans (%) LLR / Loans (%) Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. 17 1.13 1.52 1.11 0.44 0.79 0.00 0
Slide 18: Strong Capital Position
245-245-245 1-85-129 84-185-72 Strong Capital Position ► Westbury maintains a low risk profile with strong capital levels Strong Capital Levels Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. 18 8.6 8.5 8.0 8.9 16.7 16.
Slide 19: Profitability – Recent Quarters
245-245-245 1-85-129 84-185-72 Profitability – Recent Quarters ROAA (%) Efficiency Ratio (%) Net Interest Margin (%) ROAE (%) Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. 19 7.14 2.75 (1.96) 0.96 0.30 (4.00) (2.00) 0
Slide 20: Shareholder Focus
245-245-245 1-85-129 84-185-72 Shareholder Focus ► Grow earnings organically – Infrastructure / team of leaders in place – Use technology to grow revenue (through customers) and stream-line costs ► Capital management – Board intends to consider: – Stock repurchases – Dividend policy ► Acquisitions –
Slide 21: Summary
245-245-245 1-85-129 84-185-72 Summary ► Executive leadership in place ► Future loan growth – “Offense” vs. “Defense” – Commercial lending team in place – Focus now on originating loans and acquiring new customers as opposed to problem asset resolution ► We view ourselves as an innovative community
Slide 22: Questions?
245-245-245 1-85-129 84-185-72 Questions?
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