Westbury Bancorp, Inc. · OTC:WBBW
Westbury Bancorp — 2015 Sterne Agee Financial Institutions Investor Conference
27 slides from Westbury Bancorp's conference presentation, Feb 11, 2015
Slide 1: Westbury Bancorp, Inc. 2015 Sterne Agee Financial Institutions Investor Conference
Westbury Bancorp, Inc. WBB 2015 Sterne Agee Financial Institutions Investor Conference Investor Presentation February 11 – 13, 2015 Raymond F. Lipman – Chairman & CEO Greg J. Remus – President & COO Kirk J. Emerich – Chief Financial Officer
Slide 2: Forward-Looking Statements
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,” “would,” “believe,” “contemplate,”
Slide 3: Forward-Looking Statements – Cont’d.
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 we increase our non-residential
Slide 4: Franchise Overview
Franchise Overview ► Completed mutual to stock conversion in April 2013 ► Nine full-service locations with primary markets consisting of Washington and Waukesha Counties ► Closed three branches in the past 12 months ► Strategic focus shifting from thrift to commercial bank business model – Commercia
Slide 5: Desirable Market Demographics
County 2014 HHI Rank1 2019 HHI 5-Year Growth 2014 Pop. Rank1 2019 Pop. 5-Year Growth Ozaukee, WI 75,621 1 81,829 8.2% 87,098 18 88,110 1.2% Waukesha, WI 73,685 2 77,469 5.1% 394,063 3 399,819 1.5% Washington, WI 67,629 3 72,011 6.5% 133,168 11 134,947 1.3% Calumet, WI 66,532 4 71,866 8.0% 49,791 29
Slide 6: Stock and Valuation Highlights
Stock and Valuation Highlights ► Stock data as of December 31, 2014: – MARKET PRICE: $16.40 – SHARES OUTSTANDING: 5,019,849 – MARKET CAP: $82.3 million – PRICE/BOOK VALUE: 95.1% 6
Slide 7: Stock Price Performance
Stock Price Performance 7 (5.0%) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0% 130.0% 140.0% Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 WBB SN
Slide 8: Experienced Management Team
Experienced Management Team ► Raymond F. Lipman – Chairman & Chief Executive Officer – Serves as Chairman & CEO of Westbury Bancorp – Over 40 years of financial services industry experience ► Greg J. Remus – President & Chief Operating Officer – Joined Westbury Bank in 2009 – More than 20 years of c
Slide 9: Westbury Bancorp’s Story
Westbury Bancorp’s Story ► Recent Developments – Promoted Greg Remus to President as of January 1, 2015 – Closed three branches in 2014 due to reduced lobby traffic and slow deposit growth ► Loan Portfolio – Asset quality continues to improve • NPAs of $3.5 million or 0.60% of assets at 12/31/14 – T
Slide 10: Westbury Bancorp’s Story – Cont’d.
Westbury Bancorp’s Story – Cont’d. ► Deposits – 79% of our deposits at 12/31/14 are transaction related (non CD) accounts, including over 27,000 checking accounts – #2 market share in Washington County with 16.1% of total market deposits as of 6/30/14, an increase of 1.60% from 14.5% at 06/30/13 – T
Slide 11: Westbury Bancorp’s Story – Cont’d.
Westbury Bancorp’s Story – Cont’d. ► Earnings/Efficiency – Reduced expenses by $1.0 million in fiscal 2014, excluding one time charges for closed branches. Impact of savings from branch closings and FDIC insurance premium reduction expected to further reduce expenses in fiscal 2015 – Non-interest ex
Slide 12: Neighborhood Bank Branding
Neighborhood Bank Branding 12
Slide 13: Loan Composition
Loan Composition Historical Loan TrendsLoan Composition Source: SNL Financial; Company reports. CRE breakout unavailable 12/31/2010. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th.13 12/31/14 Loan Type ($000) 12/31/10 12/31/11 9/30/12 9/30/13 9/30/14 12/31/14
Slide 14: Deposit Composition
Deposit Composition Historical Deposit TrendsDeposit Composition Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th.14 12/31/14 Deposit Type ($000) 12/31/10 12/31/11 9/30/12 9/30/13 9/30/14 12/31/14 Non-interest Bearing 53,
Slide 15: Low Cost of Funds
1.68 1.05 0.68 0.53 0.43 0.36 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 FYE 9/30/14 QE1 12/31/14 ( % ) Low Cost of Funds Cost of Funds (%) Source: SNL Financial; Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to Sept
Slide 16: Improving Credit Quality – NPAs
$30.5 $19.1 $13.2 $10.4 $3.8 $3.5 0 5 10 15 20 25 30 35 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 FYE 9/30/14 QE1 12/31/14 NPAs ($mm) Improving Credit Quality Source: Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th.16
Slide 17: Improving Credit Quality – NPAs / Assets
4.88 3.29 2.5 1.92 0.67 0.60 0 1 2 3 4 5 6 FYE 12/31/10 FYE 12/31/11 FYE 9/30/12 FYE 9/30/13 FYE 9/30/14 QE1 12/31/14 ( % ) NPAs / Assets (%) Source: Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. Improving Credit Quality 17
Slide 18: Asset Quality Profile – Recent Quarters
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.18 1.15 1.01 0.90 0.67 0.60 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40
Slide 19: Strong Capital Position
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.19 8.5 8.0 8.9 16.7 15.2 14.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0
Slide 20: Profitability – Recent Quarters
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.20 0.05 (1.32) 0.05 0.16 0.31 (1.60) (1.40) (1.20) (1.00) (0.80) (0.60) (0.40)
Slide 21: Improving Core Earnings — Recent Quarters
Pretax, Pre-Provision Earnings1 ($000s) Source: Company reports. Note: In 2012, the Company changed its fiscal year from December 31st to September 30th. (1) Non-GAAP financial measure which Management believes is useful in evaluating the financial results of the Company – see Appendix for Non-GAAP
Slide 22: Shareholder Focus
Shareholder Focus ► Grow earnings organically – Infrastructure/leadership team in place/deep bench of talent – Impact of loan growth and branch closings beginning to show in quarterly results – Loyal local customer base including core deposits – Located in two of Wisconsin’s higher growth markets im
Slide 23: Shareholder Focus – Acquisitions
Shareholder Focus ► Acquisitions – Believe organic growth and capital management tools are currently the best ways to build shareholder value – While acquisitions are not a priority, we would consider an acquisition if the “right” opportunity arose in one of the markets on which we are focused – Fac
Slide 24: Summary
Summary ► Executive leadership in place ► Westbury is an innovative community bank – Strong, recurring fee income stream – Solid base of low cost transaction accounts – Ongoing focus on revenue generation and expense control, leading to improved efficiency ► Strong balance sheet – Strong capital lev
Slide 25: Questions?
Questions? ‘Westbury Bancorp, Inc. ka"
Slide 26: Appendix
Appendix ‘Westbury Bancorp, Inc. ka"
Slide 27: Pretax, Pre-Provision Earnings Non-GAAP Reconciliation
Pretax, Pre-Provision Earnings ($000s) Non-GAAP Reconciliation 27 FQ1 FQ2 FQ3 FQ4 FQ1 2014 2014 2014 2014 2015 Net Interest Income 4,102$ 4,073$ 4,108$ 4,402$ 4,451$ Total Non-Interest Income 1,758 1,427 1,512 1,547 1,674 Less: Gain/(Loss) on sales of branches and other assets 0 (68) (2) 31 18 Less:
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