Westbury Bancorp, Inc. Announces Results for the Three and Nine Months Ended June 30, 2014

WEST BEND, Wis., Aug. 5, 2014

Ray Lipman, Chairman, President and CEO said, "The results for the most recent quarter reflect important ongoing progress that we have made toward our primary goals of growing commercial and retail loans and related deposits.  We have also continued to reduce non-performing assets, reduce operating expenses and increase service fee income.  We believe the incremental improvement in our core earnings for the quarter ended June 30, 2014 will continue in the future as we maintain focus on these goals."

Highlights for the quarter include:

• During the three months ended June 30, 2014, our loan portfolio grew by $24.1 million, or 26.7% annualized growth, consisting primarily of multifamily, construction, single family, and commercial business loans and home equity lines of credit.  Our team of experienced commercial lenders is succeeding in bringing new business to the Bank, allowing us to leverage our capital position and liquidity levels, resulting in net loan growth for each of the last three quarters.
• Our non-performing assets have been reduced to $5.0 million, or 0.90% of total assets, at June 30, 2014, compared to $5.5 million or 1.01% of assets at March 31, 2014 and, $10.4 million, or 1.92% of total assets at September 30, 2013.  In addition, loans delinquent for 30-89 days have decreased to $1.6 million at June 30, 2014 from $1.9 million at March 31, 2014 and $7.8 million at September 30, 2013.  Net charge-offs were (0.16)% for the three months ended June 30, 2014 compared to 0.05% for the three months ended March 31, 2014 and 1.11% for the three months ended June 30, 2013.  These improvements have allowed us to reduce our loan loss provisions to $350,000 for the nine months ended June 30, 2014 compared to $1.3 million for the nine months ended June 30, 2013.
• Service fee income on deposit accounts increased by $103,000, or 10.7%, for the three months ended June 30, 2014 compared to the three months ended March 31, 2014.  Service fee income per account increased during the quarter as new marketing initiatives to increase the number of debit cards outstanding and the number of transactions per card have begun to take effect.  Non-interest bearing checking accounts totaled $77.3 million, or 17.2%, of total deposits at June 30, 2014.  Checking, savings and money market accounts totaled $356.8 million, or 79.5%, of total deposits at that date.
• During the quarter, we closed three branch offices.  Two closings were announced, and real estate was classified as held for sale and related charges were recorded, during the quarter ended March 31, 2014.  Additional valuation losses of $252,000 were recorded in the three months ended June 30, 2014 based on pending offers to purchase after the properties were exposed to the market.  The third branch was operated in a leased facility in West Bend for which the lease expired in June 2014.  The closing resulted in a charge of $46,000 in the three months ended June 30, 2014.  The customers of that branch are being served by our two remaining branches in West Bend.  We believe that the closing and consolidation of these branches will result in reduced operating expenses in the future.
• Recurring non-interest expenses improved to $5.3 million for the three months ended June 30, 2014 compared to $5.8 million for the three months ended March 31, 2014 and $5.8 million for the three months ended June 30, 2013.
• In May 2014, the Company announced a plan to repurchase up to 250,000 shares of its stock.  Through June 30, 2014, we purchased 105,035 shares at an average price of $15.05 per share.  We believe our common stock is an attractive value at current trading prices and that the deployment of a portion of the Company's capital into this investment is warranted.

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 $540 million in assets.  It is the largest bank, and only publicly traded bank, headquartered in Washington County.  Westbury Bank serves communities in Washington and Waukesha Counties through its nine full service offices providing deposit and loan services to individuals, professionals and businesses throughout its markets.

Forward-Looking Information