DISCLAIMER: When you click Accept you will be leaving the West Town Bank & Trust (“the Bank”) website and are going to a website that is not operated by the Bank. We are not responsible for the content or availability of linked sites.
ABOUT THIRD PARTY LINKS ON OUR SITE
The Bank offers links to other third party websites that may be of interest to our website visitors. The links provided in our website are provided solely for your convenience and may assist you in locating other useful information on the Internet. When you click on these links you will leave the Bank’s website and will be redirected to another site. These sites are not under control of the Bank. The Bank is not responsible for the content of linked third party websites. We are not an agent for these third parties nor do we endorse or guarantee their products. We make no representation or warranty regarding the accuracy of the information contained in the linked sites. We suggest that you always verify the information obtained from linked website before acting upon this information. Also, please be aware that the security and privacy policies on these sites may be different than the bank’s policies, so please read third party privacy and security policies closely. If you have any questions or concerns about the products and services offered on linked third party websites, please contact the third-party directly.
Background With $555 million in assets, West Town Bancorp, Inc. is the Raleigh, NC based multi-bank holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are residential mortgage, commercial, and installment loans. Additionally, both banks engage in Government Guaranteed Lending (SBA and USDA) activities as well as mortgage banking activities and, as such, originate and sell loans from multiple states into the secondary markets. Finally, through Windsor Advantage, LLC (“Windsor”), the Company also provides a platform to other banks and credit unions to assist…
RALEIGH, N.C., Feb. 11, 2019 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the multi-bank financial holding company for West Town Bank & Trust and Sound Bank, announced today its financial results for the year ended December 31, 2018. Highlights for the fourth quarter of 2018 and the Company’s year-to-date performance include the following:
Fourth quarter net income of $956,000 or $0.30 per diluted share, compared to $552,000 or $0.20 per diluted share for the fourth quarter of 2017.
Return on average assets of 0.68%, compared to 0.44% for the fourth quarter of 2017.
Return on average common equity of 4.87%, compared 3.62% for the fourth quarter of 2017.
Return on average tangible common equity (a non-GAAP financial measure) of 7.95%, compared to 4.31% for the fourth quarter of 2017.
For the year ending December 31, 2018, net income of $12,136,000 or $3.90 per diluted share, compared to $2,892,000 or $1.54 per diluted share for the year ending December 31, 2017.
Return on average assets of 2.24%, compared to 0.83% for the prior year period.
Return on average common equity of 16.41%, compared to 7.27% for the prior year period.
Return on tangible common equity of 24.05% compared to 10.58% for the prior year period.
Eric Bergevin, President and CEO commented, “The Company’s record earnings in 2018 was the result of execution on our strategic initiatives deployed over the past two years, including the acquisition of Windsor Advantage LLC (“Windsor”) and the expansion of our governmental guaranteed loan (“GGL”) department. As discussed in our second quarter press release, we recorded a gain of $4,776,000 on completion of the Windsor acquisition on April 30, 2018 and earned $2.0 million in net income from operations in the remaining 8 months of 2018 (not including the $933,000 in noninterest income earned prior to the acquisition date). We earned $10.2 million in GGL revenue, a record year for the Company in large part to the ‘originate and hold’ strategy that was put in place during the 4th quarter of 2017 that helped us better leverage our capital and enhance earnings. Additionally, we are quite pleased with the $40.2 million growth in total deposits from the prior year-end, with noninterest-bearing deposit balances accounting for $13.6 million of that total increase. Heading into 2019, the management team is focused on the continued growth of shareholder value.”
Strong Year-Over-Year Loan Balance Sheet Growth
At December 31, 2018, the Company’s total assets were $555,324,000, net loans held for investment were $406,594,000, loans held for sale were $16,552,000, total deposits were $432,917,000 and total shareholder’s equity was $77,570,000. Compared with December 31, 2017, total assets increased $11,190,000 or 2%, loans held for investment increased $31,469,000 or 8%, loans held for sale decreased $50,154,000 or 75%, total deposits increased $40,183,000 or 10% and total shareholders’ equity increased $11,990,000 or 18%. The decrease in loans held for sale was due to the ‘originate and hold’ strategy in the 4th quarter of 2017 that resulted in a large held for sale inventory at year-end.
Noninterest-bearing deposits increased $13,599,000 or 16% year over year, while interest-bearing deposits increased $26,584,000 or 9% during the same time period.
Acquired Loan Summary
The following table presents details of the Company’s acquired loan portfolio:
Dollars in thousands
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
Performing acquired loans
$
85,600
$
98,482
$
107,404
$
121,852
$
132,846
Less: remaining fair market value (FMV) adjustments
(929
)
(1,063
)
(1,181
)
(1,400
)
(1,592
)
Performing acquired loans, net
$
84,671
$
97,419
$
106,223
$
120,452
$
131,254
FMV adjustment %
1.1
%
1.1
%
1.1
%
1.1
%
1.2
%
Purchase credit impaired loans (PCI)
$
4,398
$
4,446
$
5,017
$
5,293
$
5,386
Less: remaining FMV adjustments
(513
)
(554
)
(801
)
(826
)
(832
)
PCI loans, net
$
3,885
$
3,892
$
4,216
$
4,467
$
4,554
FMV adjustment %
11.7
%
12.5
%
16.0
%
15.6
%
15.4
%
Total acquired performing loans
84,671
97,419
106,223
120,452
131,254
Total acquired PCI loans
3,885
3,892
4,216
4,467
4,554
Total acquired loans
88,556
101,311
110,439
124,919
135,808
FMV adjustment %
1.6
%
1.6
%
1.8
%
1.8
%
1.8
%
In comparison to December 31, 2017, the performing acquired loan pool decreased $47,246,000 or 36% due to principal payments and renewals. The PCI loan pool decreased $988,000 or 18% year-over-year due to principal payments, charge-offs and foreclosures.
Capital Levels
At December 31, 2018, both banks’ capital ratios exceeded the minimum thresholds established for well-capitalized banks by regulatory measures.
“Well Capitalized” Minimums
West Town Bank & Trust
Sound Bank
Tier 1 common equity ratio
6.5
%
15.12
%
11.07
%
Tier 1 risk-based capital ratio
8.0
%
15.12
%
11.07
%
Total risk-based capital ratio
10.0
%
16.37
%
11.55
%
Tier 1 leverage ratio
5.0
%
11.40
%
9.42
%
The book value per common share increased from $22.21 at December 31, 2017 to $25.52 at December 31, 2018. The tangible book value per common share (a non-GAAP financial measure) decreased from $19.07 at December 31, 2017 to $15.68 at December 31, 2018 due to the Company’s acquisition of the remaining 56.5% of Windsor which occurred on April 30, 2018. The tangible book value per common share increased from $14.96 at June 30, 2018 (post acquisition) to $15.68 at December 31, 2018.
Asset Quality
The Company’s nonperforming assets to total assets ratio increased 6 basis points from 1.35% at December 31, 2017 to 1.41% at December 31, 2018. Compared to the prior year, non-acquired nonaccrual loan balances grew $320,000 or 5%.
The Company recorded a $434,000 provision for loan losses during the fourth quarter of 2018, as compared to a provision of $1,129,000 in fourth quarter 2017. The Company recorded $334,000 in net charge-offs during the 2018 fourth quarter with the remaining provision expense due to volume growth.
Dollars in thousands
Ending Balance
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
Nonaccrual loans – originated
$
6,538
$
5,806
$
6,233
$
5,910
$
6,218
Nonaccrual loans – acquired
272
280
292
182
413
OREO – originated
723
796
54
54
0
90 days past due – originated
67
3
8
186
0
90 days past due – acquired
251
280
553
594
697
Total nonperforming assets
7,851
7,165
7,140
6,926
7,328
Total nonperforming assets – originated
7,328
6,605
6,295
6,150
6,218
Net charge-offs
$
334
$
725
$
216
$
105
$
543
Annualized net charge-offs to total average portfolio loans
0.31
%
0.68
%
0.20
%
0.09
%
0.54
%
Ratio of total nonperforming assets to total assets
1.41
%
1.30
%
1.31
%
1.26
%
1.35
%
Ratio of total nonperforming loans to total portfolio loans
1.75
%
1.57
%
1.77
%
1.78
%
1.95
%
Ratio of total allowance for loan losses to total portfolio loans
0.97
%
0.95
%
0.95
%
0.97
%
0.91
%
Net Interest Income and Margin
Net interest income for the three months ended December 31, 2018 decreased $1,000 in comparison to the fourth quarter of 2017, while the net interest margin decreased from 4.66% for the fourth quarter of 2017 to 4.26% for the fourth quarter of 2018. The margin compression is largely related to the increase in the cost of funds from 0.93% to 1.33% due to increased deposit competition and interest rates.
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands
Three Months Ended
Twelve Months Ended
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
12/31/18
12/31/17
Quarterly average balances:
Loans
$
424,758
$
426,160
$
435,778
$
446,857
$
400,324
$
433,308
$
280,924
Investment securities
21,060
15,377
13,949
11,353
7,346
15,461
6,014
Interest-bearing balances and other
41,472
28,481
23,258
24,803
37,640
29,546
24,238
Total interest-earning assets
487,290
470,018
472,985
483,013
445,310
478,315
311,176
Noninterest-bearing deposits
96,068
90,073
82,971
82,849
75,707
88,032
39,996
Interest-bearing liabilities:
Interest-bearing deposits
319,900
294,502
292,409
302,119
312,155
302,260
238,327
Borrowed funds
50,792
63,356
78,457
76,422
31,574
67,176
19,340
Total interest-bearing liabilities
370,692
357,858
370,866
378,541
343,729
369,436
257,667
Total assets
553,855
536,172
538,249
536,185
495,958
541,150
347,781
Common shareholders’ equity
77,817
77,129
73,725
67,013
60,432
73,959
39,746
Tangible common equity (1)
47,695
46,667
49,882
57,799
50,795
50,472
36,503
(1) Non-GAAP financial measure. Tangible common equity is calculated by subtracting intangible assets from common shareholders’ equity.
Dollars in thousands
Three Months Ended
Twelve Months Ended
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
12/31/18
12/31/17
Interest Income/Expense:
Loans
$
6,379
$
6,329
$
6,577
$
6,036
$
6,061
$
25,321
$
16,945
Investment securities
171
111
105
64
39
450
144
Interest-bearing balances and other
248
170
126
120
117
665
304
Total interest income
6,798
6,610
6,808
6,220
6,217
26,436
17,393
Deposits
1,169
906
815
771
791
3,661
2,865
Borrowings
396
431
474
378
192
1,679
441
Total interest expense
1,565
1,337
1,289
1,149
983
5,340
3,306
Net interest income
$
5,233
$
5,273
$
5,519
$
5,071
$
5,234
$
21,096
$
14,087
Average Yields and Costs:
Loans
5.96
%
5.89
%
6.05
%
5.48
%
6.01
%
5.84
%
8.06
%
Investment securities
3.25
%
2.89
%
3.01
%
2.25
%
2.12
%
2.91
%
3.19
%
Interest-bearing balances and other
2.37
%
2.37
%
2.17
%
1.96
%
1.23
%
2.25
%
1.68
%
Total interest-earning assets
5.53
%
5.58
%
5.77
%
5.22
%
5.54
%
5.52
%
7.47
%
Total interest-bearing deposits
1.45
%
1.22
%
1.12
%
1.03
%
1.01
%
1.21
%
1.61
%
Borrowed funds
3.09
%
2.70
%
2.42
%
2.01
%
2.41
%
2.50
%
3.05
%
Total interest-bearing liabilities
1.67
%
1.48
%
1.39
%
1.23
%
1.13
%
1.45
%
1.72
%
Cost of funds
1.33
%
1.18
%
1.14
%
1.01
%
0.93
%
1.17
%
1.48
%
Net interest margin
4.26
%
4.45
%
4.68
%
4.26
%
4.66
%
4.41
%
6.05
%
Noninterest Income
Noninterest income for the three months ended December 31, 2018 was $4,717,000, an increase of $3,171,000 or 205% as compared to the same prior year period. Specific items to note for the fourth quarter of 2018 include:
Governmental lending revenue of $1,793,000 was an increase of $1,601,000 or 834% in comparison to the fourth quarter of 2017 primarily due to the originate-and-hold strategy instituted in the fourth quarter of 2017 that compressed gain on loan sales during that quarter; and
Windsor revenue totaled $2,116,000, an increase of 1,913,000 or 924% as compared to the $213,000 income earned from the investment in Windsor during the same prior year period. The increase is directly attributable to the Company’s acquisition of the remaining 56.5% of Windsor on April 30, 2018.
Noninterest Expense
Noninterest expense for the fourth quarter of 2018 was $8,187,000, an increase of $2,290,000 or 39% from $5,897,000 for the three months ended December 31, 2017. Most of the increases in compensation, occupancy, and other operating expenses are related to the inclusion of Windsor expenses for the full three-month period in 2018 as compared to no expenses in the fourth quarter of 2017 as well as new positions and annual salary increases.
Branch Network Reorganization
On July 16, 2018, Sound Bank and West Town Bank & Trust entered into a purchase and assumption agreement pursuant to which Sound Bank would acquire West Town Bank & Trust’s two North Carolina branches located in Edenton, NC and Winterville, NC. The branch transaction closed on October 26, 2018, following receipt of required regulatory approvals. In addition to the transfer of certain real property in Edenton, NC, the branch reorganization resulted in the transfer of approximately $34.1 million in loan assets, $32.7 million in deposit liabilities, and $3.6 million in additional paid in capital to Sound Bank from its sister institution, West Town Bank & Trust.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the multi-bank financial holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank, and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are government guaranteed lending, residential mortgage, commercial, and installment loans. The Company is also the parent company of Windsor Advantage, LLC, a loan servicing company, and West Town Insurance Agency, Inc., an insurance agency. The Company is registered with, and supervised by, the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC. Sound Bank’s primary regulators are the North Carolina Commissioner of Banks and the FDIC.
Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate,” “believe,” variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; recent changes in tax law, including the impact of such changes on our tax assets and liabilities; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition activities; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; the impact of our strategic initiatives on our ability to retain key employees, and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
Consolidated Balance Sheet
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands; unaudited
Ending Balance
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
Assets
Cash and due from banks
$
5,005
$
5,292
$
4,961
$
4,725
$
2,986
Interest-bearing deposits
43,448
38,779
27,532
30,299
40,961
Total cash and cash equivalents
48,453
44,071
32,493
35,024
43,947
Securities available for sale, at fair value
21,332
20,615
13,769
14,171
7,119
Loans held for sale
16,552
15,819
31,994
61,286
66,706
Loans held for investment:
Originated loans
322,038
307,166
294,471
265,887
242,744
Acquired loans, net
88,556
101,311
110,439
124,919
135,808
Allowance for loan losses
(4,000
)
(3,900
)
(3,835
)
(3,791
)
(3,427
)
Net loans held for investment
406,594
404,577
401,075
387,015
375,125
Premises and equipment, net
12,166
12,263
11,586
11,502
11,563
Foreclosed assets
723
796
54
54
0
Servicing assets
3,952
4,280
4,598
4,969
5,237
Bank owned life insurance
9,034
8,977
8,917
8,853
8,796
Accrued interest receivable
1,637
1,758
1,776
1,870
1,544
Goodwill
19,745
19,745
19,745
7,016
7,016
Other intangible assets, net
10,157
10,493
10,837
2,102
2,272
Other assets
4,979
8,100
7,644
15,565
14,809
Total assets
$
555,324
$
551,494
$
544,488
$
549,427
$
544,134
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing
$
97,777
$
94,829
$
88,172
$
86,561
$
84,178
Interest-bearing
335,140
305,257
289,416
298,711
308,556
Total deposits
432,917
400,086
377,588
385,272
392,734
Short term borrowings
27,000
58,400
73,400
81,500
72,100
Long term borrowings
6,781
7,267
7,754
6,314
6,803
Accrued interest payable
868
550
466
389
296
Other liabilities
10,189
8,746
9,600
7,984
6,621
Total liabilities
477,755
475,049
468,808
481,459
478,554
Shareholders’ equity
Preferred stock
0
0
0
0
0
Common stock, voting
2,686
2,666
2,660
2,623
2,623
Common stock, non-voting
329
329
329
329
329
Additional paid-in capital
44,760
44,576
44,429
44,385
44,185
Retained earnings
29,928
29,154
28,436
20,765
18,447
Accumulated other comprehensive loss
(134
)
(280
)
(174
)
(134
)
(4
)
Total shareholders’ equity
77,569
76,445
75,680
67,968
65,580
Total liabilities and shareholders’ equity
$
555,324
$
551,494
$
544,488
$
549,427
$
544,134
Financial Performance (Consolidated)
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands, except per share data; unaudited
Three Months Ended
Twelve Months Ended
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
12/31/18
12/31/17
Interest income
Interest and fees on loans
$
6,379
$
6,329
$
6,577
$
6,036
$
6,062
$
25,321
$
16,946
Investment securities & deposits
419
281
231
184
155
1,115
448
Total interest income
6,798
6,610
6,808
6,220
6,217
26,436
17,394
Interest expense
Interest on deposits
1,169
906
815
771
792
3,661
2,865
Interest on borrowed funds
396
431
474
378
191
1,679
441
Total interest expense
1,565
1,337
1,289
1,149
983
5,340
3,306
Net interest income
5,233
5,273
5,519
5,071
5,234
21,096
14,088
Provision for loan losses
434
789
261
469
1,129
1,953
2,177
Noninterest income
Government lending revenue
1,793
1,121
4,241
3,054
192
10,209
4,095
Mortgage revenue
359
491
868
455
515
2,173
4,707
Service charge revenue
228
196
222
219
203
865
324
Bank owned life insurance income
58
59
64
57
60
238
170
Windsor revenue
2,116
1,791
1,683
0
0
5,590
0
Income from Windsor investment
0
0
369
564
203
933
1,500
Loss on sale of securities
0
0
0
0
0
0
(7
)
Gain on consolidation of Windsor
0
0
4,776
0
0
4,776
0
Other noninterest income
163
211
133
172
373
679
738
Total noninterest income
4,717
3,869
12,356
4,521
1,546
25,463
11,527
Noninterest expense
Compensation
4,689
4,245
4,050
3,266
3,248
16,250
11,342
Occupancy and equipment
536
522
462
413
434
1,933
1,417
Loan and special assets
437
67
407
362
373
1,273
1,087
Professional services
511
437
317
274
313
1,539
1,130
Data processing
381
326
325
313
316
1,345
854
Communication
208
191
203
235
188
837
469
Advertising
135
147
418
54
109
754
369
Loss on sale of foreclosed assets
0
0
41
0
0
41
0
Transaction-related expenses
31
5
74
14
60
124
588
Other operating expense
1,259
1,013
1,118
864
856
4,254
2,323
Total noninterest expense
8,187
6,953
7,415
5,795
5,897
28,350
19,579
Income (loss) before income taxes
1,329
1,400
10,199
3,328
(246
)
16,256
3,859
Income tax expense (benefit)
373
372
2,528
847
(798
)
4,120
967
Net income
$
956
$
1,028
$
7,671
$
2,481
$
552
$
12,136
$
2,892
Basic earnings per common share
$
0.31
$
0.34
$
2.58
$
0.84
$
0.21
$
4.07
$
1.60
Diluted earnings per common share
$
0.30
$
0.33
$
2.47
$
0.80
$
0.20
$
3.90
$
1.54
Weighted average common shares outstanding
3,008
2,996
2,980
2,952
2,649
2,984
1,804
Diluted average common shares outstanding
3,124
3,127
3,115
3,087
2,755
3,110
1,881
Performance Ratios
(Includes Sound Bank as of 9/1/2017)
Three Months Ended
Twelve Months Ended
12/31/18
9/30/18
6/30/18
3/31/18
12/31/17
12/31/18
12/31/17
PER COMMON SHARE
Basic earnings per common share
$
0.31
$
0.34
$
2.58
$
0.84
$
0.21
$
4.07
$
1.60
Diluted earnings per common share
$
0.30
$
0.33
$
2.47
$
0.80
$
0.20
$
3.90
$
1.54
Book value per common share
$
25.52
$
25.31
$
25.11
$
23.02
$
22.21
$
25.52
$
22.21
Tangible book value per common share
$
15.68
$
15.30
$
14.96
$
19.94
$
19.07
$
15.68
$
19.07
FINANCIAL RATIOS (ANNUALIZED)
Return on average assets
0.68
%
0.76
%
5.72
%
1.88
%
0.44
%
2.24
%
0.83
%
Return on average common shareholders’ equity
4.87
%
5.29
%
41.73
%
15.02
%
3.62
%
16.41
%
7.27
%
Return on tangible common equity
7.95
%
8.74
%
61.68
%
18.30
%
4.31
%
24.05
%
10.58
%
Net interest margin (FTE)
4.26
%
4.45
%
4.68
%
4.26
%
4.66
%
4.41
%
6.05
%
Efficiency ratio(1)
82.3
%
76.1
%
56.6
%
60.4
%
87.0
%
67.9
%
76.4
%
(1) Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income, less gains or losses on sale of securities or consolidation.
Background With $551 million in assets, West Town Bancorp, Inc. is the Raleigh, NC based multi-bank holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois and North Carolina, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are residential mortgage, commercial, and installment loans. Additionally, both banks engage in Government Guaranteed Lending (SBA and USDA) activities as well as mortgage banking activities and, as such, originate and sell loans from multiple states into the secondary markets….
RALEIGH, N.C., Nov. 02, 2018 (GLOBE NEWSWIRE) — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the multi-bank financial holding company for West Town Bank & Trust and Sound Bank, announced today its financial results for the quarter ended September 30, 2018. Highlights for the third quarter of 2018 and the Company’s year-to-date performance include the following:
Third quarter net income of $1,028,000 or $0.33 per diluted share, compared to $947,000 or $0.56 per diluted share for the third quarter of 2017.
Return on average assets of 0.76%, compared to 1.09% for the third quarter of 2017.
Return on average common equity of 5.29%, compared 9.62% for the third quarter of 2017.
Return on average tangible common equity of 8.74%, compared to 9.99% for the third quarter of 2017.
Year-to-date net income of $11,180,000 or $3.60 per diluted share, compared to $2,340,000 or $1.47 per diluted share for the nine-month period ending September 30, 2017.
Return on average assets of 2.78%, compared to 1.05% for the prior year period.
Return on average common equity of 20.56%, compared to 9.49% for the prior year period.
Return on tangible common equity of 29.08%, compared to 9.81% for the prior year period.
Eric Bergevin, President and CEO, commented, “2018 is shaping up to be a banner year for the Company due to the impact of the Company’s strategic initiatives deployed, starting with the Sound Bank acquisition that occurred on September 1, 2017:
In comparison to September 30, 2017, portfolio loans have grown 16% and our emphasis on relationship and commercial banking has resulted in a 34% increase in noninterest deposits.
The completion of our acquisition of Windsor Advantage LLC (“Windsor”) has resulted in a net income contribution by Windsor of $1.1 million since the acquisition date of April 30, 2018. This does not include the $933,000 in noninterest income earned prior to the acquisition date.
We have earned revenue of $12.5 million from loan sales in the secondary market due in large part to the ‘originate and hold’ strategy that was put in place during the 4th quarter of 2017.
Our efficiency ratio has improved to 63.3% in the first nine months of 2018 (excluding one-time gains on sale of assets and consolidation) from the 72.6% in the first nine months of 2017.
As anticipated, our third quarter results were down in comparison to the prior two quarters of this year due to the completion of our ‘originate and hold’ governmental guaranteed loan strategy and the inherent seasonal impact tax equity investment has on utility scale solar finance and development. Also, in comparison to the second quarter of 2018, earnings are down due to the pre-tax $4,776,000 gain on the consolidation of Windsor that occurred with the purchase of the remaining 56.5% of Windsor in the second quarter. We anticipate finishing the year strong with a robust governmental guaranteed pipeline heading into the fourth quarter.”
Strong Year-Over-Year Loan Balance Sheet Growth
At September 30, 2018, the Company’s total assets were $551,494,000, net loans held for investment were $404,577,000, loans held for sale were $15,819,000, total deposits were $400,086,000 and total shareholder’s equity was $76,445,000. Compared with September 30, 2017, total assets increased $62,295,000 or 13%, loans held for investment increased $56,291,000 or 16%, loans held for sale decreased $5,204,000 or 25%, total deposits increased $11,388,000 or 3% and total shareholders’ equity increased $11,467,000 or 18%.
Noninterest deposits increased $23,845,000 or 34% year over year while interest-bearing deposits decreased $12,457,000 or 4% during the same time-period.
Acquired Loan Summary
Dollars in thousands
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
Performing acquired loans
$
98,482
$
107,404
$
121,852
$
132,846
142,087
Less: remaining fair market value (FMV) adjustments
(1,063
)
(1,181
)
(1,400
)
(1,592
)
(1,783
)
Performing acquired loans, net
$
97,419
$
106,223
$
120,452
$
131,254
140,304
FMV adjustment %
1.1
%
1.1
%
1.1
%
1.2
%
1.3
%
Purchase credit impaired loans (PCI)
$
4,446
$
5,017
$
5,293
$
5,386
5,657
Less: remaining FMV adjustments
(554
)
(801
)
(826
)
(832
)
(967
)
PCI loans, net
$
3,892
$
4,216
$
4,467
$
4,554
4,690
FMV adjustment %
12.5
%
16.0
%
15.6
%
15.4
%
17.1
%
Total acquired performing loans
97,419
106,223
120,452
131,254
140,304
Total acquired PCI loans
3,892
4,216
4,467
4,554
4,690
Total acquired loans
101,311
110,439
124,919
135,808
144,994
FMV adjustment %
1.6
%
1.8
%
1.8
%
1.8
%
1.9
%
In comparison to September 30, 2017, the performing acquired loan pool decreased $42,885,000 or 31% as of September 30, 2018. The reduction is due to $34,114,000 in net principal payments and $8,884,000 in renewals which moved to the originated category at the time of renewal. The PCI loan pool decreased $798,000 year-over-year due primarily to net principal payments and a $265,000 transfer to foreclosed properties.
Capital Levels
At September 30, 2018, both banks’ capital ratios exceed the minimum thresholds established for well-capitalized banks by regulatory measures.
“Well Capitalized” Minimums
West Town Bank & Trust
Sound Bank
Tier 1 common equity ratio
6.5%
13.3%
11.9%
Tier 1 risk-based capital ratio
8.0%
13.3%
11.9%
Total risk-based capital ratio
10.0%
14.6%
12.2%
Tier 1 leverage ratio
5.0%
11.5%
9.4%
The book value per common share increased from $22.03 at September 30, 2017 to $25.31 at September 30, 2018. The tangible book value per common share decreased from $18.69 at September 30, 2017 to $15.30 at September 30, 2018 due to the Company’s acquisition of the remaining 56.5% of Windsor which occurred on April 30, 2018. The tangible book value per common share increased from $14.96 at June 30, 2018 to $15.30 at September 30, 2018.
Asset Quality
The Company’s nonperforming assets to total assets ratio decreased 38 basis points from 1.68% at September 30, 2017 to 1.30% at September 30, 2018. Excluding acquired loans, the Company’s nonperforming assets to total loans and OREO ratio decreased 116 bps from 3.30% at September 30, 2017 to 2.14% at September 30, 2018 as nonaccrual loan balances have declined and originated loans have increased $101,033,000 during the same 12-month period.
The Company recorded a $789,000 provision for loan losses during the third quarter of 2018, as compared to a provision of $491,000 in third quarter 2017. The Company recorded $725,000 in net charge-offs during the third quarter with the remaining provision expense due to volume growth. Excluding acquired loans, the ratio of allowance for loan and lease losses as a percentage of total originated loans decreased 11 bps from one year earlier, from 1.38% at September 30, 2017 to 1.27% at September 30, 2018.
Dollars in thousands
Ending Balance
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
Nonaccrual loans – originated
$
5,806
$
6,233
$
5,910
$
6,218
$
6,803
Nonaccrual loans – acquired
280
292
182
413
0
OREO – originated
796
54
54
0
0
OREO – acquired
0
0
0
0
0
90 days past due – originated
3
8
186
0
0
90 days past due – acquired
280
553
594
697
1,396
Total nonperforming assets
7,165
7,140
6,926
7,328
8,199
Total nonperforming assets – originated
6,605
6,295
6,150
6,218
6,803
Net charge-offs
$
725
$
216
$
105
$
543
$
230
Annualized net charge-offs to total average portfolio loans
0.68
%
0.20
%
0.09
%
0.54
%
0.34
%
Ratio of total nonperforming assets to total assets
1.30
%
1.31
%
1.26
%
1.35
%
1.68
%
Ratio of total nonperforming loans to total portfolio loans
1.57
%
1.77
%
1.78
%
1.95
%
2.35
%
Ratio of total allowance for loan losses to total portfolio loans
0.95
%
0.95
%
0.97
%
0.91
%
0.81
%
Excluding acquired (Non-GAAP)
Ratio of nonperforming assets to loans and OREO
2.14
%
2.14
%
2.31
%
2.56
%
3.30
%
Ratio of nonperforming loans to loans
1.89
%
2.12
%
2.29
%
2.56
%
3.30
%
Ratio of allowance for loan losses to loans
1.27
%
1.30
%
1.43
%
1.41
%
1.38
%
Net Interest Income and Margin
Net interest income for the three months ended September 30, 2018 increased $1,722,000 or 48% in comparison to the third quarter of 2017 while the net interest margin decreased from 4.58% for the third quarter of 2017 to 4.45% for the third quarter of 2018. The increased net interest income is due to the acquisition of Sound Bank which occurred on September 1, 2017. The margin compression is a combination of a reduction in the yield on earning assets from 5.63% to 5.58% and an increase in the cost of funds from 1.10% to 1.18% due to increased deposit competition and interest rates.
Net Interest Income and Margin
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands
Three Months Ended
Year-to-Date
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
9/30/18
9/30/17
Quarterly average balances:
Loans
$
426,160
$
435,778
$
446,857
$
400,324
$
273,225
$
436,189
$
240,686
Investment securities
15,377
13,949
11,353
7,346
6,944
13,575
5,566
Interest-bearing balances and other
28,481
23,258
24,803
37,640
27,171
25,527
19,722
Total interest-earning assets
470,018
472,985
483,013
445,310
307,340
475,291
265,974
Noninterest-bearing deposits
90,073
82,971
82,849
75,707
40,028
85,324
27,961
Interest-bearing liabilities:
Interest-bearing deposits
294,502
292,409
302,119
312,155
239,475
296,315
213,447
Borrowed funds
63,356
78,457
76,422
31,574
13,748
72,697
15,217
Total interest-bearing liabilities
357,858
370,866
378,541
343,729
253,223
369,012
228,664
Total assets
536,172
538,249
536,185
495,958
343,328
536,869
296,754
Common shareholders’ equity
77,129
73,725
67,013
60,432
40,848
72,659
32,983
Tangible common equity
46,667
49,882
57,799
50,795
37,617
51,408
31,894
Dollars in thousands
Three Months Ended
Year-to-Date
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
9/30/18
9/30/17
Interest Income/Expense:
Loans
$
6,329
$
6,577
$
6,036
$
6,061
$
4,223
$
18,942
$
10,884
Investment securities, tax
111
105
64
39
47
280
105
Interest-bearing balances and other
170
126
120
117
95
416
188
Total interest income
6,610
6,808
6,220
6,217
4,365
19,638
11,177
Deposits
906
815
771
791
712
2,492
2,073
Borrowings
431
474
378
192
102
1,283
250
Total interest expense
1,337
1,289
1,149
983
814
3,775
2,323
Net interest income
$
5,273
$
5,519
$
5,071
$
5,234
$
3,551
$
15,863
$
8,854
Average Yields and Costs:
Loans
5.89
%
6.05
%
5.48
%
6.01
%
6.13
%
5.81
%
6.05
%
Investment securities
2.89
%
3.01
%
2.25
%
2.12
%
2.71
%
2.75
%
2.52
%
Interest-bearing balances and other
2.37
%
2.17
%
1.96
%
1.23
%
1.39
%
2.18
%
1.27
%
Total interest-earning assets
5.58
%
5.77
%
5.22
%
5.54
%
5.63
%
5.52
%
5.62
%
Total interest-bearing deposits
1.22
%
1.12
%
1.03
%
1.01
%
1.18
%
1.12
%
1.30
%
Borrowed funds
2.70
%
2.42
%
2.01
%
2.41
%
2.94
%
2.36
%
2.20
%
Total interest-bearing liabilities
1.48
%
1.39
%
1.23
%
1.13
%
1.28
%
1.37
%
1.36
%
Cost of funds
1.18
%
1.14
%
1.01
%
0.93
%
1.10
%
1.11
%
1.21
%
Net interest margin
4.45
%
4.68
%
4.26
%
4.66
%
4.58
%
4.46
%
4.45
%
Noninterest Income
Noninterest income for the three months ended September 30, 2018 was $3,869,000, an increase of $856,000 or 28% as compared to the same prior year period. Specific items to note:
Windsor revenue totaled $1,791,000, an increase of $1,272,000 or 245% as compared to the income earned from the investment in Windsor during the same prior year period. The increase is directly attributable to the Company’s acquisition of the remaining 56.5% of Windsor that it did not previously own, which acquisition occurred during the 2018 second quarter and resulted in Windsor becoming a wholly owned subsidiary of the Company.
Service charges increased $107,000 or 120% as compared to the third quarter of 2017 due to the acquisition of Sound Bank that occurred on September 1, 2017;
Governmental lending revenue decreased $416,000 or 27% in comparison to the third quarter of 2017; and
Mortgage revenue decreased $208,000 or 30% in comparison to the third quarter of 2017.
Noninterest Expense
Noninterest expense for the third quarter of 2018 increased $2,499,000 or 56% from $4,454,000 for the three months ended September 30, 2017 to $6,953,000 for the three months ended September 30, 2018. The increase is primarily due to the inclusion of Sound Bank and Windsor expenses for the full three-month period in 2018 as compared to one month of expenses included from Sound Bank and no expenses from Windsor in the third quarter of 2017.
Branch Network Reorganization
On July 16, 2018, Sound Bank and West Town Bank & Trust entered into a purchase and assumption agreement pursuant to which Sound Bank would acquire West Town Bank & Trust’s two North Carolina branches located in Edenton, NC and Winterville, NC. The branch transaction closed on October 26, 2018, following receipt of required regulatory approvals. In addition to the transfer of certain real property in Edenton, NC, the branch reorganization resulted in the transfer of approximately $34.1 million in loan assets, $32.7 million in deposit liabilities, and $3.6 million in additional paid in capital to Sound Bank from its sister institution, West Town Bank & Trust. The closing of the transaction, which occurred subsequent to the quarter ending September 30, 2018, is not fully reflected in the results reported in this release.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the multi-bank financial holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank, and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are government guaranteed lending, residential mortgage, commercial, and installment loans. The Company is also the parent company of Windsor Advantage, LLC, a loan servicing company, and West Town Insurance Agency, Inc., an insurance agency. The Company is registered with, and supervised by, the Federal Reserve. West Town Bank & Trust’s primary regulators are the Illinois Department of Financial and Professional Regulation and the FDIC. Sound Bank’s primary regulators are the North Carolina Commissioner of Banks and the FDIC.
Important Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations, and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate,” and “believe,” variations of these words, and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause a difference include, among others: changes in the national and local economies or market conditions; changes in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values; changes in Small Business Administration rules, regulations, or loan products, including the section 7(a) program; changes in other government guaranteed loan programs or our ability to participate in such programs; recent changes in tax law, including the impact of such changes on our tax assets and liabilities; changes in banking regulations and accounting principles, policies, or guidelines; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with the Company’s acquisition activities; the failure of our strategic investments or acquisitions to perform as anticipated and the impact of any impairments to our intangible assets, such as goodwill; and the impact of competition from traditional or new sources. These, and other factors that may emerge, could cause decisions and actual results to differ materially from current expectations. The Company assumes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
Consolidated Balance Sheet
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands; unaudited
Ending Balance
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
Assets
Cash and due from banks
$
5,292
$
4,961
$
4,725
$
2,986
$
7,629
Interest-bearing deposits
38,779
27,532
30,299
40,961
57,502
Total cash and cash equivalents
44,071
32,493
35,024
43,947
65,131
Securities available for sale, at fair value
20,615
13,769
14,171
7,119
7,468
Loans held for sale
15,819
31,994
61,286
66,706
21,023
Loans held for investment:
Originated loans
307,166
294,471
265,887
242,744
206,133
Acquired loans, net
101,311
110,439
124,919
135,808
144,994
Allowance for loan losses
(3,900
)
(3,835
)
(3,791
)
(3,427
)
(2,841
)
Net loans held for investment
404,577
401,075
387,015
375,125
348,286
Premises and equipment, net
12,263
11,586
11,502
11,563
11,693
Foreclosed assets
796
54
54
0
0
Servicing assets
4,280
4,598
4,969
5,237
5,568
Bank owned life insurance
8,977
8,917
8,853
8,796
8,736
Accrued interest receivable
1,758
1,776
1,870
1,544
1,758
Goodwill
19,745
19,745
7,016
7,016
7,016
Other intangible assets, net
10,493
10,837
2,102
2,272
2,450
Other assets
8,100
7,644
15,565
14,809
10,070
Total assets
$
551,494
$
544,488
$
549,427
$
544,134
$
489,199
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing
$
94,829
$
88,172
$
86,561
$
84,178
$
70,984
Interest-bearing
305,257
289,416
298,711
308,556
317,714
Total deposits
400,086
377,588
385,272
392,734
388,698
Short term borrowings
58,400
73,400
81,500
72,100
12,000
Long term borrowings
7,267
7,754
6,314
6,803
7,309
Accrued interest payable
550
466
389
296
218
Other liabilities
8,746
9,600
7,984
6,621
15,996
Total liabilities
475,049
468,808
481,459
478,554
424,221
Shareholders’ equity
Preferred stock
0
0
0
0
7,570
Common stock, voting
2,666
2,660
2,623
2,623
1,922
Common stock, non-voting
329
329
329
329
0
Additional paid-in capital
44,576
44,429
44,385
44,185
37,563
Retained earnings
29,154
28,436
20,765
18,447
17,895
Accumulated other comprehensive income (loss)
(280
)
(174
)
(134
)
(4
)
28
Total shareholders’ equity
76,445
75,680
67,968
65,580
64,978
Total liabilities and shareholders’ equity
$
551,494
$
544,488
$
549,427
$
544,134
$
489,199
Financial Performance (Consolidated)
(Includes Sound Bank as of 9/1/2017)
Dollars in thousands, except per share data; unaudited
Three Months Ended
Year-to-Date
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17
9/30/18
9/30/17
Interest income
Interest and fees on loans
$
6,329
$
6,577
$
6,036
$
6,062
$
4,223
$
18,942
$
10,884
Investment securities & deposits
281
231
184
155
142
696
293
Total interest income
6,610
6,808
6,220
6,217
4,365
19,638
11,177
Interest expense
Interest on deposits
906
815
771
792
712
2,492
2,073
Interest on borrowed funds
431
474
378
191
102
1,283
250
Total interest expense
1,337
1,289
1,149
983
814
3,775
2,323
Net interest income
5,273
5,519
5,071
5,234
3,551
15,863
8,854
Provision for loan losses
789
261
469
1,129
491
1,519
1,048
Noninterest income
Government lending revenue
1,121
4,241
3,054
192
1,537
8,416
3,903
Mortgage revenue
491
868
455
515
699
1,814
4,192
Service charge revenue
196
222
219
203
89
637
121
Bank owned life insurance income
59
64
57
60
42
180
110
Windsor revenue
1,791
1,683
0
0
0
3,474
0
Income from Windsor investment
0
369
564
203
519
933
1,297
Loss on sale of securities
0
0
0
0
(7
)
0
(7
)
Gain on consolidation of Windsor
0
4,776
0
0
0
4,776
0
Other noninterest income
211
133
172
373
134
516
365
Total noninterest income
3,869
12,356
4,521
1,546
3,013
20,746
9,981
Noninterest expense
Compensation
4,245
4,050
3,266
3,248
2,481
11,561
8,094
Occupancy and equipment
522
462
413
434
303
1,397
983
Loan and special assets
67
407
362
373
287
836
714
Professional services
437
317
274
313
155
1,028
817
Data processing
326
325
313
316
247
964
538
Communication
191
203
235
188
112
629
281
Advertising
147
418
54
109
91
619
260
(Gain) loss on sale of foreclosed assets
0
41
0
0
0
41
(165
)
Transaction-related expenses
5
74
14
60
231
93
528
Other operating expense
1,013
1,118
864
856
547
2,995
1,632
Total noninterest expense
6,953
7,415
5,795
5,897
4,454
20,163
13,682
Income (loss) before income taxes
1,400
10,199
3,328
(246
)
1,619
14,927
4,105
Income tax expense (benefit)
372
2,528
847
(798
)
672
3,747
1,765
Net income
$
1,028
$
7,671
$
2,481
$
552
$
947
$
11,180
$
2,340
Basic earnings per common share (1)
$
0.34
$
2.58
$
0.84
$
0.21
$
0.59
$
3.76
$
1.54
Diluted earnings per common share (1)
$
0.33
$
2.47
$
0.80
$
0.20
$
0.56
$
3.60
$
1.47
Weighted average common shares outstanding (1)
2,996
2,980
2,952
2,649
1,626
2,976
1,597
Diluted average common shares outstanding (1)
3,127
3,115
3,087
2,755
1,932
3,106
1,667
Performance Ratios
(Includes Sound Bank as of 9/1/2017)
Three Months Ended
Year-to-Date
9/30/18
6/30/18
3/31/18
12/31/17
9/30/17(1)
9/30/18
9/30/17
PER COMMON SHARE
Basic earnings per common share
$
0.34
$
2.58
$
0.84
$
0.21
$
0.59
$
3.76
$
1.54
Diluted earnings per common share
$
0.33
$
2.47
$
0.80
$
0.20
$
0.56
$
3.60
$
1.47
Book value per common share
$
25.31
$
25.11
$
23.02
$
22.21
$
22.03
$
25.31
$
22.03
Tangible book value per common share
$
15.30
$
14.96
$
19.94
$
19.07
$
18.69
$
15.30
$
18.69
FINANCIAL RATIOS (ANNUALIZED)
Return on average assets
0.76
%
5.72
%
1.88
%
0.44
%
1.09
%
2.78
%
1.05
%
Return on average common shareholders’ equity
5.29
%
41.73
%
15.02
%
3.62
%
9.62
%
20.56
%
9.49
%
Return on average tangible common shareholders’ equity
8.74
%
61.68
%
18.30
%
4.31
%
9.99
%
29.08
%
9.81
%
Net interest margin (FTE)
4.45
%
4.68
%
4.26
%
4.66
%
4.58
%
4.46
%
4.45
%
Efficiency ratio
76.1
%
56.6
%
60.4
%
87.0
%
67.8
%
63.3
%
72.6
%
(1) Calculation of book value per common share and tangible book value per common share for September 30, 2017, includes the 698,580 common shares that were issued in October 2017 for the Sound Bank acquisition and the convertible preferred equity as if converted to 329,130 shares of common stock. These incremental shares are not included in EPS calculations for the quarter ended September 30, 2017.
West Town Bancorp, Inc. Announces Second Quarter 2018 Financial Results.
RALEIGH, NC, August 1, 2018 — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the multi-bank holding company for West Town Bank & Trust and Sound Bank, reported record quarterly net income of $7,671,000 or $2.47 per diluted share for the second quarter 2018 compared to net income of $514,000, or $0.34 per diluted share for the second quarter of 2017, an increase of $7,157,000, or 1,392%. Return on average assets was 5.72% and return on average shareholders’ equity was 41.73% as compared to 0.75% and 6.78%, respectively, in the second quarter 2017….
Background With $549 million in assets, West Town Bancorp, Inc. is the Raleigh, NC based multi-bank holding company for West Town Bank & Trust, a North Riverside, IL based state-chartered bank and Sound Bank, a Morehead City, NC based state-chartered bank. West Town Bank & Trust provides banking services through its offices in Illinois and North Carolina, while Sound Bank provides banking services through its offices in North Carolina. Primary deposit products are checking, savings, and time certificate accounts, and primary lending products are residential mortgage, commercial, and installment loans. Additionally, both banks engage in Government Guaranteed Lending (SBA and USDA) activities as well as mortgage banking activities and, as such, originate and sell loans from multiple states into the secondary markets….
West Town Bancorp, Inc. Announces First Quarter 2018 Financial Results.
Company Release 04/27/2018 08:30 AM Contact: Eric Bergevin, 252-482-4400 RALEIGH, NC, April 27, 2018 — West Town Bancorp, Inc. (OTC PINK: WTWB) (the “Company” or “West Town”), the multi-bank holding company for West Town Bank & Trust and Sound Bank, reported record quarterly net income of $2,481,000 or $0.80 per diluted share for the first quarter 2018 compared to net income of $879,000, or $0.57 per diluted share for the first quarter of 2017, an increase of $1,602,000, or 182%. Return on average assets was 1.88%, and return on average shareholders’ equity was 15.02% as compared to 1.31% and 12.40%, respectively, in the first quarter 2017….
