West Town Bank & Trust (WTWB) Announces Second Quarter 2015 Financial Results

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Jul 30, 2015, 11:18 ET

NORTH RIVERSIDE, Ill, July 30, 2015 /PRNewswire/ -- West Town Bank & Trust (WTWB) today reported net income of $1,066,756 for the second quarter 2015 and $2,015,355 year-to-date as of June 2015 or $0.76 and $1.44 per diluted common share respectively compared to a net income of $520,435 and $947,923 or $.39 and $.71 per diluted share, for second quarter 2014 and June 2014 year-to-date respectively.

Profitability as measured by the Company's annualized return on average assets was 2.02% and 1.20% for the three months ended June 30, 2015 and 2014 respectively. Profitability as measured by the Company's annualized return on average equity was 18.85% and 11.29% for the three months ended June 30, 2015 and 2014 respectively. Year-to-date profitability as measured by the Company's return on average assets and return on average equity was 2.13% and 19.95% respectively.

Net interest income for the quarter ended June 30, 2015 was $3.9 million, compared to $3.2 million for the same period in 2014. Noninterest income for the period ended June 30, 2015 was $12.4 million, compared to $8.1 million for the same period in 2014.

In the second quarter of 2015, the Company's unaudited consolidated total assets decreased $3.3 million to $202.7 million at June 30, 2015, compared to $206 million at March 31, 2015. Excluding held for sale mortgage loans the Bank's Net loan balances increased $9.7 million with a balance of $147.3 million at June 30, 2015, compared to $137.6 million at March 31, 2015. The Company's investment securities decreased $0.3 million to $6.1 million at June 30, 2015, compared to $6.4 million at March 31, 2015. Total deposits have held flat at $162.2 million quarter over quarter. Total stockholders' equity increased $1.3 million from $20.7 million at March 31, 2015, to $22 million at June 30, 2015.

Nonperforming assets, which includes nonaccrual loans and OREO, decreased $1.8 million from $5.3 million at March 31, 2015 to $3.5 million at June 30, 2015. The nonperforming assets consist of $0.3 million in OREO and $3.2 million in nonaccrual loans. For the three months ended June 30, 2015, there was $18 thousand expensed to the provision for loan losses. The allowance for loan losses at June 30, 2015 totaled $1.75 million, or 1.31% of all outstanding loans.

West Town Bank & Trust continues to be well capitalized according to banking regulatory standards with total risk based capital of 14.91%, tier 1 risk based capital of 13.81%, common equity tier 1 risked based capital 13.81%, and a tier 1 leverage ratio of 10.93% at June 30, 2015. The minimum levels to be considered well capitalized for each of these ratios are 10.0%, 8.0%, 6.5%, and 5.0%, respectively.

"At the halfway point of 2015, West Town Bank & Trust continues to trend up in all its financial numbers," said Eric Bergevin, President and CEO of the Bank. "This is due to the diligence of our staff and loyalty of our customers. We will strive to continue providing the type of service our customers have come to expect in order to continue our growth through the remainder of this year and in to 2016."

About West Town Bank & Trust

West Town Bank & Trust is a North Riverside, IL based state chartered bank. The Bank provides banking services through its offices in Illinois and North Carolina and also maintains loan production offices in North Carolina, Maryland, Pennsylvania, Florida, Idaho and New Jersey. Its primary deposit products are checking, savings, and time certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Additionally, the Bank engages in mortgage banking activities and, as such, originates and sells one-to-four family residential mortgage loans in multiple states. The Bank's primary regulator is the Illinois Department of Financial and Professional Regulation.

For more information, visit www.westtownbank.com.

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 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. The Company undertakes no obligation to update any forward looking statements.

Selected Financial Highlights

Year Over Year
June 30, 2015, compared to June 30, 2014

June 30, 2015 earnings of $2 million increased $1.1 million from June 30, 2014
Total portfolio loans increased $24.8 million or 20.19%
Total deposits increased $29.4 million or 22.16%
Net interest margin was 4.6% compared to 4.58%
Net interest income after provision for loan loss increased $963,000 or 35.1%
Total nonperforming assets decreased $1.8 million or 34%
Total shareholders' equity increased $5.0 million or 29.7%

West Town Bank & Trust continued to exceed "well capitalized" requirements for each of the four primary capital levels monitored by state and federal regulators. As of June 30, 2015, Common equity tier 1 capital ratio was 13.95%; Tier 1 capital ratio was 13.95%; Risk based capital ratio was 15.06%; and Tier 1 leverage ratio was 10.93%. Book value per common share increased to $16.29 from $15.70 the previous quarter and from $12.93 at June 30, 2014.

Performance Ratios

Annualized return on average assets was 2.02% compared to 1.20% for quarter ended June 30, 2014. Annualized return on average equity was 18.85% compared to 11.29% at June 30, 2014.

Statement: This news release contains forward looking statements. Words such as "anticipates," " believes," "estimates," "expects," "intends," "should," "will," variations of such words and similar expressions are intended to identify forward looking statements. These statements reflect management's current beliefs as to the expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such 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 banking regulations and accounting principles, policies or guidelines; 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. West Town Bank & trust takes no obligation to revise, update, or clarify forward looking statements to reflect events or conditions after the date of this release.

West Town Bank & Trust (Dollars in thousands)
	Balance Sheet Compare
	Consolidated

	Actual Jun 2015	Actual Mar 2015	Actual Dec 2014	Actual Sep 2014	Actual Jun 2014
Assets
Cash and due from banks	1,200	1,216	1,182	1,217	1,043
Interest bearing deposits with banks	7,152	6,064	5,832	3,670	5,681
Investment Securities - Taxable	6,066	6,379	5,689	5,968	6,265
Mortgage loans held for sale	21,242	35,384	28,718	23,633	23,958
Loans, net of unearned income	149,402	139,356	124,797	125,895	124,299
Less: Allowance for loan losses	-1,750	-1,750	-1,600	-1,600	-1,450
Premises and equipment, net	6,009	6,097	6,206	6,271	6,166
Other real estate	270	55	0	0	663
Other assets	13,494	13,222	12,629	8,512	5,759
Total Assets	203,085	206,023	183,453	173,565	172,384
Liabilities
Total Deposits	162,254	162,212	142,127	139,422	132,816
Accrued expenses and other liabilities	3,793	3,092	2,225	4,077	2,579
FHLB Advances	15,000	20,000	19,000	11,000	20,000
Total Liabilities	181,047	185,304	163,352	154,499	155,395
Equity
Common stock	1,353	1,320	1,314	1,314	1,314
Capital surplus	8,835	8,607	8,553	8,528	8,516
Retained earnings	9,755	9,755	6,125	6,125	6,125
Accumulated other comprehensive income (loss)	80	89	84	83	87
Net Income	2,015	949	4,025	3,016	947
Total Equity	22,038	20,719	20,101	19,066	16,989
Total Liabilities & Equity	203,085	206,023	183,453	173,565	172,384

Income Statement Compare
Consolidated

	QTD Actual Jun 2015	QTD Actual Mar 2015	QTD Actual Dec 2014	QTD Actual Sep 2014	QTD Actual Jun 2014
Interest Income
Interest and fee income on loans	2,561	2,268	2,244	2,062	2,029
Interest income on securities	30	26	37	27	36
Other interest income	8	5	5	4	6
Total Interest Income	2,599	2,299	2,286	2,093	2,071
Interest Expense
Interest on deposits	514	442	404	390	341
Interest on borrowings	5	4	4	4	5
Total Interest Expense	519	446	408	394	346
Net Interest Income	2,080	1,853	1,878	1,699	1,725
Provision for loan losses	18	211	3	444	308
Net In. Inc. After Prov. for Loan Losses	2,062	1,642	1,875	1,255	1,417

Total Non Interest Income	5,867	6,485	5,191	8,174	4,954
Total Non Interest Expense	6,145	6,554	5,428	6,037	5,466
Income Before Taxes	1,784	1,573	1,638	3,392	905
Income taxes	718	624	629	1,323	384
Net Income	1,066	949	1,009	2,069	521