RALEIGH, N.C., Nov. 13, 2017 (GLOBE NEWSWIRE) -- 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, released today selected financial information through October 31, 2017, after settlement of all merger consideration for the Sound Banking Company acquisition during the month of October.
Pursuant to the merger agreement, each share of Sound Banking Company common stock was converted upon the effectiveness of the merger into the right to receive either $12.75 in cash or 0.60 shares of West Town voting common stock. Shareholders had the opportunity to elect between West Town common stock, cash or a combination of West Town stock and cash, subject to the limitation that 65% of Sound Banking Company shares would be converted to West Town stock and 35% of shares would be converted to the cash consideration. The election period ended on October 9, 2017, with approximately 83% of Sound Banking Company shareholders making an election (“Electors”). The Electors elected 75.5% stock and 7.5% cash. As a result of the 65% stock limitation, the stock election was prorated using a proration factor of 0.86. The Company issued 698,580 shares of West Town common stock and paid cash consideration totaling $7,996,476 (including cash paid in-lieu of fractional shares) in connection with the acquisition.
| Selected Consolidated Balance Sheet Data (unaudited) | ||||||||||
| In thousands (except per share data) | Ending Balance | |||||||||
| 10/31/17(1) | 9/30/17 | 6/30/17 | 3/31/17 | 12/31/16 | ||||||
| Portfolio loans, net | $ | 356,571 | $ | 347,903 | $ | 198,283 | $ | 173,325 | $ | 167,794 |
| Loans held for sale | 31,676 | 21,023 | 30,166 | 45,266 | 58,923 | |||||
| Investment securities and deposits | 45,705 | 64,970 | 25,953 | 26,807 | 28,399 | |||||
| Loan servicing rights | 5,548 | 5,568 | 5,721 | 5,624 | 5,569 | |||||
| Goodwill | 7,399 | 7,399 | - | - | - | |||||
| Other intangible assets, net | 2,390 | 2,450 | - | - | - | |||||
| Total assets | 486,315 | 487,904 | 283,628 | 275,343 | 280,158 | |||||
| Total deposits | 389,481 | 388,698 | 225,213 | 224,105 | 216,819 | |||||
| Borrowings | 23,813 | 19,309 | 22,599 | 16,000 | 30,000 | |||||
| Shareholders’ equity: | ||||||||||
| Preferred equity | 7,570 | 7,570 | 500 | 500 | - | |||||
| Common equity | 56,673 | 64,578 | 29,370 | 28,796 | 27,915 | |||||
| Accumulated other comprehensive income | 30 | 28 | 50 | 42 | 40 | |||||
| Total shareholders’ equity | 64,273 | 72,176 | 29,920 | 29,338 | 27,955 | |||||
| Total liabilities and shareholders’ equity | 486,315 | 487,904 | 283,628 | 275,343 | 280,158 | |||||
| Common shares outstanding | 2,620 | 1,922 | 1,468 | 1,466 | 1,463 | |||||
| Common book value per share | $ | 21.63 | $ | 24.65 | $ | 20.04 | $ | 19.67 | $ | 19.11 |
| Tangible common book value per share | $ | 17.90 | $ | 20.90 | $ | 20.04 | $ | 19.67 | $ | 19.11 |
| Tangible common book value per share | 10/31/17 | 9/30/17 | 6/30/17 | 3/31/17 | 12/31/16 | |||||
| Non-GAAP Reconciliation | ||||||||||
| Total shareholders’ equity - GAAP | $ | 64,273 | $ | 72,176 | $ | 29,920 | $ | 29,338 | $ | 27,955 |
| Less: preferred equity | 7,570 | 7,570 | 500 | 500 | - | |||||
| Common shareholders’ equity | 56,703 | 64,606 | 29,420 | 28,838 | 27,955 | |||||
| Less: intangible assets (Goodwill and CDI) | 9,789 | 9,849 | - | - | - | |||||
| Tangible common shareholders’ equity – non-GAAP | 46,914 | 54,757 | 29,420 | 28,838 | 27,955 | |||||
| Common shares outstanding | 2,620 | 1,922 | 1,468 | 1,466 | 1,463 | |||||
| Common book value per share | $ | 21.63 | $ | 24.65 | $ | 20.04 | $ | 19.67 | $ | 19.11 |
| Tangible common book value per share | $ | 17.90 | $ | 20.90 | $ | 20.04 | $ | 19.67 | $ | 19.11 |
(1) Selected financial information as of October 31, 2017 does not reflect any quarterly period-end adjustments that may customarily be recorded.
About West Town Bancorp, Inc.
West Town Bancorp, Inc. is the 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 mortgage banking activities and, as such, originate and sell one-to-four family residential mortgage loans in multiple states. 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.
For more information, visit www.westtownbank.com.
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 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 Sound Banking Company acquisition; 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.
Contact: Eric Bergevin, 252-482-4400